Embedded Software Market revenue worth $21.5 BN by 2027

Embedded Software Market size is set to surpass USD 21.5 billion by 2027, according to a new research report by Global Market Insights Inc.

The rising adoption of IoT-enabled embedded operating systems in medical devices to deliver increased connectivity and technology solutions will accelerate the embedded software industry growth. It is used in MR imaging devices and CT scans to improve service quality and effectiveness for patients in the hospital.


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Moreover, increasing demand for ventilators and modern medical equipment amid the COVID-19 pandemic has positively influenced the market. Many embedded hardware components, such as microcontrollers, glucose meters, imaging systems, and others, are used in the development of advanced ventilators and other medical equipment fueling the embedded software market demand. For instance, in June 2020, Athenahealth, a cloud IT service provider for healthcare, introduced a new embedded EHR telehealth tool for physicians. It enables them to conduct HIPAA-compliant telehealth visits more efficiently inside practice workflows such as scheduling to patient messaging, simultaneous-encounter documentation, video conferencing, and invoicing.

Embedded Software Market Share, By Operating System

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Rising technological advancements and an increased capability to carry data from converged networks are augmenting the adoption of embedded software in the defense & military sector. Additionally, the need for high-security solutions to prevent reverse engineering or data interpretation in various military applications, such as surveillance & reconnaissance UAVs, computing, communication, cybersecurity, military vehicle electronics, and others, is also boosting the embedded software industry revenue. Rising government investments to develop innovative defense solutions is fostering the market growth. In August 2018, the U.S. Department of Defense granted USD 28 billion to 15 companies for research & development in defense sector.

The security of embedded software devices is one of the primary issues restricting the market growth. Military & defense forces, banks & financial institutes, and healthcare institutions rely on the information stored in embedded devices for their operations. As a result, they must safeguard their data and memory devices from assaults as these software programs are vulnerable due to infrequent security updates, a long device lifecycle, remote deployment, attack replication, and other factors.

Increased adoption of AI-powered solutions in industrial automation will fuel the market revenue

The real time operating system accounted of more than 40% of the embedded software market share in 2020 and is anticipated to grow at 8% CAGR through 2027. Increased adoption of AI-powered smart devices with cloud computing, open-source software, and hardware elements in industrial automation is enhancing the market demand. The rising need for high-speed, efficient & time-synchronized devices in industrial automation networks will propel the usage of RTOS systems in industrial processes.

Browse key industry insights spread across 255 pages with 335 market data tables and 34 figures & charts from the report, “Embedded Software Market Size By Operating System (General Purpose Operating System (GPOS) {Windows, Linux, Android}, Real Time Operating System (RTOS) {VxWorks, QNX, FreeRTOS, ARM Mbed}), By Function (Standalone System, Real Time System, Network System, Mobile System), By Application (Automotive, Consumer Electronics, Manufacturing, Healthcare, Military & Defense, IT & Telecom), COVID-19 Impact Analysis, Regional Outlook, Growth Potential, Price Trends, Competitive Market Share & Forecast, 2021 – 2027” in detail along with the table of contents:

The increased penetration of Industry 4.0 solutions, such as intelligent business, process automation, connectivity, advanced analytics & manufacturing, and others, to improve industrial operations is one of the factors boosting the demand for RTOS embedded software. In May 2020, IntervalZero launched the RTX64 4.0 software, which includes architectural breakthroughs to deliver unmatched determinism for Industrial PC-based (IPC) machine controllers, particularly in the context of real-time networking. This software transforms Windows, an operating system, into an RTOS.

FreeRTOS is expected to hold a major share through 2027 as it provides high configuration, different methods for multiple tasks, software timers, and tickless idle mode for low-power applications such as microcontrollers, microprocessors & others. In June 2021, XMOS, a UK-based chip company, launched a Symmetric Multiprocessing (SMP) FreeRTOS solution in collaboration with Amazon Web Services (AWS). The launch will allow electronic manufacturers to use XMOS’s chipset to build complex embedded systems easier and faster.

The growing need for IoT technology in industrial applications for maximum efficiency will drive the demand for real-time systems market

The embedded software market from real-time system captured over 40% revenue share in 2020 and is projected to register 8% growth rate till 2027. Increasing need for real-time analysis and functioning of the group instructions to achieve maximum efficiency and optimized productivity in a variety of industrial applications such as automated product assembly plants and chemical plants among others. The increased adoption of the Internet of Things (IoT) in various industries for connected devices, smart environments & platforms to perform real-time data processing is one of the contributing factors boosting the segment growth.

However, major players in the market are planning to create a strategic collaboration or alliance to develop innovative solutions for real-time data processing. For instance, in February 2021, IBM announced that it is collaborating with Siemens and RedHat to develop & launch a hybrid cloud-designed real-time system to offer safe & flexible solutions for various manufacturers to drive real-time value from the industrial IoT data.

Increasing demand for autonomous cars will fuel the usage of embedded systems in the automobile sector

The automotive industry is set to witness around 9% CAGR from 2021 to 2027 on account of the rising adoption of a range of government initiatives to promote the demand for electric cars and connected vehicles around the globe. For instance, in February 2021, Singapore’s finance minister announced various initiatives to promote the adoption of electrified vehicles in the country, such as a 45% rebate on Additional Registration Fee (ARF), followed by investing USD 22.9 million in EV-related infrastructure development and others.

Increasing government initiatives to accelerate the consumer electronics manufacturing sector

Asia Pacific embedded software market is estimated to grow at a CAGR of 7% through 2027 driven by a rising need for customizable & advanced consumer electronics and other industrial electronic products. Governments of emerging countries, such as India, Japan, and South Korea, have initiated several steps to boost their economic growth.

The key market players include Mentor Graphics, National Instruments, IBM, Intel, Microsoft, Advantech, HCL, Qualcomm, Dexcel, and Graphene, among others. The players are focusing on expanding their market share by investing in acquisitions and mergers to stay competitive in the industry.

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