Embedded System Market

Rajesh Uppal May 1, 2023 Electronics & EW, Industry Comments Off on Embedded System Market 148 Views

An “embedded system” is a word made by shortening “computer embedded system” meaning a system product or an electronic device into which a computer has been integrated. An embedded system is a controller that sits within a larger system in order to perform a dedicated function. An embedded system is typically some combination of hardware and software, either fixed in function or programmable. An embedded system could be designed to support a specific function, or specific functions with-in a larger system.

Depending on its required functionality the complexity of an embedded system can vary significantly ranging from a single microcontroller to a suite of chips with connected peripherals and networks such as multifunction I/O boards, rugged systems, single-board computers, and general-purpose graphical processing units.

Embedded systems form a ubiquitous, networked, computing substrate that underlies much of modern technological society.Embedded systems represent key enabling technology for the smart, connected products, machines, and systems that comprise the Industrial Internet of Things (IIoT) and support the overall digital transformation of industry.

Such systems range from large supervisory control and data acquisition (SCADA) systems that manage physical infrastructure to medical devices such as pacemakers and insulin pumps, to computer peripherals such as printers and routers, to communication devices such as cell phones and radios, to vehicles such as airplanes and satellites. They range from portable devices such as digital watches and MP3 players, to large stationary installations like traffic lights, factory controllers, and largely complex systems like hybrid vehicles, MRI, and avionics.

Embedded systems are becoming an integral component of almost everything in our lives from digital consumer electronics include set-top boxes, DVDs, high definition TVs and digital cameras. Embedded systems in automobiles include motor control, cruise control, body safety, engine safety, robotics in an assembly line, car multimedia, car entertainment, E-com access, mobiles etc.

Embedded systems in telecommunications include networking, mobile computing, and wireless communications, etc. Embedded systems in smart cards include banking, telephone and security systems. Embedded systems in computer networking & peripherals include image processing, networking systems, printers, network cards, monitors and displays.

Global Embedded System Market

The global embedded computing market size was estimated at USD 88.35 billion in 2020, and rose to USD 95.8 billion in 2021. It was estimated to be USD 102.82 Bn in 2022 and is projected to reach USD 139.23 Bn by 2027, growing at a CAGR of 6.25%.

The surge in consumer electronics use and the increased use of artificial intelligence in a number of applications around the world have boosted the market for embedded computing. The development of technology in the healthcare and industrial sectors, as well as the rise in demand for automated processes in the automotive and smart home appliance industries, are other factors that influence the global embedded computing market.

An embedded system is designed to fulfil real-time requirements using a combination of hardware and software. Embedded systems, presently, account for 40% of the total value of an average car, and this is expected to dominate the automotive sector. Likewise, embedded software and electronics are projected to constitute 45% of the value of industrial automation systems, 70% of consumer electronics, and 45% of medical equipment. Rise in penetration of technology in different end-use industries is anticipated to boost the embedded system market growth at higher rate. Rise in penetration of technology in different end-use industries is anticipated to boost the embedded system market growth at higher rate.

Opportunities

Advent of 5g and Development of 5g-based Embedded Devices
Rapid Adoption of Embedded Systems in Smart Homes
Increase in Demand for Iot-based Embedded Systems
Innovations in Advanced Packaging Systems Used for Semiconductor Products

Restraints

Vulnerability of Embedded Systems to Cyber Threats and Security Breaches
Short Product Lifecycle and High Production Costs Associated With Development of Embedded Systems

Rise in Application of Virtualization Technology in Embedded Systems

An embedded hypervisor is software that enables multiple computing environments to run simultaneously on a single system on a chip (SoC). Virtual machine (VM) technology uses a hypervisor that creates multiple virtual copies of a computer, each to be used by a single application as if it were the only one running.

Increasing demand for multicore embedded systems is boosting the applications of virtualization technology in embedded systems. An embedded hypervisor enables embedded systems to boot the system directly to a virtual machine, provide direct access to system resources, offer strong protection against cyber-attacks, and help provide support to different processors.

Complex and highly integrated SoCs are increasingly becoming the standard choice, as demand rises for increased performance, enhanced security, and reliable connection options all while using less power. Many solutions have arisen to meet these demands, with embedded virtualization being one of the most effective. What was once considered exclusive to desktop and server contexts is currently standard practice in resource-constrained embedded systems.

Based on component, the hardware segment has had highest market share 64% in 2021. However, the software segment is anticipated to grow at a noteworthy CAGR from 2022 to 2030.

Based on end user, the communication segment accounted largest share of around 29% in 2021. However, the automotive segment is forecast to grow at a notable CAGR between 2022 to 2030.

Market Segmentations

The Global Embedded System Market is segmented based on Hardware, Software, System Size, Functionality, Application, and Geography.

By Hardware, the market is classified into Microcontrollers, Application-specific Integrated Circuits, Power Management Integrated Circuits, Microprocessors, Field-programmable Gate Arrays, and Digital Signal Processors Memories.
By Software, the market is classified into Operating Systems and Middleware.
By System Size, the market is classified into Small-scale Embedded Systems, Medium-scale Embedded Systems, and Large-scale Embedded Systems.
By Functionality, the market is classified into Real-time Embedded Systems and Standalone Embedded Systems.
By Application, the market is classified into Communication, Consumer Electronics, Industrial, Healthcare, Aerospace and Defense.
By Geography, the market is classified into Americas, Europe, Middle-East & Africa and Asia-Pacific.

Medium-scale embedded systems segment dominated the global embedded system market and held the largest market share and valued at USD 63.93 billion in the year 2020

The system size segment includes small-scale embedded systems, medium-scale embedded systems, and large-scale embedded systems. Medium-scale embedded systems segment dominated the global embedded system market and held the largest market share and valued at USD 63.93 billion in the year 2020. Embedded systems which used 16-bit to 32-bit microcontrollers are the medium-size embedded systems. Increasing demand for medium-size embedded systems in the home appliances and telecommunications driving the growth of the market.

The healthcare segment is projected to grow at the highest CAGR of 7.6% over the forecast period

The industry vertical segment is classified into automotive, healthcare, industrial, aerospace and defence, consumer electronics, communication, energy, and others. The healthcare segment is projected to grow at the highest CAGR of 7.6% over the forecast period. Increasing application of embedded systems in the healthcare devices such as vital sign monitoring, CT scan, MRI, and imaging devices is boosting the growth of the market.

Regional Insights

North America region dominated the market with revenue share of around 43% in 2021. However, Asia-Pacific is anticipated to grow at a significant CAGR over the forecast period.

The highest market share and dominant position in the embedded computing industry belongs to North America. The strong rate of technological adoption and the existence of significant providers in North America are related. Demand for embedded computers is also rising as a result of the expanding IoT applications and robotics businesses in the area. Additionally, a robot-housed embedded system connects all of the different components. Robots would be reliant on external computing systems without an embedded system, raising the risk of communication glitches and delays between the robot and its external control system.

Asia-Pacific is considered as one of the leading regions in the embedded computing market. This region includes China, Japan, India, and rest of the world. During the forecast period, the market in Asia Pacific is anticipated to grow at a significant CAGR. Rising per capita income and continuous, extensive urbanization and industrialization are reasons that are driving Asia Pacific’s embedded computer industry forward. Additionally, it is anticipated that the availability of inexpensive electronic goods in Asia and the Pacific will increase demand for microprocessors and microcontrollers in the region. High demand for embedded system hardware, such as microprocessors and controllers, is anticipated in Asia Pacific due to the growing use of autonomous robots and embedded vision systems in industrial applications. Throughout turn, this raises demand in Asia Pacific during the subsequent years.

Some of the key players in the global embedded system market are Intel, Renesas, STMicroelectronics, NXP Semiconductors, Texas Instruments, Microchip, Cypress Semiconductors, Qualcomm Analog Devices, and Infineon Technologies, among others. The key players are now concentrating on implementing strategies such as adopting new technology, product innovations, mergers & acquisitions, joint venture, alliances and partnerships to improve their market position in the global customer data platform industry.

References and Resources also include:

https://www.precedenceresearch.com/embedded-computing-market