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The Embedded System Market is projected to grow from USD 86.5 billion in 2020 to USD 116.2 billion by 2025; it is expected to grow at a CAGR of 6.1% from 2020 to 2025. Key factors fueling the growth of this market include an increase in the number of research and development activities related to embedded systems, rise in demand for advanced driver-assistance systems (ADAS) and electromobility solutions for electric vehicles and hybrid vehicles, increase in demand for portable devices such as wearables, and rise in the use of multicore processors in military applications.
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Among hardware, the FPGA segment of the market is projected to grow at the highest CAGR from 2020 to 2025
The field-programmable gate arrays (FPGA) segment of the embedded system market is projected to grow at the highest CAGR from 2020 to 2025. The growth of this segment can be attributed to the simple design cycles of FGPA and their ability to reconfigure systems based on the requirements of applications. Moreover, FPGA support parallel computing, which makes them suitable for the rapid prototyping of various digital devices. Various advancements in the telecommunication industry, such as the advent of 5G technology, are expected to drive the growth of the market for FPGA-based embedded hardware globally.
The middleware segment of the embedded system market is projected to grow at a high CAGR during the forecast period
Among software, the middleware segment of the market is projected to grow at a high CAGR from 2020 to 2025. Middleware is an alternative to the embedded operating systems (OS) and can either be incorporated in the OS or integrated with device drivers and OS. Middleware helps in reducing the complexity of applications by centralizing software architecture, usually present in application layers. Moreover, it offers connectivity, intercommunication feature, portability, security, and flexibility, which embedded OS fail to offer in distributed and heterogeneous architectures.
Based on functionality, the real-time embedded systems segment of the market is projected to grow at a high CAGR from 2020 to 2025
The real-time embedded systems segment of the embedded system market is projected to grow at a high CAGR from 2020 to 2025. Real-time embedded systems are dedicated to perform given functions within a specified time frame. Since there is an increasing focus on efficiency and power management in various applications, these embedded systems are increasingly being used in network systems, medical systems, process control systems, robot manufacturing systems, traffic control systems, multimedia systems, etc. Moreover, the rising demand for real-time data and its analysis, along with the requirement of advanced communication infrastructure for technologies such as 5G and artificial intelligence (AI), is expected to lead to demand for real-time embedded systems globally.
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The medium-scale embedded systems segment accounted for the largest share of the embedded system market in 2019
In 2019, the medium-scale embedded systems segment accounted for the largest share of the embedded system market. Medium-scale embedded systems are used for packet processing in network switches and routers and data processing in ultrasonic sensors. These systems form a major part of network and communication applications owing to their excellent power handling capacities. The increasing requirement of fast processing of embedded systems and efficient power consumption are key factors leading to the growing demand for 16-bit and 32-bit microcontrollers. Based on the number of threads and memory requirements, embedded devices commonly use either 16-bit microcontroller or 32-bit microcontroller architectures or a combination of both.
Among industries, the communication segment accounted for the largest share of the embedded system market in 2019
The communication segment accounted for the largest share of the embedded system market in 2019. Embedded systems are used in routers, Ethernet devices, wireless infrastructures, and protocol converters for high-speed data transfer to support the expanding communication infrastructures. Embedded hardware such as FPGA and ASIC are being used in various network and telecom applications. Telecom providers often integrate hard IP for interfaces such as peripheral component interconnect (PCI) Express, 100G Ethernet, and DDR3/4 for high-speed data transfer using embedded hardware such as FPGA. Moreover, technologies such as eASIC, which are cost-effective and meet power targets, are increasingly used in radio access network (RAN) equipment.
APAC is projected to hold the largest share of the embedded system market in 2025
APAC is expected to hold the largest share of the embedded system market in 2025. The growing per capita income and ongoing large-scale industrialization and urbanization are factors driving the growth of the embedded system market in this region. In addition, the availability of low-cost electronic products in APAC is expected to contribute to an increased demand for microprocessors and microcontrollers in the region. The rising use of autonomous robots and embedded vision systems is also projected to lead to an increased demand for embedded system hardware such as microprocessors and controllers for use in industrial applications in APAC.
Intel (US), Renesas (Japan), STMicroelectronics (Switzerland), NXP Semiconductors (Netherlands), Texas Instruments (US), Microchip (US), Cypress Semiconductors (US), Qualcomm (US), Analog Devices (US), and Infineon Technologies (Germany) are the key players operating in the embedded system market. These players are increasingly undertaking strategies such as product launches, expansions, agreements, joint ventures, partnerships, collaborations, mergers, and acquisitions to increase their market share.
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