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Embedded System Market - High Demand for Embedded Systems in Smart Electronics to Spur Production Rates

04-17-2017 03:00 PM CET | IT, New Media & Software

Press release from: TMR

The leaders in the global embedded microcontroller systems market in 2014 were Renesas Electronics Corporation, Freescale Semiconductor, and Samsung Electronics Corporation. The three held a collective share of 54.8% of the market value in 2014.

As for embedded microprocessor systems, Intel Corporation, Qualcomm, Samsung Electronics, and Advanced Microdevices had collectively held a share 92% in terms of value in 2014.

According to a new publication by Transparency Market Research, the competitive rivalry in the global market for embedded systems is expected to remain intense over the coming years, owing to the large shares held by a small number of key players. The overall proportion of regional players is extremely small due to the massive amounts of capital required to remain abreast in this fast-paced market.

Most embedded systems manufacturers are directly catering to consumer electronics and are therefore solely reliant on this industry’s demand for their profits and production rates.

Making their products smaller, cheaper, faster, and more reliant are the basic principles that all key players abide by, therefore keeping the rate of technological development as high as possible.

The global market for embedded systems is expected to progress at a CAGR of 6.4% within a forecast period from 2015 to 2021. By the end of 2021, this market’s revenue is expected to reach US$233.19 bn.

Automotive Industry Continues to Report High Demand for Embedded Systems

The automotive industry has consistently provided the top demand for embedded systems over the recent past and TMR analysts believe that the industry will retain its leadership in demand and revenue generation for embedded systems till 2021. By the end of 2021, the revenue for embedded systems from the automotive industry is expected to reach US$42.64 bn, owing to a wide range of applications in modern cars and internal systems.

The demand for consumer electronics is similarly high and is expected to keep increasing over the next few years, owing to a booming consumer electronics industry.

Embedded systems are highly reliant on stable hardware, a fact shown by the dominance of embedded hardware against software. By the end of 2021, the revenue generated by embedded systems hardware is expected to reach US$182.14 bn.

High Demand for Embedded Systems in Smart Electronics to Spur Production Rates

“Smart devices are currently one of the more sought-after electronic devices in the world today, in all industrial and commercial aspects,” states a TMR analyst. “More and more people are seeing the advantage of using mobile devices that can perform special tasks that would otherwise require stationary computers,” the analyst adds.

The recent rate of development of electronics and embedded systems has been particularly strong, creating significant scope of use and functionality of smart devices and connected electronics. The modern embedded systems are used to create and maintain communication between these devices and thus create the smart network that industries are looking for to improve operational efficiency.

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Real-time Computing Load Still a Problem for Embedded Systems

One of the key restraints on embedded systems that affect all manufacturers is the difficulty of achieving high end real time calculations using smaller embedded systems. Airplanes, automobiles, audio electronics, and even military equipment are the more common places where embedded systems need to be extremely small, light, produce the least amount of heat, and consume as little power as possible. This can take a considerable toll on the real-time applications of embedded systems, thereby restricting their current scope of use.

“However, future applications of embedded systems will be greater in scope through the expected development of the system-on-chip technology, where low performance controller based utilities will be integrated on to a microcontroller chip,” states the analyst. This could mitigate the above restraint to a high degree, allowing for a more efficient use of embedded systems in real time calculations.

About Us

Transparency Market Research (TMR) is a market intelligence company, providing global business information reports and services. Our exclusive blend of quantitative forecasting and trends analysis provides forward-looking insight for thousands of decision makers. TMR’s experienced team of analysts, researchers, and consultants, use proprietary data sources and various tools and techniques to gather, and analyze information. Our business offerings represent the latest and the most reliable information indispensable for businesses to sustain a competitive edge.

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