Press release
Embedded System Market Poised for Strong Growth: Projected to Hit US$ 159.12 Billion by 2031
Embedded System Market
Embedded systems, characterized by their small size, low cost, and low power consumption, have become integral to a wide array of devices, from consumer electronics to industrial machinery. The electronics industry has been witnessing a surge in the development of embedded systems with enhanced microprocessor and microcontroller capabilities, leading to greater processing power, reduced power consumption, and cost-efficiency.
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Virtualization technology, which integrates both real-time and non-real-time components into a single platform, is gaining significant traction in the embedded systems market. This technological trend, coupled with advancements in artificial intelligence (AI), machine learning (ML), machine vision, and high-end GPUs, often referred to as embedded vision, is expected to revolutionize the market. These innovations are projected to drive the adoption of embedded systems across various sectors, positioning them as a game-changer in the industry.
Global Embedded System Market Overview
An embedded system, by definition, is an integrated solution combining hardware and software to fulfill specific real-time requirements. These systems are increasingly becoming a critical component in various industries. Currently, embedded systems account for 40% of the total value of an average car, a figure that is expected to dominate the automotive sector in the coming years. Similarly, embedded software and electronics are anticipated to constitute 45% of the value of industrial automation systems, 70% of consumer electronics, and 45% of medical equipment. The growing penetration of technology in different end-use industries is expected to propel the growth of the embedded system market at an accelerated pace.
Rising Application of Virtualization Technology in Embedded Systems
The growing demand for multicore embedded systems is driving the adoption of virtualization technology in embedded systems. An embedded hypervisor, a software that allows multiple computing environments to operate simultaneously on a single system on a chip (SoC), is becoming increasingly popular. This technology enables embedded systems to boot directly into a virtual machine, providing direct access to system resources, enhancing protection against cyber-attacks, and supporting different processors.
Complex and highly integrated SoCs are becoming the standard as the demand for increased performance, enhanced security, and reliable connectivity rises, all while minimizing power consumption. Embedded virtualization, once exclusive to desktop and server environments, is now a standard practice in resource-constrained embedded systems.
For instance, in February 2022, Northrop Grumman and Curtiss-Wright Corp. announced a partnership aimed at introducing similar approaches to more military embedded systems featured on some in-service U.S. military aircraft. This collaboration is anchored by single-board computers supplied by Curtiss-Wright and Northrop Grumman's Real-time Virtualization & Modernized Protection (ReVAMP) virtualization software.
Automation Activities Driving Demand for Embedded Systems
Automation applications are transforming industries ranging from manufacturing to automotive. Embedded systems are increasingly utilized in automation due to their ability to make devices small, agile, and fast-moving. Network embedded systems, while often complex, are essential for optimizing power efficiency, maximizing performance, and controlling operations in harsh environments.
Standalone embedded systems, designed to endure environmental demands such as temperature extremes, vibration, and shock, are particularly valuable in industrial automation applications. These systems are critical in machine control and machine monitoring, two key use cases in industrial automation. The rise of Industry 4.0 and increased automation activities are expected to boost the demand for embedded systems, driving market revenue.
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Enhanced Graphics, AI & Vision Capabilities in Embedded Systems
The penetration of the Internet of Things (IoT) into various aspects of modern life is driving the adoption of embedded systems with enhanced graphics, AI, and vision capabilities. The increasing deployment of computer vision systems as embedded systems in IoT applications is particularly notable, supported by a wide range of hardware platforms and open-source libraries for AI and ML.
Embedded systems with AI-driven computer vision capabilities are finding applications in manufacturing, Industry 4.0, autonomous vehicles, and robotics. These advancements are expected to significantly impact the embedded system market, driving further growth and innovation.
Regional Market Outlook
Asia Pacific dominated the global embedded system market (Marché des systèmes embarqués) in 2021 and is expected to maintain its leading position throughout the forecast period. The region's market expansion is attributed to the presence of numerous industries and the significant demand for embedded engineering services from various agencies and government sectors.
Emerging trends in the Asia Pacific market, including rising per capita income, large-scale industrialization, and urbanization, are driving market growth. Additionally, the availability of low-cost electronic products in the region is expected to contribute to the growing demand for microprocessors and microcontrollers.
Key Players in the Global Embedded System Market
• Analog Devices
• Broadcom
• Cypress Semiconductor
• Infineon
• Intel
• Marvell
• Maxim Integrated
• Microchip
• Nuvoton
• NXP Semiconductors
• Renesas
• Samsung Electronics
• Silicon Laboratories
• STmicroelectronics
• Texas Instruments
• Toshiba
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