Embedded System Market Revenue and Value Chain 2016-2026

An embedded system consists of embedded software into computer-hardware that makes the system devoted for an application or specific portion of an application or part of a larger system. An embedded system is not a microchip deployed in a ‘traditional’ computing application, but a microprocessor used as a module in another piece of technology. These systems are used to control, assist or monitor the operation of machinery, equipment or plant. The term ‘embedded’ reflects the fact that they are an integral part of the system, and they offer significant characteristics such as speed, accuracy, size, reliability and adaptability. Automation in processing & manufacturing sectors, and energy metering is seen as a major propeller for embedded system industry growth.

Embedded System Market: Segmentation

Embedded system market is segmented on the basis of type, microcontroller performance, functionality, end-use industry and region. By type, embedded system market can be segmented into embedded hardware and embedded software. Embedded system market can be segmented according to microcontroller performance which includes small scale embedded system, medium scale embedded system and large scale embedded system. On the basis of functionality, embedded system market can be segmented into stand-alone embedded system, real time embedded system, mobile embedded system and networked embedded system. Regionally, embedded system market can be segmented into North America, Western Europe, Latin America, Eastern Europe, Middle East & Africa (MEA), Asia Pacific excluding Japan (APEJ) and Japan.

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Embedded System Market: Regional Outlook

Embedded systems came into existence with the invention of microcontrollers and since then it is being actively used in machine control applications as well as various new verticals. These systems are now equipped with customizable rich features and are thus gaining popularity globally. North America is estimated to be the leading contributor to the regional market share with large deployments of smart meters and smart grids positively impacting the market. Asia Pacific excluding Japan (APEJ) is anticipated to show highest growth potential in the forecast period.

Embedded System Market: Drivers

The global embedded system market is primarily driven by factors such as increasing demand for embedded systems with multi-core technologies and embedded graphics and escalating demand for embedded systems in the automobile industry. Moreover, persistent research & development to introduce smarter and energy efficient electronic devices is expected to positively impact the growth of global embedded systems market. Also, widespread application of these systems in application areas such as automotive, aeronautics, space, rail, mobile communication, and electronic payment solutions is set to bolster the growth of the global embedded system market during the forecast period. However, security and smaller lifespan concerns associated with usage of embedded systems in various process-related applications is restraining the growth of this market. Also, design constraints pertaining to real time embedded system are also hindering the progression of embedded system market.

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Embedded System Market: Key Players

The key vendors in the embedded system market include Atmel Corporation, Intel Corporation, Texas Instruments, Freescale Semiconductor, Infineon Technologies, NXP Semiconductors N.V., Microsoft Corporation, Samsung Electronics Corporation, Renesas Electronics Corporation, and others. Major players in the embedded system market have invested significantly in developing systems that offer latest technology-based advanced functionality. To expand market presence across the globe, strategic partnership and collaborations with regional vendors is major strategy adopted by the leading vendors of the embedded system market.

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