Embedded System Market: Industry Analysis and Opportunity Assessment

The applications of embedded systems have increased drastically over the past years, especially in the automotive industry. Multi-core technologies are being appreciated and are now in great demand across various industry verticals. Embedded graphics systems have now become a mainstay in consumer electronics, which is another industry growing at an exceptional rate.

Healthcare, defense, aerospace, and telecommunications are other industries where the use of embedded systems is bringing about a sea of changes for the better. Embedded systems are also finding a wide range of use in the current high demand concept of smart electronics and connected devices. The cumulative growth in demand for embedded systems through all these application industries is expected to be a high impact driver for its global market and all its players.

There is, however, a major constraint on the production of embedded system, and that is the set of complications that arise on real time embedded systems implementations. Real time applications impose a very high strain on embedded systems that are already restricted by regulatory concerns over cooling, weight, power, size, and reliability. This can be mitigated to a large degree through the implementation of modern low-energy consumption embedded systems and low performance controller applications.

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The revenue generated in the global market for embedded systems is, as a result, expected to progress at a strong CAGR of 6.4% from 2015 to 2021. This market is expected to reach US$233.19 bn by the end of 2021.

By the end of 2021, the demand for embedded systems in North America is expected to generate a revenue of US$89.87 bn, which will be the leading share at the time. The demand for embedded systems in this region has always been very high due to a head start this region gained from early penetration in the U.S. This region has housed a great number of the key players currently functioning in the global market, including Intel Corporation, Texas Instruments, and Freescale Semiconductor. The high level of research and development efforts taken by these companies has increased the self-reliance of the embedded systems market in North America and eventually had a positive impact on the global market as well.

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Asia Pacific held the second place in the top revenue generating regions for embedded systems players in 2014 and is expected to retain its position till 2021. China, Taiwan, South Korea – to name a few – are well on their way towards large scale implementation of modern embedded systems in automotive and consumer electronics industries. The region is expected to see a boom in the demand for embedded systems in the healthcare sector over the coming years.

The demand for embedded systems in the automotive industry is expected to take up 18.3% of the market value by 2021. This will be a leading share, similar to this industry’s share in market value in 2014. Automobiles are one of the more perfect application fields for embedded systems due to the small size of these systems. They can easily fit into various components in a car, which has led to car makers evolving their designs and concepts around the use of embedded systems and other electronics.

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The true value of embedded systems has only been realized by industries over the past few decades. The increase in mobility that embedded systems provide in the industries of automotive, defense and aerospace, and consumer electronics is quite massive and it does not seem to be diminishing any time soon. Embedded systems have come a long way from their use in business-critical and safety-critical applications and are now being used in products that are designed around them.

The top providers of embedded systems across the globe include Renesas Electronics Corporation, Freescale Semiconductor, Samsung Electronics Corporation, Atmel Corporation, Infineon Technologies, STMicroelectronics, Fujitsu, Microchip Technologies, and Texas Instruments.

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