Embedded System Market - Rising Demand for Mobile Devices 2017 - 2025
An embedded system is characterized by a variety of combination of computer hardware and software, designed to meet special functional requirements, programmed to function either as standalone component or fit into some larger electronics system. The versatility of applications of these is attributed to a number of attractive features such as accuracy, speed, reliability, small size, and power. These are programmed to perform real-time operations and have integrated circuits at the heart of the technology. Embedded systems find substantial applications in industrial machines, automobiles, cameras, medical equipment, household appliances, vending machines, and airplanes. They are widely used in graphical user interfaces (GUI) in myriad mobile devices. The vastly rising demand for mobile devices and their burgeoning use among urban populations in various developing and developed nations is a crucial factor boosting the market. In addition, the emerging application of complex automation devices such as robots drives the demand for microcontroller-based embedded systems. For instance, the rising demand for system-on-a-chip (SoC) is a notable trend expected to accentuate the market in the coming years. The proliferation of mobile phones and personal digital assistants (PDAs) is providing a robust fillip to the demand for embedded systems.
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Recent advances made in wireless communication infrastructure are expected to accentuate the growth of the market in the coming years. The emerging prominence of Internet-of-Things (IoT) and machine-to-machine (M2M) communication technologies are expected to present lucrative avenues for market players in the coming years. Furthermore, increasing large-scale deployments of IoT in end-use industries is a significant trend expected to boost the market over the forecast period. The market to an extent is fragmented and over the years the competition among the vendors is expected to intensify. This is expected to reduce their bargaining power, which will significantly affect their pricing strategies.
Global Embedded System Market: Overview
An embedded system consists of a microprocessor or microcontroller and acts as the processing core of a large system in order to perform a particular task. The combination of software and hardware in an embedded system create functional targeting device that has several benefits such as accuracy, adaptability, speed, reliability, small size, and power. With an ability to perform in a real time manner, embedded systems have applications in a number of purposes such as mobile communication, railway ticketing, electronic payments, automobile, and aeronautics. As these systems can be customized and designed according to the need, the adoptability is increasing and consequently, the demand in the global embedded systems market is expected to expand at a robust CAGR during the forecast period of 2017 to 2025.
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Global Embedded System Market: Key Trends
The exponential escalation in the number of mobile users and its deep penetration into the urban population across developed and emerging economies is the primary driver of the global embedded system market. In several countries, consistent emphasis has been given to improve wireless communication infrastructure, owing to increasing number of users with smartphones and tablets with the requirement of internet connectivity. In addition to that, application of embedded computers as network and backend systems in the telecom sector in order to provide higher bandwidth to the consumers is another prominent factor favoring the growth rate of the market.
By application, the global embedded market can be segmented into telecommunication, healthcare, automotive, consumer electronics, industrial, and aerospace and defense. Although the telecom industry currently serves the maximum demand, the prosperity of the automotive industry, especially in the emerging economies, is expected to expand at most prominent rate during the forecast period.
Global Embedded System Market: Market Potential
The Internet of Things (IoT) is poised to open new opportunities in the embedded system market, revolutionizing how machine-to-machine (M2M) communication are done, and in turn not only increase the efficiency of the machines but also negotiate fatal errors. For instance, if an aircraft’s engine sensors detect a mechanical concern, the embedded system can try to diagnose the situation as well as sent information to the appropriate destination. Though IoT is still in its relative nascent stage and there are only a few large-scale deployment of it, together with embedded systems they are opening new opportunities for the players in this market.
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Global Embedded System Market: Regional Outlook
Geographically, the report studies the potential of embedded system market in regions such as North America, Asia Pacific, Latin America, Europe, and the Middle East and Africa. Currently, technologically advanced countries such as the U.S. and Canada make North America the most lucrative region. Asia Pacific, which resides several emerging economies such as India and China, is also expected to expand the demand quickly during the forecast period. The importance of standards-based systems and its growing application in sectors such as healthcare, transportation, and energy are expected to boost the demand from APAC.
Global Embedded System Market: Competitive Analysis
This market is moderately fragmented in nature with a few players holding little over half of the shares. The report identifies Freescale Semiconductor, Samsung Electronics Corporation, and Renesas Electronics Corporation are the leaders in the global embedded system market, whereas Qualcomm, Intel Corporation, Advanced Microdevices, and Samsung Electronics dominate the embedded microprocessor systems segment. Owing to a limited target customer-base, the competition in this market is intensifying among the vendors, which as a result is expected to initiate a price war and result in low bargaining power of vendors as well as increment the adoptability. Radisys, GE, Kontron, Advantech, Eurotech, Mercury, Emerson are some of the other prominent players in the global embedded system market.
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