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Base Year: 2024
Companies covered: 17
Tables & Figures: 284
Countries covered: 19
Pages: 190
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Embedded Systems Market
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Embedded Systems Market Size
The global embedded systems market was valued at USD 110 billion in 2024 and is estimated to grow at 6.4% CAGR from 2025 to 2034. The rise in the automobile sector is one of the key factors across the globe that fuels the market.
The growing number of vehicles sales depicts the high demand for embedded systems in the market. Embedded systems are required to enhance vehicle safety, and performance, and therefore higher sales of vehicles are directly connected to the growth of embedded systems. According to the International Organization of Motor Vehicle Manufacturers (OICA), the global sales of vehicles reached 92,724,668 units in 2023. The rise in sales of vehicles acts as a catalyst for the embedded systems market to grow as a greater number of control devices are needed in each vehicle.
A regular vehicle contains around 25 to 35 microcontrollers and with the shift towards more advanced vehicles the number of microcontrollers has reached up-to 60 to 70 for a single vehicle. With such a rise in demand for vehicles, the embedded systems are in demand in the current market conditions. For instance, according to the International Energy Agency (IEA), electric car sales in 2023 were 3.5 million higher than in 2022, a 35% year-on-year increase.
Consumer preferences are shifting rapidly towards the adoption of 5G technology. The adoption of 5G technology remains as the prime factor for the embedded system market to grow owing to their use in controlling functions such as network connections, touchscreen interaction and overall device management in mobile phones.
According to the GSM Association, the 5G technology will add USD 1 trillion to the global economy by 2030 with 5G connections rising to 5.3 billion. These growing 5G connections provide a vital opportunity for the embedded systems manufacturers and system integrators to provide solutions to the telecom companies and smartphone manufacturers.
Embedded systems collectively refer to the combination of computer hardware and software for the purpose of specific functions that control several devices. The embedded systems contain microcontrollers, microprocessors, memory and input/output devices which share predefine functions in larger systems. The systems have vast application uses such as in automobiles, medical devices, consumer electronics, household appliances, etc.
Embedded System Market Trends
Embedded Systems Market Analysis
According to the systems, the embedded systems market is classified into hardware and software. The increasing demand for smarter devices is driving integrated embedded systems in the form of hardware and software. Companies working towards the development of hardware and software solution are embracing the new paradigm of AI with the integration of smart features in the appliances used in home and other areas. For instance, Renesas QuickConnect is a cloud-based platform that allows engineers to develop software and hardware simultaneously.
Based on system size, the embedded systems market is divided into small-scale embedded system (8-bit), Medium-scale embedded system (16-32-bit) and large-scale embedded system (Above 32-bit). These system sizes are in need for the growing need of automation, automative innovation and the gain in popularity of IoT. All these areas need different sizes of embedded systems to cater to the specific needs.
Classified by functions, the embedded systems market is segmented into standalone system, real-time system, network system and mobile system.
Based on application, the embedded systems market is segmented into automotive, consumer electronics, manufacturing, retail, media & entertainment, military & defense, Telecom and others. This application widely integrates embedded systems which enhances the existing features in the growing market.
All these applications are progressing with the integration of new embedded systems offering fast and reliable solutions. The use of AI in manufacturing and military divisions entails the growing opportunities of systems integrators in providing smarter solutions for the challenges, reduce the downtime of production and increase the ruggedness of military devices.
The North America embedded systems market is expected to grow at a CAGR of 6.5% in the forecast period. The region has been always at the forefront in adopting new technologies and processes. The region supports the development of newer technologies and invest in research and development. This supports the growing trend of embedded systems in the region.
The Asia Pacific embedded systems market is projected to grow significantly, reaching USD 53.9 billion by 2034. The region is a hub for semiconductor and its development. Embedded systems require the semiconductor chips in their hardware. According to International Federation of Robotics (IFR) Asia pacific region is leading in industrial robots installation.
IFR in September 2024 highlighted that the new world Robotics report recorded 553,052 industrial robots’ installation in factories around the world expediting a growth of 5% as compared to the year 2022. 73% of the newly deployed robots were installed in Asia. This reflects the region will be having increase in demand for embedded systems supported by AI for the industrial processes.
Europe embedded systems market was valued at USD 31.1 billion in 2024. To address the growing needs of growing complexities in the finance sector, there are needs for simplifying payment process. This is creating opportunities in the market of embedded systems. For instance, in October 2024, Worldline and OPP launched embedded payment solution in Europe. Embedded payment systems include split systems, advanced escrow services which are formed for optimization of revenue generation and improve user interaction for platforms.
The embedded systems market in Latin America is expected to grow from 2025 to 2034 and reach a value of USD 15.6 billion by the year 2034. With the growth of automotive sectors and need of safety features in the vehicles the embedded systems market is growing in the Latin America region.
The embedded systems market in MEA is expected to grow from 2025 to 2034 and reach a value of USD 12.6 billion by the year 2034. The Government across the region are investing in the smart infrastructure and digitalization as the projects such as NEOM is creating greater demands of embedded systems technologies.
Embedded Systems Market Share
The embedded systems industry is competitive with the presence of major players Samsung, Qualcomm Technologies Inc., Intel Corporation, Advance Micro Devices, Inc. and Broadcom Limited which together holds a significant market share of around 58%. The adoption of newer technologies through the use of AI and ML is creating a competition in the market amongst these major players to leverage the edge computing and developing software platforms to enhance the existing traditional systems and provide modern solutions for faster and reliable output
Players in the market of embedded systems are forming strategic collaboration to develop the network systems to capture the market share. For instance, in September 2023, Samsung announced collaboration with AMD to advance 5G virtualized RAN (vRAN) for network transformation. Through such initiatives and strategic approach companies are aiming to help operators build and upgrade the mobile network which has optimized performance.
The players in the market are embracing the dynamics of the market through 5G and IoT adoption and providing solutions for connected world. For instance, in April 2024, NXP Semiconductor launched its scalable wireless MCUs series to handle tough IoT and industrial problems.
As the world is adopting the methods of industry 4.0 and consumers are preferencing autonomous vehicles with built in features, the companies are developing scalable solutions that are energy efficient and thus addressing the growing needs of other sectors such as automotive, consumer electronics and manufacturing.
Embedded Systems Market Companies
List of prominent players operating in embedded systems industry include:
Broadcom Limited In the embedded systems market Intel Corporation holds a significant market share. The total revenue of Intel products was 53.1 billion in 2024. This shows that the company is progressing with the launch of new products into the market. The company has been forming strategic partnerships with other players in the market such as AMD for bringing technology for the creation of x86 ecosystem for the purpose of shaping the future of computing architecture. The aim is to provide seamless interoperability across hardware and software. The collaboration between the companies (Intel & AMD) was recently formed in October 2024.
Company like Broadcom Limited provide higher bandwidth connectivity solutions which are critical for data intensive embedded systems in telecommunications and networking sectors. The company excels in providing robust security features within embedded solutions which focuses to enhance the protection against cyber threats across devices. For instance, in October 2024, Broadcom Inc. announced the availability of BCM68660 and BCM55050, which is a silicon 50G PON Optical Line Terminal-Optical Network Unit (OLT-ONU) device having embedded Neural Processing Unit (NPU). With this the telecom operator will be able to use a new application on 50G fibre broadband network.
Embedded Systems Industry News:
The embedded systems market research report includes an in-depth coverage of the industry with estimates and forecast in terms of revenue in USD Billion from 2021 – 2034 for the following segments:
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Market, By System
Market, By System Size
Market, By Function
Market, By Application
The above information is provided for the following regions and countries: