ID: MRFR/SEM/0535-HCR | February 2021 | Region: Global | 110 pages
Embedded technology is a computer system, a combination of specific software and a set of hardware to carry out certain task regulations. In various industries, the embedded technology is used as an application-specific system. The automotive and telecommunication industry are the major drivers for Embedded Systems Market growth.
Most manufacturing sectors have raised the embedded market level by opting for this technology to minimize labor waste, material, and energy. These embedded systems function as programmable operating systems in the manufacturing sector that carry out multiple tasks such as adjusting networking equipment, controlling assemble line speed, adjusting temperature, driving, and motors. These systems also control, monitor, and assist the operation of plants, equipment, and machinery.
In 2020, Embedded Technology Market estimated registering USD 86.5 billion and predicted to meet USD 116.2 billion by the end of the year 2027, at 6.1% CAGR for the forecast year of 2020 to 2027. The global market is growing because of several major factors such as increasing use of multicore processors in military applications, increasing demand over portable devices like wearable, growing demand for electromobility solutions for electric vehicles and hybrid vehicles, increasing demand for advanced driver-assistance systems (ADAS), and growing investments on the research and development activities related to embedded systems.
The report focuses on explaining the overall market potential of the embedded industry. The report also highlights the market segmentation, dynamics, regional analysis, competitive analysis, recent developments, and other such factors. The market size of the global embedded market was immense in the previous forecast years.
COVID-19 Impact on Global Market
The embedded system market has various major Tier 1 and 2 manufacturer companies that have spread their manufacturing facilities across the world. These companies manufacture the embedded software solutions and hardware components products for various consumer devices, healthcare, communication, automotive, aerospace and defense, and other industrial manufacturers. The ongoing pandemic has impacted the industry's operations and affected the companies' businesses over the products and solutions. The demand for electronic devices had declined due to lockdown and shutdown all over the regions. It had a massive impact on the global semiconductor market.
In the beginning half year of 2020, the Embedded System Market has experienced a continuous fall in consumer demand as all the import and export automotive vehicles were not operative. This pandemic outbreak has slowed down the sales and production of the embedded system. Apart from this, the COVID-19 has increased more demands from the healthcare industry as the requirement for a ventilator and other advanced medical equipment demands arise all over the regions. It is the only positive impact on the global embedded system market for developing various medical equipment.
Global Market Dynamics
Many automotive industries prefer Embedded Technology to redesign their sector. These technological systems are adapted in ADAS technology incorporated in hybrid and electric vehicles. The Surge in demand for ADAS in electric vehicles and hybrid vehicles is the primary driver to the embedded system market's growth.
The report mentions that electric vehicles' sale is registered to meet 41 million by the end of the year 2020. Moreover, the embedded system is meant to offer diverse applications to commercial firms. Therefore, the market is growing, and opportunities are being evolved for better work efficiency.
The growth of the embedded system market is boosting day by day because of more demand for embedded devices' security. The banks, data centers, military forces, and healthcare facilities sectors must protect memory containing information devices from cyber threats and security breaches. These industries are more open to getting threats from the cyber-attacks as it has enfolded with artificial intelligence, connected technologies, and many more. The increasing risk of cybercrime can be a restraint for the IoT & Embedded Technology market due to the lack of a security design system.
Another restraint was the unpredicted pandemic situation, which created a major loss in the global embedded market. The key drivers are working hard to meet the market size for the forecast period.
The growth of the Global Embedded Technology Market is increasing day by day due to the increasing demand for military services and commercial industries. It has given more opportunities to the global market to explore more. The advent of 5G technology has expectations of increasing the growth opportunity for the embedded system market. The 5G market expects to contribute USD 2.2 trillium to the global market by the end of the forecast period 2034, at 5.3% of the worldwide GDP growth. As a result, the embedded market has aimed to achieve its goal for the forecast period.
The COVID-19 has stopped the workforce for some months in the year 2020. But it has brought more energy to the embedded market sector to grow their business with new strategies and planning.
Nowadays, software demands are more in the embedded market, so security for systems becomes the market challenges. The compactness of embedded systems has various functional complexities in their design architectures, leading to increased energy consumption in the embedded system. The high energy consumption of compact embedded systems can be a big challenge for the global market.
Cybersecurity threats can be another biggest challenge for the global market. For the better growth of the Embedded Computing Systems Market, the proper data management and data collection is the major factor. The report explains that the global market's inconsistency challenges arise because of the conventional systems in embedded technology. The global market is working progressively on this issue to get more software solutions.
The increasing demand of the global market has aimed to achieve the Embedded Technology Market Size of 6.1% CAGR for the forecast year of 2020 to 2027. The market size prediction of the forecast period is much higher than the previous report.
Thus, the major key drivers are working very hard in all the regions to achieve more sales targets and more productions for the upcoming years.
Value Chain analysis
The Embedded Technology Market Growth depends on the market value size. The proper understanding of the market value chain can lead the embedded technology in the global market competition.
Many key drivers are involved in developing the products and sales in different countries' regions in the embedded market. Furthermore, the key drivers have taken up new strategies to increase the global market's value.
Market segmentation Overview
According to the segmental classification, the embedded market has various platforms, i.e., Mobile, Web, Cloud, and On-Premise.
The Embedded Technology Market Analysis report mentions that these platforms have unique concepts and functionality for the global market's growth.
The embedded market has various segmental applications in Automotive, telecommunications, Healthcare, Consumer Electronics, Aerospace, and Defence.
The report explains that with the various applications of connected aircraft, the global market demand increases and creates more industrialists' opportunities.
The global market hardware has classification into Digital signal processors, ASIC (Application-specific integrated circuit), Processor IP, Microcontrollers and microprocessors, and FPGA (Field processing gate arrays).
These hardware classifications have given more scope to the global market. The report mentions that the new addition to the existing hardware can help the global market achieve its goal by Embedded Technology Market Forecast year 2027.
The segmental classification of embedded market connectivity has been classified into Operating Systems, Software Development, Testing software, and Open Source Software.
Therefore, the result explains that introducing new technology in the embedded market has developed the global market's growth.
Based on the regional classification, the embedded market is widely spread across various regions of the world. Some of the popular regions are North America, Asia Pacific, Europe, and The Middle East & Africa.
Out of all the regions, Asia-Pacific holds the maximum Embedded Technology Market Share in the entire market due to high consumption of electronic products. It provides a maximum contribution for increasing market revenue generation.
Competitive Analysis of the Global Market
In Embedded Technology Industry, some top key players have given their efforts to grow the market revenue. The major key players are:
The report explains that the embedded market has more competitors in the marketing field. Therefore, these companies have adopted various strategies to spread their business all over the regions. They are working on a supply chain basis and have a targeted audience to meet up their demand.
The holistic study of the global market has covered all the following points:
The report overview has highlighted the overall development and opportunities for the embedded market. The growth has been based on market segmentation, regional analysis, COVID-19 analysis, and other factors to generate the Embedded Technology Market Demand.
|Market Size||2027: Significant Value|
|CAGR||2027: Substantial CAGR|
|Forecast Units||Value (USD Million)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||Platforms, Hardware, Software, Application|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||Texas Instruments (U.S.), Renesas Electronics Corporation (Japan), STMicroelectronics (Switzerland), Samsung (South Korea), Microsoft Corporation (U.S.), Infineon Technologies AG (Germany), Renesas Electronics Corporation (Japan), NXP Semiconductors (Netherlands), Atmel Corporation (U.S.), Infosys Ltd. (India)|
|Key Market Opportunities||high consumption of electronic products|
|Key Market Drivers||increase in demand from automotive and telecommunication industry|
Frequently Asked Questions (FAQ) :
Embedded technology, simply put, is a computer system that includes specific software and a set of hardware to perform certain set of tasks.
Some key applications of embedded technology include healthcare, telecommunication, aerospace and defence, consumer electronics, and automotive.
High adoption of cloud computing and increasing awareness is driving the embedded technology market growth.
The global market has aimed to meet USD 116.2 billion by the end of 2027 at a Compound Annual Growth Rate (CAGR) of 6.1%.
Asia-Pacific has dominated in the embedded market in the forecast period.