Embedded System Market Size, By Component (Hardware, [ASIC & ASSP, Microcontroller, Microprocessor, Power Management Integrated Circuit (PMIC), Field Programmable Gate Array (FPGA), Digital Signal Processor (DSP), Memory], Software (OS, Middleware)], By F

Embedded System Market Size, By Component (Hardware, [ASIC & ASSP, Microcontroller, Microprocessor, Power Management Integrated Circuit (PMIC), Field Programmable Gate Array (FPGA), Digital Signal Processor (DSP), Memory], Software (OS, Middleware)], By Function (Standalone System, Real-Time System, Network System, Mobile System), By Application (Automotive, Consumer Electronics, Manufacturing, Retail, Media & Entertainment, Military & Defense, Telecom, Others), COVID-19 Impact Analysis, Regional Outlook, Application Potential, Competitive Market Share & Forecast, 2023 - 2032

Global Embedded Systems Market is expected to grow considerably through 2032. This can be credited to the increasing usage of microprocessors and FPGAs in the industrial segment, attributable to features such as high precision and efficiency.

Besides, technological innovations, as well as lower microcontroller unit prices, are projected to have a favorable impact on the market growth. The demand for next-generation embedded systems is also expected to increase across a variety of application sectors, including healthcare, consumer electronics, aerospace, and automotive.

Global solution providers across embedded systems industry are refining their strategies such as partnerships and acquisitions, product launches, and more, to carve a niche in the marketplace. For instance, in May 2022, Broadcom announced the acquisition of VMware for a transaction value of approximately US$61 billion in cash and stock. The acquisition will help VMware offer customers more options and flexibility to handle the most difficult IT infrastructure problems.

The embedded systems market has been divided in terms of component, function, application, and region.

Based on component, the hardware segment is set to amass US$200 billion in revenue by 2032. Some of the prominent hardware embedded systems include application-specific integrated circuits (ASIC) and products (ASSP), microcontrollers, microprocessors, power management integrated circuits (PMIC), field processing gate arrays (FPGA), digital signal processors (DSP), and memory. Embedded systems are designed to run with little to no human interference. They are useful in industries such as aerospace, automotive, healthcare, and even smart cities. Moreover, they offer various benefits including compact design, simple layout, and low cost, which will help foster the segmental growth.

By function, the embedded systems market is foreseen to garner profitable gains from real-time segment. Growing adoption of real-time systems in applications that call for high responsive rate would prompt the market demand during 2023-2032. Additionally, increasing innovations in the field would add to the industry development. To illustrate, in 2022, Speedgoat launched a new-generation Performance real-time test system. The newly introduced machine is a high performance and scalable test system for rapid control prototyping of control designs and hardware-in-the-loop simulation of digital twins.

With respect to application, the consumer electronics segment is anticipated to expand substantially, credited to their use in products such as microwaves, mobile phones, HVAC (heating, ventilation, air conditioning), and more. Simple embedded systems are used in consumer electronics to provide functionality, gather user feedback, and regulate the appliance in accordance with customer preferences. They may even employ sensors to collect data on how the device is working and change settings accordingly.

From the regional perspective, the Latin America embedded systems market is speculated to grow at more than 3% CAGR from 2023 to 2032. The regional market expansion will be fueled by the emerging government initiatives that work with private industry to build EV charging stations across the Latin American countries. It is imperative to note that Mexico currently has more than 2,500 public EV charging points with most of them being free of cost.