The global embedded computing market was valued at approximately US$ 34.63 billion in 2018 and is projected to expand at a compound annual growth rate (CAGR) of 8.7% from 2019 to 2027, reaching an estimated US$ 67.29 billion by 2027.
During the forecast period, the embedded computing market is witnessing consistent growth. A significant driver of this expansion is the increasing integration of Internet of Things (IoT) applications across various sectors. Furthermore, the rising demand for enhanced performance, secure connectivity, cost-effectiveness, energy efficiency, and quicker time-to-market are pivotal factors contributing to the market's upward trajectory. Recent advancements in semiconductor design have led to the availability of smaller, more energy-efficient components, enabling design engineers to improve security and system intelligence across a broad spectrum of products. Embedded systems are ideally suited to meet the requirements for these innovative products.
One of the prominent trends expected to shape the embedded computing market in the near future is the swift technological evolution within the telecommunications sector. This industry has historically been a major consumer of embedded computing solutions. The latest breakthrough in telecommunications is the rollout of 5G networks. Cellular providers are heavily promoting 5G, highlighting its capability to achieve peak downlink data rates of up to 5Gbps. The primary goal of 5G technology is to deliver speeds that are 10 to 100 times faster than those of 4G LTE, along with capacity enhancements that are a thousand times greater. As 5G networks continue to proliferate worldwide, the demand for embedded computing solutions is anticipated to rise significantly.
Telecommunications systems incorporate a variety of embedded systems, including routers, modems, network switches, network bridges, and mobile devices. With the advent of advanced technologies like 5G, telecom operators are expected to invest substantially in the deployment and expansion of network infrastructure. Consequently, the demand for individual embedded systems equipped with embedded computing capabilities will also increase correspondingly.
The embedded computing market is categorized based on components, industry verticals, and geographical regions. The component segment includes microprocessors, microcontrollers, application-specific integrated circuits (ASICs), digital signal processors (DSPs), field-programmable gate arrays (FPGAs), memory, and both hardware and software solutions. Embedded computing technology finds applications across various sectors, such as automotive, industrial, transportation, consumer electronics, enterprise and government, communications, and more. Geographically, the market is divided into North America, Europe, Asia Pacific, the Middle East and Africa, and South America. The Asia Pacific region currently leads the embedded computing market. This region comprises numerous developing nations that are experiencing rapid growth in their manufacturing sectors. It has emerged as a global manufacturing hub, hosting a wide array of industries. Several governments have initiated programs like "Made in China 2025" and "Make in India" to stimulate the growth of manufacturing. However, China, the largest manufacturing center, is facing rising labor costs due to its aging population, prompting manufacturers to consider investments in Southeast Asian countries. China retains the largest market share in the Asia Pacific embedded computing sector, being the world's leading producer of passenger vehicles, alongside Japan, India, and South Korea, which are also significant players in the automotive manufacturing landscape.
The overall size of the embedded computing market has been determined through a combination of primary and secondary research methods. The research process begins with comprehensive secondary research utilizing both internal and external sources to gather qualitative and quantitative insights related to the embedded computing market. Additionally, numerous primary interviews are conducted with industry stakeholders and experts to validate the data and analysis. Participants in this process typically include industry professionals such as vice presidents, business development managers, market intelligence managers, and national sales managers, as well as external consultants like valuation experts, research analysts, and key opinion leaders specializing in the embedded computing domain.