Key Trends and Insights into the Embedded Computing Market: Growth Rate and Opportunities to 2034
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How has the embedded computing market grown in recent years?
The magnitude of the embedded computing market has seen substantial expansion in recent times. The market size is projected to rise from $42.39 billion in 2024 to $45.72 billion in 2025, registering a compound annual growth rate (CAGR) of 7.8%. This notable growth in the earlier period could be linked to the development of microprocessor technology, a surge in consumer electronics, the emergence of the internet of things (IoT), the spread of automotive electronics, and a heightened demand for mobile devices.
How is the embedded computing market size expected to evolve during the forecast period?
The market size for embedded computing is predicted to experience a significant increase in the coming years. The expected growth is to reach $65.74 billion by 2029, with a compound annual growth rate (CAGR) of 9.5%. The surge during the projected period can be linked to the broadening of edge computing applications, amplified use of embedded systems in medical devices, and an increase in cybersecurity issues pushing for embedded security solutions. Furthermore, expansion in the autonomous vehicles market also contributes to the growth. Key trends during the projected period encompass the proliferation of edge computing, the advancement of energy-efficient embedded devices, expansion of embedded vision systems, an intensified focus on open-source embedded software, and the implementation of solidified embedded solutions in severe environments.
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Which key drivers are propelling the embedded computing market’s growth?
The growth of the embedded computing market is anticipated to be driven by the escalating use of consumer electronics. Consumer electronics (CE) applies to all electronic devices expressly designed to be bought and utilized daily for non-commercial or non-professional purposes by consumers. The incorporation of an embedded system in electronic products provides revolutionary functionalities, seamless communication, superior performance, and enhanced efficiency, greatly influencing the ever-evolving consumer electronics landscape. For example, Australia’s exports of electrical and electronic equipment amounted to $3.56 billion in 2022, as per data from the United Nations COMTRADE, a U.S.-based intergovernmental organization, in March 2023. Furthermore, India’s export of electronic goods witnessed a considerable upswing of nearly 88%, going from $6600 million in 2013-14 to $12,400 million in 2021-22 in February 2022. Consequently, the burgeoning adoption of smartphones is fueling the expansion of the embedded computing market.
What are the market segments in the embedded computing industry?
The embedded computing market covered in this report is segmented –
1) By Type: Hardware, Software
2) By Function: Real-Time, Standalone, Mobile, Networked
3) By End User: Automotive, Industrial, Healthcare, Retail, Consumer And Smart Home, Other End Users
Subsegments:
1) By Hardware: Microcontrollers, Microprocessors, System-On-Chip (SoC), Development Boards, Memory Devices, Input Or Output Devices
2) By Software: Operating Systems, Middleware, Application Software, Development Tools, Real-Time Operating Systems (RTOS)
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Which leading companies are shaping the growth of the embedded computing market?
Major companies operating in the embedded computing market include Microsoft Corporation, Dell Inc., Intel Corporation, The International Business Machines Corporation, Qualcomm Technologies Inc., Fujitsu Limited, Advanced Micro Devices Inc., Texas Instruments Inc., MediaTek Inc., STMicroelectronics N.V., Infineon Technologies AG, NXP Semiconductors N.V., Renesas Electronics Corporation, Microchip Technology Inc., Super Micro Computer Inc., Arm Holdings plc, Nuvoton Technology Corporation, DataArt, N-iX, Axiomtek Co. Ltd., Yalantis, Congatec AG, Vates, CHI Software, Solw’IT SA, Softeq, ITRex Group, Interelectronix e.K., Smart Embedded Computing Inc.
What key trends are currently impacting the embedded computing market’s development?
One notable trend burgeoning within the embedded computing industry is product innovation. Firms at the forefront of this market are continuously inventing novel products to maintain their competitive edge. In January 2022, for instance, Neousys Technology, an industrial and rugged embedded systems manufacturer in Taiwan, introduced the Nuvo-9000 and Nuvo-9531 fanless embedded computer series. Specifically designed for industrial edge computing, automation systems, and vision inspection, these embedded solutions leverage the 16-core/24-thread configuration of Intel’s 12th generation Core I processor to enhance performance over previous platforms.
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Which geographic areas are influencing the growth of the embedded computing market?
Asia-Pacific was the largest region in the embedded computing market in 2024. The regions covered in the embedded computing market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
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