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How has the embedded systems market size evolved in recent years?

The embedded systems market has seen strong growth. It will grow from $110.89 billion in 2024 to $121.55 billion in 2025, with a CAGR of 9.6%. This growth is attributed to the establishment of standards and certifications, a focus on cybersecurity leading to the development of secure systems, the global expansion of manufacturing capabilities, and increased consumer demand for energy-efficient products.

What are the predictions for the embedded systems market size in the coming years?

The embedded systems market is forecasted to grow significantly, reaching $173.8 billion by 2029 with a CAGR of 9.4%. Growth is driven by demand for real-time data processing, lower component costs, tailored solutions, and the expansion of embedded systems in developing countries and renewable energy sectors. Trends include advanced systems for military applications, cloud integration, Industry 4.0 growth, and telematics and blockchain integration.

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What key factors are fueling the growth of the embedded systems market?

The increasing focus on energy efficiency and sustainability is expected to drive the embedded systems market. Embedded systems support energy-efficient practices by optimizing energy use, integrating renewable sources, and enabling smart grid technologies. For instance, the International Energy Agency reported in May 2023 that global energy investment rose to $1.74 trillion, with over $1.7 trillion allocated to clean energy initiatives, propelling the embedded systems market forward.

How is the global embedded systems market divided into key segments?

The embedded systems market covered in this report is segmented –

1) By Component: Hardware, Software, Services

2) By Function: Real-Time, Standalone, Mobile, Networked

3) By System Size: Small Size, Medium Size, Large Size

4) By End-Use Industry: Automotive, Consumer Electronics, Aerospace And Defense, Healthcare, Telecommunication, Industrial, Other End-Use Industries

Subsegments:

1) By Hardware: Microcontrollers (MCUs), Microprocessors (MPUs), Digital Signal Processors (DSPs), Application-Specific Integrated Circuits (ASICs), Field-Programmable Gate Arrays (FPGAs), Sensors, Power Management ICs

2) By Software: Real-Time Operating Systems (RTOS), Embedded Software Development Tools, Middleware, Firmware

3) By Services: Design And Development Services, Consulting Services, Maintenance And Support Services

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Who are the key firms paving the way for growth in the embedded systems market?

Major companies operating in the embedded systems market are Samsung Electronics, Sony Semiconductor Solutions Corporation, Siemens AG, Intel Corporation, Qualcomm Technologies Inc., Honeywell International Inc., Broadcom Inc., Nvidia Corporation, Advanced Micro Devices Inc., Texas Instruments, STMicroelectronics, Infineon Technologies AG, NXP Semiconductors, Analog Devices Inc., Renesas Electronics Corporation, ON Semiconductor, Microchip Technology Inc., Marvell, Vishay Intertechnology Inc., Arm Limited, Silicon Labs, Nordic Semiconductor, Lattice Semiconductor, Raspberry Pi Foundation, Arduino

Which trends are expected to transform the embedded systems market?

Companies in the embedded systems market are focusing on developing security solutions to protect embedded devices and systems from cyber threats. These solutions use measures like encryption and authentication to safeguard devices. In July 2023, Kaspersky, a Russia-based cybersecurity company, introduced Kaspersky Embedded Systems Security. This solution offers comprehensive protection for Linux-based embedded devices, incorporating multi-layered defenses and application controls to prevent cyber threats and ensure compliance.

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What regions are contributing significantly to the growth of the embedded systems market?

North America was the largest region in the embedded systems market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the embedded systems market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

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