Embedded System Market Size by Driver, Restraint, Opportunity & Challenges

The global embedded system market is estimated to be USD 86.5 billion in 2020 and projected to reach USD 116.2 billion by 2025; at a CAGR of 6.1% from 2020 to 2025. Key factors fueling the growth of this market include an increase in the number of research and development activities related to embedded systems, rise in demand for advanced driver-assistance systems (ADAS) and electromobility solutions for electric vehicles and hybrid vehicles, increase in demand for portable devices such as wearables, and rise in the use of multicore processors in military applications.

Download Free PDF Brochure:

https://www.marketsandmarkets.com/pdfdownloadNew.asp?id=98154672

Embedded System Market Dynamics

Driver: Surge in the demand for ADAS in EV and hybrid vehicles

Embedded systems are playing an important role in the redesigning of the automotive industry. These systems are used in ADAS technology incorporated in the electric and hybrid vehicles. The increase in the demand for electric and hybrid vehicles owing to the growing awareness among masses about the depleting state of environment has led to the growth of the embedded system market. According to the Bloomberg New Energy Finance report, sales of electric vehicles is estimated to reach 41 million by 2020, thereby leading to a rise in the demand for electronic components including embedded hardware and software used in electric vehicles.

Restraint: Vulnerability of embedded systems to cyber threats and security breaches

One of the major factors that has hampered the growth of the embedded system market is the security of embedded devices. Embedded devices such as memory contain information which could be critical to military forces, banks, data centers, and healthcare facilities. Thus, it is very critical to protect such devices from cyber threats and security breaches. Irregular security updates, long device lifecycle, remote deployment, and attack replication are some of the factors that make embedded systems vulnerable to cyberattacks. Thus, the vulnerability of embedded systems to cyber threats and security breaches is expected to restrain the growth of the embedded system market.

Opportunity: Advent of 5G and development of 5G based embedded devices

The advent of 5G technology is expected to act as a growth opportunity for the embedded system market. According to the GSM Association (GSMA), the 5G market is expected to contribute USD 2.2 trillium to the global economy by 2034, comprising 5.3% of the global GDP growth. As a result, the production of embedded devices based on 5G architecture is expected to increase in the future. Embedded devices used in smart camera surveillance system of vehicles deliver fast response rates owing to the integration of 5G in their architecture. Additionally, 5G technology is expected to help tackle the challenges faced during industrial automation and smart farming as it enables fast image processing. Thus, embedded devices supporting 5G infrastructure is expected to fuel the growth of embedded system market.

Challenge: High energy consumption of compact embedded systems

The compactness of embedded system to incorporate various functionalities in them could lead to complexity in their design architectures. This also leads to increased energy consumption in embedded system. High energy consumption often compromises the overall lifecycle of embedded devices. The energy consumption is susceptible to the temperature of embedded device and increases with rise in the temperature of device. This affects the overall performance of the embedded system. Therefore, the high energy consumption of compact embedded systems acts as a severe challenge to the growth of the embedded system market.

Request Free Sample Pages:

https://www.marketsandmarkets.com/requestsampleNew.asp?id=98154672

The recent COVID-19 pandemic is expected to impact the embedded industry. The entire supply chain is disrupted due to limited supply of parts. For instance, the outbreak of COVID-19 in China resulted in lockdown measures which included the shutdown of manufacturing facilities and warehouses and affected the global exports and shipments of various industries. The lockdown also led to a fall in the domestic and export demand for electronics devices, semiconductor, automotive vehicles, and other industrial equipment and devices including HMI, sensors, etc. as the impact of COVID-19 spread to other countries.