Embedded System Market Size 2023: Report by Market Dynamics, Emerging Trends and Business Outlook

The embedded system market size is expected to reach USD 116.2 billion by 2025 from USD 86.5 billion in 2020, at a CAGR of 6.1% during the forecast period.

Automotive industry segment is expected to grow at highest CAGR in coming years. 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.

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.

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

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.