PUBLISHER: The Business Research Company | PRODUCT CODE: 1833976
PUBLISHER: The Business Research Company | PRODUCT CODE: 1833976
Embedded systems are specialized computer systems designed to perform dedicated functions or tasks within larger mechanical or electrical systems. They consist of a microprocessor or microcontroller, memory, input/output interfaces and software and are integrated into devices. The primary purpose of embedded systems is to provide real-time control, automation and functionality to complex devices and systems with high reliability and efficiency.
The embedded systems market consists of sales, by entities (organizations, sole traders, or partnerships), of embedded systems that are used continuously or intermittently depending on their function- automotive ECUs (electronic control units) operate during driving, while medical wearables may function round-the-clock. These systems are complemented by development tools, real-time operating systems (RTOS) and connected software platforms, while general-purpose computers or mobile devices can serve as substitutes in some non-critical applications. They are used in fixed locations such as industrial controllers, or in mobile products such as drones and smartwatches.
The global embedded systems market was valued at $85,724.47 million in 2019 which grew till 2024 at a compound annual growth rate (CAGR) of more than 5.00%.
Expansion Of Smart City Initiatives
The expansion of smart city initiatives drove the growth of the embedded systems market during the historic period. Smart cities rely on technologies like intelligent traffic systems, automated lighting and smart utilities, all of which are powered by embedded systems for real-time control and data processing. The integration of IoT across urban infrastructure further drives demand, with embedded systems enabling connectivity, sensing and remote management. Rising global investments in urban automation particularly in areas like smart transportation, surveillance and utility management are accelerating the adoption of embedded technologies. Moreover, the need for real-time, decentralized decision-making in dynamic urban environments underscores the critical role of embedded systems in delivering low-latency, edge-level performance. For instance, in December 2023, according to the National Institute of Standards and Technology, a US-based national metrology institute, the NIST global community technology challenge (GCTC) presented three innovative smart city projects at the Smart Cities Connect conference in Washington, D.C. These projects demonstrated efforts by cities to enhance transparency and improve access to information between local governments and residents, positioning them as models for other communities. Additionally, in April 2023, according to the IMD Smart City Index Report, a Switzerland-based business school, the number of smart cities worldwide increased from 118 cities in 2021 to 141 cities in 2023. Therefore, the expansion of smart city initiatives supported the growth of the embedded systems market.
Focus on Integration of AI-Enabled Systems for Intelligent Automation in Embedded Applications Systems
Major embedded systems companies are focusing on integration of AI-enabled Systems, to enhance real-time decision-making, improve system efficiency and enable intelligent automation across various applications such as automotive, healthcare and industrial control. AI-enabled systems are technologies that incorporate artificial intelligence to analyze data, adapt through learning and make autonomous decisions or perform intelligent actions. For instance, in February 2025, Kontron, an Austria-based embedded systems company, launched the 3.5-inch Single Board Computer. It is a compact computing platform that integrates a processor, memory, storage and I/O interfaces onto a single board with a standardized 3.5-inch form factor. These boards are commonly used in embedded and industrial applications where space, power efficiency and reliability are critical. Their small size and versatile designs make them well-suited for systems such as medical equipment, industrial control units, kiosks and edge computing devices. The standardized layout also simplifies integration into custom solutions and supports various operating systems and development environments.
The global embedded systems market is fairly fragmented, with large number of small players operating in the market. The top ten competitors in the market made up to 16.43% of the total market in 2024.
Embedded Systems Global Market Opportunities And Strategies To 2034 from The Business Research Company provides the strategists; marketers and senior management with the critical information they need to assess the global embedded systems market as it emerges from the COVID-19 shut down.
Where is the largest and fastest-growing market for embedded systems? How does the market relate to the overall economy; demography and other similar markets? What forces will shape the market going forward? The embedded systems market global report from The Business Research Company answers all these questions and many more.
The report covers market characteristics; size and growth; segmentation; regional and country breakdowns; competitive landscape; market shares; trends and strategies for this market. It traces the market's history and forecasts market growth by geography. It places the market within the context of the wider embedded systems market; and compares it with other markets.