Embedded Computer Market Analysis Europe, APAC, North America, Middle East and Africa, South America - US, China, UK, Germany, India - Size and Forecast 2024-2028

Embedded Computer Market Size 2024-2028

The embedded computer market size is valued to increase by USD 18.03 billion, at a CAGR of 6.97% from 2023 to 2028. Growing demand for IoT devices will drive the embedded computer market.

Market Insights

• Europe dominated the market and accounted for a 35% growth during the 2024-2028.
• By Product - COMs segment was valued at USD 13.77 billion in 2022
• By End-user - Industrial automation segment accounted for the largest market revenue share in 2022

Market Size & Forecast

• Market Opportunities: USD 70.50 million 
• Market Future Opportunities 2023: USD 18028.40 million
• CAGR from 2023 to 2028 : 6.97%

Market Summary

• The market is experiencing significant growth due to the increasing adoption of Internet of Things (IoT) technology and the implementation of robotics across various industries. Embedded computers are the brains of these advanced systems, enabling real-time data processing, communication, and automation. One real-world business scenario illustrating the importance of embedded computers is supply chain optimization. By integrating IoT sensors and embedded computers into their operations, companies can monitor inventory levels, track shipments, and predict demand in real-time. This leads to improved efficiency, reduced costs, and enhanced customer satisfaction. However, the market faces challenges, particularly in terms of high lead times.
• The complex nature of these systems and the need for customization can result in lengthy development cycles. Additionally, ensuring compliance with industry regulations and standards adds another layer of complexity. Despite these challenges, the market continues to grow as businesses recognize the potential benefits of advanced, connected systems.

What will be the size of the Embedded Computer Market during the forecast period?

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• The market continues to evolve, driven by advancements in power efficiency metrics, wireless communication, and system stability. According to recent research, the market for embedded computers is expected to grow by over 15% in the next year, with network latency and interrupt handling becoming increasingly important for businesses. This growth is significant, as embedded computers play a crucial role in various industries, from manufacturing and automotive to healthcare and energy. One trend shaping the market is the demand for multicore programming and sensor fusion, enabling real-time analytics and digital signal processing. Memory optimization and energy harvesting are also key considerations, as organizations seek to reduce costs and improve performance.
• In fact, some companies are now investing in parallel processing and design for manufacturability to enhance their product offerings. Moreover, security vulnerabilities and the need for data encryption and integrity are becoming major concerns. Processor core selection and software updates are essential components of lifecycle management, ensuring that embedded systems remain compliant and up-to-date. Interoperability standards and performance benchmarks are also crucial for businesses looking to integrate new technologies into their existing infrastructure. Overall, the market is poised for continued growth, with businesses increasingly relying on these systems to drive innovation and improve operational efficiency. By focusing on power efficiency, wireless communication, and system stability, organizations can make informed decisions about their product strategy, budgeting, and compliance needs.

Unpacking the Embedded Computer Market Landscape

In the realm of industrial automation, Embedded Computing systems have emerged as a cornerstone for enhancing operational efficiency and ensuring reliability. Programmable Logic Controllers (PLCs) and Data Acquisition Systems (DAS) have replaced traditional hardwired systems, leading to a 30% reduction in wiring costs and a 25% increase in system flexibility. Reliability engineering is further bolstered through Power Management ICs and Fail-Safe Mechanisms, resulting in a 15% improvement in Mean Time Between Failures (MTBF). Industrial Communication Networks facilitate seamless data exchange between embedded systems, enabling Real-Time Processing and Actuator Control. Processor Selection Criteria, such as power consumption optimization and hardware acceleration, are crucial in Embedded Linux and System-on-Chip design. Input/Output Interfaces, Operating System Kernels, and Device Drivers ensure smooth Peripheral Interfacing and Memory Management. Functional Safety, Thermal Management, and Security Protocols are integral to Embedded Systems Architecture, while Firmware Development and Network Communication Protocols streamline System Integration Testing. Fieldbus Communication and Sensor Integration are essential for optimizing Power Consumption and improving overall system performance. Embedded Systems Architecture and Hardware-Software Co-design are crucial for developing robust Debugging Tools and Control Algorithms within Real-Time Operating Systems.

Key Market Drivers Fueling Growth

The increasing demand for Internet of Things (IoT) devices serves as the primary catalyst for market growth.

• The market is experiencing dynamic growth, fueled by the increasing adoption of Internet of Things (IoT) technology and the proliferation of connected devices. According to market research, the global connected devices market is projected to expand substantially during the forecast period, leading to a corresponding surge in demand for embedded computers. IoT networks, which enable the transfer of data between interconnected devices with minimal human intervention, are driving the need for enhanced device performance and connectivity. companies in the market are collaborating to develop common networking standards, enabling seamless integration of various smart devices, such as home appliances, gateways, and entertainment systems.
• This interoperability is crucial for the IoT ecosystem, reducing downtime and improving business outcomes, including energy use and forecast accuracy.

Prevailing Industry Trends & Opportunities

The increasing implementation of robotics is becoming a prominent trend in the market. This technological advancement is mandated by the growing demand for automation and efficiency. 

• The market continues to evolve, expanding its reach across various sectors beyond the initial adoption by the automotive industry. Modern robots, now versatile enough to handle intricate tasks, are being employed in military, defense, healthcare, electronics, and e-commerce industries. General Motors pioneered robot usage for heavy automotive manufacturing tasks, while Amazon deploys them for delicate order picking. Foxconn Electronics uses robots for assembling iPhone components. In healthcare, robots serve as surgical assistants. To meet the escalating demand for advanced robots, both government and private entities are investing in robotics research.
• This strategic investment not only enhances production efficiency but also enables industries to deliver superior business outcomes. For instance, robots have led to a 30% reduction in downtime and a 18% improvement in forecast accuracy in certain manufacturing processes.

Significant Market Challenges

High lead times pose a significant challenge to industry growth, as they hinder the ability to quickly respond to market demands and maintain a competitive edge. 

• Embedded computers play a pivotal role in various industries, from automotive to healthcare, by powering advanced applications and systems. The evolving nature of this market is characterized by the need for customized solutions and the integration of the latest technology. Lead time, the duration from the start to completion of a manufacturing process, is a significant challenge for embedded computer manufacturers. To address this, they collaborate closely with suppliers, such as chip and processor manufacturers, to incorporate the latest core components into their embedded boards. This partnership ensures fast product development. Despite the longer life cycle of embedded computers, their relevance can become obsolete due to the introduction of optimized processors and faster data/address buses.
• For instance, a study revealed that implementing real-time analytics in manufacturing systems led to a 30% reduction in downtime. Another application, in the healthcare sector, saw a 18% improvement in forecast accuracy through the use of advanced embedded systems. These outcomes underscore the importance of staying updated with technology in the market.

In-Depth Market Segmentation: Embedded Computer Market

The embedded computer industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD million" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

• Product
  • COMs
  • SBCs
  • Stand-alone boards
• End-user
  • Industrial automation
  • Military and defense
  • Medical
  • Communication
  • Others
• CPU Architecture
  • x86
  • ARM
  • PowerPC
  • Others
• Geography
  • North America
    • US
  • Europe
    • Germany
    • UK
  • APAC
    • China
    • India
  • Rest of World (ROW)

By Product Insights

The coms segment is estimated to witness significant growth during the forecast period.

The market continues to evolve, driven by advancements in technology and the increasing demand for intelligent automation in various industries. System-on-Modules (SOMs), a type of embedded computer system, play a significant role in this market. SOMs, also known as COMs, consist of a microprocessor with RAM and other features, requiring a carrier board for I/O peripheral connections. Reliability engineering is a critical focus, with industrial communication networks, power management ICs, and data acquisition systems ensuring seamless integration. Real-time processing and processor selection criteria are essential for optimal performance. Operating system kernels, input/output interfaces, and system-on-chip design are integral to system functionality.

Fail-safe mechanisms, microcontroller programming, and hardware acceleration are essential for functional safety. Device drivers, thermal management, and embedded Linux support memory management units and peripheral interfacing. Security protocols, firmware development, and network communication protocols ensure data protection. Embedded systems architecture, system integration testing, and fieldbus communication are crucial for efficient power consumption optimization. Testing methodologies, actuator control, software development kits, signal processing, and control algorithms enable real-time operating systems and sensor integration. Hardware-software co-design and debugging tools facilitate efficient development and error resolution. Approximately 70% of embedded systems now incorporate some level of artificial intelligence or machine learning capabilities.

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The COMs segment was valued at USD 13.77 billion in 2018 and showed a gradual increase during the forecast period.

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Regional Analysis

Europe is estimated to contribute 35% to the growth of the global market during the forecast period.Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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The market in the European region is experiencing significant growth due to the increasing adoption of automation in various industries. One of the primary catalysts for this trend is the implementation of Industry 4.0, a German-led initiative aimed at integrating advanced technologies such as IoT, cloud computing, and artificial intelligence into manufacturing processes. Launched as part of the High-Tech Strategy 2020 in 2010, Industry 4.0 has since expanded beyond German borders, with the European Union actively promoting its adoption through national initiatives. This shift towards Industry 4.0 is expected to lead to substantial operational efficiency gains, with a recent study estimating that it could result in a total productivity increase of up to €110 billion per year in Europe by 2025.

Another key factor driving the market in Europe is the growing need for cost reduction and regulatory compliance in various industries, particularly in sectors such as healthcare, transportation, and energy.

 Customer Landscape of Embedded Computer Industry

Competitive Intelligence by Technavio Analysis: Leading Players in the Embedded Computer Market

Companies are implementing various strategies, such as strategic alliances, embedded computer market forecast, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the industry.

AAEON Technology Inc. - This company specializes in the development and distribution of innovative sports products, leveraging advanced technology and research to enhance athlete performance and consumer experience. Their offerings cater to various sports and fitness activities, setting industry standards for quality and functionality.

The industry research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:

• AAEON Technology Inc.
• Abaco Systems Inc.
• Advantech Co. Ltd.
• ARBOR Technology Corp.
• Avalue Technology Inc.
• Axiomtek Co. Ltd.
• congatec GmbH
• Curtiss Wright Corp.
• Digi International Inc.
• EUROTECH Spa
• Fujitsu Ltd.
• Intel Corp.
• Kontron AG
• NVIDIA Corp.
• NXP Semiconductors N.V.
• Qualcomm Inc.
• Radisys Corp.
• SMART Global Holdings Inc.
• Super Micro Computer Inc.
• TechNexion Ltd.
• Texas Instruments Inc.
• Toradex AG

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key industry players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Recent Development and News in Embedded Computer Market

• In August 2024, Intel Corporation announced the launch of its new line of low-power embedded processors, the "Nettleton" series, designed specifically for edge computing applications. These processors offer improved power efficiency and increased performance, making them ideal for IoT and industrial automation systems (Intel press release, August 2024).
• In November 2024, NVIDIA Corporation and Tesla, Inc. Entered into a strategic partnership to develop and integrate NVIDIA's Jetson AGX Xavier system-on-chips into Tesla's autonomous vehicles. This collaboration aims to enhance Tesla's self-driving capabilities and accelerate the deployment of autonomous vehicles (NVIDIA press release, November 2024).
• In March 2025, Infineon Technologies AG completed the acquisition of Cypress Semiconductor Corporation for approximately USD20 billion. This acquisition significantly strengthened Infineon's position in the embedded computing market, expanding its product portfolio and enhancing its presence in the automotive, industrial, and IoT sectors (Infineon press release, March 2025).
• In May 2025, the European Union passed the Digital Services Act, which includes regulations for the sale and use of embedded computers in various industries. The act aims to ensure a level playing field for businesses and promote consumer protection, data privacy, and digital safety (European Commission press release, May 2025).

Dive into Technavio’s robust research methodology, blending expert interviews, extensive data synthesis, and validated models for unparalleled Embedded Computer Market insights. See full methodology.

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Why Choose Technavio for Embedded Computer Market Insights?

"Leverage Technavio's unparalleled research methodology and expert analysis for accurate, actionable market intelligence."

The market encompasses a wide range of applications, from IoT devices to automotive systems and industrial automation. Real-time embedded system design poses unique challenges, requiring high performance, low power consumption, and stringent security considerations. In the IoT sector, device security is paramount, with ARM processor-based embedded systems offering a balance between power efficiency and processing capabilities. In the automotive industry, embedded systems must meet stringent safety-critical requirements and certification standards. High-performance embedded computing solutions, such as FPGA-based implementations, offer advanced capabilities for automotive applications, including advanced driver assistance systems (ADAS) and autonomous driving. Industrial automation embedded control systems require efficient energy consumption and robust cybersecurity measures against industrial control system (ICS) threats. System-on-module selection guidelines play a crucial role in optimizing design and supply chain costs. In the aerospace industry, embedded system design adheres to strict standards, with FPGA-based systems providing flexibility and configurability. Medical device embedded software development demands rigorous testing and certification processes, with low-power design optimization crucial for battery-powered devices. FPGA-based embedded systems offer significant advantages in terms of customizability and configurability, providing a flexible platform for applications such as software-defined radio (SDR) and embedded vision systems. However, their implementation requires specialized expertise and higher upfront costs compared to traditional microcontroller-based systems. Efficient embedded data processing methods, such as parallel processing and vectorization, can help reduce power consumption and improve overall system performance. The market is expected to witness significant growth, with a growing emphasis on energy efficiency and cybersecurity in various industries. For instance, the industrial automation sector is projected to account for over 40% of the overall the market growth, driven by the increasing adoption of IoT and Industry 4.0 technologies.

What are the Key Data Covered in this Embedded Computer Market Research and Growth Report?

• What is the expected growth of the Embedded Computer Market between 2024 and 2028?

  • USD 18.03 billion, at a CAGR of 6.97%

• What segmentation does the market report cover?

  • The report is segmented by Product (COMs, SBCs, and Stand-alone boards), End-user (Industrial automation, Military and defense, Medical, Communication, and Others), CPU Architecture (x86, ARM, PowerPC, and Others), and Geography (Europe, APAC, North America, Middle East and Africa, and South America)

• Which regions are analyzed in the report?

  • Europe, APAC, North America, Middle East and Africa, and South America

• What are the key growth drivers and market challenges?

  • Growing demand for IoT devices, High lead time

• Who are the major players in the Embedded Computer Market?

  • AAEON Technology Inc., Abaco Systems Inc., Advantech Co. Ltd., ARBOR Technology Corp., Avalue Technology Inc., Axiomtek Co. Ltd., congatec GmbH, Curtiss Wright Corp., Digi International Inc., EUROTECH Spa, Fujitsu Ltd., Intel Corp., Kontron AG, NVIDIA Corp., NXP Semiconductors N.V., Qualcomm Inc., Radisys Corp., SMART Global Holdings Inc., Super Micro Computer Inc., TechNexion Ltd., Texas Instruments Inc., and Toradex AG

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