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The embedded computer market is estimated to grow at a CAGR of 7.94% between 2022 and 2027. The size of the market is forecast to increase by USD 19,715.81 million. The growth of the market depends on several factors, including growing demand for IoT devices, increasing adoption of M2M connection, and growth of IIoT.
This report extensively covers market segmentation 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). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The growing demand for IoT devices is notably driving the embedded computing market growth, although factors such as high lead time may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Key Embedded Computer Market Driver
The growing demand for IoT devices is notably driving the embedded computing market growth. IoT is a network of physical/tangible objects or devices interconnected through various network technologies. IoT allows the transfer of data over a network with minimal need for human-to-human or human-to-computer interaction. Connected devices refer to devices that can be connected to the Internet to enhance their performance. Technavio expects the global connected devices market to grow significantly during the forecast period, which, in turn, will drive the growth of the market.
Embedded computers offer reliable, secure, faster, scalable, and cost-efficient solutions and are increasingly being deployed across complex business environments to meet the increasing demands for high-performance functionality. Hence, the demand for embedded computer boards such as SBCs, COMs, and stand-alone boards is increasing in the embedded computing market.
Significant Embedded Computer Market Trend
Increasing implementation of robotics is a key trend impacting the global embedded computer market growth. The automotive sector was the initial adopter of robotics; however, at present, several industries are making use of robots in their production processes. Robots are also used by doctors as assistants for complicated operations. To keep up with the increasing demand for robots, government and private companies have started investing in robotics research.
The other factor for the increasing use of robotics is the high demand for decreased system engineering and installation costs, which account for more than 75% of the cost of robotic systems. Currently, as industrial robots are showing the extensiveness of their abilities, R&D investments are growing to discover their full potential. As embedded boards are an important component of robots, increasing the use of robotics will have a positive impact on the embedded computing market in the coming years.
Major Embedded Computer Market Challenge
High lead time will be a key challenge negatively impacting the embedded computing market growth. Lead time is the amount of time between the commencement and the end of a process in a manufacturing unit. High lead time is a challenge faced by manufacturers of embedded computers. This is because OEMs require the implementation of technology as per customized solutions or design architecture. This requires the use of the latest core components, such as processors and memory modules. Because of this requirement, embedded board manufacturers rely on close partnerships with suppliers like chip manufacturers and processor manufacturers to integrate those components into embedded boards to achieve fast product development. OEMs expect the latest hardware and support solutions; therefore, manufacturers design and configure embedded boards as per the requirement of OEMs. This increases the overall time-to-market.
Key Embedded Computer Market Customer Landscape
The report includes the adoption lifecycle of the embedded computing market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Embedded Computer Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the embedded computing market.
Abaco Systems Inc. - The company offers embedded computers that perform specific functions from industrial automation and in-vehicle computing to digital signage, robotics, and more. Under the segment, the company offers single-board computers, mission-ready systems, axis software, digital signal processing (DSP), graphics and video, and others.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth of the COMs segment will be significant during the forecast period. The main reason for the rising demand for COMs is that COM cards can easily be replaced or swapped (when a client needs to integrate new functionalities) without needing to change the carrier board itself. This is a cost-saving approach, as only the COM needs to be replaced. Thus, firms can form a faster go-to-market strategy. A faster go-to-market strategy is relevant for the growth of the overall COM market as more vendors will be able to integrate COM into their products. Hence, this will drive the growth of the market.
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The COMs segment was valued at USD 13,070.46 million in 2017 and continued to grow until 2021. A COM, which is also known as System-on-Module (SOM), is defined as a type of Single-Board Computer (SBC), which is a subtype of an embedded computer system. The main factors that drive the growth of the COMs segment include increasing requirements for dense computer systems due to the rising popularity of miniaturization, increasing demand for field programmable gate array (FPGA) components, etc.
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Europe is estimated to contribute 36% to the growth of the global embedded computing market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
The rising adoption of automation across industries in the region is driving the growth of the market in the region. One of the major drivers for industrial automation in the region is the adoption of Industry 4.0. A major factor driving the growth of the market in Europe is the increasing interest in smart factories. Industry 4.0 was developed by the German government to promote the use of computerization in industrial practices. It involves the integration of automation technologies as well as data exchange with manufacturing systems.
The region is characterized by the presence of several leading embedded computer manufacturers, including congatec and Kontron S and T. The sales and operations in the region are high because of the presence of a large number of OEMs. For instance, MSC Technologies, which is now a part of Avnet, has most of its sales and operations in more than ten countries in Europe. The major revenue in the region is contributed by Western Europe and Germany.
The embedded computing market in Europe is expected to grow significantly during the forecast period despite the adverse effects of the COVID-19 pandemic. This is primarily due to the rising adoption of automation across various end-user industries, including manufacturing, automotive, energy, and continued innovations and product developments in the field of embedded computing. The vendors in the embedded computing market are constantly developing new products to fulfill the demand for automation.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Embedded Computer Market Scope
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Report Coverage |
Details |
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Page number |
211 |
|
Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 7.94% |
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Market growth 2023-2027 |
USD 19,715.81 million |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
6.15 |
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Regional analysis |
Europe, APAC, North America, Middle East and Africa, and South America |
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Performing market contribution |
Europe at 36% |
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Key countries |
US, China, India, UK, and Germany |
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Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
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Key companies profiled |
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 S and T AG, NVIDIA Corp., NXP Semiconductors NV, Qualcomm Inc., Radisys Corp., SMART Global Holdings Inc., Super Micro Computer Inc., TechNexion Ltd., Texas Instruments Inc., and Toradex AG |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by End-user
8 Market Segmentation by CPU Architecture
9 Customer Landscape
10 Geographic Landscape
11 Drivers, Challenges, and Trends
12 Vendor Landscape
13 Vendor Analysis
14 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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