Enjoy complimentary customisation on priority with our Enterprise License!
The embedded products market is estimated to grow at a CAGR of 6.3% between 2022 and 2027. The size of the market is forecast to increase by USD 86.08 billion. The growth of the market depends on several factors, including the demand for smart appliances, the demand for advanced driver assistance systems (ADAS) in electric and hybrid vehicles, and the growing popularity of IoT and M2M technologies.
This report extensively covers market segmentation by application (consumer electronics, automotive, industrial, aerospace and defense, and others), product (hardware and software), and geography (North America, APAC, Europe, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
To learn more about this report, Download Report Sample
The demand for smart appliances is notably driving the market growth, although factors such as the high energy consumption of compact embedded products 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 Products Market Driver
The demand for smart appliances is the key factor driving the global embedded products market growth. With improved technology, electronic systems are also being upgraded. Smart appliances and other electronic systems, especially in-house security infrastructure such as automated door locks, are designed to communicate and interact with users via the Internet. Almost all modern electronic systems require ICs with embedded software to control the hardware functions. Some examples of smart home applications are Google Home, Amazon Echo, and Apple Home Kit.
A smart grid is another technology where integrated circuits (ICs) are used. It uses automation to integrate the actions of the user and deliver sustainable and secure electricity in the most efficient way by connecting to the electric infrastructure of the user. It also helps reduce electricity wastage. Primarily, the smart grid uses information and communications technology. The potential of this segment to drive the growth in the adoption of embedded products in the forecast period is huge since ICs play a crucial role in smart grid and security solutions.
Significant Embedded Products Market Trend
The rise in the development of 5G-based embedded devices is the primary trend in the global embedded products market growth. During the forecasted years, the market for embedded goods is anticipated to benefit from the development of 5G technology. The 5G industry is anticipated to contribute USD2.2 trillion to the world economy by 2034, or 5.3% of the growth in the gross domestic product (GDP), according to the Global System for Mobile Communications (GSMA). As a result, during the forecast period, embedded product output will be considerably improved.
Due to the incorporation of 5G into their architecture, embedded goods used in smart video surveillance systems of automobiles deliver quick response times. Furthermore, because 5G technology supports quick picture processing, it will aid in overcoming the difficulties associated with industrial automation and smart farming. Therefore, embedded products supporting 5G infrastructure are expected to fuel the growth of the embedded product market during the forecast period.
Major Embedded Products Market Challenge
High energy consumption of compact embedded products is a major challenge to the global embedded products market growth. The compactness of embedded system that incorporates various functionalities in them can lead to complexity in their design architectures. This, in turn, leads to an increase in the consumption of energy in embedded products. High energy consumption can often compromise the overall lifecycle of embedded products.
The energy consumption is susceptible to the temperature of embedded products and increases with the rise in the temperature of the device. This negatively affects the overall performance of the embedded products. Hence, the high energy consumption of compact embedded products is expected to act as a major challenge to the growth of the embedded product market during the forecast period.
Key Embedded Products Market Customer Landscape
The report includes the adoption lifecycle of the embedded systems 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 products 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 systems market.
Ametek - The company offers embedded product solutions such as ground vehicle applications, aerospace applications, naval applications, and embedded rugged systems.
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 by the consumer electronics segment will be significant during the forecast period. Embedded system manufacturers, such as AMD, Intel, NVIDIA, NXP Semiconductors, and others, are coming up with highly-capable embedded boards, such as COM and SBCs. These integrated solutions help gaming equipment manufacturers to achieve faster time-to-market. Gaming equipment manufacturers are niche customers for embedded product manufacturers because gaming OEMs have specific product requirements for gaming platforms. For instance, congatec GmbH is a COM provider for gaming OEMs in Australia.
Get a glance at the market contribution of various segments Request a PDF Sample
Consumer electronics were valued at USD 73.84 billion in 2017 and continue to grow by 2021. Embedded products are used in gaming applications, such as video slot machines and other electronic games found in gaming arcades and casinos. Most of the embedded boards used in the gaming sector are based on Intel Core processors and AMD processors. The gaming sector uses encryption and decryption techniques to ensure safeguards against hackers. This, in turn, will compel embedded board vendors to provide affordable hardware modules, which are required to provide a level of security using proprietary solutions. Such factors will increase the market growth during the forecast period.
For more insights on the market share of various regions Request PDF Sample now!
North America is estimated to contribute 33% 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. In North America, the major factors driving the market growth are the increased need for faster time-to-market, reduced manufacturing costs, and efficient management of complex control systems. The increase in the penetration of tablets and netbooks in the industrial sector also adds momentum to the growth of the market in this region. The US is the key leading country in North America for the market because it is the world leader in research, product innovation, design, and manufacture of electronic consumer goods, as well as in branding and marketing. Embedded products are adopted in electronic devices that are used in cars, telephones, modems, home appliances, toys, security systems, pacemakers, set-top boxes, and digital watches. According to the US Bureau of Labor Statistics data, the US consumer goods market was the largest in the world, including electronic consumer goods. Such factors are expected to fuel the demand for embedded products in the region during the forecast period.
The embedded products market in North America witnessed certain challenges due to the COVID-19 pandemic in 2020. With rising economic activities in the region in 2021, there has been an effective recovery in end-user industries such as information technology, automotive, electronics, and others. However, there is still a shortage of semiconductors in the region affecting the production of various electronics and software products. Such factors hindered the growth of the embedded products market in the region till mid-2021.
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 Products Market Scope |
|
Report Coverage |
Details |
Page number |
178 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.3% |
Market growth 2023-2027 |
USD 86.08 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
6.0 |
Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
Performing market contribution |
North America at 33% |
Key countries |
US, China, Japan, Germany, and UK |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Advantech Co. Ltd., AMETEK Inc., ARBOR Technology Corp., ASUSTeK Computer Inc., Axiomtek Co. Ltd., congatec GmbH, Curtiss Wright Corp., Digi International Inc., EUROTECH Spa, Fujitsu Ltd., Intel Corp., Kontron 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 |
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, Market condition analysis for forecast period. |
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 Application
7 Market Segmentation by Product
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Get lifetime access to our
Technavio Insights
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.