Enjoy complimentary customisation on priority with our Enterprise License!
The embedded software market is estimated to grow at a CAGR of 7.91% between 2023 and 2027. The size of the market is forecasted to increase by USD 6,739.66 million. The growth of the market depends on several factors, including the high adoption of embedded software in the semiconductor industry, the growing popularity of IoT and M2M technologies, and the high adoption of smart home and smart grid technology.
This report extensively covers market segmentation by end-user (RTOS, compilers, assemblers, debuggers, and others), application (automotive, consumer electronics, industrial, aerospace and others), 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 high adoption of embedded software in the semiconductor industry is notably driving the market growth, although factors such as data security and privacy issues 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 Software Market Driver
The high adoption of embedded software in the semiconductor industry is notably driving the embedded software market growth. Embedded software is used to design ICs in the semiconductor industry. The semiconductor market dominates the telecom and communication industry due to the increasing demand for smartphones. Smartphone and tablet providers are using innovative embedded software technologies to develop advanced devices. Embedded software is used to control several parameters required in the functioning of a product.
Software companies are focusing on business strategies such as mergers and acquisitions to enhance their global presence. For instance, on June 29, 2021, Quest Global acquired Synapse Design to expand its semiconductor business. This acquisition will help the companies leverage each other's expertise in embedded software services as well as enable product innovations in digital engineering and electronics. Such instances are expected to fuel the demand for embedded software in the semiconductor industry during the forecast period.
Significant Embedded Software Market Trend
The emergence of embedded software in in-vehicle infotainment is a key trend influencing the embedded software market growth. The use of built-in connectivity and telematics enhances the overall in-vehicle experience for passengers and drivers. Infotainment systems integrate software and hardware devices that provide audio, video, and other content. They are integrated by using embedded software with in-vehicle navigation devices, Internet and Wi-Fi connectivity, audio and video (AV) systems, display screens, social networking applications, and telematics systems.
OEMs are collaborating with smartphone and tablet manufacturers to cater to the changing demands of consumers. The growing demand for hybrid vehicles has encouraged smartphone manufacturers to develop applications that can connect smartphones to vehicles. In addition, investments in autonomous cars are increasing. For instance, in July 2019, Ford Motor and Volkswagen announced a collaboration for the development of self-driving and electric cars. Such investments will support market growth during the forecast period.
Major Embedded Software Market Challenge
Data security and privacy issues may impede the embedded software market growth. There are concerns related to privacy, security, liability, and protection of intellectual property with the use of embedded software. Vendors handle highly sensitive client information and financial data, which increases concerns about the misuse of their data by third parties. Therefore, vendors should develop an effective combination of security solutions and tools to overcome safety and security issues.
The growing number of advanced cyberattacks can expose vulnerabilities despite high investments by software companies in improving the security standards of their products. In addition, there have been several instances of data breaches. Hence, software companies have to invest in developing highly secure products and launching frequent security updates, which incurs high costs. Such instances will pose a challenge to market growth during the forecast period.
Key Embedded Software Market Customer Landscape
The report includes the adoption lifecycle of the 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 Software 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 market.
Advantech Co. Ltd. - The company primarily focuses on embedded boards, systems and peripheral hardware and software, networks and communications, data acquisition, and control, digital logistics, digital healthcare, and intelligent retail services. The key offerings of the company include embedded software such as Device On.
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 RTOS segment will be significant during the forecast period. An RTOS automatically detects and identifies bugs that can cause glitches in an electronic product. As IoT and M2M communications are gaining importance, significant investments are being made in the global RTOS market.
Get a glance at the market contribution of various segments Request a PDF Sample
The RTOS segment showed a gradual increase in the market share of USD 4,316.68 million in 2017 and continued to grow by 2021. Many industries, such as telecom; banking, financial services, and insurance (BFSI), information technology infrastructure services (ITES), retail, and healthcare, use IoT. For instance, in September 2020, Facebook and Google announced the adoption of Zephyr Real-Time Operating System (RTOS) technology to build the next generation of infrastructure and products. Such factors will drive the growth of this segment during the forecast period.
For more insights on the market share of various regions Request PDF Sample now!
North America 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.
The growth of the market in North America is attributed to factors such as the increasing need for faster time-to-market, low manufacturing costs, and efficient management of complex hardware control systems. The rise in the penetration of tablets and netbooks in the industrial sector will also support the growth of the market in this region. Moreover, the growth of the automotive and electronics and electrical industries in North America will increase the adoption of embedded software.
This report forecasts the contribution of all the segments to the growth of the market. In addition, we have included the COVID-19 impact and the recovery strategies for each segment. The embedded software market in North America faced certain challenges in 2020 due to COVID-19. However, the restoration of the supply chain and the reopening of manufacturing units in the region owing to large-scale vaccination stabilized the growth of the market. Such factors will propel the growth of the regional embedded software market during the forecast period.
The report forecasts market growth by revenue at global, regional, and country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
|
Embedded Software Market Scope |
|
|
Report Coverage |
Details |
|
Page number |
182 |
|
Base year |
2022 |
|
Historic period |
2017-2021 |
|
Forecast period |
2023-2027 |
|
Growth momentum & CAGR |
Accelerate at a CAGR of 7.91% |
|
Market growth 2023-2027 |
USD 6,739.66 million |
|
Market structure |
Fragmented |
|
YoY growth 2022-2023(%) |
7.52 |
|
Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
|
Performing market contribution |
North America at 35% |
|
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., BlackBerry Ltd., Emerson Electric Co., Enea AB, Green Hills Software LLC, International Business Machines Corp., Lantronix Inc., Microchip Technology Inc., Microsoft Corp., Mitsubishi Electric Corp., National Instruments Corp., NEC Corp., NXP Semiconductors NV, Reliance Industries Ltd., Siemens AG, STMicroelectronics NV, Texas Instruments Inc., Toshiba Corp., VIA TECHNOLOGIES Inc., and Intel Corp. |
|
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 the 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 Historic Market Size
6 Five Forces Analysis
7 Market Segmentation by End-user
8 Market Segmentation by Application
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
Certified ISO 9001 : 2015
We are ISO 9001:2015 recognized that ensures quality services and product delivery to our clients.
We are GDPR and CCPA compliant! Your transaction & personal information is protected from unauthorized use.
Get lifetime access to our
Technavio Insights
Get the report (PDF) sent to your email within minutes.
