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The embedded computer market is estimated to grow by USD 18.03 billion at a CAGR of 6.97% between 2022 and 2028. The growth of the market depends on several factors, including growing demand for IoT devices, increasing adoption of M2M connection, and growth of IIoT. The market is experiencing significant growth due to the increasing demand for IoT devices. IoT facilitates connectivity among physical objects or devices through diverse network technologies, enabling data transfer with minimal human interaction. Connected devices, including a wide array of consumer electronics like televisions, vehicles, and appliances, are empowered by IoT technology to enhance their functionality and performance.
The market growth and forecasting report includes key player's detailed analyses of the competitive landscape of the market and information about 20 market companies, including 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. Additionally, AAEON Technology Inc. offers
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The Microcontroller is a key component in various electronic devices, including mobile phones, laptops, and personal computers, where it performs essential computing tasks. The Digital Signal Processor (DSP) is used for processing digital signals in devices like Pacemakers and Imaging systems, enhancing their functionality. An Open Controller allows for flexible and customizable control of the Vehicle's electronic system and industrial ecosystems, providing adaptability and scalability. Biomedical sensors rely on these technologies for data processing and communication, enabling advancements in healthcare. The Equipment Insight 2018 initiative likely focuses on utilizing analytics for improved operational insights and decision-making in various industries. 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. Our researchers analyzed the market research and growth data with 2023 as the base year, along with the key market growth analysis, trends, and challenges. A holistic analysis of drivers, trends, and challenges will help companies refine their marketing strategies to gain a competitive advantage.
Growing demand for IoT devices drives the market growth. IoT refers to the network of physical/tangible objects or devices interconnected through various network technologies. In addition, IoT allows the transfer of data over a network with minimal need for human-to-human or human-to-computer interaction. Furthermore, connected devices refer to devices that can be connected to the Internet to enhance their performance.
Moreover, IoT is driving the demand for connected devices, which has significantly increased bandwidth requirements. In addition, different vendors across the market are working collectively to address the need for connecting several products, such as home appliances, gateways, and entertainment systems for sensors, smart homes, and set-top boxes with a common networking standard that provides interoperability with the widest range of smart devices. Furthermore, IoT devices require embedded computers that use ultra-low-power (ULP) processors. Hence, such factors are driving the market during the forecast period.
Increasing implementation of robotics is a primary trend in the market. The automotive sector was the main adopter of robotics, however, at present, several industries are making use of robots in their production processes. In addition, modern robots are flexible enough to handle different complicated tasks.
Therefore, stakeholders in the military, defense, automotive, healthcare, and electronics industries are deploying robots. In addition, general Motors originally used robots to lift and weld heavy auto parts. Furthermore, e-commerce companies like Amazon are now using robots for fragile jobs like picking orders. Hence, such factors are driving the market growth during the forecast period.
High lead time is a major challeneg hindering the market. Lead time refers to the amount of time between the commencement and the end of a process in a manufacturing unit. In addition, 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.
Moreover, this requires the use of the latest core components, such as processors and memory modules. In addition, 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. Furthermore, a product developed by any embedded computer manufacturer has a longer life cycle, however, its relevance with respect to the technology tends to get obsolete faster as a new range of optimized processors and fast data/address buses get introduced in the market. Hence, such factors are hindering the market during the forecast period.
The COMs segment is estimated to witness significant growth 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 companies 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 13.07 billion in 2018. 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. Hence, such factors are fuelling the growth of this segment which in turn drives the market growth during the forecast period.
The applications of embedded computers in industrial automation segment will increase the market growth. Industrial automation solutions adopt automated systems that incorporate embedded computers. In addition, embedded computers, which incorporate powerful microcontrollers, serve as the brain behind these intelligent systems. Moreover, industrial automation solutions enhance the efficiency and safety of industrial machinery, enable predictive maintenance, and increase the manufacturer's profitability. Therefore, manufacturers worldwide are implementing industrial automation solutions to carry out complex manufacturing processes. In addition, growing investment in industrial automation is leading to developments in Industry 4.0. Hence, such factors are fuelling the growth of this segment which in turn drives the market growth during the forecast period.
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Europe is estimated to contribute 35% to the growth of the global market during the forecast period.
Technavio's analysts have provided an extensive insight into the market forecast, detailing the regional trends and drivers influencing the market's trajectory throughout 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.
Moreover, 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. Hence, such factors are driving the market growth in Europe during the forecast period.
The market forecasting report includes the adoption lifecycle of the market research and growth, 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 market growth and trends strategies.
Global Market Customer Landscape
Companies 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.
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. They offers single-board computers, mission-ready systems, axis software, digital signal processing (DSP), graphics and video, and others.
Market analysis and report of 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 market 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.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The market is thriving with the rise of Internet of Things (IoT) applications across various sectors, including the communication sector and healthcare industry. These systems utilize microprocessors and digital signal processors for efficient processing. With advancements like ARM Cortex M7 and M4 cores, they offer low power consumption and high processing performances. The market landscape depends on Microcontroller security solutions, edge controls, industrial ecosystem, embedded rain sensing systems, imaging system, CT scans, MRIs. They are integral to embedded airbag systems, adaptive cruise control, and healthcare equipment like PET scans and glucose monitors. Despite challenges like hardware limitations and high initial investments, the market is driven by technological developments and the increasing adoption of AI and M2M communications.
The market is integral to various industries, including the automotive and defense sectors, leveraging microprocessors and digital signal processors for efficient operations. These systems incorporate microcontrollers and open controllers for diverse applications like embedded navigation systems and vital signs monitoring. They enable advancements in healthcare digitization with devices such as electronic stethoscopes and CPAP machines. As IoT connections and AI adoption increase, embedded computers play a crucial role in smart home appliances and remote patient monitoring. With the rise of hybrid vehicles and EVs, the market continues to evolve, driving product improvements and enhancing lead times.
Market Scope |
|
Report Coverage |
Details |
Page number |
219 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.97% |
Market growth 2024-2028 |
USD 18.03 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
6.4 |
Regional analysis |
Europe, APAC, North America, Middle East and Africa, and South America |
Performing market contribution |
Europe at 35% |
Key countries |
US, China, UK, Germany, and India |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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 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 |
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 |
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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 Opportunity/Restraints
12 Competitive Landscape
13 Competitive Analysis
14 Appendix
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