The embedded systems market is experiencing swift global expansion. According to a report by Global Market Insights, the worldwide revenue for embedded software is projected to hit $21.5 billion by 2027. Industrial leaders are collaborating to produce superior IoT solutions featuring improved, efficient embedded software. Let’s explore the prevailing trends shaping the market.
Advancement in electric and autonomous vehicles: Both electric and autonomous vehicles are in high demand. The production of these vehicles heavily relies on embedded tools, a trend that continues to grow. Electric vehicles represent the future of the global automotive industry. Additionally, the introduction of AI tools in the automotive sector bolsters this trend. The production of electric vehicles also necessitates effective use of embedded software. With enhanced connectivity at electronic touchpoints, the embedded software trend continues to thrive.
Innovation in healthcare equipment: The worldwide healthcare sector is progressively adopting embedded software. The pandemic has spurred a transformation in healthcare, with embedded medical equipment improving treatment procedures. Beyond ventilators, several other advanced medical devices require embedded software. Even post-pandemic, these devices will remain relevant, partly explaining why embedded software trends pervade the healthcare industry.
Growing industrial automation: The global embedded software industry is flourishing due in part to the demand for such technology in industrial automation. As we transition into Industry 4.0, digital automation trends are gaining momentum. Industries in various countries are utilizing embedded software during their digital transformation journey. In the forthcoming years, embedded tools will continue to amplify the delivery of superior, efficient, and competitive products across diverse sectors. Various hardware devices also require embedded technology for optimal operation. Software is also required in electronic devices and automotive components for data access and control.
Creation of special-purpose hardware: Embedded tools are increasingly used in the creation of special-purpose software. Standalone systems are expected to generate a significant portion of revenue by 2027. Currently, MCUs (microcontroller units) and FPGAs (field-programmable gate arrays) are sought after worldwide.
In 2020, the mobile system segment accounted for 15% of the embedded software market share. Embedded systems are now integral to all mobile devices, facilitating remote business operations. In 2020, the consumer electronics segment accounted for 20% of the market share, expected to grow at an 8% CAGR by 2027. With the growing use of electronic devices like smart TVs, laptops, and smartphones, this trend is set to persist in the coming years. Additionally, smartwatches based on various operating systems like Linux and Android are becoming increasingly common.
We’ve examined the application of embedded software across various sectors including manufacturing, automotive, mobile devices, and more. Irrespective of the industry, the demand for embedded software has been rising considerably. These trends are set to continue influencing their respective sectors in the future.
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