Increasing demand for smart devices to boost the global embedded system market

Posted On Sep, 05, 2018

Embedded systems are a combination of software as well as hardware which is either programmable or fixed in capabilities. These systems are designed for a particular function. Automobiles, medical equipment, cameras, industrial machines, household appliances, airplanes, vending machines, toys, cellular phones and PDA (personal digital assistant) are among the myriad of possible hosts of the system. Embedded systems are the key enablers of smart devices which represent one of the technological marvels of the 21st century.

The growth of Internet of Things (IoT) is altering the dynamics of the smartphone device market. It has opened up an excellent avenue for a software system called embedded Java. Embedded sensors, image recognition, and near field communication payment technologies are the major IoT components which are embedded in smartphone devices. Such application is vital for the adoption of the integrated system and is expected to expand shortly attributed to the advancements in the technology in coming years.

Integration of an embedded microcontroller system in any product stretches its abilities of communication and connection to multiple networks and devices. Moreover, the falling process of microprocessors accompanied by the revolutionary semiconductor technology innovations has expanded the systems application in various industries. Key requirements for an efficient embedded system include low cost and a high degree of responsiveness & reliability.

The global embedded system market is anticipated to reach over USD 200 billion by 2020. Favorable regulation regarding the installation of smart devices and rising demand for embedded graphics & multi-core technologies are expected to propel the market in years to come. Moreover, the increasing need for a power-efficient system and craftier electronics devices are expected to drive the market further.

Growing penetration of robotics market is expected to create a parallel market for the embedded systems. Development of healthcare, smart automobile applications, the rise of machine-to-machine communication and expanding the role of signaling and electric control creates a growth opportunity for the market. Currently, the consumer electronics sector is experiencing transformational growth which is attributed to the influence of trends such as mobility, miniaturization, and digitization.

Consumer electronics industry is one of the major end-use sectors for the market. Growth in population and rise in sales of electronic devices such as smartphones, LED TVs and home appliances is creating an opportunity for the market. The digitization trend is revolutionizing the consumer electronics industry, majorly the smart digital application segment such as smartphones, smart TVs, home audio equipment, DVD/Blu-ray players and home media services. Furthermore, the sector is witnessing a surge in the demand for advanced gaming consoles, portable music, digital cameras, video players and home appliances such as washing machines, refrigerators, air conditioning, dishwashers, and dryers. Such scenario is expected to boost the market. 

The market can be segmented by product, region and application. By product, it can be segmented as embedded software and embedded hardware. By implementation, it can be segmented as consumer electronics, automotive, industrial, healthcare, telecommunication, military, and aerospace. The embedded device vertical is expected to dominate the market in the product segment, accounting for over 90% of the global market.

Automotive applications are projected to generate the highest revenue throughout the forecast period. The segment accounted for 20.8% of the overall market share in 2013. Such share in the market is attributed to the growing demand for high electronic content in the automotive and growing focus on hybrid electric vehicles.

North America accounted for 34% market share globally and is expected to remain the largest regional market over the next few years. Asia Pacific, on the other hand, is projected to grow at a CAGR of 6.7% in the next few years owing to the presence of semiconductor fabrication plant and a significant number of skilled professional in the region.

The key players in the market include Intel Corporation, Renesas Electronics, Freescale Semiconductor, Atmel Corporation, Samsung Electronics and Infineon Technologies among others.

The market is witnessing a series of merger and acquisition. In July 2014, Mentor Graphics Corporation announced the acquisition of XS Embedded, a provider of hardware reference platform and automotive system architectures. The prime objective behind such acquisition was the integration of advanced driver systems, infotainment domains, and driver information.

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