Embedded Software Market Size, Share & Trends Analysis Report By Operating System (General Purpose Operating System, Real-time Operating System), By Functionality, By Vertical (Automotive, Manufacturing), By Region, And Segment Forecasts, 2024 - 2030

Embedded Software Market Size & Trends

The global embedded software market size was valued at USD 16.77 billion in 2023 and is expected to grow at a CAGR of 9.1% from 2024 to 2030. The rapid expansion of IoT devices, such as smart home products and industrial sensors, drives demand for embedded software that can handle real-time processing, connectivity, and data management. IoT applications in smart cities, including traffic management, energy systems, and public safety, rely heavily on embedded software to function efficiently. The automotive industry’s shift toward autonomous driving and advanced driver assistance systems requires advanced embedded software to process sensor data, control vehicle functions, and ensure safety. Moreover, the rise of electric vehicles necessitates embedded software for battery management systems, motor control, and vehicle-to-grid communication.

The increasing popularity of smart devices such as smartphones, wearable technology, and smart home products drives the need for embedded software that enhances functionality, connectivity, and user experience. Moreover, consumer demand for feature-enabled and energy-efficient devices boosts the development of more complex and optimized embedded software. The push toward Industry 4.0 and smart manufacturing increases the need for embedded software in robotics, programmable logic controllers (PLCs), and industrial automation systems. Embedded software enables precise control and monitoring of industrial processes, enhancing productivity and efficiency.

The integration of IoT in healthcare, such as remote patient monitoring, and wearable health devices, requires reliable embedded software for data collection, processing, and communication. The need for embedded software that meets stringent regulatory standards for safety and accuracy in medical devices is driving market growth. Moreover, the deployment of 5G networks accelerates the development of embedded software for network infrastructure, devices, and edge computing, enabling faster and more reliable communication.

Operating System Insights

The real-time operating system (RTOS) segment led the market in 2023, accounting for over 41.0% share of the global revenue. RTOS is essential for applications requiring precise timing and reliability, such as aerospace, automotive control systems, and industrial automation. The need for systems to perform real-time processing and handle critical tasks drives RTOS adoption. The growth of IoT and connected devices requires efficient and responsive systems to handle real-time data processing and communication. RTOS is crucial for managing the real-time requirements of these devices.

The general purpose operating system (GPOS) segment is anticipated to exhibit a significant CAGR over the forecast period. GPOS is used in various applications, such as consumer electronics, computing devices, and general-purpose embedded systems. This broad applicability drives its widespread adoption. GPOS provides a rich set of APIs and development tools that simplify software development and support a wide range of applications, making it a preferred choice for developers. The need for advanced multimedia capabilities and connectivity in devices such as smartphones, tablets, and smart TVs drives demand for GPOS, which can efficiently handle these requirements.

Functionality Insights

The real-time embedded systems segment accounted for the largest market revenue share in 2023. The increasing need for automation and precise control in various industries, such as manufacturing, automotive, and aerospace, drives the demand for real-time embedded systems to manage complex processes and operations. Moreover, the rise of Industrial Internet of Things (IIoT) technologies, which require real-time data processing and analytics, propels the growth of real-time embedded systems for effective monitoring and control in industrial environments. Real-time embedded systems are essential for applications requiring high reliability and safety, such as medical devices, automotive safety systems, and aerospace systems, where timely and accurate responses are critical.

The mobile embedded systems segment is anticipated to exhibit a significant CAGR over the forecast period. The increasing adoption of smartphones, tablets, and wearable devices drives demand for mobile embedded systems. These systems are essential for managing various functions and providing user experiences in mobile devices. Continuous advancements in mobile technology, including higher processing power, improved battery life, and enhanced connectivity, drive the need for advanced embedded systems to support these features. Users expect advanced functionality, better performance, and richer multimedia experiences from mobile devices. Mobile embedded systems are crucial for providing these enhanced user experiences.

Vertical Insights

The consumer electronics segment accounted for the largest market revenue share in 2023. The growing use of smart devices, such as smartphones, tablets, smart TVs, and home appliances, drives demand for embedded software to support their functionality and user interfaces. Continuous advancements in technology, including faster processors, higher resolution displays, and improved connectivity, require advanced embedded software to leverage these capabilities. The integration of voice assistants and artificial intelligence (AI) in consumer electronics requires advanced embedded software to handle natural language processing, voice recognition, and intelligent features.

The automotive segment is anticipated to exhibit the highest CAGR over the forecast period. The growing need for vehicle-to-infrastructure (V2I) and vehicle-to-vehicle (V2V) communications advances the development of embedded software that ensures seamless connectivity and data exchange. The rise of electric vehicles (EVs) and autonomous vehicles requires specialized embedded software for energy management, autonomous driving algorithms, and vehicle-to-everything (V2X) communication. Increasing complexity in vehicle systems, such as advanced driver-assistance systems (ADAS), infotainment, and connected vehicles, drives demand for advanced embedded software.

Regional Insights

North America embedded software market dominated the global industry with a revenue share of over 38.0% in 2023. Rapid innovations in various areas such as IoT, AI, and machine learning are creating new opportunities and applications for embedded software. Supportive government policies and funding for technological research and development drive the growth of the embedded software market in the region.

U.S. Embedded Software Market Trends

The embedded software market in the U.S. is anticipated to exhibit a significant CAGR over the forecast period. Increasing awareness and implementation of cybersecurity measures for embedded systems drive the development of more secure software solutions. Moreover, the growing market for smart home devices, wearables, and entertainment systems demands advanced embedded software to deliver enhanced features and user experiences.

Europe Embedded Software Market Trends

The embedded software market in Europe is expected to witness significant growth over the forecast period. The European Union's strict regulations related to safety, environmental impact, and data protection necessitate the development of highly reliable and compliant embedded software, especially in industries like automotive, healthcare, and industrial automation. Europe's increasing adoption of Industry 4.0, which emphasizes smart factories, automation, and data exchange in manufacturing technologies, is a major driver for embedded software development, enabling efficient and connected industrial systems.

Asia Pacific Embedded Software Market Trends

The embedded software market in Asia Pacific is anticipated to register the highest CAGR over the forecast period. Asia Pacific is a global manufacturing hub, and the ongoing industrialization, particularly in various countries such as China, India, and Southeast Asia, drives demand for embedded software to power automation, robotics, and smart manufacturing systems.

Key Embedded Software Company Insights

Key embedded software companies include Intel Corporation, Microsoft, and Wind River Systems, Inc. Companies active in the embedded software market are focusing aggressively on expanding their customer base and gaining a competitive edge over their rivals. Hence, they pursue various strategic initiatives, including partnerships, mergers & acquisitions, collaborations, and new product/ technology development. For instance, in January 2024, BlackBerry Limited launched QNX Everywhere, a new initiative aimed at meeting the increasing worldwide need for skilled developers in embedded systems. QNX Everywhere includes various features such as autonomous access to QNX software, training available on-demand, open-source projects optimized for QNX, and straightforward entry to development tools supported by the cloud. Furthermore, to facilitate developers in designing and experimenting with their software on embedded devices, QNX Everywhere would offer assistance for widely accessible, economical CPU boards.

Recent Developments

• In May 2024, Wind River Systems, Inc. collaborated with Elektrobit, an automotive software provider, to exhibit core software for autonomous, electric, software-centric vehicles. Wind River Systems, Inc. contributes VxWorks as the real-time operating system, while Elektrobit delivers its second-generation EB corbos AdaptiveCore software, EB corbos Studio tools, and has developed a software framework based on the AUTOSAR Adaptive Platform for controlling the autonomous driving domain.

• In April 2024, Microsoft signed eight years’ partnership agreement with Cloud Software Group Inc. The agreement would enhance the collaborative efforts in marketing for the virtual application and desktop platform offered by Citrix, as well as bolster the creation of innovative cloud and AI solutions through a unified product strategy. Moreover, Cloud Software Group Inc. invested USD 1.65 billion to support the Microsoft cloud and its advanced generative AI features.

• In February 2024, Intel Corporation, announced the launch of Altera, its new standalone Field Programmable Gate Arrays (FPGA) company. Altera's offerings are optimized to target a wide spectrum of markets and applications, from networking and communications infrastructure to energy-efficient embedded systems.

Embedded Software Market Report Scope

Global Embedded Software Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global embedded software market report based on the operating system, functionality, vertical, and region.

• Operating System Outlook (Revenue, USD Million, 2017 - 2030)

  • General Purpose Operating System (GPOS)

  • Real-time Operating System (RTOS)

  • Others

• Functionality Outlook (Revenue, USD Million, 2017 - 2030)

  • Standalone Systems

  • Real-time Embedded Systems

  • Mobile Embedded Systems

  • Networked Embedded Systems

• Vertical Outlook (Revenue, USD Million, 2017 - 2030)

  • Computing Devices

  • Consumer Electronics

  • Industrial Automation

  • Automotive

  • Manufacturing

  • Telecommunications

  • Others

• Regional Outlook (Revenue, USD Million, 2017 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • UK

    • Germany

    • France

  • Asia Pacific

    • China

    • India

    • Japan

    • Australia

    • South Korea

  • Latin America

    • Brazil

  • MEA

    • UAE

    • South Africa

    • KSA