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Embedded System Market To Size Reach $169.1Bn By 2030

Embedded System Market Size To Reach $169.1 Billion By 2030

May 2025 | Report Format: Electronic (PDF)

Embedded System Market Growth & Trends

The global embedded system market size is expected to reach USD 169.1 billion by 2030, registering a CAGR of 7.1% from 2025 to 2030, according to a new report by Grand View Research, Inc. Favorable regulatory scenario for installation of smart devices such as smart meters is expected to drive global embedded system demand over the forecast period. Growing adoption and evolution of the Internet of Things (IoT) driven by technological advancement is also expected to fuel the industry over the next six years.

Increasing demand for end-use industries such as healthcare and consumer electronics is expected to positively impact the embedded systems market. Key requirements for an efficient embedded system include high degree of reliability and responsiveness as well as low cost, since these devices are embedded in safety critical systems. Decreasing prices of microcontrollers, which are a key component of embedded hardware, is expected to give impetus to the market in the coming years.

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Embedded System Market Report Highlights

Embedded hardware is expected to remain the dominant product segment and accounted for 51.5% of the global market in 2024. Hardware components, such as microcontrollers, processors, sensors, and memory modules, form the backbone of these systems, providing the necessary processing power, connectivity, and data storage.
The small-scale embedded systems segment held the largest market share in 2024, owing to versatility, cost-effectiveness, and compact design. The medium-scale embedded systems segment is projected to grow the highest CAGR during the forecast period, driven by the escalating demand for cost-effective, versatile, and efficient solutions across industries.
The automotive segment held the largest revenue share in 2024, attributed to the rising demand for advanced technologies such as autonomous driving, Electric Vehicles (EVs), and in-car infotainment systems.
Asia Pacific embedded system market is projected to be the fastest-growing region with a CAGR of 8.1% from 2025 to 2030, propelled by the demand for low-power embedded systems and the rise of automation in agriculture (AgTech).