7 Embedded Software Trends to Watch in 20257 Embedded Software Trends to Watch in 2025

As we turn the page to 2025, it’s impossible not to reflect on the transformative trends of 2024. From the growing influence of AI to the rise of modern languages like Rust and the increasing focus on cybersecurity, last year laid the groundwork for a seismic shift in how embedded systems are designed, developed, and delivered. But as the industry continues to evolve, what’s next? What new challenges and opportunities will shape the year ahead?

Here are seven key trends that embedded systems developers, teams, and companies need to watch in 2025.

Trend #1: The rise of AI-developed systems

The future of software development is here, and it involves collaboration between humans and AI. In 2025, we’re likely to see a surge in the adoption of AI technologies that can generate, test, and even debug embedded software. Microsoft’s recent announcement of “AI Employees” is a glimpse of what’s to come: AI systems capable of taking on technical tasks once reserved for developers.

For embedded developers, this shift raises exciting possibilities and critical questions. What does it mean for their roles? How do we balance the efficiency of AI-generated code with the need for oversight and quality assurance? And how do teams adapt to a new paradigm where engineers act more like system architects and supervisors, guiding AI rather than writing every line of code themselves?

Related:3 Reasons to Use Rust in Embedded Systems

My own personal reaction is mixed. I like the idea of leaving the mundane behind. It was fun writing that first USART, SPI, and I2C driver to understand them. However, once you know how it works, do you really want to keep doing the same thing repeatedly? AI has the potential to let you do it once and enjoy it, then move on to more innovative activities while allowing the machine to write that driver for the umpteenth time. 

In 2025, the rise of AI-developed systems will challenge traditional workflows and redefine what it means to be an embedded engineer. The companies that embrace this shift will unlock new levels of productivity, while those that resist may find themselves left behind. 

(Embedded has been slowly disappearing for years anyway; check out my post from 2018, The Soon-to-Be-Extinct Embedded Software Engineer). 

Trend #2: Open-source dominance

The era of proprietary embedded software is fading fast, if not already ended. In 2025, open-source projects like Zephyr RTOS, Linux, and standard middleware will continue to dominate the industry, particularly outside of safety-critical domains. Why? Because open-source solutions offer unparalleled flexibility, lower costs, and broader community support. (Did I mention that it’s “free”?)

Related:Avoid Engineering Your Product Twice: Get the Latest on FDA’s New Cybersecurity Requirements

This trend is a win-win for silicon vendors. Supporting open-source ecosystems allows them to provide customers with working software at a fraction of the cost of developing proprietary solutions. They can launch a new chip without building everything from scratch. They can point their customers to open-source communities and claim support on day one! 

For developers, this means access to powerful tools and frameworks that level the playing field and make it easier than ever to bring innovative products to market. They can immediately start to work at higher levels of abstraction, focusing not on low-level hardware that just a few old-timers understand but instead, focusing on their customer’s needs and the value their system and company provide to its users. 

Open source isn’t just the future—it’s the present. And in 2025, its influence will only grow stronger. Look at Zephyr RTOS; it’s the prime example of where the embedded systems industry is headed, whether you like it or not. The only hold-outs will be companies involved in safety-critical applications requiring compliance or greater reliability levels that can’t be met by open-source. Still, even those are quickly looking to open-source to help them keep up. 

Related:How to Build Better Applications with Edge AI

Trend #3: Security will be king

Cyber threats are not slowing down, and regulatory compliance is not going away. In 2025, security will be the central concern for embedded systems developers. Far from contradicting the open-source trend, security and open-source will go hand in hand, as more eyes on the code lead to faster vulnerability detection and more robust defenses.

Tools and techniques like SBOMs (Software Bills of Materials), secure firmware updates, and automated security testing will become standard practice. Meanwhile, organizations must invest in commercial tools to validate and secure their open-source stacks, ensuring they meet the requirements of new regulations like the Cyber Resilience Act.

The one area of commercial software that will likely grow and succeed is companies that offer security solutions, testing, and monitoring. Security is one of the core foundations that every connected embedded system must be based on; otherwise, corporate and user data will be at risk. 

The message for 2025 is clear: if your system isn’t secure, it won’t survive (and neither will your company).

Trend #4: The rise of modern languages

C has had a great run, but its dominance in embedded systems is waning. In 2025, the shift to modern programming languages like C++ and Rust will accelerate, driven by the need for safer, more maintainable, and more developer-friendly tools.

New developers entering the field are already more familiar with C++ and Rust, so why force them to learn an outdated language with well-documented pitfalls? Silicon is cheap, and performance constraints are less critical than they once were, making the move to modern languages not just possible but practical. (Have you looked at the performance metrics on the Arm Cortex-M23, Cortex-M33, Cortex-M55, and Cortex-M85?)

While C will remain part of the embedded world for years to come, 2025 will mark another step toward a future where C++ and Rust take center stage. Don’t fight against it; embrace it!

Trend #5: An increase in simulation technologies and technologies

2025 will see a continued push toward simulation-first development. Many embedded teams still rely heavily on hardware for testing, which often leads to tightly coupled systems and late-stage surprises. But as simulation technologies mature, they’re becoming a powerful alternative that enables developers to focus on application code first, with hardware integration coming later.

This shift allows teams to get their systems in front of users earlier, collect valuable feedback, and reduce the risk of late-cycle changes. The result? Faster development, lower costs, and shorter time to market. 

Several simulation technologies exist today that teams can leverage. These range from using commercial tools like Matlab to open-source tools like Renode. Perhaps more importantly, for teams that don’t need hardware-based simulation, it’s easy to simulate your application code using web technologies.  

For companies willing to adopt a simulation-driven approach, 2025 can revolutionize how embedded systems are built. I’ve seen significant improvements in my projects using these approaches, and I know you will also. 

Trend #6: DevOps and observability

After a quiet second half of 2024, the push for DevOps in embedded systems is set to come back in 2025. But this time, the focus will shift toward observability—giving developers and companies deeper insights into how their systems are performing in real-world environments.

Observability tools help teams monitor system behavior, identify bottlenecks, and respond quickly to issues. For IoT companies, this is especially critical, as the ability to track device health and performance remotely can mean the difference between satisfied customers and costly recalls.

In 2025, DevOps and observability won’t just be buzzwords—they’ll be essential practices for any company looking to compete in the embedded market.

Trend #7: The expansion of edge AI

If 2024 was the year of AI’s rise, 2025 will be the year of its deployment at the edge. Edge AI—embedding intelligence directly into devices rather than relying on the cloud—will see explosive growth as companies look to improve latency, privacy, and energy efficiency.

From autonomous vehicles to smart appliances, edge AI will power a new wave of innovation, enabling devices to process data locally and make real-time decisions without cloud dependencies. This shift will open up opportunities for embedded developers to create smarter, more responsive systems, while also presenting challenges around compute power, memory constraints, and toolchain maturity.

Edge AI is the frontier of embedded systems, and 2025 will be the year it takes center stage.

What will 2025 look like for the embedded systems industry? 

For many companies, 2025 might look a lot like 2024—relying on the same tools, processes, and languages they’ve always used. But for forward-thinking organizations, the year ahead offers an opportunity to embrace modern techniques, unlock efficiencies, and deliver better products faster.

With trends like AI-driven development, open-source dominance, heightened security, and the rise of modern languages and simulation technologies, the path forward is clear. Companies that adapt will thrive, gaining a competitive edge in cost, speed, and customer satisfaction.

The only question to ask yourself is whether you’re going to continue to develop your systems the way you have been for years or adopt emerging trends and transform the way you develop embedded systems.