Embedded Systems Remain Hot Market for Electronics

As the Embedded World Exhibition and Conference takes place this week in Nuremberg, Germany, the electronics industry can breathe a sigh of relief that the embedded sector has held its own during downturn in the electronics industry. More important, embedded systems will remain a key growth area over the next decade, according to a recent study by Market.US  And expect more of them within the next decade, according to

The study expects the global embedded system market, which was $91.3 billion in 2022, to reach $173.4 billion by 2032,  growing at 6.8% CAGR.  

Key Takeaways

Here are some takeaways from the study:

Technological advancements and a decrease in the cost of microcontroller units are also anticipated to benefit the market during the forecast period. Embedded systems are used in many end-user industries with rising demand from healthcare and consumer electronics areas expected  to help fuel embedded system market growth.

Market Drivers

According to the study, some factors driving the growth of embedded systems include:

.All Global Regions Growing

According to the study, North America dominates the embedded systems market with a market share of 34% and will continue to lead during the forecast period. This is due to increased demand for connected and smart devices and various manufacturers in the region.

The Asia-Pacific market is going to witness significant growth during the forecast period. The Europe region is expected to follow the Asia-Pacific and North America regions during the forecast period. Europe could soon capture a large market share in embedded systems, due to the rapidly developing automotive sector in the region that use embedded systems.

Component Insight

Based on components, the hardware segment dominated the embedded systems market. In the hardware segment, the microcontroller captured the highest market share. Segment growth is driven by the continued use of microcontrollers in implantable medical devices, automotive engines, and others. With Increasing automation in every industry, the requirement for microcontrollers is increasing.  

The software segment in embedded systems is used to control specific, limited functions of hardware devices and usually does not require input. The software segment is expected to grow at an exponential growth rate with the increasing demand for software applications for the growing hardware segment.