Embedded Systems Market Expected to Witness Sustainable Growth Over 2031

Embedded Systems Market Expected to Reach $163.2 Billion by 2031 — Allied Market Research

WILMINGTON, DE, UNITED STATES, August 1, 2025 /EINPresswire.com/ -- Allied Market Research, titled “Embedded Systems Market," estimates that the embedded systems market was valued at $89.1 billion in 2021 and will reach $163.2 billion by 2031, growing at a CAGR of 6.5% from 2022 to 2031. The global embedded systems market share is expected to witness considerable growth in coming years, owing to increase in investment by government agencies in next-generation electric vehicles (EV) & military solution, especially in automotive & defense sector. Further, a rise in investment by prime players in emerging economies will propel the market positively during the forecast.

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An embedded system is a physical computer system with integrated software that uses a semiconductor microprocessor to carry out a particular task as a stand-alone or large-scale system. The central component of embedded systems is an integrated circuit designed to advance computing activities and processes in real time. Embedded systems can be simple to use, from simply linked peripherals to complicated connected microcontrollers, from no UI to realistic graphical UI. They can be constructed at any level of deep collaboration, depending on their duties. Currently, embedded systems have been increasingly used in consumer electronics and electric vehicles. Embedded systems engineers are revolutionizing the embedded system design process and altering the way data centers are managed. These chips allow critical tasks to be transferred from software to hardware to save power, which is critical for power-sensitive embedded systems applications.

The following variables significantly influence the growth of the global embedded systems industry, which is, a rise in the number of embedded systems-related research and development initiatives, as well as the demand for ADAS in EV and hybrid vehicles. Additionally, the market opportunity is anticipated to be driven by the demand for multicore CPUs in military applications. The market's expansion is, however, hampered by the rising vulnerability of embedded systems to security flaws and cyberattacks. The advent of 5G, the development of embedded devices based on 5G, and the widespread use of embedded systems in smart homes, on the other hand, are anticipated to present prospective growth opportunities for the global embedded systems market during the forecast period.

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Based on the embedded systems market analysis, the hardware segment was the highest contributor to the market in 2021, whereas the automotive and industrial segments collectively accounted for the highest market share in 2021. The surge in demand for embedded systems solutions in the consumer electronics sector globally has led to an increase in the manufacturing of microcontrollers (MCU) in the hardware segment, thereby enhancing market growth.

The outbreak of COVID-19 has significantly impacted the growth of the embedded systems market size globally owing to a significant impact on prime market players operating within this region. Conversely, the rise in demand for 5G infrastructure solutions has led to a significant rise of embedded systems market share globally for applications such as consumer electronics and telecommunication, which is anticipated to drive the market post-pandemic. However, the lack of availability of a professional workforce due to partial and complete lockdowns implemented by governments restrained the growth of the global embedded systems market trends. On the contrary, the emerging economies of LAMEA witness the need for embedded systems original equipment manufacturers (OEMs) to open manufacturing units, which will benefit the region as well as provide employment. Thus, it is expected to boost the global embedded systems market growth positively.

The key players profiled in the report include Advantech, Analog Devices, Cypress Semiconductors, Infineon Technologies, Intel Corporation, Microchip Technology, NXP Semiconductors, Qualcomm Incorporated, Renesas Electronics, STMicroelectronics, and Texas Instruments, Inc. Market players have adopted various strategies such as product launches, collaboration, partnerships, joint ventures, and acquisitions to expand their foothold in the global embedded systems market.

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Allied Market Research is a top provider of market intelligence that offers reports from leading technology publishers. Our in-depth market assessments in our research reports consider significant technological advancements in the sector. In addition to other areas of expertise, AMR focuses on analyzing high-tech and advanced production systems. We have a team of experts who compile thorough research reports and actively advise leading businesses to enhance their current procedures. Our experts have a wealth of knowledge on the topics they cover. Also, they use a variety of tools and techniques when gathering and analyzing data, including patented data sources.

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