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Albany, NY, Feb. 12, 2016 -- With the Internet of Things (IoT) evolving continuously and smart devices becoming a commercial success, the conditions are presently highly favorable for the growth of the global embedded systems market, states a recent report by Transparency Market Research. According to the report, spending on embedded systems will touch US$233.13 bn globally by 2021, up from US$152.94 bn in 2014. This translates to a CAGR of 6.4% through the report’s forecast period.
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An embedded system is programmed to perform a specific function or control a smaller device within a larger electrical or mechanical system. By doing so, embedded systems are able to fill in many of the gaps that a general-purpose computer’s capabilities might leave. This also explains the unmatched degree of versatility that embedded systems afford in a myriad of uses across industry verticals. The automobile industry, in particular, is expected to generate high demand for embedded systems in the near future. As real time data transfer and information relaying becomes pivotal to most industries, the use of embedded systems will rise.
However, the electronics industry is still grappling with challenges pertaining to the design and seamless integration of embedded systems in the latest electronic and electrical devices. This could result in the global embedded systems market’s growth being restrained to some extent. This situation is exacerbated by the high degree of competition that currently prevails among market participants, making innovation a vital tool for survival.
For the purpose of this study, the global embedded systems market is segmented on the basis of functionality, type, microcontroller, application, and geography. Segmented thus, the embedded systems market by functionality is composed of stand-alone embedded systems, networked embedded systems, real-time embedded systems, and mobile embedded systems. The highest revenue contribution in 2014 came from real-time embedded systems, thanks largely to their deployment in a myriad of applications ranging from industrial automation to automotive to consumer electronics.
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By microcontroller, the report segments the embedded systems market into: Small-scale, medium-scale, and large-scale embedded systems. In 2014, medium-scale embedded systems raked in the highest revenue, with their preference primarily being dictated by desirable attributes such as low power consumption, affordability, and compactness. Several advanced systems being based on medium-scale embedded systems also contributes to the dominance of this segment.
The applications of embedded systems studied in the report are: Telecommunications, automotive, industrial, healthcare, aerospace and defense, consumer electronics, and others. The global embedded systems market earned the highest revenue from the automotive application segment in 2014, and TMR analysts expect this trend to firmly continue through the report’s forecast period. There are numerous areas where the automotive industry has come to rely heavily on embedded systems; these include: wiper controls, infotainment systems, anti-lock systems, and engine control units.
On the basis of geography, the global embedded systems market is segmented into: North America, Europe, Asia-Pacific, and Rest of the World. The North America embedded systems market raked in the highest revenue (36%) as of 2014, with demand being stimulated by the deployment of smart meters, smart grids, and smart vehicles. Trailing North America was the Asia Pacific embedded systems market, contributing 30.6% of the total revenue in 2014. Taiwan, China, and South Korea spearhead the growth of the embedded systems market in Asia-Pacific.
The Company Profiles section is a highlight of the report, wherein leading players and their growth strategies are discussed in detail. Companies profiled in this section include: HCL Technologies Limited, Atmel Corporation, Infosys Ltd., Microsoft Corporation, Texas Instruments, and Renesas Electronics Corporation.
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Transparency Market Research (TMR) is a global market intelligence company providing business information reports and services. The company’s exclusive blend of quantitative forecasting and trend analysis provides forward-looking insight for thousands of decision makers. TMR’s experienced team of analysts, researchers, and consultants use proprietary data sources and various tools and techniques to gather and analyze information.
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