Embedded Systems Market: Classification & Key Applications

Embedded Systems Market_Inkwood Research

Embedded systems are characterized as microcontroller-based systems designed to perform a dedicated task. An amalgamation of computer hardware and software, embedded systems can function solitarily or as a part of an extensive system. Moreover, they also comprise a single-chip microcontroller, such as ARM, DSPs, Cortex, and microprocessors. According to Inkwood Research, the global embedded systems market is predicted to rise with a CAGR of 4.79% during the forecast period of 2022 to 2030.

The market growth is attributable to the increasing use of robots across industrial sectors, advancements in connected vehicles, and the surging demand for consumer electronics. Furthermore, the unique features of embedded systems, such as reliability, power, size, accuracy, and adaptability, further propel their demand across applications.

Embedded Systems: Classification

The components within an embedded system can be categorized into hardware and software components. Hardware components include the processor, analog-to-digital, sensors, digital-to-analog converters, and actuators.

On the other hand, software components vary in complexity based on the embedded system. Embedded system software is specialized programming on a chip, such as in firmware in an embedded MCU or a microcontroller (MCU), in order to control its functions. The emergence of system-on-a-chip (SOC) technology has also enabled all parts of an embedded device to be integrated into one chip, thus reducing the cost.

As per our analysis, hardware is projected to be the fastest-growing and dominating component during the forecast period.

Furthermore, based on their functions, embedded systems are classified into three types –

  • Mobile Embedded Systems:

    • The embedded systems utilized in smaller devices designed to be portable are termed mobile embedded systems. In addition to smartphones, they are also present in watches, digital cameras, and music players. Mobile embedded systems are typically very simple and require minimal power as well as memory.
    • For example, embedded Linux entails an adapted version of the desktop Linux operating system (OS), customized for embedded devices like mobile phones. Unlike server and desktop versions of Linux, embedded versions are developed for equipment with relatively limited resources, thus enabling OS customization for individual devices.
    • Aligning with this, operating system (OS) is set to be the fastest-growing hardware during the forecast period, progressing with a CAGR of 4.53% by 2030.
  • Network Embedded Systems:

    • Network or networked embedded systems mainly rely on wireless or wired networks as well as communication with web servers for the purpose of output generation.
    • Some of the key examples of network embedded systems are home and office security systems, point-of-sale (POS) systems, as well as communication/data exchange protocols.
  • Real-Time Embedded Systems:

    • A real-time embedded system entails a particular version of an embedded system that functions on the basis of real-time computing, denoted by a specific type of operating system — RTOS. Common examples of real-time embedded systems include air traffic control systems, autonomous driving systems, and process control systems.
    • In autonomous driving systems, smog monitoring, climate control, and built-in safety are primarily controlled by embedded systems. Subsequently, this factor plays an essential role in positioning automotive as the leading end-user over the forecast years.

Embedded Systems Market: Key Applications

AI-based technologies, including deep learning as well as CNNs, are becoming increasingly crucial, particularly in highly automated industries. Embedded automation systems are used to perform various operations within industrial equipment, such as maintaining fluid flow rates in a CNC machine and controlling assembly line speeds.

Prominent Uses of Embedded Systems – Artificial Intelligence & Automation:

Artificial Intelligence –

Artificial intelligence (AI) and its practical applications are gaining traction as embedded designs become more advanced. AI has also impacted numerous sectors, including retail, healthcare, e-commerce, manufacturing, autonomous vehicles, supply chains, finance, and others. A smart factory equipped with AI and IoT, for example, can dramatically increase its efficiency by monitoring operations in real time and enabling AI to make decisions, thus averting functioning errors.

Furthermore, the convergence of AI and embedded systems results in significant improvements in terms of image as well as video recognition. Advancements in embedded technology may further contribute to the development of imaging equipment with enhanced computing capability in addition to compact designs. These technologies can also be implemented for the development of industrial automation, improving factory inventory control, and tracking the transportation network’s operations.

Automation –

Earlier, the use of embedded devices was limited to automating specialized functions. However, the technology is now becoming widespread in both automation as well as control processes. Furthermore, the COVID-19 pandemic and economic crises have significantly accelerated the deployment of automation, compelling companies across numerous sectors to re-evaluate their automation strategy.

Furthermore, the rapid advancement of artificial intelligence (AI), robotics, and robotic process automation (RPA) has further ushered in a novel era of automation across various industries. These include healthcare, logistics & retail, and customer service.

All in all –

Automation and artificial intelligence have been incorporated into diverse areas of development owing to the myriad benefits they offer. Given that embedded systems are purpose-built for specific applications, they facilitate optimizations and designs that make optimum use of technology, while minimizing cost and power consumption. Consequently, as automation and the use of AI become more prevalent, the global embedded systems market is set to be presented with lucrative growth opportunities during the forecast period.

By Shruti Vanjare


What is flash memory?

Flash memory is a non-volatile and long-life storage chip, widely utilized in embedded systems. It can also keep stored information and data when the power is off. As per Inkwood Research, flash memory is set to be the fastest-growing hardware, growing with a CAGR of 4.90%.

What are the key end-users analyzed in the global embedded systems market report?

IT & communication, automotive, consumer electronics, industrial, aerospace and defense, healthcare, and other end-users are analyzed in the global embedded systems market report.

What are some of the top players operating in the global embedded systems market?

Analog Devices Inc, ARM Ltd, Fujitsu Limited, Infineon Technologies AG, STMicroelectronics NV, etc., are among the top players operating in the global embedded systems market.