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Global Embedded Systems Market: Real-time Embedded Systems Increasingly Prove their Dominance in Electronics and Automotive Applications

Embedded System Market - Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2015 - 2021
Published 28 October 2015

In applications where a general-purpose computer doesn’t meet the desired operational requirements, an embedded system is the go-to solution. As opposed to a general-purpose computer, an embedded systems is programmed for a very specific function. For instance, an embedded system in a global positioning system (GPS) may help with receiving satellite signals. Embedded systems are increasingly used in new-age automobiles, appliances and electronics to perform highly specific yet advanced functions.

Thanks to these positive growth drivers, the global embedded systems market is expected to report a healthy growth rate through the remainder of the decade. Transparency Market Research, a market intelligence firm, expects the global embedded systems market to expand at a compounded annual growth rate (CAGR) of 6.4% between 2015 and 2021, by which year it will likely reach a valuation of US$ 233.13 billion. In 2014, the market was pegged at US$ 152.94 billion.


The market is characterized by a high degree of rivalry among market players. 


Widely regarded as the Progenitor of IoT, Embedded Systems will continue to Find Uses in Smart Devices


Experts in the electronics industry often remark that embedded systems were the precursor to IoT. However, the IoT industry has evolved so rapidly that it now directly influences the way embedded systems are designed and implemented. From smart wearables to military equipment to software applications, embedded systems are increasingly being used in every new application that impacts our lives. 

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With the prices of hardware components such as microcontrollers, microprocessors, and FPGA chips having dipped in recent years, companies now find it more cost-effective to purchase a generic chip and create their own code for it. This is the approach now being followed by numerous companies producing smart electronics, smart devices, and other sophisticated electronics that are a part of the IoT ecosystem. 


Real-time Embedded Systems on Brink of Exploding on to the Scene with their Cutting-Edge Advantages


On the basis of functionality, the global embedded systems market features various types of embedded systems such as real-time, networked, stand alone, and mobile. The future clearly belongs to real-time embedded systems because of the sheer advantages they bring to various applications. These types of embedded systems, for instance, can operate in extremely constrained environments where restrictions exist on both computing power and computer memory. 


It’s hardly surprising then, that the demand for real-time embedded systems is soaring from the education, government, military, medical and electronics sector. 


North America Occupies Top Spot in Global Embedded Systems Market, Trailed by Asia Pacific 


Globally, North America represents the largest market for embedded systems. According to TMR’s analysis, the North America embedded systems market represented over 36% of the global market in 2014, with Asia Pacific following at a close second spot. Together, these two markets account for just over 65% of the global embedded systems market. 


The dominance of North America can be attributed to the fact that the United States is an early adopter in nearly every new technology that is launched in the market. Moreover, the region is a hotbed for research and development in the semiconductor and electronics sector. Countries in North America are witnessing extensive deployment of smart meters in commercial and residential facilities, spurring massive demand for embedded systems. These factors create a highly supportive environment for the expansion of the global embedded systems market.


Likewise, Asia Pacific too enjoys an appreciable share in the global embedded systems market thanks to countries such as Taiwan, China, and South Korea being hubs for embedded system production. These three countries, along with India, also have well-developed automotive and electronics markets. 


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About Us

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 insights for 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.


TMR’s data repository is continuously updated and revised by a team of research experts so that it always reflects the latest trends and information. With extensive research and analysis capabilities, TMR employs rigorous primary and secondary research techniques to develop distinctive data sets and research material for business reports.



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