Embedded System Market Size, Share & Trends Analysis Report By Component (Hardware, Software), By System Size, By Application (Automotive, Healthcare, Telecommunications), By Region And Segment Forecasts, 2025 - 2030

Embedded System Market Size & Trends

The global embedded system market size was valued at USD 112.3 billion in 2024 and is projected to grow at a CAGR of 7.1% from 2025 to 2030. The growing popularity of smart devices, such as wearables, smartphones, and IoT-enabled gadgets, is driving significant demand for embedded systems. These devices rely on embedded technologies for seamless functionality, connectivity, and energy efficiency.

The rising percentage of the geriatric population and the increasing prevalence of lifestyle-related disorders are expected to fuel demand for embedded systems in medical and healthcare electronic devices. These systems enable advanced monitoring, diagnosis, and treatment, making them essential for managing chronic conditions common among older adults. The need for more efficient, reliable, and accessible healthcare solutions drives the adoption of embedded technologies, especially for remote patient care and real-time health monitoring. This growing demand is set to significantly expand the embedded system market in the healthcare sector.

Moreover, the rising need for real-time data processing across various sectors-particularly healthcare, automotive, and manufacturing-further fuels this growth. Embedded systems enable quick data analysis and decision-making, supporting automation and improving operational performance. Industries demand faster, smarter devices and instant data processing capabilities, making embedded systems increasingly integral to modern technological advancements. These systems play a crucial role in enhancing device performance and supporting innovation across various sectors. For instance, in October 2024, STMicroelectronics launched the ST1VAFE3BX bio-sensing chip for next-gen wearables such as smartwatches and fitness bands. The chip combines biopotential input with ST’s inertial sensing and AI core, enabling efficient activity detection while improving performance and reducing power consumption for healthcare-focused wearable devices.

Continuous advancements in microprocessor technologies are boosting the performance, efficiency, and miniaturization of embedded systems, enabling their integration into more devices and applications. These innovations lead to smaller, faster, and more cost-effective systems, further driving their adoption across industries. In addition, industrial automation, including robotics, AI-driven manufacturing, and smart factories, relies heavily on embedded systems for real-time processing and control. Industries are aiming to improve operational efficiency and productivity, leading to a growing demand for advanced embedded systems, thereby expanding the embedded system industry. As per a report in The Manufacturer in March 2025, Mitsubishi Electric launched MELFA RH-10CRH and RH-20CRH SCARA robots to support digital manufacturing and address workforce shortages. These compact, lightweight robots offer high-speed operation, easy installation, and exceptional efficiency, helping manufacturers enhance automation, boost productivity, and overcome space and weight challenges.

Component Insights

The hardware segment accounted for the largest revenue share of 51.5% in 2024due to its critical role in enabling the functionality of embedded systems. Hardware components, such as microcontrollers, processors, sensors, and memory modules, form the backbone of these systems, providing the necessary processing power, connectivity, and data storage. The growing demand for IoT devices, automation, and real-time processing has led to a surge in the need for advanced and reliable hardware. This drive for higher performance, efficiency, and miniaturization has led to the dominance of hardware segment in the embedded system market.

The software segment is anticipated to grow at a significant CAGR of 6.3% over the forecast period, fueled by the surging demand for more complex, efficient, and adaptable solutions. The integration of embedded systems with AI, IoT, and automation increases the need for sophisticated software to effectively manage these technologies. Software development, including real-time operating systems, middleware, and security protocols, is critical for enabling seamless functionality and innovation. With ongoing advancements in software tools and platforms, the segment is expected to play a pivotal role in shaping the future of embedded systems.

System Size Insights

The small-scale embedded systems segment held the largest market share in 2024, owing to versatility, cost-effectiveness, and compact design. These systems are widely adopted across various industries, including consumer electronics, automotive, and healthcare, due to their ability to perform specific tasks efficiently without significant space or power requirements. The growing demand for IoT devices, wearables, and smart home products fuels the continued growth of small-scale embedded systems, which provide high performance in compact packages. Their affordability and scalability contribute to their dominance in the rapidly expanding embedded system industry.

The medium-scale embedded systems segment is projected to grow the highest CAGR during the forecast period, driven by the escalating demand for cost-effective, versatile, and efficient solutions across industries. These systems offer a balanced mix of processing power, scalability, and energy efficiency, making them ideal for applications such as automotive, industrial automation, consumer electronics, and IoT devices. The growing need for sophisticated yet affordable solutions is set to make medium-scale embedded systems crucial for addressing these demands, driving innovation and accelerating market expansion.

Application Insights

The automotivesegment held the largest revenue share in 2024, attributed to the rising demand for advanced technologies such as autonomous driving, Electric Vehicles (EVs), and in-car infotainment systems. Embedded systems are vital for enhancing vehicle safety, navigation, and connectivity, offering improved driver experience and vehicle performance. As the automotive industry moves toward smarter, more automated vehicles, the reliance on embedded systems for functions such as powertrain control, Advanced Driver Assistance Systems (ADAS), and telematics has significantly grown, resulting in segment dominance. For instance, in February 2025, e-con Systems launched the See3CAM_37CUGM, a 3MP Global Shutter HDR Monochrome USB Camera. Equipped with the Sony IMX900 sensor and e-con’s TintE ISP, this camera provides superior HDR imaging for precision applications, including barcode scanners, robots, intelligent transportation, and sports analytics.

The healthcare segment is anticipated to grow at a significant rate over the forecast period, owing to the growing adoption of advanced medical devices and technologies. Embedded systems are essential in improving patient monitoring, diagnostic tools, wearable health devices, and telemedicine solutions. Healthcare providers are increasingly seeking more efficient, real-time data analysis and automation, driving the adoption of embedded systems. These systems enable innovations such as remote monitoring and personalized treatment, enhancing healthcare delivery and improving patient outcomes. The increasing focus on health and wellness, along with technological advancements, positions the healthcare segment for considerable growth in the market.

Regional Insights

North America embedded system market secured the largest revenue share of 34.5% in 2024, driven by the growing adoption of machine vision and the surging demand for connectivity. Machine vision technologies enhance automation and quality control in industries such as manufacturing, healthcare, and automotive, boosting the need for advanced embedded systems. Moreover, the growing reliance on connected devices, fueled by the rise of IoT and smart technologies, further accelerates demand. This synergy of machine vision and connectivity is fueling market expansion, supporting innovations, and increasing market adoption across various sectors in North America.

U.S. Embedded System Market Trends

The U.S. embedded system market held the largest revenue share in 2024. System-on-Chip (SoC) developments and the adoption of open-source software frameworks and modular hardware are shaping the U.S. embedded system industry. SoCs integrate multiple functionalities into a single chip to enhance performance, reduce power consumption, and enable compact, cost-effective designs for diverse applications. Furthermore, open-source software frameworks and modular hardware promote flexibility, customization, and rapid prototyping, lowering development costs and driving time to market. These innovations foster a more agile and efficient embedded systems ecosystem, driving demand across industries such as automotive, IoT, and consumer electronics in the U.S.

Europe Embedded System Market Trends

Europe embedded system market is expected to experience significant expansion over the forecast period. The transformation of the automotive sector, the rise of the Internet of Things (IoT), and the integration of embedded systems in healthcare are anticipated to propel the embedded system industry across Europe. The shift of the automotive industry toward autonomous and connected vehicles relies heavily on embedded systems for safety, navigation, and connectivity features. In addition, IoT devices are creating new opportunities for embedded systems across various sectors. In healthcare, embedded systems enable remote monitoring, diagnostics, and patient management, driving demand for advanced, reliable solutions and further expanding the market across Europe. In October 2024, e-con Systems introduced the See3CAM_CU83, a 4K RGB-IR USB camera powered by proprietary RGB-IR separation technology. Featuring onsemi's AR0830 sensor, it delivers high-quality 4K images in both visible and Infrared (IR) lighting, suitable for applications such as biometric access, in-cabin monitoring, and smart patient monitoring.

Asia Pacific Embedded System Market Trends

Asia Pacific embedded system market is projected to be the fastest-growing region with a CAGR of 8.1% from 2025 to 2030, propelled by the demand for low-power embedded systems and the rise of automation in agriculture (AgTech). The growing adoption of smart technologies for precision farming in agriculture makes embedded systems with low power consumption essential for sustainable operations. These systems enable real-time monitoring, data analytics, and automation, optimizing crop yield and reducing costs. The growing focus on AgTech innovations, along with the need for energy-efficient solutions, is set to expand the embedded system industry in the region. In November 2024, MYIR launched the MYC-LR3576 embedded SoM powered by the Rockchip RK3576 processor. It features quad-core Cortex-A72 and Cortex-A53 CPUs and integrates 6 TOPS NPU and 3D GPU. The technology supports 4K video and multi-screen display and offers versatile interfaces, ideal for Artificial Intelligence of Things (AIoT), industrial, and multimedia applications, among others.

China Embedded System Market Trends

China embedded system market held a significant share of the regional market in 2024. The adoption of RISC-V architecture and the integration of AI and machine learning are anticipated to accelerate the market growth across China. RISC-V, with its open-source and customizable nature, offers cost-effective, flexible solutions for diverse applications, making it ideal for embedded system development across industries. In addition, AI and machine learning integration into embedded devices enhances capabilities in sectors such as automotive, healthcare, and industrial automation, enabling smarter decision-making and real-time processing. These advancements are expanding China embedded system industry, fostering innovation, and supporting high-tech industry growth.

Key Embedded System Company Insights

Some of the key companies in the embedded system market includeRenesas Electronics Corporation; NXP Semiconductors; Intel Corporation; Samsung; Microchip Technology Inc.; Qualcomm Technologies, Inc.; Infineon Technologies AG; Texas Instruments Incorporated; STMicroelectronics; and Fujitsu.

• Intel Corporation offers a wide range of products, including microprocessors, integrated circuits, memory modules, and networking hardware. It specializes in semiconductor technology, providing solutions for computing, data centers, AI, automotive, and IoT industries.

• Fujitsu provides a variety of technology solutions, including computing hardware, IT services, software, and cloud solutions. It focuses on high-performance computing, AI, data analytics, and digital transformation services for businesses and industries worldwide.

Recent Developments

• In March 2024, Samsung India launched its AI Ecobubble fully automatic front-load washing machines in the 11 kg segment. Featuring SpaceMax design and AI Ecobubble technology, these machines effectively clean clothes at low temperatures, saving 70% energy, improving soil removal by 24%, and enhancing fabric care by 45.5%, while protecting clothes.

• In February 2024, Samsung launched the Galaxy Fit 3 fitness band in the Philippines, featuring a 1.6-inch AMOLED display, 256MB storage, and 16MB RAM. Powered by a 208mAh battery, it offers up to 13 days of use. Its sensors include an accelerometer, barometer, gyro, optical heart rate monitor, and light sensor.

• In February 2024, Hikvision introduced two new high-performance embedded NVR series featuring X86 architecture and Intel chipsets. Designed for medium to large-scale applications, these NVRs support multiple HD inputs and enhanced decoding capabilities. The DS-96000NI-I24 can handle up to 20 HD (1080p) cameras for simultaneous preview and playback, while the DS-96000NI-I24/H supports up to 68 HD (1080p) cameras.

• In April 2023, D3 Embedded launched its next-generation camera modules designed for autonomous and industrial applications. The new DesignCore camera series includes Discovery and Velocity, which offer exceptional image quality to enable advanced AI development on the latest embedded platforms, catering to the demands of multi-camera autonomous and industrial embedded vision applications.

Embedded System Market Report Scope

Global Embedded System Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For the purpose of this study, Grand View Research has segmented the global embedded system market report based on component, system size, application, and region:

• Component Outlook (Revenue, USD Million, 2018 - 2030)

  • Hardware

  • Software

• System Size Outlook (Revenue, USD Million, 2018 - 2030)

  • Small-scale Embedded Systems

  • Medium-scale Embedded Systems

  • Large-scale Embedded Systems

• Application Outlook (Revenue, USD Million, 2018 - 2030)

  • Automotive

  • Consumer Electronics

  • Industrial Automation

  • Healthcare

  • Telecommunications

  • Aerospace and Defense

  • Others

• Regional Outlook (Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • UK

    • Germany

    • France

  • Asia Pacific

    • China

    • Japan

    • India

    • Australia

    • South Korea

  • Latin America

    • Brazil

  • Middle East & Africa

    • KSA

    • UAE

    • South Africa