USD 16.77 Billion
Embedded Software Market Size, Share, Growth Analysis, By Operating System (Real-Time OS, General Purpose OS), By Functionality (Real-Time Embedded Systems, Mobile Embedded Systems), By Vertical (Consumer Electronics, Automotive), By Region -Industry Forecast 2025-2032
Report ID:
SQMIG45F2169 |
Region:
Global |
Published Date: January, 2025
Pages:
171
|Tables:
95
|Figures:
71
Embedded Software Market Insights
Global Embedded Software Market size was valued at USD 16.77 Billion in 2023 and is poised to grow from USD 18.30 Billion in 2024 to USD 36.72 Billion by 2032, growing at a CAGR of 9.1% in the forecast period (2025-2032).
The global embedded software market growth is driven by phenomenal growth of IoT applications including smart household appliances, and industrial sensors, coupled with increasing demand for IoT with innumerous embedded software functionalities involved within them, such as real-time processing, networking, and data management. Such applications include public safety systems, energy systems, or smart traffic control systems concerning smart cities largely operating on embedded software with such operational efficiency. The automobile industry needs sophisticated embedded software for the interpretation of sensor data, regulation of vehicle operations, and safety assurance in the transition to autonomous driving and sophisticated driver assistance systems. Many other reasons-of determining need of embedded software include the increasing expansion of electric vehicles, which now further increases the requirements for such embedded systems in battery management systems, motor control, and in vehicle-to-grid communication.
Moreover, there has been increased popularity of smart devices such as the mobile and wearable technology, and smart home appliances, making it consume much more embedded software in providing greater functionality and connectivity for even better improved user experience. It is also because consumers require feature-rich and energy-efficient gadgets, and hence sophisticated and optimized embedded software is developed. The drive towards Industry 4.0 and smart production makes PLCs, industrial automation systems, and robots reliant on embedded software. It is embedded software that helps in controlling and monitoring industrial operations precisely. The monitoring and control so accurate results in increased productivity and efficiency. IoT applications in healthcare such as wearables for medical use and remote patient monitoring require a reliable embedded software that will collect, process, and communicate data. Apart from its technological features, the main driver for the global embedded software market growth is the demand for increasingly sophisticated medical equipment meant to meet stringent requirements for accuracy and safety.
Market snapshot - (2025-2032)
Global Market Size
Largest Segment
Real-Time OS
Fastest Growth
General Purpose OS
Growth Rate
9.1% CAGR
Global Embedded Software Market ($ Bn)
Country Share for North America (%)
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Embedded Software Market Segmental Analysis
The global embedded software market is segmented into operating system, functionality, vertical, and region. By operating system, the market is classified into general purpose OS, real-time OS, and others. Depending on functionality, it is divided into standalone systems, real-time embedded systems, mobile embedded systems, and networked embedded systems. According to vertical, the market is categorized into computing devices, consumer electronics, industrial automation, automotive, manufacturing, telecommunications, and others. Regionally, the market is studied across North America, Europe, Asia-Pacific, Middle East and Africa, and Latin America.
Analysis by Operating System
Based on the 2024 global embedded software market forecast, with more than 41.0% of the global revenue share, the real-time OS category led the market. These applications include aircraft, automobile control systems, industrial automation, and medical equipment applications that require exact timing and great dependability. With real-time data processing capabilities for these systems, it will ensure that critical activities are completed on time, which can be a requirement for many mission-critical applications. Moreover, factors driving the demand for real-time OS are the explosive growth on the Internet of Things and the increase in interconnected devices. For modern networked workplaces, real-time OSes are indispensable systems that will provide the kind of responsiveness needed to control, process, and exchange data in real-time.
The general purpose OS segment is expected to exhibit a strong compound annual growth rate (CAGR) throughout the forecast period. The applications of general purpose OS cover general-purpose embedded systems, computer devices, and consumer electronics. Its vast acceptance is driven by its wide range of applications. General purpose OS is often a favorite among developers; this is because these operating systems offers a comprehensive suite of APIs and development tools in which the development process gets eased and supports numerous applications. The need for general purpose OS is driven by the fact that there is a great need for sophisticated multimedia capabilities and connection in gadgets such as smartphones, tablets, and smart TVs.
Analysis By Functionality
As per the 2024 global embedded software market analysis, the real-time embedded systems category dominated with the highest market revenue share. The growing demand emerging in industrial and automotive organizations and aerospace industry makes people search for real-time embedded systems capable of performing very complex processes and activities. Besides, the development of the real-time embedded systems for efficient monitoring and control in industrial environments is driven by developing IIoT technologies, which demand the processing and analytics of real-time data. Applications requiring great reliability and safety, like those in medical devices, automotive safety systems, and in aerospace systems, which make prompt and accurate responses quite critical, require real-time embedded systems.
The mobile embedded systems category will depict a commendable compound annual growth rate throughout the projection period. A greater demand to have mobile embedded systems emanates due to a huge market acceptance in regard to wearable technology, smart devices, and tablet computers. These are some of the systems needed for providing an experience of using mobile device interfaces while controlling many mobile applications. Higher processing power, longer battery life, and greater connection are just a few of the ongoing developments in mobile technology that need the use of sophisticated embedded systems. Anticipated by consumers are enhanced multimedia experience, better performance, and sophisticated functionality on the part of mobile devices. These user experiences are yet made possible through mobile embedded systems.
Global Embedded Software Market By Operating Systems
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Embedded Software Market Regional Insights
In 2024, the North America embedded software industry led the market with more than 38.0% of the revenue share. This region is benefited by rapid progressions in key fields such as the Internet of Things (IoT), artificial intelligence (AI), and machine learning, which are driving the development of new use cases and applications for embedded software. As these technologies advance, the need for embedded systems that can handle intricate, real-time processing and connection needs is growing. Due to encouraging government regulations, financial programs, and expenditures in technical R&D, the embedded software market is also expanding more quickly. These considerations position North America as a global leader in embedded software.
The European embedded software market is expected to grow at a high rate over the course of the projected period. The demand for reliable and complaint embedded software has been significantly fueled by the strict safety, environmental impact, and data privacy laws in the European Union, particularly in areas such as industrial automation, health, and automotive. In Europe, growing acceptance of Industry 4.0 is providing an essential thrust for the development of effective and networked industrial systems that focus on smart factories, automation, and data sharing in manufacturing technologies. Thus, the Europe embedded software market is projected to grow significantly.
Global Embedded Software Market By Geography
- Largest
- Fastest
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Embedded Software Market Dynamics
Drivers
IoT and Connected Device Growth
- The explosive growth of the Internet of Things' (IoT) and linked devices is driving the need for embedded software. As more devices are connected, reliable, real-time software is becoming increasingly necessary to handle data processing, communication, and device control. This trend is highly facilitating the global embedded software market across industrial automation, smart homes, and automobiles.
Technological advancements in Machine Learning and AI
- The adoption of AI and ML technologies in the field is promoting innovation in the sphere. These technologies allow embedded software to perform complex operations, make data-driven decisions, and enhance system performance. The growing demand for AI-powered devices in consumer electronics, healthcare, and the automotive sector are among the primary drivers of the growth of the global embedded software market.
Restraints
Complexity of Integration
- It may be difficult and time-consuming to combine the embedded software with the present hardware and systems. Several embedded systems rely on legacy hardware, which might not support the latest software or technology at times. Such complexity may discourage more general usage of embedded solutions since developing them would take more time and would cost more, particularly in healthcare and the automotive sector, which requires stringent regulation.
Limited Memory and Processing Capabilities
- Memory, storage, and processing power are generally limited in embedded devices. These restrictions may severely limit the capability of the embedded software. As applications become more complex and demanding on resources, these may be challenging for developers to adapt to hardware in sectors such as industrial automation or robotics requiring high-performance solutions.
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Embedded Software Market Competitive Landscape
Leading companies in the competitive embedded software market include Intel Corporation, Microsoft, Wind River Systems, Texas Instruments, and Qualcomm. These companies offer a diverse set of solutions in such areas as consumer electronics, automotive, aerospace, and the Internet of Things. Startups and fast-rising firms are also increasingly driving the market with dedicated software and solutions. Advances in edge computing, IoT, and AI are gaining industry momentum and competitiveness in equal measure.
Top Player’s Company Profile
- Intel Corporation
- Microsoft Corporation
- Wind River Systems
- Texas Instruments
- Qualcomm
- ARM Holdings
- NXP Semiconductors
- Renesas Electronics
- Green Hills Software
- Real-Time Systems (RTS)
- Mentor Graphics (Siemens)
- BlackBerry QNX
- Micrium (Acquired by Silicon Labs)
- STMicroelectronics
- Freescale Semiconductor (Acquired by NXP)
Recent Developments
- Wind River Systems, Inc. collaborated with the automotive software company Elektrobit in May 2024 to demonstrate leading software for software-centric, autonomous, electric automobiles. However, Elektrobit gives its second-generation EB corbos AdaptiveCore software, along with EB corbos Studio tools, and a software framework that is built on the AUTOSAR Adaptive Platform for managing the autonomous driving domain. In addition, Wind River Systems, Inc. provides VxWorks as the real-time operating system.
- Microsoft and Cloud Software Group Inc. entered into an eight-year partnership deal in April 2024. Under one product strategy, the alliance would enable both companies to advance the state-of-the-art cloud and AI offerings and enhance joint marketing efforts for Citrix's desktop platform and virtual application. The firm invested USD 1.65 billion in assisting the cloud of Microsoft and advanced generative AI capabilities, among other things.
- The Altera is a brand-new independent business line, which was launched by Intel Corporation in February 2024 and boasts the first Field Programmable Gate Arrays (FPGA). The Altera products' salvation ranges from energy-efficient embedded systems to networking and communications infrastructure to meet virtually all sectors and applications.
Embedded Software Key Market Trends
- Integration of Edge Computing: Edge computing is becoming increasingly popular in the market for embedded software. Edge computing optimizes real-time decision-making, reduces bandwidth consumption, and decreases latency by processing data closer to the source instead of depending on centralized cloud services. Embedded systems providing edge computing are increasingly being used to maximize performance and efficiency in sectors such as manufacturing, automotive, and healthcare.
- Software for Open-Source Embedded Systems: Open-source embedded software solutions are gaining prominence as there is a high demand for affordable, adaptive, and community-driven innovations. Cost and time-to-market savings associated with open-source platforms also make it possible for firms to develop and modify the software to suit their unique needs. This trend is more pronounced in industries that have flexibility and rapid prototyping as critical success factors, such as consumer electronics and the Internet of Things.
Embedded Software Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected using Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest analysis, the increasing applications of IoT, AI, and machine learning technologies across various industries such as industrial automation, healthcare, and automotive are driving the global embedded software market into tremendous growth. Due to the critical role played in time-sensitive applications, real-time operating systems (RTOS) remain at the top in the industry. Favorable government policies and technological advancement have kept North America on the top. However, this growth may be restricted due to high development costs, security issues, and complexity associated with integration for the firm. In contrast, edges computing and the proliferation of open-source solutions increase possibilities. The market will tend to grow as more smart, efficient embedded systems used in various applications become desirable.
| Report Metric | Details |
|---|---|
| Market size value in 2023 | USD 16.77 Billion |
| Market size value in 2032 | USD 36.72 Billion |
| Growth Rate | 9.1% |
| Base year | 2024 |
| Forecast period | (2025-2032) |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Embedded Software Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Embedded Software Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Embedded Software Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Embedded Software Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Embedded Software Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Embedded Software Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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