Embedded Software Market Trends

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).

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. '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)'

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.

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.

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.