“Global Embedded Software Market to reach a market value of USD 31.32 Billion by 2031 growing at a CAGR of 9%”
The Global Embedded Software Market size is expected to reach $31.32 billion by 2031, rising at a market growth of 9.0% CAGR during the forecast period.
The North America segment acquired 37% revenue share in the market in 2023. Significant investments in research and development, particularly in fields like autonomous vehicles, aerospace, defense, and healthcare, continue to fuel the demand for sophisticated embedded software solutions. Additionally, North America's early adoption of advanced technologies such as IoT, AI, and 5G, along with a high focus on cybersecurity and regulatory compliance, further boosts market growth.
The Internet of Things (IoT) continues to experience rapid adoption worldwide, contributing to a significant increase in connected devices and data generation. According to the International Data Corporation (IDC), 55.7 billion connected IoT devices will be generated by 2025, generating 80B zettabytes of data. This exponential growth drives demand for this software that enables devices to process, analyze, and transmit data efficiently. Hence, as the number of connected devices continues to climb, this software remains a core enabler of seamless operation, integration, and security in the rapidly evolving IoT landscape.
Additionally, The integration of robotics, AI-powered systems, and smart machinery has significantly reduced manual labor and human intervention, leading to cost savings and improved production rates. As industries across manufacturing, logistics, energy, and healthcare increasingly embrace automation, the role of embedded software has become indispensable. Embedded software serves as the brain of automated systems, ensuring seamless real-time processing, sensor integration, and machine control. Thus, as automation evolves, embedded software will remain a cornerstone of industrial transformation, empowering businesses to achieve greater productivity, efficiency, and sustainability.
However, Unlike conventional software, which operates on general-purpose hardware, embedded software is designed for specific configurations. This requires extensive testing, optimization, and fine-tuning to ensure seamless compatibility with the target hardware. Manufacturers must allocate resources to software engineers, hardware designers, and quality assurance teams to develop efficient and reliable solutions. Additionally, embedded systems often require custom-built solutions tailored to industry-specific requirements, further driving up costs. Hence, the high development and maintenance costs are a considerable barrier to entry for smaller companies and startups in the embedded software market as a result of the cumulative impact of these factors.
The leading players in the market are competing with diverse innovative offerings to remain competitive in the market. The above illustration shows the percentage of revenue shared by some of the leading companies in the market. The leading players of the market are adopting various strategies in order to cater demand coming from the different industries. The key developmental strategies in the market are Acquisitions, and Partnerships & Collaborations.
On the basis of functionality, the market is divided into standalone systems, real-time embedded systems, mobile embedded systems, and networked embedded systems. The mobile embedded systems segment recorded 8% revenue share in the market in 2023. The segment is propelled by the rapid growth in portable and battery-operated devices, including smartphones, tablets, wearables, and medical monitoring equipment. The increasing demand for mobility, energy efficiency, and compact design makes these systems essential in consumer electronics, healthcare, and industrial handheld devices.
Based on operating system, the market is classified into general purpose operating system (GPOS), real-time operating system (RTOS), and others. The general purpose operating system (GPOS) segment procured 33% revenue share in the market in 2023. GPOS platforms such as Linux and Windows are widely adopted in consumer electronics, smart devices, and multimedia applications where complex user interfaces, multitasking capabilities, and application support are key requirements.
By vertical, the market is segmented into computing devices, consumer electronics, industrial automation, automotive, manufacturing, telecommunications, and others. The telecommunications segment garnered 18% revenue share in the market in 2023. The Telecommunications segment is propelled by the rollout of 5G networks, rising demand for high-speed connectivity, and the explosion of connected devices within IoT ecosystems. Embedded software is essential for managing network infrastructure, ensuring efficient data transmission, and enabling advanced services like network slicing and virtualized networks.
Free Valuable Insights: Global Embedded Software Market size to reach USD 31.32 Billion by 2031
Region-wise, the market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The Asia Pacific segment recorded 27% revenue share in the market in 2023. The Asia Pacific segment experiences rapid growth due to the region’s expanding manufacturing sector, increasing demand for consumer electronics, and widespread adoption of IoT devices. Countries like China, Japan, South Korea, and India are major hubs for automotive production, industrial automation, and electronics manufacturing, all relying heavily on embedded software.
| Report Attribute | Details |
|---|---|
| Market size value in 2023 | USD 15.91 Billion |
| Market size forecast in 2031 | USD 31.32 Billion |
| Base Year | 2023 |
| Historical Period | 2020 to 2022 |
| Forecast Period | 2024 to 2031 |
| Revenue Growth Rate | CAGR of 9.0% from 2024 to 2031 |
| Number of Pages | 309 |
| Number of Tables | 400 |
| Report coverage | Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Market Share Analysis, Porter’s 5 Forces Analysis, Company Profiling, Companies Strategic Developments, SWOT Analysis, Winning Imperatives |
| Segments covered | Functionality, Operating System, Vertical, Region |
| Country scope |
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| Companies Included | Intel Corporation, Microsoft Corporation, NXP Semiconductors N.V., Siemens AG, STMicroelectronics N.V., Texas Instruments, Inc., Robert Bosch GmbH, Honeywell International, Inc., IBM Corporation, and HCL Technologies Ltd. |
By Functionality
By Operating System
By Vertical
By Geography
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