According to MarketsAndMarkets report, the global embedded system market is USD 86.5 billion in 2020 and is expected to reach USD 116.2 billion by 2025, growing at a CAGR of 6.1% from 2020 to 2025.
The factors fuelling the growth for this market can be attributed to rise in the demand for electromobility solutions for hybrid vehicles and electric vehicles, portable devices such as wearables, and advanced driver-assistance systems (ADAS), among others.
The embedded market includes major Tier 1 and 2 manufacturers that includes Intel Corporation, Texas Instruments, Microchip Technology Inc., Qualcomm Corporation, Renesas Electronics, NXP Semiconductors, Cypress Semiconductor, among others. While, ehe embedded software solutions and hardware components manufactured by these aforementioned companies are being used by consumer devices, aerospace and defense, healthcare, communication, automotive and other industrial manufacturers.
COVID-19 putting a halt in the growth of Embedded Devices
With the onset of COVID-19, it has not only impacted the operations of the industries offering various embedded components and solutions, but also affected the businesses of the companies using these products and solutions. For instance, the low demand for consumer electronic devices due to lockdown had a global impact on the semiconductor market. Also, it has been expected that the continuous fall in the global demand and export shipments for automotive vehicles will negatively impact the semiconductor market, which will eventually slow down the demand for embedded systems.