The embedded system market is projected to register a remunerative growth period over the coming years owing to the ongoing trend of digitization and automation influencing change across numerous high-revenue sectors.
An embedded system can be described as an amalgamation of computer software and hardware, either programmable or fixed in capability, designed specifically for a performing a particular function or set of functions within a bigger system.
Industrial machines, automobiles, process and agricultural industry equipment, cameras, medical equipment, airplanes, household appliances, mobile devices, and even toys are some places where embedded systems can be found today.
These computing systems can vary greatly in terms of operation and user interfaces, making up devices that are designed to perform just a single function and multipurpose devices with complex and sophisticated user interfaces that can carry out an array of operations, like a smartphone.
The embedded system market is classified in terms of function, application, and regional landscape. The function segment is further bifurcated into real-time system, network system, mobile system, and standalone system.
Among these, the standalone system segment held a market share of more than 5%, primarily due the extensive implementation of these systems throughout the vast consumer electronics industry.
With respect to application, the industry is further divided in terms of automotive, healthcare, telecommunication, consumer electronics, aerospace & defense, retail, media & entertainment, and industrial.
The industrial embedded systems market is projected to record a substantial rate of growth over the forthcoming timeframe. This growth can be ascribed to the rapidly growing adoption of these systems in industrial robots as well as automation. The segment is estimated to be growing at an impressive CAGR of more than 8%.
With digital transformation trend making its way through the industrial sector, several prominent industry players are actively collaborating to innovate equipment with better features that can work much more efficiently than their conventional counterparts.
For instance, recently renowned industrial robotics manufacturer ABB, announced that it is partnering with Artificial Intelligence company, Covariant, to develop robots that are capable of picking and grasping several thousand kinds of objects better in warehouses.
This partnership highlights how prominent robotics companies are teaming up with startups to get help creating newer, more innovative technologies. In fact, recently Japanese industrial equipment manufacturer, IHI Corporation, teamed up with Osaro, an A.I. startup, to work on an initiative that is also related to robotic equipment grasping and picking up objects.
From a regional reference frame, the LATAM embedded system market is anticipated to chalk out a remunerative growth graph for itself in coming years. The region is growing with a 3% CAGR, particularly due to the increasing number of investments it is receiving in its electronics manufacturing sector.