The embedded software market is expected to witness substantial growth by 2027 driven by mounting product demand across wide-ranging applications. Additionally, soaring requirement for medical equipment during the COVID-19 pandemic is anticipated to fuel market growth over the forecast period.
Recently, industry players have been expanding their offerings to improve their consumer reach, which has positively impacted the global product landscape. For instance, in June 2021, Segger Microcontroller, the German software firm, introduced an all-in-one embedded software stack to address the chip shortage.
The embedded software dubbed emPower OS has been built around Segger's embOS real time operating system and merges all other core components, such as GUI, File System, and communication software including modules for USB Device, TCP/IP, Modbus, and USB-Host, along with an IoT Toolkit.
Furthermore, companies have been focusing on product development to address emerging consumer demands, which has bolstered product sales, thereby propelling business expansion across the globe. To cite an instance, in June 2021, iSystem, an embedded software provider, presented a rack-based version of its BlueBox hardware to enable remote debugging as well as continuous integration (CI) of embedded software. The iC5000/iC5700 CI was designed to equip CI infrastructures with hardware debugging and can be combined with the company's testIDEA and winIDEA tools to allow the automation capabilities and interfaces to serve as a target test framework.
The embedded software market has been categorized on the basis of operating system, application, function, and region. In terms of function, the market has been segmented into standalone system, network system, real-time system, and mobile system.
In 2020, the network system sub-segment accounted for over 15% of the embedded software market and is estimated to grow at a rapid pace over the analysis period. Increasing demand for network systems in home security & automation systems is set to facilitate segmental expansion. In addition, these systems allow the user to control and automate household appliances remotely over the network through TCP/IP protocol, which is likely to augment segmental growth in the coming years.
From the application perspective, the market has been divided into automotive, manufacturing, consumer electronics, healthcare, IT & telecom, military & defense, and others. In 2020, the healthcare sub-segment held over 5% share in the embedded software market and is projected to see robust growth over 2021-2027.
Surging demand for portable medical devices with embedded software is expected to be a key factor driving segmental adoption in the future. Moreover, the COVID-19 pandemic has led several governments to offer funding and incentives to medical device manufacturers, which is slated to positively impact segmental outlook over the forthcoming years.
On the regional spectrum, Latin America accounted for around 2% of the embedded software market in terms of revenue in 2020 and is calculated to register a sizable CAGR over the analysis period. Government initiatives to promote electric vehicles manufacturing in the region are speculated to foster regional market outlook through the forecast timeframe.