Embedded Software Market is anticipated to grow substantially through 2032, owing to the rising adoption of the Internet of Things (IoT) in several industries for networked devices, smart controls, and real-time data analysis platforms. Devices with IoT capabilities enhance connections and provide businesses with technical solutions which are expected to support market growth.
Besides, product benefits such as simple to deliver higher creation, fewer costs per bit of resultant, fewer interconnections, better steady and higher speed, and higher dependability will enhance its adoption in the future. In addition, technological innovations in machine learning and artificial intelligence are also anticipated to play a crucial role in improving and updating the performance of embedded software-enabled devices.
Additionally, the mounting use of cloud and breakthrough technologies such as AI, IoT, big data, and the implementation of 5G will also act as key factors driving market expansion in the near future.
Overall, the embedded software industry is segmented in terms of operating systems, function, application, and region.
Based on the operating system, the general-purpose operating system (GPOS) is anticipated to grow considerably through 2032. The segmental growth can be accredited to the range of capabilities offered by GPOS such as high security, multiple task management, reduced latency, and high synchronization. Besides, major GPOSs, such as Android, Linux, and Windows are being increasingly adopted due to their user-friendly interface and flexibility, which will also fuel the market demand in the next ten years.
By function, the standalone system segment was valued at over USD 6 billion in 2022. Constantly increasing demand for mobile phones, tablets, microwaves, digital cameras, and video games, coupled with the need for specialized hardware, will help the segment grow in the foreseeable future.
Considering the application, the consumer electronics industry is anticipated to depict over 10% CAGR between 2023-2032. The growth can be accredited to the constant investment in R&D on ADAS and autonomous driving technologies by automotive manufacturers. In addition, the key players operating in the industry are forming alliances and entering joint ventures to accelerate the integration of various automotive technologies by automotive developers, including in-vehicle entertainment systems, ADAS, and electric powertrains.
Regionally, the North America embedded software market accounted for over USD 6 billion in 2022. Digital transformation and the increasing use of automation in industrial applications are the factors driving market expansion in the region. In addition, the demand for embedded software tools is also influenced by the shift to Industry 4.0 and the continual rise in software solutions for optimizing complex production processes.