Embedded Software Market Size and Outlook 2030

Report Description

Forecast Period	2026-2030
Market Size (2024)	USD 26.02 Billion
CAGR (2025-2030)	9.10%
Fastest Growing Segment	Healthcare
Largest Market	Asia Pacific
Market Size (2030)	USD 43.88 Billion

Market Overview

The Global Embedded Software Market will grow from USD 26.02 Billion in 2024 to USD 43.88 Billion by 2030 at a 9.10% CAGR. Embedded software constitutes specialized programming meticulously designed to execute specific functionalities within diverse hardware systems, operating seamlessly behind the scenes and maintaining tight integration with the underlying devices. The global market for this essential technology is significantly propelled by the increasing integration of artificial intelligence and the Internet of Things into various applications, alongside a rising demand for advanced automation across industries such as automotive and industrial control. This expansion is evident in the broader electronics sector; according to the Semiconductor Industry Association, global semiconductor sales reached $627.6 billion in 2024, representing a 19.1% increase year-on-year.

Despite this robust growth, a notable impediment to continued market expansion is the escalating complexity of embedded systems. This complexity introduces significant challenges in software development, rigorous testing, and ongoing maintenance, necessitating advanced engineering solutions to ensure reliability and performance.

Key Market Drivers

The proliferation of Internet of Things and connected devices, alongside the increasing integration of artificial intelligence and machine learning, represent two prominent drivers propelling the global embedded software market. The expansion of IoT necessitates sophisticated embedded software for managing device connectivity, data processing at the edge, and secure operation across diverse applications from smart cities to industrial automation. According to the Ericsson Mobility Report, at the end of 2024, total cellular IoT connections approached 4 billion, highlighting the extensive network of devices requiring embedded software for core functionalities and communication protocols. Similarly, the growing demand for intelligent functionalities in embedded systems is profoundly influenced by advancements in artificial intelligence and machine learning. These technologies enable embedded devices to perform complex tasks such as real-time analytics, predictive maintenance, and autonomous decision-making. According to Arm, in January 2025, 73% of developers surveyed reported implementing AI models directly in embedded applications, underscoring the deep integration of AI at the device level.

The increasing sophistication of embedded software is crucial for leveraging the capabilities inherent in these interconnected and intelligent systems. This necessitates robust development tools, rigorous testing, and continuous updates to ensure reliability and performance. This dynamic environment contributes significantly to the overall expansion of the embedded software market, reflecting broad industry transformation. Demonstrating this robust market activity, according to NVIDIA, in November 2024, the company reported revenue for the third quarter ended October 27, 2024, of $35.1 billion, largely driven by demand for its computing platforms critical for advancing AI and related embedded solutions.

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Key Market Challenges

The escalating complexity of embedded systems represents a significant impediment to the growth of the Global Embedded Software Market. This complexity introduces substantial challenges in software development, rigorous testing, and ongoing maintenance, necessitating advanced engineering solutions to ensure both reliability and performance. As embedded systems integrate more functions and interact with diverse technologies, the resources required for their development and upkeep increase considerably.

This directly hampers market expansion by elevating development costs and extending product lifecycles. The demand for highly specialized engineering talent to manage these intricate systems outstrips availability. According to the Global Electronics Association, in 2025, 63% of firms reported that talent shortages were constraining their business growth, a direct consequence of the advanced skills required for complex embedded software projects. Furthermore, 54% of manufacturers experienced increased labor expenses in the same period, reflecting the premium associated with such expertise and the intensified effort involved in building and maintaining sophisticated embedded software. These factors collectively slow innovation and market entry for new embedded solutions.

Key Market Trends

Enhanced cybersecurity by design in embedded systems represents a critical trend as interconnected devices face increasing threats. This approach integrates robust security measures from the initial stages of development, ensuring foundational protection against vulnerabilities rather than relying on add-on solutions. According to the Eclipse Foundation's 2024 IoT & Embedded Developer Survey in December 2024, security emerged as a significant concern for 35% of IoT and embedded developers, reflecting a notable increase from the prior year. This proactive stance is essential for maintaining system integrity and data confidentiality across various applications. NXP Semiconductors, for example, unveiled its i.MX 94 family of applications processors in November 2024, which incorporates advanced security features designed to protect against evolving threats, including the challenges posed by quantum attacks, further supporting industry standards for secure deployments.

The adoption of modular software design for over-the-air updates is another influential trend, enabling efficient and continuous maintenance of embedded systems throughout their operational lifecycle. This design principle allows for flexible software modifications and deployments remotely, crucial for addressing bugs, enhancing features, and implementing security patches without physical access to devices. The Eclipse Foundation's 2024 IoT & Embedded Developer Survey, published in December 2024, indicated that 32% of developers consider over-the-air updates a foundational strategy in mitigating potential threats. Demonstrating this market shift, STMicroelectronics introduced Stellar with xMemory in April 2025, an innovative extensible memory solution for its automotive microcontrollers, specifically developed to manage complex software requirements and facilitate seamless over-the-air updates, enabling unlimited application upgrades.

Segmental Insights

The healthcare segment is emerging as the fastest-growing sector within the global embedded software market. This significant growth is driven by the widespread adoption of advanced technologies, including the Internet of Things (IoT), artificial intelligence, and machine learning, which are increasingly integrated into medical devices and health systems. Embedded software serves as the foundational component, enabling critical functions such as real-time patient monitoring, sophisticated diagnostic tools, and efficient telemedicine solutions. Moreover, rigorous oversight from regulatory bodies like the U.S. Food and Drug Administration (FDA) and the European Union's Medical Device Regulation (MDR) necessitates highly reliable, secure, and precisely engineered embedded software, fostering continuous innovation and specialized development in this vital industry.

Regional Insights

The Asia Pacific region stands as a pivotal leading force in the global embedded software market, primarily due to its extensive industrialization and significant integration of advanced technologies across various sectors. This leadership is driven by widespread adoption within the automotive, healthcare, and rapidly expanding consumer electronics industries, fueled by increasing smart device usage and ongoing digitization efforts. Robust government initiatives supporting smart city development, Industry 4.0 principles, and substantial investments in technological innovation further propel market expansion. The region also benefits from a large, skilled workforce and a formidable manufacturing base, particularly in economies advancing smart manufacturing and connected vehicle technologies.

Recent Developments

In November 2025, ASUS participated in embedded world North America to highlight its latest portfolio of AIoT, embedded systems, and edge computing products, showcasing a significant collaboration with Intel. The companies presented solutions designed to accelerate change across various industries, reinforcing their shared dedication to advancing embedded technologies. A key highlight included the newly launched ASUS RUC-1000G, a compact, fanless industrial edge system. This system, powered by Intel Core Ultra processors, demonstrated enhanced computing performance for consistent AI workloads and industrial reliability.

In November 2025, MicroEJ, a global leader in embedded software solutions, announced a strategic partnership with Kimbal, an energy-tech company from India. This collaboration aims to power Kimbal’s new on-device software platform, Kimbal EI (Edge Intelligence), with MicroEJ VEE Energy™. This next-generation software foundation establishes an application ecosystem designed to advance smart meters towards distributed intelligence at the edge. The initiative enables faster customization and global deployment, supporting long-term software innovation aligned with modern Advanced Metering Infrastructure (AMI) goals.

In November 2025, Qualcomm Technologies, Inc. introduced the Qualcomm Dragonwing™ IQ-X Series, a new line of industrial-grade processors. These processors are specifically engineered for next-generation industrial PCs, including PLCs, advanced HMIs, edge controllers, panel PCs, and box PCs. Designed for harsh operating conditions, the IQ-X Series combines high-performance compute capabilities with efficient edge intelligence. It also provides essential AI infrastructure for industrial automation, facilitating easy AI model porting and application development for critical use cases such as predictive maintenance and defect detection.

In April 2024, Synaptics launched its Synaptics Astra platform, featuring the new SL-Series of embedded AI-native Internet of Things (IoT) processors and the Astra Machina Foundation Series development kit. This innovation allows designers to integrate artificial intelligence directly into their products, operating independently of centralized data centers. The SL-Series processors deliver significant compute capability at low power consumption, enabling a broad spectrum of consumer, enterprise, and industrial edge IoT applications. This development addresses data privacy and latency challenges inherent in edge computing.

Key Market Players

Taiwan Semiconductor Manufacturing Company Limited
Samsung Electronics Co., Ltd.
Intel Corporation
GlobalFoundries Inc.
United Microelectronics Corporation
SK hynix Inc.
Micron Technology, Inc.
Semiconductor Manufacturing International Corporation
STMicroelectronics N.V.
NXP Semiconductors N.V.

By Operating System	By Functionality	By Application	By Region
General Purpose Operating System (GPOS) Real Time Operating System (RTOS)	Real-Time Embedded Systems Standalone EmbeddedSystems Networked EmbeddedSystems Mobile EmbeddedSystems	Automotive Telecommunication Healthcare Industrial Consumer Electronics Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Embedded Software Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

Embedded Software Market, By Operating System:

o General Purpose Operating System (GPOS)

o Real Time Operating System (RTOS)

Embedded Software Market, By Functionality:

o Real-Time Embedded Systems

o Standalone EmbeddedSystems

o Networked EmbeddedSystems

o Mobile EmbeddedSystems

Embedded Software Market, By Application:

o Automotive

o Telecommunication

o Healthcare

o Industrial

o Consumer Electronics

o Others

Embedded Software Market, By Region:

o North America

§ United States

§ Canada

§ Mexico

o Europe

§ France

§ United Kingdom

§ Italy

§ Germany

§ Spain

o Asia Pacific

§ China

§ India

§ Japan

§ Australia

§ South Korea

o South America

§ Brazil

§ Argentina

§ Colombia

o Middle East & Africa

§ South Africa

§ Saudi Arabia

§ UAE

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the Global Embedded Software Market.

Available Customizations:

Global Embedded Software Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

Detailed analysis and profiling of additional market players (up to five).

Global Embedded Software Market is an upcoming report to be released soon. If you wish an early delivery of this report or want to confirm the date of release, please contact us at [email protected]

Table of content

1. Product Overview

1.1. Market Definition

1.2. Scope of the Market

1.2.1. Markets Covered

1.2.2. Years Considered for Study

1.2.3. Key Market Segmentations

2. Research Methodology

2.1. Objective of the Study

2.2. Baseline Methodology

2.3. Key Industry Partners

2.4. Major Association and Secondary Sources

2.5. Forecasting Methodology

2.6. Data Triangulation & Validation

2.7. Assumptions and Limitations

3. Executive Summary

3.1. Overview of the Market

3.2. Overview of Key Market Segmentations

3.3. Overview of Key Market Players

3.4. Overview of Key Regions/Countries

3.5. Overview of Market Drivers, Challenges, Trends

4. Voice of Customer

5. Global Embedded Software Market Outlook

5.1. Market Size & Forecast

5.1.1. By Value

5.2. Market Share & Forecast

5.2.1. By Operating System (General Purpose Operating System (GPOS), Real Time Operating System (RTOS))

5.2.2. By Functionality (Real-Time Embedded Systems, Standalone EmbeddedSystems, Networked EmbeddedSystems, Mobile EmbeddedSystems)

5.2.3. By Application (Automotive, Telecommunication, Healthcare, Industrial, Consumer Electronics, Others)

5.2.4. By Region

5.2.5. By Company (2024)

5.3. Market Map

6. North America Embedded Software Market Outlook

6.1. Market Size & Forecast

6.1.1. By Value

6.2. Market Share & Forecast

6.2.1. By Operating System

6.2.2. By Functionality

6.2.3. By Application

6.2.4. By Country

6.3. North America: Country Analysis

6.3.1. United States Embedded Software Market Outlook

6.3.1.1. Market Size & Forecast

6.3.1.1.1. By Value

6.3.1.2. Market Share & Forecast

6.3.1.2.1. By Operating System

6.3.1.2.2. By Functionality

6.3.1.2.3. By Application

6.3.2. Canada Embedded Software Market Outlook

6.3.2.1. Market Size & Forecast

6.3.2.1.1. By Value

6.3.2.2. Market Share & Forecast

6.3.2.2.1. By Operating System

6.3.2.2.2. By Functionality

6.3.2.2.3. By Application

6.3.3. Mexico Embedded Software Market Outlook

6.3.3.1. Market Size & Forecast

6.3.3.1.1. By Value

6.3.3.2. Market Share & Forecast

6.3.3.2.1. By Operating System

6.3.3.2.2. By Functionality

6.3.3.2.3. By Application

7. Europe Embedded Software Market Outlook

7.1. Market Size & Forecast

7.1.1. By Value

7.2. Market Share & Forecast

7.2.1. By Operating System

7.2.2. By Functionality

7.2.3. By Application

7.2.4. By Country

7.3. Europe: Country Analysis

7.3.1. Germany Embedded Software Market Outlook

7.3.1.1. Market Size & Forecast

7.3.1.1.1. By Value

7.3.1.2. Market Share & Forecast

7.3.1.2.1. By Operating System

7.3.1.2.2. By Functionality

7.3.1.2.3. By Application

7.3.2. France Embedded Software Market Outlook

7.3.2.1. Market Size & Forecast

7.3.2.1.1. By Value

7.3.2.2. Market Share & Forecast

7.3.2.2.1. By Operating System

7.3.2.2.2. By Functionality

7.3.2.2.3. By Application

7.3.3. United Kingdom Embedded Software Market Outlook

7.3.3.1. Market Size & Forecast

7.3.3.1.1. By Value

7.3.3.2. Market Share & Forecast

7.3.3.2.1. By Operating System

7.3.3.2.2. By Functionality

7.3.3.2.3. By Application

7.3.4. Italy Embedded Software Market Outlook

7.3.4.1. Market Size & Forecast

7.3.4.1.1. By Value

7.3.4.2. Market Share & Forecast

7.3.4.2.1. By Operating System

7.3.4.2.2. By Functionality

7.3.4.2.3. By Application

7.3.5. Spain Embedded Software Market Outlook

7.3.5.1. Market Size & Forecast

7.3.5.1.1. By Value

7.3.5.2. Market Share & Forecast

7.3.5.2.1. By Operating System

7.3.5.2.2. By Functionality

7.3.5.2.3. By Application

8. Asia Pacific Embedded Software Market Outlook

8.1. Market Size & Forecast

8.1.1. By Value

8.2. Market Share & Forecast

8.2.1. By Operating System

8.2.2. By Functionality

8.2.3. By Application

8.2.4. By Country

8.3. Asia Pacific: Country Analysis

8.3.1. China Embedded Software Market Outlook

8.3.1.1. Market Size & Forecast

8.3.1.1.1. By Value

8.3.1.2. Market Share & Forecast

8.3.1.2.1. By Operating System

8.3.1.2.2. By Functionality

8.3.1.2.3. By Application

8.3.2. India Embedded Software Market Outlook

8.3.2.1. Market Size & Forecast

8.3.2.1.1. By Value

8.3.2.2. Market Share & Forecast

8.3.2.2.1. By Operating System

8.3.2.2.2. By Functionality

8.3.2.2.3. By Application

8.3.3. Japan Embedded Software Market Outlook

8.3.3.1. Market Size & Forecast

8.3.3.1.1. By Value

8.3.3.2. Market Share & Forecast

8.3.3.2.1. By Operating System

8.3.3.2.2. By Functionality

8.3.3.2.3. By Application

8.3.4. South Korea Embedded Software Market Outlook

8.3.4.1. Market Size & Forecast

8.3.4.1.1. By Value

8.3.4.2. Market Share & Forecast

8.3.4.2.1. By Operating System

8.3.4.2.2. By Functionality

8.3.4.2.3. By Application

8.3.5. Australia Embedded Software Market Outlook

8.3.5.1. Market Size & Forecast

8.3.5.1.1. By Value

8.3.5.2. Market Share & Forecast

8.3.5.2.1. By Operating System

8.3.5.2.2. By Functionality

8.3.5.2.3. By Application

9. Middle East & Africa Embedded Software Market Outlook

9.1. Market Size & Forecast

9.1.1. By Value

9.2. Market Share & Forecast

9.2.1. By Operating System

9.2.2. By Functionality

9.2.3. By Application

9.2.4. By Country

9.3. Middle East & Africa: Country Analysis

9.3.1. Saudi Arabia Embedded Software Market Outlook

9.3.1.1. Market Size & Forecast

9.3.1.1.1. By Value

9.3.1.2. Market Share & Forecast

9.3.1.2.1. By Operating System

9.3.1.2.2. By Functionality

9.3.1.2.3. By Application

9.3.2. UAE Embedded Software Market Outlook

9.3.2.1. Market Size & Forecast

9.3.2.1.1. By Value

9.3.2.2. Market Share & Forecast

9.3.2.2.1. By Operating System

9.3.2.2.2. By Functionality

9.3.2.2.3. By Application

9.3.3. South Africa Embedded Software Market Outlook

9.3.3.1. Market Size & Forecast

9.3.3.1.1. By Value

9.3.3.2. Market Share & Forecast

9.3.3.2.1. By Operating System

9.3.3.2.2. By Functionality

9.3.3.2.3. By Application

10. South America Embedded Software Market Outlook

10.1. Market Size & Forecast

10.1.1. By Value

10.2. Market Share & Forecast

10.2.1. By Operating System

10.2.2. By Functionality

10.2.3. By Application

10.2.4. By Country

10.3. South America: Country Analysis

10.3.1. Brazil Embedded Software Market Outlook

10.3.1.1. Market Size & Forecast

10.3.1.1.1. By Value

10.3.1.2. Market Share & Forecast

10.3.1.2.1. By Operating System

10.3.1.2.2. By Functionality

10.3.1.2.3. By Application

10.3.2. Colombia Embedded Software Market Outlook

10.3.2.1. Market Size & Forecast

10.3.2.1.1. By Value

10.3.2.2. Market Share & Forecast

10.3.2.2.1. By Operating System

10.3.2.2.2. By Functionality

10.3.2.2.3. By Application

10.3.3. Argentina Embedded Software Market Outlook

10.3.3.1. Market Size & Forecast

10.3.3.1.1. By Value

10.3.3.2. Market Share & Forecast

10.3.3.2.1. By Operating System

10.3.3.2.2. By Functionality

10.3.3.2.3. By Application

11. Market Dynamics

11.1. Drivers

11.2. Challenges

12. Market Trends & Developments

12.1. Merger & Acquisition (If Any)

12.2. Product Launches (If Any)

12.3. Recent Developments

13. Global Embedded Software Market: SWOT Analysis

14. Porter's Five Forces Analysis

14.1. Competition in the Industry

14.2. Potential of New Entrants

14.3. Power of Suppliers

14.4. Power of Customers

14.5. Threat of Substitute Products

15. Competitive Landscape

15.1. Taiwan Semiconductor Manufacturing Company Limited

15.1.1. Business Overview

15.1.2. Products & Services

15.1.3. Recent Developments

15.1.4. Key Personnel

15.1.5. SWOT Analysis

15.2. Samsung Electronics Co., Ltd.

15.3. Intel Corporation

15.4. GlobalFoundries Inc.

15.5. United Microelectronics Corporation

15.6. SK hynix Inc.

15.7. Micron Technology, Inc.

15.8. Semiconductor Manufacturing International Corporation

15.9. STMicroelectronics N.V.

15.10. NXP Semiconductors N.V.

16. Strategic Recommendations

17. About Us & Disclaimer

Report Description

Table of content

Figures and Tables

Frequently asked questions

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