Published Date: May 2019 | Report ID: GMI478 | Authors: Ankita Bhutani, Preeti Wadhwani



Report Format: PDF | Pages: 284 | Base Year: 2018

Industry Trends

Embedded Software Market size valued at over USD 12 billion in 2018 and will grow at a CAGR of more than 6% from 2019 to 2025.



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The embedded software market is driven by a surge in the adoption of IoT-enabled devices that helped enterprises to offer enhanced connectivity & technological solutions and handle large-scale data used in complex architectures such as aircraft, drones, and autonomous cars. An increase in the demand for smart & connected devices in the automotive & healthcare industry is projected to have a positive impact on the market. The healthcare industry is one of the fastest industries to adopt IoT-enabled embedded OS in medical devices, helping medical personnel to improve the quality & effectiveness of services offered to their patients.



As businesses of all sizes are increasingly realizing the potential of the IoT, they are transforming their existing business & revenue models and generating new ones through the convergence of the cloud technology and connected intelligent devices. RTOS acts as an engine that runs billions of devices on the IoT. Developers are increasingly focusing on building powerful, deterministic, and processing efficiencies into even smaller, low-power, and resource-constrained devices. Advanced RTOS offers developers the flexibility to include many innovations in small form-factor devices without compromising on the performance, reliability or security.



Embedded Software Market Report Coverage Report Coverage Details Base Year: 2018 Market Size in 2018: 12 Billion (USD) Historical Data for: 2014 to 2018 Forecast Period: 2019 to 2025 Forecast Period 2019 to 2025 CAGR: 6% 2025 Value Projection: 20 Billion (USD) Pages: 284 Tables, Charts & Figures: 379 Geographies covered (17): U.S., Canada, UK, Germany, France, Italy, Spain, China, Japan, Australia & New Zealand (ANZ), South Korea, India, Brazil, Mexico, GCC, South Africa Segments covered: Operating System, Function, Application, and Region Companies covered (23): Advantech Co. Ltd., Collaboration & Partnership, Dexcel Electronics Designs, ENEA Software AB, Collaboration & Partnership, Acquisition, Express Logic, Graphene Semiconductor Services Private Limited, Funding, Green Hills Software, Collaboration & Partnership, HCL Technologies Limited, Collaboration & Partnership, Acquisition, IBM Corporation, Collaboration and Partnership, Acquisition, Intel Corporation, Acquisition, LG Electronics, Inc., Mentor Graphics Corporation, Partnership and Collaboration, Microchip Technology Inc., Microsoft Corp., Collaboration and Partnership, Acquisition, Mitsubishi Electric Corporation, Collaboration, National Instruments, Collaboration and Partnership, Qualitat Systems, Qualcomm Inc., Renesas Electronics Corporation, Collaboration, Acquisition, SEGGER Microcontroller GmbH, STMicroelectronics N.V., Collaboration, Acquisition, Texas Instruments, Collaboration, Toshiba Corporation, Collaboration, VIA Technologies, Inc., Collaboration Growth Drivers: Advancement in latest technologies of IoT, AI, and machine learning

Increasing demand for embedded OS in the automotive sector

Rising significance and penetration of electric vehicles

Surge in demand for embedded software in consumer electronics Pitfalls & Challenges: Lack of skilled professionals

Safety & security issues of embedded OS

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Embedded Software Market, By Operating System

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In 2018, the GPOS segment accounted for a share of more than 65% in the embedded software market. This growth is attributed to the presence of key players offering legacy hardware integrated with GPOS software. The GPOS software uses fairness policy to reduce latency in the network. The software is used in systems that are not time-critical and performs dynamic memory mapping. Windows, Linux, and Android are some of the popular examples of GPOS used for embedded software solutions.



In the GPOS market, the Linux operating system held a major market share of over 50% in 2018 due to the large-scale usage of the OS in embedded software solutions. As it is an open-source platform, developers benefit from its flexibility to customize the platform for their particular embedded software solutions. However, with the rapidly increasing penetration of mobile devices in the enterprise & industrial environments, the demand for Android OS is expected to increase significantly over the forecast timeline.



In the RTOS market, FreeRTOS held a dominant embedded software market share in 2018 as it supports many different architectures and compiler toolchains and is designed to be small, simple, and easy to use. The OS is highly-configurable by design. It can be built as a single CPU to support only a few tasks or as a high-level multi-core system with a file system, TCP/IP, and USB.



Embedded Software Market, By Function

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The standalone systems segment held more than 70% of the share of the embedded software market in 2018. This growth is due to the requirement of special-purpose hardware that includes function-specific Microcontroller Units (MCUs) and Field Programmable Gate Arrays (FPGAs). The same program is executed repeatedly within the system throughout its lifetime unless it is reprogrammed for upgrading. Such systems allow users to perform low-to-middle-level processes that include LED or LCD display devices.



The real-time systems segment is anticipated to register a CAGR of more than 11% between 2019 and 2025. The systems are designed to perform a group of instructions in real-time to achieve maximum efficiency of the product and optimize productivity. The real-time embedded systems are classified into two types, soft and hard real-time systems used by enterprises as per the configurations of devices.



Embedded Software Market, By Application

The manufacturing sector accounted for more than 20% of the share in the embedded software market in 2018. With the emergence of Industrial IoT, there has been a rising demand for increased automation, optimization, and insight to industrial facilities. With the use of embedded software solutions based on RTOS, intelligent embedded application for IIoT is being developed and deployed across the manufacturing sector.



The automotive sector is anticipated to register a CAGR of more than 10% due to a rise in the demand for autonomous cars, allowing vendors to integrate complex embedded systems with the Engine Control Unit (ECU) of an automobile. Some current trends of using such software in the automobile include cruise control, navigation systems, wiper controls, anti-lock brake controls, airbags, and tire pressure monitoring systems. Moreover, the use of these technologies allows manufacturers to reduce their operational cost by around 40%.



Embedded Software Market, By Region

North America accounted for the highest embedded software market share of more than 50% in 2018 due to the presence of key market players in the region. An increase in the number of startups offering innovative software solutions in the U.S. will support the steady adoption of embedded software solutions in the region. Moreover, a rise in the adoption of special-purpose hardware using RTOS systems, such as Fusion RTOS, Windows CE, Lynx OS, and VxWorks, will augment the growth of the market during the forecast period.



Asia Pacific is anticipated to witness the highest market growth with a CAGR of more than 10% during the forecast period. This growth is attributed to an increase in the customization of consumer electronics and healthcare products. Several initiatives have been undertaken by governments in the developing countries such as India, Japan, and South Korea to strengthen their economic growth. For instance, in India, under the ‘Make in India’ initiative, investment proposals of around USD 1.5 billion are expected over the period between 2018 and 2019, according to the India Electronics and Semiconductor Association (IESA). Such initiatives are expected to support the growing transformation of the electronics & automation industry in the region during the forecast timeline.



Competitive Market Share

The embedded software market is highly fragmented due to the presence of many key players in the market. The key players operating in the market are ENEA, Green Hills Software, IBM, Intel, Microsoft, Advantech, Microchip, Mitsubishi, STMicroelectronics, Express Logic, LG CNS, Mentor Graphics, National Instruments, Segger, Texas, Renesas, HCL, Qualcomm, Toshiba, Via, Dexcel, Graphene, and Qualitat Systems.



The startups & SMEs focus on new product launches, partnerships, and collaborations with key players to strengthen their presence in the market. In July 2018, Segger launched emPack, a complete operating system that supports all types of memory size i.e. 8-bit, 16-bit, and 32-bit microcontrollers for both IoT and non-IoT systems. The software package includes embOS, emWin, emUSB-device, emUSB-Host, emSecure, emCrypt, and Segger IoT’s toolkit. Other major players go for mergers & acquisitions to obtain growth in the market and increase their dominance. In July 2018, Intel acquired eASIC Corporation, a semiconductor company based in the U.S. to provide customizable and affordable microcontrollers and silicon devices as per its business requirements.



Industry Background

The embedded software is a rapidly evolving technology due to the cost-savings and efficient power consumption that it offers to systems. The evolution of real-time systems enabled businesses to build high-performance & low maintenance systems at profitable prices. It also reduces the development time & risks of product failure by monitoring products on a real-time basis. The adoption of this software helped manufacturers to decrease deployment costs by around 40% by using modernized computing software over conventional Field Programmable Gate Arrays (FPGAs) and microprocessors. Ubiquitous computing is one of the major applications in the embedded technology that allows users to perform interconnected and communicating devices used on a daily basis. Apple iCloud is one of the major applications of ubiquitous computing that integrates and maintains data across devices.



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