According to the new research report published by The Insight Partners, titled “Embedded Computing Market — Global Analysis and Forecast to 2027”, the global embedded computing market is expected to reach US$ 67.2 Bn in 2027, registering a CAGR of 8.7% during the forecast period 2019-2027.
In 2018, Asia-Pacific was estimated to account to hold the largest market share, growing at a CAGR of 10.0%. The Asia-Pacific market for embedded systems and solutions is also primarily driven by factors such as growing internet of things (IoT), substantial growth in consumer electronics demand, rising connected cars market, and increasing usage of robotics. Ever-increasing consumer electronics industry in the Asia Pacific is expected to provide a promising growth to the region in the embedded systems market during the forecast period. Embedded systems are installed in consumer electronics products such as digital cameras, high definition televisions, set-top boxes, and DVDs. The region accounts for the major consumer electronics share in the global market, with China being the most prominent country. Customer demand for advanced products along with emerging economies in the region is anticipated to offer a healthy growth to the Asia Pacific. The consumer electronics market has always been an attractive industry attributing to customer’s adoption of new gadgets. Leading suppliers of electronic gadgets are increasing their R&D budgets to come up with innovative solutions, thereby avoiding stagnation in popular product segments of the industry.
Further, the Asia Pacific region is observing a significant growth in the smart camera market, as the rising terrorist threat has necessitated the usage of these cameras in public spaces, for monitoring the activities of the individuals. Several countries in the region are renovating their anti-terror equipment and implementing newer technologies to mitigate security lapses. Thus, innovations in embedded system designs and chip manufacturing have amplified the scope of smart camera applications. The manufacturers are adopting new technologies for the development of advanced cameras for broad range coverage in crowded places and open areas. This, in turn, is contributing to the growth of embedded computing market growth in the near future.
The telecommunication sector has long been one of the essential customers of embedded computing. The newest technological advancement in the telecommunication industry is the adoption of 5G network. Cellular carriers are marketing 5G intensively, touting how it is designed to achieve up to 5Gbps in downlink peak data rate. The vision of 5G is predominantly about speeds that are 10X — 100X faster than 4G LTE and capacity levels that are a thousand times greater. With the expansion of 5G networks globally, the demand for embedded computers is also set to increase. Telecommunication systems integrate various embedded systems such as routers, modems, network switches, network bridges, and mobile phone, among others. With the dawn of newer technology such as 5G, telecom operators would invest heavily for its introduction and expansion of network coverage. Thus, the demand for individual embedded systems with an embedded computer would also rise proportionately.
Key findings of the study:
North America holds the second-largest share in the embedded computing market. The U.S. semiconductor industry is the fourth largest exporter after airplanes, refined oil, and automobiles. Also, Canada has a recognized automotive supply sector consisted of several largest auto parts companies. Moreover, the Canadian government announced its plans to auction the major wireless spectrum for the provision of 5G service in 2020. Also, Mexico is attracting several automobile and consumer electronics companies to invest in the domestic market.
The embedded computing market is segmented on the basis of the component into microprocessors, microcontrollers, application-specific integrated circuits (ASICs), digital signal processors, field programmable gate arrays (FPGAs), memory, software, and others. Microcontroller led the market in 2018 with a market share of around 40%. The growing consumption of consumer electronics, alongside the demand for higher performance and greater functionalities, is driving the global microcontroller market. The increasing focus on the implementation of energy-efficient devices in both process and discrete industries is expected to create a significant demand for microcontrollers during the forecast period.
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