Demand for embedded systems will continue to see strong growth into 2020, largely because of auto and medical applications, according to research by Million Insights.
The overall market was valued at $140 billion in 2013 and will reach $214 billion in 2020, growing at an annual rate of 6%, the market research firm said in a June 11 update. Smart electric meters will grow at an even faster pace.
Hardware components account for about 94% of the market for embedded systems. These components include Digital Signal Processors, microcontrollers and microprocessors. Software and operating systems that act as middleware, while a smaller part of the revenue stream, were forecast to grow at an annual rate of 8%.
In 2013, automotive applications accounted for nearly 21% of the overall market. Applications include infotainment, engine control GPS and other functions. The market will be boosted by use of GPS and increased use of electric and hybrid electric vehicles. Healthcare embedded systems will continue to grow annually at 7%.
North America has dominated during the last six years, but Asia-Pacific has been growing at nearly 7% annually, thanks partly to the number of trained workers there and the growth of Taiwan Semiconductor Manufacturing Co.