EMBEDDED COMPUTING MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2025-2032)

Embedded Computing Market Size and Forecast – 2025 to 2032

The global embedded computing market is estimated to be valued at USD 120.00 Bn in 2025 and is expected to reach USD 189.06 Bn by 2032, exhibiting a compound annual growth rate (CAGR) of 6.7% from 2025 to 2032.

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Key Takeaways

• Based on Component, the Hardware segment is expected to account for 53% share in 2025, owing to its pivotal role in product development.
• Based on Processor Type, the 32-Bit segment is projected to lead the market with a share of 46.6% in 2025, due to its versatility across an extensive performance range.
• Based on Application, the Automotive segment is projected to hold the largest share of the market in 2025, due to rising demand for ADAS, infotainment, and electric vehicle technology.
• Based on Region, North America is expected to lead the market, holding a share of 37.2% in 2025. While, Asia Pacific is anticipated to be the fastest growing region during forecast period.

Market Overview

The rise in the use of Internet of Things (IoT) devices in different industries is increasing the demand for embedded computing. Automotive OEMs are also investing more to improve driver assistance, vehicle connectivity, and powertrain electrification, which further drives the embedded computing market demand.

The global embedded computing market is set to grow because of the focus on improving the performance and functionality of embedded systems. Lightweight, low-power, and high-performance embedded technologies are becoming more popular among users.

Current Events and Its Impact

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End-User Feedback and Unmet Needs in the Embedded Computing Market

• Performance vs. Power Efficiency: Users demand embedded systems that deliver high computational performance while maintaining low power consumption, especially for IoT and automotive applications.
• Integration Challenges: Companies seek platforms that easily integrate AI, edge computing, and connectivity features without extensive development overhead.
• Scalability & Flexibility: End users require scalable solutions that can adapt to varying workloads, device sizes, and industry-specific applications.
• Security & Safety: There is a growing need for built-in cybersecurity and functional safety compliance, particularly in automotive, industrial automation, and healthcare systems.
• Cost Optimization: Users desire high-performance embedded solutions at a competitive price point without compromising reliability or lifespan.

Segmental Insights

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Embedded Computing Market Insights, By Component - Driving Innovation through Hardware Design

In terms of component, the hardware segment is anticipated to contribute the 53.0% share of the global embedded computing market in 2025 owing to its pivotal role in product development. Hardware components like processors, microcontrollers, circuits, and modules aid as the foundation for running multifaceted embedded software. Revolution in hardware design enables the creation of more powerful and functionally versatile embedded systems. Leading hardware manufacturers continually discover new form features, chip architectures, and modular concepts to report emerging requirements from various end applications. Low-power and high-performance hardware options allow embedded devices to take on more data-intensive tasks while staying within size and thermal constraints.

For instance, in October 2024, Analog Device Inc. roll out CodeFusion Studio^TM , a unified embedded software development platform on Microsoft’s Visual Studio Code. This launch targets its analog and digital hardware portfolios. This offers integrated drivers, operating systems, middle wares, and libraries, and supports hardware security through ADI Assure Trusted Edge Architecture.

Embedded Computing Market Insights, By Processor Type - Pushing Boundaries With 32-Bit Processing

In terms of processor type, the 32-bit segment is projected to contribute 46.6% share of the market in 2025 due to its versatility across an extensive performance range. 32-bit embedded processors bring a balance of processing power and power efficiency that satisfies the requirements of most embedded devices. Compared to 8-bit and 16-bit processors, 32-bit processors can handle more complex calculations and support richer multimedia functions. They offer sufficient clearance to run advanced real-time operating systems, database applications and computer vision-based algorithms. Leading 32-bit processor families such as ARM Cortex and Renesas RX supply various options targeting diverse power, cost and time-to-market requirements. Vendors continuously advancement 32-bit core architectures to deliver more MIPS/Watt and seamlessly adopt new manufacturing technologies like FinFET for further scaling. This allows 32-bit processors to expand their application domains from basic control functions to data-intensive workloads.

For instance, in March 2025, Microchip Technology has introduced a novel 32-bit microcontrollers (MCUs) with built-in high performance analog peripherals. This MCUS features precision ADCs, comparators, and operational amplifiers on-chip, aiming to reduce component count and enhance performance in application including industrial control, automotive systems, and IoT.

Embedded Computing Market Insights, By Application - Automotive Dominance Is Led by Rising Demand For ADAS, Infotainment, and Electric Vehicle Technology

In terms of application, the automotive segment is expected to lead the market with the largest share in 2025, owing to increasing integration of advanced drive- assistance systems (ADAS), sophisticated infotainments systems, and upgraded vehicle connectivity solutions. With rising technological advancements, vehicles are becoming smarter and more autonomous, which is increasing the demand for embedded computing systems, as it plays a crucial role in managing complicated data processing, real-time decision making and offers seamless communication within various electronic control units.

Additionally, the global surge in electric vehicles (EVs) and the electrification of powertrains are boosting the demanding for high-performance, energy-efficient embedded technologies.

For instance, in July 2025, KIOXIA America announced the product embedded flash memory (UFS Version 4.1) devices engineered for automotive purpose. It has built-in 8^th-gneration BiCS FLASH 3D technology, and its available in capacities from 128 GB to 1 TB. It also meets AEC-Q100/104 Grade 2 standards and offers up to 2.5 times sequential write and 3.7 times random write improvements, in comparison to UFS Version 3.1. its is designed for infotainment, domain controllers, ADAS, and vehicle computations.

Regional Insights

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North America Embedded Computing Market Analysis & Trends

North America dominates the global embedded computing market. The region is expected to account for 37.2% share of the market share in 2025 owed to the strong existence of technology firms and widespread usage of embedded systems across industries. Many of the leading chip suppliers and semiconductor firms are headquartered in the U.S. which has created a strong ecosystem for the research and development of sophisticated embedded solutions.

Furthermore, heavy investments in innovation through both public and private sectors have enabled the early adoption of the latest technologies. With the increasing complexity of applications, North American customers also tend to pay premium for customized and technologically advanced embedded boards, modules, and systems.

For instance, in October 2024, Secure-IC, a leading company in embedded systems cybersecurity, announced its Securyzr^TM neo Core Platform at the Embbed World North America 2024. It is intended for embedded systems and connected objects. This platform offers flexibility, high performance security in various application such as automotive, cloud to IoT and AI with much reduced footprint.

Asia Pacific Embedded Computing Market Analysis & Trends

Asia Pacific has emerged as the fastest growing regional market for embedded computing globally over the forecast period. Rapid industrialization and transformation of infrastructure in countries such as China and India have determined massive demand. Additionally, accessibility of low-cost skilled labor force and supporting infrastructure has attracted major electronics manufacturing facilities to the region. This has given a significant boost to local capabilities.

For instance, in September 2025, Advantech unveiled the UBX-020RC. The product is a compact Atm-based edge computer, which is a type of embedded system. This is integrated with Google Mobile Services (GMS), including Play, Chrome, and Youtube.

Embedded Computing Market Outlook Country-Wise

The U.S. Embedded Computing Market Trends

The United States is considered as the key driver for the growth of Embedded Computing Market in 2025, accounting 40.5% share. The demand is surged across landscapes such as automotive, industrial automation, healthcare, and defense. United States has a strong focus on innovation and early adoption to emerging technology such as artificial intelligence, 5G and edge computing which accelerates the integration of embedded systems into everyday application.

For instance, in April 2025, New Eagle unveiled its Raptor High Performance Compute Platforms. It is integrated with John Deere’s Vision Processing Unit (VPU) to improve edge AI capabilities. This platform provides up to 275 TOPS of processing Power and supports up to 12 GMSL2 camera inputs with Power-over-Coax (PoC) technology.

Japan Embedded Computing Market Trends

Japan is poised to contribute significant share to the Embedded Computing Market in 2025, driven by its deep-rooted proficiency in robotics, electronics, and automotive innovations. The evolution is Japan is largely fueled by smart manufacturing, where embedded computing is used to enable precision control, predictive maintenance, and real-time data analytics across industrial operations.

For instance, in August 2025, Advantech Japan launched the EBC-RC04, an advanced edge computer designed for autonomous mobile robot (AMR) control. It is combined with NVIDIA Jetson Orin^TM NX module and supported a dedicated interface for Sony’s HYT001-EX 3D LiDAR sensor. Advantech intentions to boost AMR navigation with high-precision, wide area sensing capabilities.

Market Report Scope

Embedded Computing Market Report Coverage

Embedded Computing Market Driver

Connected devices driving growth

The proliferation of connected devices is a major driver propelling the global embedded computing market forward. As technologies like IoT, industrial automation, and telematics continue to expand their footprint, the need for intelligent edge devices with embedded computing capabilities is growing rapidly. An ever-increasing array of ordinary items such as home appliances, vehicles, industrial machines, and medical equipment are being outfitted with various sensors and communication modules that require an onboard computing system to facilitate connectivity and data collection.

Developments in AI and edge computing

Embedded computing is essential for harnessing the potential of emerging technologies like artificial intelligence and edge computing. Advanced data processing that used to occur exclusively in the cloud is now shifting to distributed edge devices due to the capabilities of modern embedded systems. This distributed computing model is opening up exciting new use cases while also addressing challenges around bandwidth constraints and latency issues associated with cloud-based approaches.

Embedded AI aims to bring local, real-time data analytics, and decision making where it is needed most - right at the source of data generation. This brings advantages like reduced response times, elimination of reliance on cloud connectivity, and enhanced privacy and security by minimizing data transfers. Such systems rely heavily on specialized embedded platforms optimized for running AI/ML workloads locally. Powerful yet efficient embedded processors, FPGAs and ASICs are being increasingly used alongside dedicated AI accelerators and neural networking software.

Market Concentration and Competitive Landscape

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Analyst Opinion (Expert Opinion)

The embedded computing landscape is undergoing a structural shift: hardware commoditization at lower performance tiers is colliding with a rapid, software-driven premium at the edge. Commodity single-board computers and low-end microcontrollers are increasingly interchangeable; value is migrating to software stacks, secure update planes, and domain-specific silicon that accelerate AI/vision/real-time workloads. The scale of this shift is evidenced by the continued explosion of connected endpoints—industry data counts roughly 18.8 billion connected IoT/embedded devices by end-2024—creating an unprecedented addressable base for software, lifecycle services, and recurring revenue models.

Architectural consolidation is both an opportunity and a risk. RISC-V and Arm momentum aside, Arm’s successful push beyond mobile toward cloud and edge architectures demonstrates how a single ISA can reshape supplier economics and software portability; Arm’s public guidance that it expects to materially expand data-center share has implications for embedded system vendors that must now design toward common toolchains and cross-domain compatibility. Firms that lock customers into narrow, proprietary stacks will face price pressure and slower adoption where cross-platform portability matters.

Developer ecosystems and accessible hardware are the practical drivers of innovation; examples are commercially instructive. Raspberry Pi’s sustained unit volumes and product refresh cadence (millions of units of new boards sold in a single fiscal year and tens of millions shipped cumulatively) illustrate that cheap, well-supported developer platforms accelerate proof-of-concepts and shorten time-to-market for embedded AI and robotics pilots. Conversely, platforms such as NVIDIA Jetson (Orin family and the recent “Orin Nano Super”/Jetson Thor announcements) demonstrate the parallel demand for compact, production-oriented edge AI modules capable of delivering TOPS-class inference in constrained thermal envelopes. The coexistence of these segments forces suppliers to choose whether to chase high-volume, low-ASP developer adoption or to target higher-margin, system-integrator customers.

Embedded Computing Industry News

• In September 2025, AMD launched its EPYV Embedded 4005 Series processors, designed to meet the growing demand for real-time computing in edge application. It is built on Zen 5 architecture, these cheeps provide up to 16 cores and 128 MB of L3 cache, delivering high performance for network security appliances and entry-level industrial edge servers.
• In September 2025, Ambient Scientific launched the GPX10 Pro AI-native system-on-chip (SoC). It is designed to enhance AI inference capabilities in battery-powered edge services. It features 1- programmable AI core based on Ambient Scientific’s proprietary DigAn silicon architecture.
• In March 2023, Qualcomm Technologies, Inc., a global leader in wireless technologies and semiconductor solutions, introduced the world's first integrated 5G IoT processors that can support four different operating systems. The Qualcomm QCM6490 and QCS6490 processors are designed to run on Ubuntu, Linux, Microsoft Windows IoT Enterprise, and the Android operating system. 

Market Segmentation

• Component Insights (Revenue, US$ Bn, 2025 - 2032)
• Hardware
• Software
• Services
• Processor Type Insights (Revenue, US$ Bn, 2025 - 2032)
• 8-Bit
• 16-Bit
• 32-Bit
• 64-Bit
• Application Insights (Revenue, US$ Bn, 2025 - 2032)
• Industrial Automation
• Automotive
• Healthcare
• Aerospace & Defense
• Consumer Electronics
• Others
• Regional Insights (Revenue, US$ Bn, 2025 - 2032)
• North America
• U.S.
• Canada
• Latin America
• Brazil
• Argentina
• Mexico
• Rest of Latin America
• Europe
• Germany
• U.K.
• Spain
• France
• Italy
• Russia
• Rest of Europe
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• ASEAN
• Rest of Asia Pacific
• Middle East & Africa
• GCC Countries
• Israel
• South Africa
• Rest of Middle East & Africa
• Key Players Insights
• Advanced Micro Devices (AMD), Inc.
• Advantech Co., Ltd.
• Avalue Technology Inc.
• Curtiss-Wright Corporation
• Dell Technologies Inc.
• Emerson Electric Co.
• Fujitsu Limited
• General Electric Company
• Hewlett Packard Enterprise Company
• Honeywell International Inc.
• Intel Corporation
• Kontron S&T AG
• Mitsubishi Electric Corporation
• Rockwell Automation, Inc.
• Texas Instruments Incorporated

Sources

Primary Research Interviews from the following stakeholders

Stakeholders

• Interviews with embedded system designers, IoT hardware developers, automation engineers, system integrators, OEMs, semiconductor vendors, and procurement heads across leading global markets.

Specific stakeholders

• Embedded software architects and R&D heads at industrial automation firms (e.g., Siemens, Rockwell Automation, Mitsubishi Electric)
• Product managers at automotive OEMs and Tier-1 suppliers (e.g., Bosch, Continental, Hyundai Mobis)
• IT and digital transformation lead at healthcare equipment companies (e.g., GE Healthcare, Philips Healthcare, Medtronic)
• CTOs and design leads at consumer electronics manufacturers (e.g., Samsung, Sony, LG Electronics)
• IoT and edge computing managers in telecom operators (e.g., Verizon, Vodafone, Airtel)
• Facility and operations managers in aerospace & defense (e.g., Airbus, Lockheed Martin, HAL)
• Component sourcing managers at semiconductor suppliers (e.g., Intel, NXP Semiconductors, Renesas, Texas Instruments, Qualcomm)
• Embedded software consultants in robotics, retail, and smart city applications

Databases

• World Trade Organization (WTO) Trade Statistics
• UN Comtrade Database
• Bureau of Economic Analysis (U.S.)
• Eurostat
• China Customs Statistics
• Korea Customs Service Data Portal
• Japan External Trade Organization (JETRO)
• Directorate General of Commercial Intelligence and Statistics (DGCIS), India
• Ministry of Electronics and Information Technology (MeitY), India

Magazines

• Embedded Computing Design
• Electronic Design
• EDN Network (Electronic Design News)
• EETimes
• Design News
• IoT World Today
• Industrial Automation Asia
• Semiconductor Digest

Journals

• IEEE Transactions on Embedded Computing Systems
• ACM Transactions on Embedded Computing Systems
• IEEE Internet of Things Journal
• Journal of Systems Architecture (Elsevier)
• Journal of Embedded Systems (Hindawi)
• Microprocessors and Microsystems (Elsevier)
• International Journal of Embedded Systems

Newspapers

• The Wall Street Journal – Technology
• The Economic Times – Electronics & Semiconductors
• The Hindu Business Line – Technology & Industry
• Financial Times – Electronics and IT
• Nikkei Asia – Semiconductor & Embedded Industry
• South China Morning Post – Tech & Electronics

Associations

• IEEE Computer Society – Embedded Systems Technical Committee
• Association for Computing Machinery (ACM)
• Embedded Microprocessor Benchmark Consortium (EEMBC)
• IoT M2M Council (IMC)
• Semiconductor Industry Association (SIA)
• VLSI Society of India (VSI)
• European Embedded Control Association (Euca)

Public Domain Sources

• National Institute of Standards and Technology (NIST), U.S.
• U.S. International Trade Commission (USITC)
• Ministry of Economy, Trade and Industry (METI), Japan
• NITI Aayog – Digital India & Electronics Manufacturing
• India Investment Grid – Electronics & Embedded Systems
• Reserve Bank of India (RBI) – Electronics & Manufacturing Reports
• European Commission – Digital Economy and Embedded Systems Reports

Proprietary Elements

• CMI Data Analytics Tool, and Proprietary CMI Existing Repository of information for last 8 years

*Definition: The global embedded computing market consists of companies that design and manufacture computer hardware and software that are embedded as components within larger systems or devices. Embedded computers control and monitor functions through specialized operating systems and software applications. They are customized for specific operations and are often tiny in size. This market includes point-of-sale systems, industrial automation controls, medical equipment, aerospace and defense technologies, telecommunications infrastructure, and other applications that use embedded computers to run specialized functions.