The global embedded processor market size was valued at USD 21.8 billion in 2021 and is projected to reach USD 44 billion by 2030, registering a CAGR of 8.2% during the forecast period (2022-2030). An embedded processor is a microprocessor designed for use with an operating system to control the microprocessor's electrical and mechanical systems. Embedded processors are often simple in design and require less power to perform their computations. Embedded processors are typically designed for equipment that must handle many processors in real-time. These processors are incorporated in various microcontrollers and microprocessors to operate multiple electrical and mechanical systems. They also come with functions like data storage and retrieval from memory. Furthermore, they are frequently used in conjunction with memory and other input-output devices as part of a computer system. The global embedded processor market is expected to grow due to increased space restrictions in semiconductor wafers, increased demand for smart consumer devices, and the rising use of embedded processors in the automotive industry.
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The embedded processors are witnessing significant growth due to their wide usage in consumer electronics appliances such as smartphones, laptops, and refrigerators. Manufacturers of these appliances are incorporating more processors & microcontrollers in their devices to add additional features and compete with other players in the highly competitive market.
High competition in the consumer electronic market, steadily upgrading consumer electronic devices, and an increase in automation in the automotive industry through electronic devices are anticipated to drive market growth in the future.
Smartphones incorporate sensors such as accelerometer, gyroscope, ambient light sensor & proximity sensor, and temperature detector to keep track of parameters and provide a centralized system for automatic control. For instance, in July 2018, Sony Corporation released a stacked CMOS image sensor for smartphone cameras with 48-megapixel features. All these factors are expected to assist in the growth of the embedded processor market globally.
An embedded system is an electronic or computer system designed to control and access the data in an electronics-based system. In the recent times, the use of embedded systems has been growing among various industry verticals. The incorporation of embedded processors in automobiles has increased rapidly in the past two decades.
Automobile manufacturers incorporated embedded processors in their cars for different functionalities such as ignition, security, and audio system. The technological innovation of various embedded systems within the vehicle aims to build energy-efficient, network-savvy, and safer automobiles. Furthermore, an increase in demand for applications such as embedded airbag systems, embedded navigation systems, adaptive cruise control, and embedded rain-sensing systems fuels the demand for embedded processors, thereby driving the market's growth.
With the increased performance density of integrated circuits, the new generation of microprocessors addresses a more comprehensive range of applications among the industry verticals. Embedded processors encounter problems regarding their deployment in extreme working environments such as humidity, vibration, and extreme temperature.
These conditions make it problematic for the embedded system and processors to function under various industry verticals such as aerospace & defense, industrial, and manufacturing. The extreme working environment for embedded systems results in incorrect and faulty data retrieving in its operation. In addition, many devices have a temperature requirement beyond 225 degrees Celsius. This makes it difficult for embedded processors to function and produce possible results. Therefore, deploying embedded processors in extreme working conditions acts as a significant barrier, which is further expected to hamper the growth of the market globally.
Technological advancements in intelligent technologies offer innovative and additional medical devices and equipment features. These enhanced devices and equipment, such as PET scans, MRI machines, and medical imaging, are used by doctors to monitor routine check-ups, such as blood pressure and body temperature of the patients and vital signs. Moreover, using smart sensors to measure the heartbeat and blood oxygen content and transfer medical information through the cloud to healthcare professionals are also lucrative opportunities for the growth of the embedded processor market. In addition, embedded systems and processors are used by doctors in imaging tools to diagnose health problems without having to perform exploratory surgery. Therefore, the surge in the adoption of embedded processors in the biomedical sector is expected to offer lucrative opportunities for the market globally.
The global embedded processor market share is analyzed based on type, application, and region.
Based on type, the embedded processor market forecast is divided into microprocessors, microcontrollers, digital signal processors, embedded FPGAs, and others. The microprocessor segment was the highest contributor to the market and is estimated to grow at a CAGR of 6.4% during the forecast period. Embedded microprocessor systems are computer chips used in residential, industrial, and manufacturing settings. Embedded microprocessors, for example, are employed in lighting systems, home appliances, and industrial machinery. These CPUs use signal processing, general computing, and real-time data computing. Temperature, speed, moisture, and pressure are just characteristics that microprocessors manage in devices and equipment. These considerations have made the microprocessor a crucial component of computer devices, and the embedded processor industry is likely to develop internationally. Sing, general computing, and real-time data computing. In addition, the rise in demand for embedded microprocessor units (MPUs) from sectors such as industrial equipment, communications, and automotive OEMs fuels the market's growth.
Microcontrollers are the second-largest segment. They are usually less expensive and require less energy than microprocessors. They are used in automatically controlled products and devices, such as automobile engine control systems, implantable medical devices, remote controls, smart appliances, and other embedded systems. The microcontrollers' size is small, reducing the system's overall cost. It includes integrated memory, processor, and input/output peripherals on a single chip, which makes it economical and efficient as compared to other embedded systems, thereby driving the market growth globally. In addition, factors such as the rise in adoption of IoT in several verticals, surge in demand for microcontrollers driven by automation in various industries, increased demand for secure applications, and low energy consumption devices propel this growth segment.
The embedded FPGA segment is the fastest-growing segment. An embedded FPGA is an IP block that allows a complete FPGA to be integrated into a system-on-chip. Embedded FPGAs are making their way into networking/data centers as well as wireless base stations and other applications, which offer lucrative opportunities for market expansion in the embedded processor market. An embedded FPGA is currently offering several benefits such as additional security and flexibility to deal with future threats and reduce parts count and thus costs. Such benefits mainly boost the demand for embedded FPGA. In addition, embedded FPGA can extend product life or enhance business models by upgrading the products in the field, creating lucrative opportunities for the segment's growth.
Based on application, the global embedded processor market growth is categorized into consumer electronics, automotive & transportation, industrial, healthcare, IT & telecom, aerospace & defense, and others. The consumer electronics segment was the highest contributor to the market, with $4.47 billion in 2019, and is estimated to reach $7.06 billion by 2028, at a CAGR of 7.4% during the forecast period: key market trends, growth factors, and opportunities. The embedded processor market is witnessing significant growth due to an increase in initiatives by the government in terms of funding for digitalization. Technological innovations in the consumer electronics industry, such as the integration of IoT, cloud connectivity, and Bluetooth networking, are increasing the demand for embedded processors. Embedded processors can support advanced displays and graphics, assuring privacy and reliable security, ultimately increasing their adoption in many electronic devices. For instance, NXP semiconductor recently launched i.MX applications processors that support multimedia and display applications.
Automotive and transportation is the second-largest segment. The automotive & transportation industry requires hardware, software, and peripherals to operate their business units, which depend on embedded processors. Arm-based chips are primarily used in the automotive industry for high & reliable performance, computing platforms for its operations, and low power consumption. In addition, embedded processors are beneficial for detecting rash driving on highways by alerting an alarm if the vehicle exceeds the speed limit. All these factors increase the adoption of embedded processors in the automotive & transportation industry. In November 2018, Renesas Electronics launched the latest version of the microcontroller that will be integrated into automotive to deliver high-performance operation.
The healthcare segment is the fastest-growing segment. The rise of embedded processors in the healthcare sector is boosted by the emergence of enhanced technologies in medical devices such as wireless communication, sensors, ECG electrocardiogram, body area networks (BAN) used for heart rate monitoring, and machines to monitor pulse rate, temperature, oxygen, and blood pressure. All these gadgets and equipment are equipped with embedded CPUs for optimal operation. Instruments with embedded processors, for example, are utilized to detect cardiac problems rather than traditional devices, which has fueled the expansion of embedded processors in this business.
Based on region, the global embedded processor market share is analyzed across North America, Europe, Asia-Pacific, and LAMEA, along with their major countries.
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Asia-Pacific was the highest revenue contributor and is estimated to be at a CAGR of 10% during the forecast period. Asia-Pacific is the fastest-growing region globally. Due to the availability of high-end upgraded technologies, increased demand for innovative electronics, and expansion in the manufacturing industries, it is the most attractive market for embedded processors. Furthermore, several non-profit organizations in the region are assisting in developing embedded systems. These companies take various steps to create enhanced power infrastructure, propelling the embedded processor market forward. Organizations across verticals understand the necessity of embedded processors to ensure efficient power management as demand for high voltage working devices grows. The increased demand for automated switching devices and power modules is predicted to impact market growth significantly.
North America is the second largest region. The North American embedded processor market trends is projected to reach USD 8 billion by 2030, growing at a CAGR of 7.2% during the forecast period. An increase in disposable income of the North American population drives the sales of the equipped embedded processors. Embedded systems have become more popular as diverse industries demand intelligent and innovative equipment and technological platforms. The use of improved technology in the energy & power industry is boosting the market's growth. Furthermore, using microcontrollers and microprocessors in consumer electronics and electric cars will likely increase market expansion during the projected period. Moreover, using microcontrollers and microprocessors in consumer electronics and electric vehicles is expected to drive market growth during the forecast period. The region has significant players offering advanced solutions. This is attributed to the region's extensive adoption of advanced technology, which is expected to propel market growth.
Europe is the third-largest region. Europe is one of the leading markets for embedded processors. Prominent players are acquiring small semiconductor companies to strengthen their market presence and deliver next-generation technologies through their product portfolio. Growth in the number of digital electronic devices, advanced electronic vehicles, and advanced virtual systems foster several growth opportunities for embedded processor vendors in Europe.
The key embedded processor market leaders profiled in the report include NXP Semiconductors, Broadcom Corporation, STMicroelectronics, Intel Corporation, Infineon Technologies AG, Analog Devices Inc., and Renesas Electronics, Microchip Technology Inc., Texas Instruments, and ON Semiconductor.