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Pune, May 09, 2025 (GLOBE NEWSWIRE) — Embedded Software Market Size Analysis:
“The Embedded Software Market size was USD 17.35 Billion in 2023 and is expected to reach USD 38.39 Billion by 2032, growing at a CAGR of 9.3% over the forecast period of 2024-2032.”
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Major Players Analysis Listed in this Report are:
Embedded Software Market Report Scope:
Embedded Software Market Accelerates with AI, IoT, and 5G Integration, Driving Next-Gen Automation and Connectivity
The Embedded Software market is witnessing positive transformation owing to innovations such as real-time computing, automation, AI, and IOT. Embedded software is essential in the automotive, medical, industrial automation, and consumer electronics sectors. Increasing deployment of smart devices, predictive maintenance, and connected ecosystems is leading to market growth.
The U.S Embedded Software Market size in USD 4.71 billion in 2023 and is expected to reach USD 9.19 billion by 2032, growing at a CAGR of 7.76% over the forecast period of 2024-2032.
The U.S. Embedded Software Market is growing with the demand for automation, Internet of Things (IoT), and real-time computing in automotive, healthcare, and consumer electronics. The growing adoption of AI-based embedded and cloud-based solutions is enhancing device connectivity and performance. With the support of stringent regulations and increased focus on technology investments, the market is poised for an upswing.
By Operating System, RTOS Dominates Embedded Software Market in 2023, While GPOS Gains Momentum with Fastest Growth Rate
The Real-Time Operating System (RTOS) dominated the market in 2023, contributing to 42% of the total share. This trend is largely attributed to the increasing use of RTOS in safety-critical applications in automotive, industrial automation, aerospace, and medical devices. The RTOS also provides deterministic performance, low latency and real-time response, which is perfect for precision and reliable applications.
The General-Purpose Operating System (GPOS) sector has the largest market share and grows at 10.06% CAGR. It is further fueled by the rising utilization of Linux, Windows, and Android in embedded systems for consumer electronics, telecom, and smart home applications. GPOS solutions are also seeing their use grow for the scalability and flexibility of the readily-learnable interfaces, suitable for dense integration of embedded applications in communication systems towards the Cloud.
By Functionality, Real-Time Embedded Systems Lead Market Share in 2023, While Mobile Segment Emerges as Fastest-Growing with AI-Driven Demand
The market size for real-time embedded systems was the largest and accounted for a share of 43% in 2023, and these systems are extensively used in safety-critical applications like automotive, aerospace, medical devices, and industrial automation. For activities that need accurate timing and low latency, like autonomous driving, robotic control, and life-support systems, these systems are critical.
The mobile embedded systems market is expected to grow at the highest CAGR of 10.5% during the forecast period. This expansion is due to the rise of embedded software usage in mobile devices, including smartphones, tablets, and wearables. he demand for high-performance embedded solutions constantly increases as mobile devices get smarter, more connected, and AI-integrated.
By Vertical, Consumer Electronics Lead Embedded Software Market, Automotive Sector Poised for Fastest Growth
The consumer electronics segment is likely to capture the largest revenue share, 27.0% of the global embedded software market in 2023, owing to the increasing use of smart devices, wearables, and connected home devices. Growing numbers of IoT-connected products and AI-enabled solutions is driving up reliance on embedded software in this industry.
The Automotive application is projected to witness the highest CAGR of 10.62% during the forecast period, due to the increasing demand for ADAS and infotainment systems in autonomous and electric vehicles. Embedded software is also a key enabler to next-generation ADAS (advanced driver-assistance systems), vehicle-to-everything (V2X) communication, and AI-based solutions for modern automobiles.
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Embedded Software Market Segmentation:
By Operating System
By Functionality
By Vertical
North America Leads Embedded Software Market in 2023, While Asia-Pacific Emerges as Fastest-Growing Region
North America dominated the Embedded Software Market in 2023, with over 39% of the market share, followed by Europe and Asia-Pacific. This is primarily attributed to the presence of major technology companies and high adoption of IoT and AI in embedded systems in verticals such as automotive, health, and industrial automation. Strong presence of autonomous vehicle and advanced driver assistance systems (ADAS) infrastructure in the region is another factor that is supporting the market growth.
the Asia Pacific is growing at a highest CAGR of around 10.5% during the forecast period. This is on account of swift digitalization, growing consumer electronic demand, and surging investment in the auto and industrial automation industries. China, Japan, South Korea and India are the major market players in the embedded system adoption across industries.
Recent Developments
• Green Hills Software added to its safety-certified solutions for microcontrollers, targeting automotive and industrial markets in March 2025. Based on the µ-velOSity RTOS, these new platforms provide customized software workspaces for microcontroller design in the 21st century.
• In October 2024, Intel and Advanced Micro Devices (AMD) announced the creation of an advisory group to ensure that software works with both companies’ x86 chips. This partnership is aimed at being competitive with Arm Holdings, and keeping applications the same as one another is one goal.
Table of Contents – Major Key Points
1. Introduction
2. Executive Summary
3. Research Methodology
4. Market Dynamics Impact Analysis
5. Statistical Insights and Trends Reporting
6. Competitive Landscape
7. Embedded Software Market Segmentation By Operating System
8. Embedded Software Market Segmentation By Vertical
9. Embedded Software Market Segmentation By Functionality
10. Regional Analysis
11. Company Profiles
12. Use Cases and Best Practices
13. Conclusion
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