Embedded Technology Market to Reach $169 Billion This Year
Reportlinker Review is a series of posts featuring Innovations, Social and Economic Megatrends to understand the World of Tomorrow. Each post is illustrated with statistics for one industry.
Reportlinker’s Embedded Technology Industry Review in a nutshell
- Hardware the largest embedded technology market
- Technology commonly used in PCs, appliances
- Wearable technology already may be obsolete
How is the Embedded Technology market ?
The embedded technology market is expected to be valued at $169 billion globally this year, forecasts BCC Research. In 2021, it will reach $221 billion, growing at a compound annual growth rate (CAGR) of 5.5%.
The largest segment of the market is hardware. It is projected to reach $163 billion in 2016 and $213.7 billion in 2021, increasing at a CAGR of 5.6%.
Software will be valued at $5.9 billion this year and $7.2 billion in 2021, growing at a CAGR of 4.1%.
Embedded technology uses a computer chip or software used in a larger device for special-purpose computing. Because of its specialized purpose, the technology is reliable and hardware is often very small.
The embedded technology market changes quickly as new technologies and products become popular. In 2016, the semiconductor market decreased, while virtual reality and the Internet of Things (IoT) increased.
Embedded technology is used in the majority of electronic devices, most commonly computers, user interfaces, appliances, ATMs, point-of-sale devices and IoT devices.
Embedded technology is favored for these devices because it runs on a small amount of power.
As technology changes, BCC Research believes there will be more mergers and acquisitions.
Challenges that face embedded technologies include limited memory and the inability to patch faulty software.
Wearable Technology Market
The average person stops using wearable technology six months after purchase, according to an Endeavour Partners survey.
Design plays the largest role in purchasing decisions. As for why most customers stop using wearable technology, reasons include short battery life, devices not easy to use, devices aren’t waterproof and devices are uncomfortable.
Travis Bogard, ex-head of marketing and project strategy at Jawbone, a wearables company, believes the problem is marketing. Companies focus too much on technology and features and forget about the benefits, he said.
The wearable technology market will need to adapt to gain more customers.
One solution is to make the technology more discreet, using embedded technology in jewelry or clothing.
ReportLinker Review – Global Embedded Technology Market
- During the period 2016-2020, the global chipless RFID market is forecasted to grow at a CAGR of 29.3%. (source: TechNavio)
- By 2021, the overall market embedded systems is forecasted to reach $262 billion, growing at a CAGR of 19.4% (source: Mind Commerce Publishing)
- During the period 2016-2020, the global industrial automation software market is forecasted to grow at a CAGR of 6.4%. (source: TechNavio)
- By 2018, the global multi-touch technology market is forecasted to reach $7.3 billion, growing at a CAGR of 16% from 2013 to 2018. (source: BCC Research)