WELLESLEY, Massachusetts, October 4, 2016 /PRNewswire/ --
Embedded technology will continue to evolve and the emergence of open standards will continue to drive growth in this vibrant industry. BCC Research reveals in its new report that the Internet of Techology (IoT) should grow the volume of low-cost embedded devices, yielding whole new product lines and spurring growth in the embedded hardware and software technology market.
Embedded devices are dedicated to a single functionality and are often driven by the need to perform a specific task. They are defined to functionality, are efficient and dependable, capable of using different peripherals, and contain digital and analog parts. The applications for embedded markets feature four segments: consumer, communications, enterprise and other. The global market includes both hardware and software technology.
The global market for embedded technology market should reach $169 billion in 2016 and nearly $221 billion in 2021, growing at a five-year compound annual growth rate (CAGR) of 5.5%. Embedded hardware, the largest and fastest-growing segment (five-year CAGR of 5.6%), should total $163 billion and $213 billion in 2016 and 2021, respectively. The embedded software segment should reach $5.9 billion in 2016 and $7.2 billion in 2021, demonstrating a five-year CAGR of 4.1%.
Several key trends are affecting the overall market. In general, the embedded hardware market is showing sign of maturity and some cutting-edge products such as memory (RAM and Flash) have already been reduced to commodities. Nearly every segment considered in this report is weathering pricing pressure and manufacturers are seeking new revenue models. The industry also is undergoing consolidations with mega-mergers among semiconductor firms in both 2015 and 2016. Given the competition in the marketplace and declining profit margins, this report forecasts additional mergers throughout the forecast period.
While the overall industry continues to innovate, companies that develop applications based on embedded technology have been able to secure higher valuations. This has helped increase technology penetration, although underlying components and software have shown limited upside.
"The IoT has emerged as a new hot technology in embedded markets. IoT promises to connect every device to the Internet and allow them to talk to each other," says BCC Research analyst Anand Joshi. "The implications of this technology are mind-boggling. IoT devices can exist in many shapes and forms and their volume could be in the billions. This is expected to drive the volume of low cost embedded devices which will create different demands on processing power and connectivity."
Embedded Systems: Technologies and Markets (IFT016F) analyzes global market drivers and trends, with data from 2015, estimates for 2016, and projections of CAGRs through 2021 also are provided.
Editors and reporters who wish to speak with the analyst should contact Steven Cumming at email@example.com.
About BCC Research
BCC Research is a publisher of market research reports that provide organizations with intelligence to drive smart business decisions. By partnering with industry experts worldwide, BCC Research provides unbiased measurements and assessments of global markets covering major industrial and technology sectors, including emerging markets. Founded in 1971, BCC Research is a unit of Eli Global, LLC. For more information about BCC Research, please visit bccresearch.com. Follow BCC Research on Twitter at @BCCResearch.
SOURCE BCC Research LLC