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  • Last update : 20/12/2021
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Summary and extracts

1 Market overview

1.1 Definition and scope of study

The term embedded system refers to the integration of electronic computer components and software that allow them to be used in a product (electronic instruments, vehicles, etc.) or infrastructure to perform a specific and relatively simple task in order to increase its functionality, performance or automation. 

The embedded systems market therefore covers both the hardware and electronics market and the software market, which together represent necessary elements for the assembly of these systems.

Among the many fields of use for embedded systems, seven segments have been identified as major: automotive, telecommunications, healthcare, industrial, consumer electronics, aerospace, and defense. Automotive and industry are the main outlets for embedded systems, particularly in Europe, where nearly one-third of the production of embedded systems for vehicles is made.

The global CAGR is estimated at 6.1% between 2020 and 2025. Europe is particularly well positioned in this segment despite a strong progress recorded by the United States and China in the market. 

The Italian embedded systems market is currently affected by several emerging trends in both the hardware and software segments.

With regard to the first aspect, a very important factor concerns the consolidation of hardware with the aim not only of increasing the functionality of the device to which it is integrated, both in terms of security and connectivity, but also of reducing the associated costs. 

From a software point of view, there is a growing tendency, on the part of integrated system manufacturers, to use open source software, with greater compatibility in the design phase with the hardware components discussed above. Despite this, there are still operators on the market who prefer to adopt closed source software, due to its greater longevity.

As far as the most prosperous market segments are concerned, according to industry experts, an increasing number of embedded systems are nowadays used for digital signage devices, especially due to their high durability and excellent graphics performance.   

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