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Summary of our market study
The global market for embedded systems is estimated at around $170 billion.
Europe is a key player in this market, particularly France, with leading companies in sectors such as automotive, aerospace and defense.
Innovation is set to continue, particularly with the integration of AI into embedded systems.
Growing market demand for embedded systems
Embedded systems have infiltrated a variety of sectors, driving the era of connectivity and innovation. The relationship between the development of the Internet of Things (IoT) and embedded systems has transformed everyday objects. Annual growth is estimated at 7.2% between 2021 and 2030.
In the automotive industry, electronics can account for up to 40% of manufacturing costs. Europe produces almost a third of all automotive on-board systems. This sector, along with industries such as telecommunications, healthcare, aerospace, consumer electronics and defense, fuels the embedded systems market.
The French market, whose precise size is difficult to assess, is part of the electronics sector, which is worth between 15 and 20 billion euros.
In aerospace and aeronautics, embedded systems are indispensable for satellite and aircraft guidance.
Consumer electronics and the Internet of Things hold great promise for embedded systems.
Connected homes, although representing only a modest 3% of the total market, are set to grow strongly.
The medical field is showing growing demand for these systems, particularly with the incorporation of IoT and AI. The need for reliable, real-time monitoring devices, such as blood glucose meters and pacemakers, is high.
Players in the embedded systems market
- Valeo, one of the world's leading automotive suppliers
- Actia Group: Specializing in electronic equipment and systems
- Latécoère: In the aeronautics sector, Latécoère is synonymous with innovation. Nearly half of its sales come from embedded systems.
- Thales: a world technology leader for the aerospace, transport, defense and security markets.
- Safran is a major player in the aerospace, defense and security markets.
- Alstom: Recognized worldwide for its contributions to the transportation sector.
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Summary and extracts
1 Market overview
1.1 Definition and scope of the study
The term embedded system refers to the integration of software and computer and electronic components into a product (electronic tools, vehicles, etc.) or an infrastructure in order to perform a precise and relatively simple task in order to increase its functionality, performance or automation.
The market for embedded systems therefore covers both the hardware and electronic components, the associated software and the integrators required to assemble these systems.
Among the many sectors of use of embedded systems, seven segments have been identified as major: automotive, telecommunications, healthcare, industrial, consumer electronics, aerospace and defense. The automotive sector and industry are the primary markets for embedded systems, particularly in Europe where nearly one third of the production of vehicle embedded systems is carried out.
This market is particularly promising and now affects all categories of connected objects in our daily lives. Globally, the annual growth rate is estimated at 7.2% between 2021 and 2030, thanks in particular to the development of the IoT (Internet of Things), which refers to the fact of connecting everyday physical objects to an Internet network in order to make them intelligent. [Market Research Future] Europe is particularly well positioned in this segment despite the arrival of the United States and China on the market.
France is a major player in the market for electronic components, and more particularly for embedded systems, given the presence of major French companies such as Safran, Thales and Airbus, particularly in the Toulouse region.
1.2 The growing world market
The global embedded systems market is in good shape, valued at $***.* billion in **** by Market Research Future. This market is expected to grow at a CAGR (***) of *.*% over the period ****-****. embedded Systems Market Size Evolution World, ****-***** (***) estimated at *.*% CAGR Source: Market Research Future The main factors driving the growth ...
1.3 The French market
At the time of writing, there is insufficient data to estimate the size of the French embedded systems market. Indeed, it is a cross-cutting market that can be found in several sectors, such as aeronautics and aerospace, defense, automotive, household appliances, medical, as well as in several other industries.
However, the ...
2 Analysis of the demand
2.1 Embedded systems in aeronautics and aerospace
In the aeronautics sector, the needs in embedded systems mainly concern the following products :
On-board computers Telecommunications Transmissions Servers and access points [***]
The needs of the sector are software and hardware. In aeronautics and aerospace, embedded technologies are used for the reliable guidance of satellite launchers, as well as for missiles ...
2.2 Embedded systems in the automobile
Depending on the field of application, embedded systems are subject to particular constraints and requirements. In the automobile, one of the most important constraints is real time, both for the performance of the vehicle and for the safety of the driver and passengers on board.
If a computer or an electronic ...
2.3 The use in household appliances, image of an evolving technology
In addition to being used in the aerospace and automotive sectors, embedded systems technology is also present in everyday objects. These uses present huge commercial opportunities, the limits of which are still far from being reached, since consumer electronics are constantly integrating more and more technologies. For example, the sale of ...
2.4 Embedded systems in the medical field
In the medical field, devices must be reliable and safe so as not to endanger the lives of patients . For example, a badly calibrated machine could irreversibly damage a patient's cells. The machines and their operation must also be protected from cyber attacks or simply from power failures. The risks involved ...
2.5 Embedded systems in defense
The increased use of military hardware and electronics puts pressure on specialized standards for embedded systems for military and aerospace applications. For example, embedded systems for the military and aerospace industry must be able to survive in extreme environments (***). With the military embedded systems market estimated to be worth $***.** billion in ...
2.6 Embedded systems in other industries
The embedded systems, by their very broad fields of application, are a technology used in the majority of the industrial sectors in the majority of industrial sectors, not all of which could be developed in the previous parts of the application. This part aims at detailing the industrial potential in France, ...
3 Market structure
3.1 The market value chain
Various players in the digital technology, engineering and consulting sectors are involved in the various design and construction phases of embedded systems. As software suppliers, they develop the software part of embedded systems. These include software publishers, application publishers, system publishers, network publishers, and development and language tool publishers (***). They also ...
3.2 Production of embedded systems
Production of embedded systems
Strong dichotomy by use
In the case of consumer goods, consumer electronics, automotive, health and industry, industrialists, manufacturers and producers of finished products will generally tend to outsource the production of embedded systems in order to reduce costs and because they lack the required skills and technologies. ...
3.3 The opportunities of a growing market
Embedded systems are present in a wide variety of products, from cars to household appliances, toys and measuring instruments. They represent an interesting market because they are present in many sectors and are a driver of innovation in sectors such as automotive, aerospace, but also in the medical.[***]
By applications, the ...
3.4 A shortage of specialists in the face of rapidly growing demand
The embedded systems market is growing and has good prospects. Thus, the demand for new qualified profiles is strong. The graph below highlights the professions for which the demand for workers is growing the fastest. At the top of the list is Software Engineer/Developer, for which **% of the companies surveyed ...
4 Analysis of the offer
4.1 Prices and parameters
It is difficult to get an idea of the price of embedded systems as a whole, since there are no standard products, but a wide variety of products designed to meet specific needs, all of which fit together in the finished product.
In any case, the actors of the integrated systems ...
4.2 Innovations and supply trends
The digitalization of everyday life through the democratization of connected objects represents a considerable opportunity for embedded systems professionals. The challenge for manufacturers is to create more secure and more open embedded systems to adapt to new needs in different environments. The big challenge is to create learning embedded systems, thus ...
5 Regulation
5.1 Legal framework for the electronic components market
The making available on the market of a product corresponds to "any supply of a product intended to be distributed consumed or used on the Union market in the course of a commercial activity, whether in return for payment or free of charge".
The placing on the market of a product ...
6 Positioning of the actors
6.1 Segmentation of market players
6.2 Recent developments concerning French players
Electronics groups are trying to conquer markets with a high level of innovation, and this is particularly true in the case of artificial intelligence. STMicroelectronics is doing just that, having acquired Toulon-based Cartesiam (***) software, in May **** to strengthen its position in more advanced technologies than it currently offers. Cartesiam's proprietary NanoEdge™ ...
- Thales
- Alstom
- Latecoere
- Arkeva
- Actia Groupe
- Safran Groupe
- Zodiac Aerospace (Groupe Safran)
- Schneider Electric
- Sopra Steria
List of charts presented in this market study
- Share of electronics in the manufacturing cost of a vehicle
- Breakdown of Valeo automotive supplier sales
- Evolution of the size of the embedded systems market
- Evolution of aeronautical and space construction revenues
- Breakdown of LATECOERE's sales, aeronautical equipment manufacturer
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Latest news
Defense: Thales quadruples mortar shell production in the Loiret region of France - 18/06/2024
- - Ammunition production capacity at Thales' La Ferté-Saint-Aubin plant: currently at 20,000 rounds per year, planned to increase to over 80,000 rounds per year by 2026.
- - French army ammunition orders: 3,000 rounds in 2022, 15,000 rounds in 2023. Deliveries scheduled between the last quarter of 2024 and 2029.
- - Brazilian Air Force acquires two Ground Master 200 Multi Mission radars from Thales.
- - Thales order book in 2023: 45.3 billion euros, up 10%.
- - Thales sales forecast for 2024: between €19.7 and €20.1 billion, with organic growth of 4-6%.
Safran becomes world leader in flight controls - 07/06/2024
- Safran acquires the flight control and actuation business of American company Collins Aerospace for $1.8 billion.
- The activities sold by Collins are spread over eight plants in Europe (France, Italy and the UK) and Asia, with 3,700 employees involved.
- Microtecnica, the Italian subsidiary of the divested business, accounts for 15% of revenues with three plants. It specializes in mechanical and electronic components and services for military aircraft.
- Italian defense programs in which it is involved, such as the Tornado and Eurofighter combat aircraft and the MU90 torpedo, as well as the future GCAP program, a competitor to the Future Air Combat System (Scaf) involving Germany, France and Spain.
Thales plans to invest in Atos for defense and intelligence - 30/04/2024
- - Thales is considering the acquisition of the Mission Critical Systems (MCS) division of Defense and Security within BDS.
- - Thales's recent €3.6 billion acquisition of Imperva positions Thales in the world's Top 5 in cyber.
- - The MCS division generates annual revenues of €200-300 million. This amount represents part of the BDS portfolio estimated at 1.5 billion euros.
Thanks to Hitachi's takeover of Thales' rail business, Italy's Mer Mec arrives in France - 15/04/2024
- - Sale of Hitachi's German, British and French signaling activities to Italian company Mer Mec.
- - Founded in 1970, Mer Mec is mainly involved in signalling, electrical traction and telecommunications for the rail industry. It is present in 73 countries and belongs to the Angel Group.
- - The Italian rail specialist already works with RATP and SNCF in France
- Purchase price of Thales GTS by Hitachi Rail: 1.7 billion euros.
- - The European Commission and the British competition authority had given the green light to Hitachi Rail's €1.7 billion takeover of Thales GTS (the French group's rail activities). The only condition was that the Japanese manufacturer make a number of divestments.
- - Number of employees at Hitachi Rail STS France (ex-Ansaldo STS): over 600.
All the lights are green for Thales, except in the space sector - 06/03/2024
- - Order intake for 2023: 23.1 billion euros
- - Last year's sales: 18.4 billion euros
- - Acquisition of US company Imperva
- - Planned acquisition of Cobham Aerospace Communications
- - Number of new hires planned in France for 2024: 7,000
- - Number of employees redeployed within the Thales Alenia Space group: 1,300.
Schneider Electric has had the best year in its history - 16/02/2024
- Net profit: 4 billion euros.
- Sales: 36 billion euros.
- Revenue growth: 13%.
- Order book for 2024: over 19 billion euros.
- Market share in electrical infrastructure for data centers: 21% in 2023.
- Hiring planned as part of this R&D investment: 6,000 people.
- Sales in the United States: over €10 billion.
- Schneider market capitalization: over 100 billion euros.
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