The overall embedded system market is expected to grow from USD 86.5 billion in 2020 to USD 116.2 billion by 2025, at a CAGR of 6.1% during the forecast period.

1. EMBEDDED SYSTEMS MARKET LEADERSHIP
Embedded Systems are designed by combining microprocessor computer hardware and software for
performing pre-defined tasks independently or with other systems. Embedded systems are used in the
healthcare, automotive, aerospace, industrial, consumer electronics, and communicationverticals.
The overall embedded system market is expected to grow from USD 86.5 billion in 2020 to USD 116.2
billion by 2025, at a CAGR of 6.1% during the forecast period. The growth of the overall embedded
system market is driven by various factors such as increasing number of research & development
activities related to embedded systems, surge in demand for ADAS in EV and hybrid vehicles, increase in
demand for portable devices equipped with embedded systems, and rise in demand for multicore
processors in military applications.
In 2019, the embedded system market was dominated by STMicroelectronics, Intel, Renesas, NXP,
Qualcomm, Texas Instruments, Samsung Electronics, and Microchip. These leading players adopted a few
major strategies in the market which created a significant impact. The strategies comprised product
launches, strategic partnerships, and business agreements along with mergers & acquisitions.
Intel (US) manufactures various products, such as processors, systems and devices, chipsets, FPGAs,
structured ASICs, and servers. The company caters to applications and industries, such as automotive,
broadcast, communications, energy, financial services, industrial, military, and consumer electronics.
Intel adopts both, organic and inorganic strategies to become a market leader in the embedded system
market. It focuses on various collaborations and acquisitions along with product launches to meet the
changing needs of its wide customer base. For example, Intel acquired Mobileye (Israel) to strengthen its
position in the Embedded Systems market by combining the vision systems offered by Mobileye with its
own AI capabilities. Similarly, the company recently acquired Habana Labs (US) to improve its
competitiveness in the Best Embedded Systems.
Renesas Electronics Corporation (Japan), is one of the leaders in the semiconductor manufacturing
industry. The company provides a broad range of products, including microcontrollers and
microprocessors, embedded system memory devices, system-on-chip (SoC), and a variety of analog and
power devices. The company deals in applications related to industrial, automotive, healthcare, building
automation (BA), office automation (OA), energy management system, and information communication
technology. Renesas has taken a consumer-centric approach to address the high-growth markets, and
has improved its position in the embedded system market. It partnered with various companies in the
automotive industry, such as Nissan (Yokohama, Japan), Volkswagen (Wolfsburg, Germany), and
Continental (Hanover, Germany). These alliances are expected to enhance the usage of its technologies
while jointly developing new-age auto-mobility solutions. The company also joined the Autonomous
Vehicle Computing Consortium consisting of players such as Bosch (Gerlingen, Germany), NXP
Semiconductors (Eindhoven, Netherlands), and ARM (Cambridge, UK) to speed up its autonomous
driving vehicle development program.
STMicroelectronics (Switzerland) is a global semiconductor solutions provider. STMicroelectronics offers
a variety of products such as microcontrollers and microprocessors, power modules and devices,
memories, MEMS and sensors, and analog and digital ICs. Some of the sectors that the company is
involved in include industrial, automotive, IoT applications, personal electronics, and communications.

2. STMicroelectronics focuses on product launches and development to grow its share in the embedded
solutions market. The company launched various products and solutions for IoT- and IIoT-based
applications. Its STM32 family of microcontrollers gives it the flexibility to provide solutions for various
industries such as automotive, communication, healthcare, IoT. This allows the company to offer a broad
product portfolio to its customers and help in cross-selling different products on the same platform. As it
has a front foot in the low-power MCUs, STMicroelectronics can consider increasing its collaborations
and partnerships activities to solidify its position in low-power consumption technologies and devices in
the IoT network.
NXP Semiconductors (Netherlands)specializes in designing, manufacturing, and marketing
semiconductor devices. NXP Semiconductors offers various products such as ARM processors and MCUs,
power architecture processors, sensors, interface and connectivity, security, and media and audio
processing. The solutions provided by NXP Semiconductors find applications in sectors such as
automotive, mobile, industrial, smart devices, and communication. NXP Semiconductors has been able to
cater to the changing needs of customers and remain one of the leaders in the automotive
semiconductor industry. This has also helped the company maintain a comprehensive outlook of the
automotive industry, developing next-generation ADAS and related security solutions. The company
could consider using its R&D findings to increase its market in non-automotive industries such as retail
consumer electronics, which is a significant opportunity for itscompetitors.
360 QUADRANT COMPANY EVALUATION METHODOLOGY
Top companies in the Embedded Systems market will be rated using the following methodology -
1) A highly experienced team of researchers and senior analysts conduct extensive research to generate
a list of vendors(competitors).
2) A patent-pending algorithm is used to collect inputs from key stakeholders—industry experts,
buyers, vendors, and 360Quadrants analysts—based on criteria for Product Maturity and Company
Maturity.
a) Criteria under Product Maturity include breadth and depth of product/service offering, product
features and functionalities, product differentiation, and their impact on customervalue.
b) Criteria under Company Maturity include geographical footprint, partner ecosystem, financial
stability, and client coverage or sectorfootprint.
3) Approximately 20+ in-depth parameters will be considered for research for the Embedded Systems
market. These parameters will be updated every sixmonths to ensure latest developments are taken
into consideration.
4) A weight is assigned to each stakeholder based on information gathered pertaining to the above
criteria as well as inputs from stakeholders. These inputs follow the order of priority given below:
a) Buyers
b) Industry Experts
c) 360QuadrantsAnalysts
d) Vendors (Competitors)
5) The inputs are analyzed, and a final rating is assigned to each vendor(competitor).
6) After the finalization of ratings, each vendor is placed in the most relevant quadrant based on their
score.

3. ABOUT 360QUADRANTS
360Quadrants is the largest marketplace looking to disrupt USD 6.3 trillion of technology spend and is
the only rating platform for vendors in the technology space. The platform provides users access to
unbiased information that helps them make qualified business decisions. The platform facilitates deeper
insights using direct engagement with 650+ industry experts and analysts and allows buyers to discuss
their requirements with 7,500 vendors. Companies are able to win ideal new customers, customize their
quadrants, decide key parameters, and position themselves strategically in niche spaces, to be consumed
by giants and start-ups alike. Experts are able to grow their brand and increase their thought leadership.
The platform targets the building of a social network that links industry experts with companies
worldwide. The platform has around 400 buyers across variousmarkets.
360Quadrants will also be launching quadrants in fields such as Access Control Software, Cloud
Computing Software, and Machine Vision Solutions.