How big is the embedded software development market | Forecast & Trends 2025

Q: What is driving the growth of the embedded software development market?

The market is growing due to the widespread use of embedded systems in defense applications requiring low-latency software execution.

Q: What is the projected CAGR of the Embedded software development market?

Embedded software development market is projected to grow at a CAGR of 10.1% during the forecast period.

Q: Who are the leading players in the Embedded software development market?

Key players include Wind River Systems, Green Hills Software, Mentor Graphic, BlackBerry QNX, STMicroelectronics, and others.

Q: What will the embedded software development market be worth by 2031?

The embedded software development market is expected to be valued at USD 34.9 billion by 2031.

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Code: MTA6297

Publication Date: Jul 2025

How Big Is the Embedded Software Development Market?

According to 6Wresearch internal database and industry insights, the embedded software development market was valued at USD 17.6 billion in 2024 and is projected to reach USD 34.9 billion by 2031, growing at a CAGR of 10.1% during the forecast period.

The growth is attributed to increasing demand for connected devices, real-time systems in automotive and industrial automation, advancements in chip architecture, and the rising integration of AI and machine learning capabilities within embedded platforms.

Growth Factors of the Embedded Software Development Market

Expansion of edge computing applications supporting local data processing.
Rising complexity in automotive ECUs, requiring efficient real-time embedded software.
Growing use of embedded solutions in healthcare devices and wearables.
Surge in adoption of IoT-enabled devices across consumer and industrial sectors.
Increased investments in industrial automation and robotics using embedded systems.
Need for custom firmware in defense, aerospace, and satellite systems.

Embedded Software Development Market Trends

Embedded Software Development Market is undergoing rapid evolution, with notable trends such as the integration of artificial intelligence and machine learning into embedded systems, growing preference for open-source RTOS platforms, rising demand for cross-platform development tools, and a shift towards low-power, high-performance embedded architectures to support edge computing. Additionally, there is increasing emphasis on security-first development for embedded applications, especially in critical infrastructure and automotive environments.

Emerging Developments in Embedded Software Development Market

Emerging developments in the Embedded Software Development Market include the rise of software-defined vehicles, expansion of embedded Linux distributions for mission-critical tasks, growing adoption of RISC-V in embedded solutions, and increasing collaboration between semiconductor companies and software vendors to develop optimized software stacks for hardware platforms. Companies are also emphasizing DevSecOps practices and containerization for embedded systems to enhance lifecycle efficiency and security compliance.