How big is the Embedded Software Market | Size & Growth Insights 2025

Q: What is the projected size of the embedded software market by 2031?

The embedded software market is estimated to exceed USD 36.7 billion by 2031.

Q: What factors augments the growth of embedded software market?

Growth is driven by integration of embedded systems in automotive ECUs and growing demand for real-time operating systems.

Q: What is the CAGR of the embedded software market?

The embedded software market is expected to grow at a CAGR of 12.11%.

Q: Which sector holds the largest share in embedded software usage?

The automotive sector dominates due to its dependence on embedded systems for infotainment.

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Code: MTA6298

Publication Date: Jul 2025

How Big Is the Embedded Software Market?

According to 6Wresearch internal database and industry insights, the Global embedded software market was estimated at USD 17.8 billion in 2024 and is expected to reach over USD 36.7 billion by 2031, registering a CAGR of 12.11% during the forecast period.

This massive expansion is fueled by rising integration of embedded systems in automotive ECUs, smart consumer devices, and growing demand for real-time operating systems across connected systems in IoT and AI-driven environments.

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Growth Factors of the Embedded Software Market

Rising adoption of embedded software in autonomous vehicles and ADAS
Industrial digitization driving use in robotics and real-time controllers
Increase in connected medical devices and wearable healthcare solutions
Demand for low-power embedded systems in IoT ecosystems
Escalating telecom infrastructure with embedded networking and protocol stacks
Need for customizable and secure firmware in defense and aerospace applications

Embedded Software Market Trends

Embedded Software Market is witnessing increased traction with the advancement of AI-integrated microcontrollers, edge computing frameworks, and containerized embedded environments. Cloud-based embedded development tools, DevOps in firmware lifecycle, and support for multi-core processors are also reshaping the software deployment landscape. In addition, the shift from monolithic firmware to modular, upgradeable software components is a key industry shift.

Emerging Developments in Embedded Software Market

Key innovations in the Embedded Software Market include integration of open-source RTOS platforms such as Zephyr and FreeRTOS for faster prototyping, software-defined architectures enabling hardware-agnostic solutions, and rising collaboration between chip manufacturers and software vendors for co-optimized embedded stacks. There is also a move toward increased cybersecurity layering in embedded firmware to comply with global safety standards.