Use of Microcontroller chips in embedded computer market to grow faster
Allied Market Research has reported the world embedded computing market is likely to generate revenue of $236.5 billion by 2022, with an estimated CAGR of 6.2% from 2016 to 2022. Though both microprocessor, microcontroller and also some types of SoCs power the hardware of embedded computer market, Allied Market finds microprocessors dominated the market in 2015, with around 63% market share. However, the microcontrollers segment is expected to grow at a fastest CAGR during the forecast period, as per Allied Market.
Other highlights shared by Allied Market includes:
In the year 2015, North America was the highest revenue-generating region owing to the high adoption of technology, higher standards of living, and presence of dominant market players. Asia-Pacific was the second largest market, in terms of revenue generation, and is expected to obtain a dominant position during the forecast period. Major factors that boost the demand of embedded computing systems in Asia-Pacific region include increasing adoption of technology, declining prices of consumer electronics, and improving living in countries such India and China. In addition, evolution in Internet of things and increasing demand for connected devices are projected to drive the market growth worldwide.
Among the key end users, the communications segment led the market followed by consumer electronics segment, both collectively accounting for around 64% of the market revenue in 2015. The dominance of these sectors is due to the increasing penetration of smartphones, wearable devices, gaming consoles and Internet, particularly in the developing regions.
The world embedded computing market is classified based on geography into North America, Europe, Asia-Pacific, and LAMEA. North America generated the largest revenue in 2015, followed by Asia-Pacific. From a growth perspective, LAMEA would exhibit the fastest CAGR of around 7% during forecast period.
Major driving forces for the growth of embedded computing market are increasing penetration of consumer electronics, rising uptake of artificial intelligence, growing automation of processes, and rising technological advancements.