High growth expected in the worldwide embedded-system market

APRIL 22--According to a soon-to-be-released updated reportRG-229R Future of Embedded Systems Technology from Business Communications Company Inc. (Norwalk, CT; www.bccresearch.com), the worldwide embedded-systems market was estimated at $45.9 billion in 2004. Expected to growth at an average annual growth rate (AAGR) of 14% over the next five years, this market will reach $88 billion by 2009.

An embedded system is a special-purpose computer system built into a larger device. An embedded system is required to meet very different requirements than a general-purpose personal computer. Two major areas of differences are cost and power consumption. Since many embedded systems are produced in the tens of thousands to millions of units range, reducing cost is a major concern. Embedded systems often use a relatively slow processor and small memory size to minimize costs. The slowness is not just clock speed. The whole architecture of the computer is often intentionally simplified to lower costs.

Among the segments, the market for embedded software will grow from about $1.6 billion in 2004 to $3.5 billion by 2009, at an AAGR of 16%. Embedded hardware growth will be at an AAGR of 14.2% to reach $78.7 billion in 2009, while embedded board revenues will increase by an AAGR of 10%. This report examines the embedded systems market-its fundamental basis, key technology drivers, primary utilization, critical applications, and component segments.