North America Embedded Software Market size exceeded USD 6 billion in 2020 and is expected to witness over 8% CAGR from 2021 to 2027.
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The market growth is driven due to rising R&D initiatives by regional automotive OEMs in ADAS and autonomous driving technologies. These technologies require highly efficient & secure software to assist the processing of the data from sensors & cameras and achieve safe vehicle management decisions. For instance, in September 2021, Arm announced its collaboration with various automotive distributors, such as AWS, Continental, and CARIAD, among others, to scale its new embedded software architecture implementation. The companies together launched Scalable Open Architecture for Embedded Edge (SOAFEE), which enables automotive developers to integrate various automotive systems including ADAS, in-vehicle infotainment systems, and electrified powertrains.
North America Market, By Operating System
Android GPOS segment in the North America embedded software market will showcase 8.5% growth rate during the forecast period. The market growth is credited to the proliferation of consumer electronic devices such as smartphones, wearable electronics, and tablets based on Android OS. Furthermore, the open-source Android OS has numerous benefits including a configurable User Interface (UI) and a vast application base of over three million Android apps.
North America Market, By Application
The North America embedded software market size from consumer electronics is projected to grow at a CAGR of around 9% through 2027, driven by the increasing demand for new technologies in laptops, smartphones, smartwatches, smart TVs, and handheld gaming devices.
Furthermore, growing adoption of AI & IoT technologies in manufacturing & consumer home appliances is driving up the demand for embedded software in electronic products. To meet the growing demand for embedded software, market participants are launching new software platforms. For instance, in October 2021, Realme, a smartphone manufacturer, launched an Android 12-based UI 3.0 mobile software. This is an upgraded version of the embedded software used in Realme smartphones, which offers new privacy & security features with several customization options.
North America Market, By Country
U.S. embedded software market revenue is set to expand at 8.5% CAGR till 2027. This growth can be attributed to rising federal government investments in the development of armed drones to enhance its military & defense forces. For instance, in May 2021, the Department of Defense (DOD) received a budget allocation of USD 7.5 billion from the U.S. government. This funding will be used in the research & development of unmanned aerial vehicles, combat drones, and unmanned surveillance systems.
Furthermore, increasing the military budget spending of the federal government will provide possibilities for market expansion. Such funding activities will aid the market adoption of embedded software in several military applications such as surveillance UAVs, cybersecurity, and high-performance computing systems.
Competitive Industry Landscape
Key players involved in the North America embedded software market include Qualcomm, Intel Corporation, IBM, VIA Technologies, Inc., Microsoft Corporation, National Instruments, and HCL Technologies, among others.
These companies are focusing on the development of innovative solutions through mergers & acquisitions to gain a competitive edge in the market. For instance, in April 2020, Accenture completed the acquisition of ESR Labs, a Munich-based business that develops embedded software for automobile manufacturers. Through this acquisition, Accenture aims to broaden its service & solution portfolio for clients in the automobile industry.