Europe Industrial Embedded Systems Market Size
| Study Period | 2019 - 2030 |
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Market Size (2025) | USD 6.05 Billion |
| Market Size (2030) | USD 7.98 Billion |
| CAGR (2025 - 2030) | 5.70% |
| Market Concentration | Low |
Major Players*Disclaimer: Major Players sorted in no particular order |
Europe Industrial Embedded Systems Market Analysis
The Europe Industrial Embedded Systems Market size is estimated at USD 6.05 billion in 2025, and is expected to reach USD 7.98 billion by 2030, at a CAGR of 5.7% during the forecast period (2025-2030).
- Embedded systems are gaining momentum across industrial applications owing to their power efficiency, high performance, and robust environmental design. The growing automation across organizations is expected to drive the growth of the embedded systems market. With Industry 4.0 gradually coming to fruition, there is an increased adoption of components, smart systems, and machinery for improving processes through automation and self-optimization. This is influencing the growth of industrial embedded systems.
- According to Eurostat, in December 2023, industrial production increased by 8.6% for capital goods in the European Union. The highest annual increases were registered in Ireland (+44.7%), Denmark (+6.7%) and Malta (+5%). Furthermore, shifts in manufacturing due to Industry 4.0 and the approval of IoT require enterprises to adopt agile, smarter, and creative ways to advance production with technologies that complement and augment human labor with automation and reduce industrial accidents caused by process failure. With the increased rate of adoption of connected devices and sensors and the fostering of M2M communication, there has been a surge in the data points developed in the manufacturing industry.
- Further, industrial robots are crucial in digital manufacturing, creating a virtual and connected ecosystem. It also helps in mitigating and predicting any unforeseen error. Industry 4.0, the newest industrial revolution, has fueled the development of new technologies, like collaborative robots; AI-enabled robots have enabled industries to streamline many processes, increase efficiency, and eliminate errors. Increased workplace safety and improved production capabilities have further driven industries to invest in robotic systems. The European industrial sector is investing heavily in robotics adoption, which is expected to drive market growth.
- However, the market's growth is primarily hindered by rising cyber threats and security concerns. Many embedded systems play crucial roles, often related to a system's core function and its environment. The modern interconnection of embedded systems through the Internet of Things (IoT) has introduced new avenues for potential attacks.
- The industrial landscape in the region has been significantly impacted by the Russia-Ukraine conflict and escalating global inflation. Challenges range from supply chain disruptions and labor shortages to raw material scarcities, leading to fluctuating prices. Consequently, final product production costs may surpass budgets, compounded by shipping challenges. Nevertheless, industries are actively embracing technologies like Industry 4.0 and artificial intelligence to offset losses stemming from geopolitical tensions.
Europe Industrial Embedded Systems Market Trends
Programmable Logic Controller (PLC) Application is Expected to Hold Significant Market Share
- A programmable logic controller (PLC) is the central computing system that manages automated machines. PLCs also help control manufacturing processes, such as assembly lines, robotic devices, or any activity requiring high-reliability control, easy programming, and operation fault diagnosis. PLCs are growing and remain the best choice for different industrial automation applications.
- The need to use more innovative and automated solutions, such as control systems or robotics, to improve production processes has significantly increased the growth of automation across Europe's industrial sectors due to digitization and Industry 4.0. Industrial IoT (IIoT) also plays a pivotal role in the growth of embedded systems, giving rise to smart and interconnected ecosystems. IoT-enabled PLCs connect to various sensors and devices, allowing for real-time data analysis and collection.
- The increased automation in the automotive manufacturing industry in the region is expected to increase the demand for PLCs used in smart factories, thereby creating a significant demand for industrial embedded systems. According to the ACEA, Motor vehicle production reached 14.31 million units in 2023, where Germany led European automobile production, manufacturing around 4.1 million vehicles and Spain emerged as the second-largest producer, crafting over 2.5 million vehicles.
- With the technological development, the usage of micro-PLC is gaining prominence as it is suitable for remote distributed Input-Output, and small applications. The next-generation compact PLCs are having robust functionalities and reliable and embedded with new technology. This allows to have improved data insights and analytics to meet the demands of the varied application.
Germany is Expected to Hold Significant Market Share
- Germany is expected to hold a significant share of the European industrial embedded systems market. According to the 2023 World Robotics Report by IFR, the country is one of the top five industrial robot adopters worldwide, with a market share of 36% within the European region. In addition, according to VDMA, in 2023, the German robotics and automation industries were projected to achieve a total turnover of approximately EUR 16.2 billion (USD 17.7 billion).
- The increasing utilization of automation in manufacturing processes and the integration of digitization and AI technologies are key drivers behind the rising demand for industrial robots in Germany's industrial sector. The German automotive industry is one of the largest manufacturing sectors in the world, and the country manufactured around 4.1 million vehicles in 2023. Collaborative robots are becoming more popular among automakers and suppliers, which is expected to drive the studied market.
- The rising investment by the manufactuers in smart solutions is anticipated to boost the market growth in Germany. For instance, according to the International Trade Administration, by 2025, 84% of German manufacturers plan to invest EUR 10 billion (USD 10.52 billion) per year in smart manufacturing technologies. The automotive industry is expected to invest around EUR 1.2 billion (USD 1.30 billion) per year, Machinery & Equipment and Plant Engineering and Construction around EUR 1.5 billion (USD 1.63 billion) per year, Electronics and Microelectronics industry around EUR 817 million (USD 887.73 million) per year, and Metalworking industry around EUR 424 million (USD 460.71 million) per year.
- There has been a significant demand for automation in the automotive sector, which shows a growth pattern in the number of vehicles produced while simultaneously reducing costs. Moreover, this industry has seen a considerable increase in implementing Smart Manufacturing techniques and is becoming an important market for industrial embedded systems.
Europe Industrial Embedded Systems Industry Overview
The Europe industrial embedded systems market is highly competitive and consists of several players. Companies continuously try to increase their market presence by introducing new products, expanding their operations, or entering into strategic mergers and acquisitions, partnerships, and collaborations. Some significant players include Infineon Technologies, NXP Semiconductors, Renesas Electronics, Advantech Co., Ltd., and Texas Instruments Inc., among others.
- In June 2024, Advantech unveiled the MIC-330V2, a state-of-the-art single-board computer (SBC) that sets new benchmarks in industrial computing. Running on Intel's cutting-edge 11th Gen Xeon W and Core i7 processors, the MIC-330V2 is tailored to tackle the rigorous demands of contemporary edge computing applications. Notably, this iteration showcases marked improvements over its forerunners, showcasing heightened power efficiency and performance courtesy of its advanced 10nm process.
- In March 2024, Texas Instruments Inc., unveiled its latest embedded processing and connectivity products in Germany, setting the stage for a more secure, intelligent, and sustainable future in the embedded landscape in April 2024. At the event, TI's experts highlighted the extensive array of hardware, software, and design tools accessible through the TI Developer Zone. These resources empower engineers to craft solutions using TI's processors, MCUs, wireless connectivity, and radar-based devices seamlessly. TI introduced over 100 new MCUs, expanding its Arm Cortex-M0+ lineup. These MCUs offer versatile options catering to diverse design needs, be it memory, analog integration, or size. This not only streamlines design processes but also trims costs at the component and system levels. Furthermore, TI showcased its latest embedded Arm-based processors, featuring integrated AI accelerators. These processors boast enhanced computing capabilities, supporting up to three displays concurrently, ideal for even the most intricate HMI systems.
Europe Industrial Embedded Systems Market Leaders
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Infineon Technologies
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Texas Instruments Inc.
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Advantech Co. Ltd.
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NXP Semiconductors N.V.
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Renesas Electronics Corporation
- *Disclaimer: Major Players sorted in no particular order
Europe Industrial Embedded Systems Market News
- May 2024: Accenture has bolstered its digital engineering capabilities by acquiring Teamexpat, a specialist in embedded software for intricate high-tech products. Teamexpat's primary focus lies in software development, testing, and integration, particularly for lithography systems within the semiconductor sector. These systems utilize ultraviolet light to imprint the intricate patterns crucial for the performance of microchips. Since the acquisition, Teamexpat's seasoned software professionals have seamlessly integrated into Accenture's digital engineering team in the Netherlands. Their specialized expertise in embedded software engineering is set to enhance Accenture's offerings, particularly in smart, connected products catering to the semiconductor sector and other discrete manufacturing industries.
- April 2024: Review Display Systems (RDS), a provider of embedded systems and display solutions, has unveiled a new rugged PC in collaboration with AAEON, a prominent name in embedded computing. The BOXER-6406-ADN is a compact embedded computer powered by the energy-efficient Intel Atom Processor X Series and the versatile Intel Processor N-series. It's designed with a suite of rugged features, catering specifically to industrial applications.
- October 2023: Renesas Electronics Corporation introduced the world’s most potent microcontrollers (MCUs), the new RA8 Series that will deliver breakthrough performance of over 3000 CoreMark points and fully deterministic, low latency, real-time operation that satisfies customers’ most demanding application needs. The new RA8 Series MCUs are the industry’s first to implement the Arm Cortex-M85 processor, enabling the latest devices to deliver industry-leading 6.39 CoreMark/MHz1 performance.
Europe Industrial Embedded Systems Industry Segmentation
Embedded systems are a fusion of specialized computer hardware and software designed for specific functions. They can function autonomously or as part of a larger network. These systems are broadly classified into two categories: programmable and fixed-functionality. Their applications span a diverse range, from industrial machinery and consumer electronics to automobiles, among others. The study tracks the revenue accrued through the sale of embedded systems by various players in Europe. The study monitors critical market parameters and leading vendors and delves into the factors propelling growth, thereby aiding in market estimations and growth rate projections for the forecast period. Additionally, the study scrutinizes the broader impact of macroeconomic factors on this ecosystem.
The Europe industrial embedded systems market is segmented by component (hardware, software), application (industrial PC, programmable logic controller (PLC), micro programmable logic controller, motor control, industrial sensors), and country (United Kingdom, Germany, France, and rest of Europe). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
| By Component | Hardware |
| Software | |
| By Application | Industrial PC |
| Programmable Logic Controller (PLC) | |
| Micro Programmable Logic Controller | |
| Motor Control | |
| Industrial Sensors | |
| By Country*** | United Kingdom |
| Germany | |
| France |
Europe Industrial Embedded Systems Market Research FAQs
How big is the Europe Industrial Embedded Systems Market?
The Europe Industrial Embedded Systems Market size is expected to reach USD 6.05 billion in 2025 and grow at a CAGR of 5.70% to reach USD 7.98 billion by 2030.
What is the current Europe Industrial Embedded Systems Market size?
In 2025, the Europe Industrial Embedded Systems Market size is expected to reach USD 6.05 billion.
Who are the key players in Europe Industrial Embedded Systems Market?
Infineon Technologies, Texas Instruments Inc., Advantech Co. Ltd., NXP Semiconductors N.V. and Renesas Electronics Corporation are the major companies operating in the Europe Industrial Embedded Systems Market.
What years does this Europe Industrial Embedded Systems Market cover, and what was the market size in 2024?
In 2024, the Europe Industrial Embedded Systems Market size was estimated at USD 5.71 billion. The report covers the Europe Industrial Embedded Systems Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Europe Industrial Embedded Systems Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
Europe Industrial Embedded Systems Industry Report
Statistics for the 2025 Europe Industrial Embedded Systems market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Europe Industrial Embedded Systems analysis includes a market forecast outlook for 2025 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.
