Embedded IoT Market Size to Reach $112.0 Billion by 2035

Embedded IoT market is projected to grow from $39.3 billion in 2025 and is projected to reach $112.0 billion by 2035, growing at a CAGR of 11.1% during the forecast period 2026-2035. The global embedded IoT market is being influenced by the increasing integration of connectivity, processing, sensing, and security functions within compact electronic devices. Embedded systems are moving beyond basic monitoring and control as manufacturers incorporate more capable processors and wireless interfaces into connected equipment. The growing use of edge processing is encouraging data analysis closer to the point of collection, particularly in industrial equipment, automotive systems, healthcare devices, and smart building applications. Low-power design is another important trend, especially for battery-operated sensors, asset-tracking devices, and remote monitoring equipment. The adoption of wireless technologies such as Wi-Fi, Bluetooth Low Energy, cellular connectivity, LPWAN, Thread, and other short-range protocols is broadening the range of applications that can be connected without extensive wired infrastructure. At the same time, hardware-based security and secure software architectures are receiving greater attention because embedded devices increasingly operate within connected networks. These developments are encouraging suppliers to integrate more functionality into microcontrollers, processors, modules, and system-on-chip architectures.

Browse the full report description of “Embedded IoT Market Size, Share & Trends Analysis by Component (Hardware, Microcontrollers and Microprocessors, Sensors, Connectivity Modules, Memory and Storage, Power Management Components, Actuators, Security Hardware, Other Hardware, Software, Embedded Operating Systems, Real-Time Operating Systems, Embedded Middleware, Device Drivers and Firmware, Embedded Security Software, Device Management Software), by Connectivity (Wi-Fi, Bluetooth and Bluetooth Low Energy, Cellular, LPWAN, Zigbee and Thread, Ethernet, NFC and RFID, Satellite, Other Connectivity Technologies), by Processing Architecture (Microcontroller-Based, Microprocessor-Based, System-on-Chip, System-in-Package, FPGA-Based, ASIC-Based), by Device Type (Embedded Sensors, Connected Controllers, Smart Modules, Embedded Gateways, Connected Actuators, Embedded IoT Boards, Smart Embedded Devices), by Deployment Environment (On-Device, Edge-Connected, Gateway-Connected, Cloud-Connected), by Application (Industrial Automation, Automotive and Transportation, Consumer Electronics, Smart Home and Building, Healthcare and Medical Devices, Energy and Utilities, Agriculture, Retail and Logistics, Aerospace and Defense, Other Applications), and by End User (Industrial, Commercial, Consumer, Government and Public Infrastructure), Forecast Period (2026-2035)” at https://www.omrglobal.com/industry-reports/embedded-iot-market

Another major driver is the expansion of connected equipment across industrial automation, consumer electronics, automotive systems, energy infrastructure, healthcare equipment, and logistics applications. Industrial organizations are deploying embedded sensors and controllers to collect operating information, monitor equipment conditions, and support automated processes, creating demand for reliable processing and communication components. Automotive electronics are also becoming more dependent on embedded computing as vehicles incorporate connected functions, advanced sensing, energy management, and software-controlled systems. In consumer applications, smart appliances, home automation equipment, wearable devices, and connected entertainment products are increasing the need for compact wireless embedded platforms. The development of edge AI is further changing device requirements by allowing selected workloads to be processed locally rather than relying entirely on remote computing resources. This is increasing interest in processors and microcontrollers with dedicated AI acceleration and efficient local memory architectures. Interoperability is also becoming important as devices need to operate across different communication standards and connected environments. Consequently, embedded IoT development is increasingly centered on flexible connectivity, efficient processing, security, and integration rather than connectivity alone.

Competitive Landscape of the Embedded IoT Market

The key players in the embedded IoT market are STMicroelectronics N.V., NXP Semiconductors N.V., Texas Instruments Incorporated, Infineon Technologies AG, and Renesas Electronics Corporation, among others. These companies participate across embedded processing, wireless connectivity, sensing, power management, security, and software components used in connected devices. Their product portfolios address industrial automation, automotive electronics, consumer devices, healthcare equipment, energy systems, and other IoT applications. Market development is increasingly influenced by demand for low-power architectures, integrated connectivity, edge processing, and embedded security. Competition is also shaped by the ability to support multiple connectivity standards and provide development ecosystems for embedded device manufacturers.

• In March 2026, Texas Instruments introduced two new microcontroller families with integrated TinyEngine neural processing units for edge AI applications. The MSPM0G5187 and AM13Ex MCUs add dedicated AI acceleration to embedded processing, enabling resource-constrained devices to perform AI inference locally with lower latency and energy consumption. The products are applicable to embedded devices such as wearable health monitors, home electrical systems, factories, and vehicles.

• In June 2026, Iridium Communications Inc. made the Iridium 9604 module and development kit commercially available, combining satellite connectivity, LTE-M cellular connectivity, and GNSS positioning in a single embedded IoT module. The integrated architecture is designed to reduce board space and hardware complexity for applications across industrial, infrastructure, transportation, utilities, maritime, and remote monitoring.

• In September 2025, Digi International launched the Digi XBee 3 BLU module with Bluetooth Low Energy 5.4, edge processing, security, provisioning, and mobile management capabilities. The embedded wireless module is designed for connected products across industrial, healthcare, retail, and smart-building applications, expanding Digi's embedded connectivity offering for IoT device manufacturers.

Market Coverage

• The market number available for – 2025-2035
• Base year- 2025
• Forecast period- 2026-2035
• Segment Covered-
  • By Component
  • By Connectivity
  • By Processing Architecture
  • By Device Type
  • By Deployment Environment
  • By Application
  • By End User
• Regions Covered-
  • North America
  • Europe
  • Asia-Pacific
  • Rest of the World
• Competitive Landscape - STMicroelectronics N.V., NXP Semiconductors N.V., Texas Instruments Incorporated, Infineon Technologies AG, and Renesas Electronics Corporation, among others.

Key questions addressed by the report.

• What is the market growth rate?
• Which segment and region dominate the market in the base year?
• Which segment and region will project the fastest growth in the market?
• Who is the leader in the market?
• How are players addressing challenges to sustain growth?
• Where is the investment opportunity?

Global Embedded IoT Market Report Segment

By Component

• Hardware
  • Microcontrollers and Microprocessors
  • Sensors
  • Connectivity Modules
  • Memory and Storage
  • Power Management Components
  • Actuators
  • Security Hardware
  • Other Hardware
• Software
  • Embedded Operating Systems
  • Real-Time Operating Systems
  • Embedded Middleware
  • Device Drivers and Firmware
  • Embedded Security Software
  • Device Management Software

By Connectivity

• Wi-Fi
• Bluetooth and Bluetooth Low Energy
• Cellular
• LPWAN
• Zigbee and Thread
• Ethernet
• NFC and RFID
• Satellite
• Other Connectivity Technologies

By Processing Architecture

• Microcontroller-Based
• Microprocessor-Based
• System-on-Chip
• System-in-Package
• FPGA-Based
• ASIC-Based

By Device Type

• Embedded Sensors
• Connected Controllers
• Smart Modules
• Embedded Gateways
• Connected Actuators
• Embedded IoT Boards
• Smart Embedded Devices

By Deployment Environment

• On-Device
• Edge-Connected
• Gateway-Connected
• Cloud-Connected

By Application

• Industrial Automation
• Automotive and Transportation
• Consumer Electronics
• Smart Home and Building
• Healthcare and Medical Devices
• Energy and Utilities
• Agriculture
• Retail and Logistics
• Aerospace and Defense
• Other Applications

By End User

• Industrial
• Commercial
• Consumer
• Government and Public Infrastructure

Global Embedded IoT Market Report Segment by Region

North America

• United States
• Canada

Europe

• UK
• Germany
• Italy
• Spain
• France
• Russia
• Rest of Europe

Asia-Pacific

• China
• India
• Japan
• South Korea
• Australia and New Zealand
• ASEAN Economies
• Rest of Asia-Pacific

Rest of the World

• Latin America
• Middle East & Africa

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