Developments within the semiconductor industry constitute one of the most interesting subplots of the rapid innovation in the high-tech industry. As pressure continues to achieve higher levels of device integration while reducing cost, size, and complexity, the issue of process innovation has become very significant. Plus, economic and market forces are fueling growth. To accommodate exponential growth demands for larger and faster transistors, chip designers and manufacturers have constantly pushed the envelope of technological, physical, and design constraints. Various innovations and paradigm-defining ideas have taken shape as a result. The embedded systems concept is one significant trend in this context.
According to a soon-to-be-released updated report RG-229R Future of Embedded Systems Technology, from Business Communications Company, Inc, the worldwide embedded systems market was estimated at $45.9 billion in 2004. Expected to grow 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.
Growth for the embedded components is being propelled by three factors:
- ASPs are higher than standalone chips, as is to be expected due to integrated functionality;
- Their unit sales are definitely cannibalizing the consumption volume of standalone MPUs, ASIC, FPGA, and DSP. Therefore, there is the occurrence of embedded devices simultaneously penetrating into the existing markets of most other standalone chips; and
- Finally, the growth of System-on-a-Chip (SOC) components has led to the birth and popularity of embedded systems. Examples include the ultra-small mobile gadgets of the future, ultra-wideband Internet, certain automobile gadgetry, etc. SOC has, in fact, created new end-use markets.
