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Custom vs. off-the-shelf electronics - perspectives for 2025

As the physical and digital worlds are merging, we use embedded solutions more and more in our daily lives. This article is about the current trends in the embedded systems market and what to expect in 2025.



EMBEDDED SYSTEMS MARKET TRENDS

Worldwide embedded systems market is expected to continue a steady growth in 2025 and beyond like the sector has had for the last three decades. Worldwide market is expected to have 4-7% annual growth (GAGR) in 2024 through 2031. At this growth rate the worldwide embedded systems market is expected to be 161-210 billion USD in 2030-2031 (145-189 billion Euros) according to recent market research.


The main drivers for the growth are IoT, automotive and industrial electronics. There are several trends that are driving growth and innovation in the design of embedded applications.


Connectivity is essential in IoT applications and important in many other applications. Most networked embedded devices are connected with wired Ethernet connection or wireless connection like Wi-Fi, BLE, 4G or 5G. More connection technologies communications protocols and cyber-security features integrated into devices means that embedded systems are becoming increasingly complex.


The second important trend is to do "more with less”. The devices are expected to have more functionality built-in and have better performance while consuming less power and be more connected. When designing a new product, it should do more, work reliably, cost less to manufacture and consume less energy. In addition, the products should be designed so that they can be reliably produced, which means, for example, components are available for the planned product lifetime.


Human machine interface (HMI) is an important part of the usability of modern systems. People are used to smartphone-type easy-to-use user interfaces, so now industrial applications also want to use graphical user interfaces with colours, icons and touch controls. The typical ways to do this is to make a user interface that is used with a mobile device (app or web) or designing an industrial HMI that has intuitive and user friendly graphical interface.


The security of devices connected to data networks is increasingly important and the number of attacks on embedded systems is increasing. All information systems are vulnerable to various network attacks and information security risks. Cyber security is such a big problem that e.g. EU has reacted to it with new cyber security regulations that come into effect in next few years.


In addition to the cyber security, you need to understand the regulations related to ESG (Environmental, Social and Governance). You also need to consider how products and services contribute to sustainable development.


Open-source software is very useful in many embedded applications, but it is not the answer to everything. Many people believe in the power of open-source code, but using it is not completely straightforward. With open-source code, a lot of things can be implemented easily, but maintaining the system can prove to be a problem. For example, keeping up with security vulnerabilities and patching vulnerabilities can be challenging.



DEVELOPING EMBEDDED SYSTEMS

The choice of programming language is very important.The choice of programming language influences significantly the effectiveness and success of a project. So, when choosing a language for an embedded system, it's essential to consider various factors, including the target hardware details and application software demands.

Embedded Systems Programming can be seen as an exclusive industry where only a few programming languages are allowed entry because there are often specific requirements such as low usage of resources as well as low-level system access.

Most embedded systems development is now done with C and C++ languages, including both the low level operating systems and application software. C is the most popular programming language in software field for developing electronic devices. With C we can create efficient code to optimize the limited resources available in embedded systems.


C++ is also essential for embedded systems due to its efficiency, performance and flexibility. C++ is less popular than C in embedded systems, but the addition of object-oriented programming makes it a great choice for complex embedded systems programming.


Python is a popular language and known for its writability, concise, readable coding style, and error deduction. Python's simplicity and versatile features make it suitable for writing the application software that runs on the embedded systems. While Python offers many advantages for embedded systems application software development, there are limitations that should be considered which include performance and memory management. Python is often used in embedded systems that run on Linux operating system.


Figure 1, The popularity of the most important programming languages for embedded systems development and for general programming.


This list can change somewhat in the future because e.g. the US government is bringing in regulation to move away from C and C++ programming languages. The reason for this is because memory problems in programs written in C or C++ are often the cause of data breaches. There is a push to adapt to use memory-safe languages like Rust. While Rust provides several advantageous features that benefit embedded systems development, it also comes with various drawbacks that include long compile times, minimal hardware support and compatibility with the existing software code base. The change of programming languages would be a big challenge especially in embedded systems development, because currently C and C++ dominate embedded systems applications programming.


CYBER SECURITY

In the world where nearly everything is networked, good cyber security is very important. Weak information security solutions can lead to serious risks, which in the worst case can cause serious consequences for business, end users and the environment.

The security of devices connected to data networks is increasingly important and the number of attacks on embedded systems is increasing. The number of online attacks disrupting systems in the EU region has doubled in spring 2024 due to the increasingly challenging circumstances in the world. Cyber security features like encrypted communications, remote update, centralized management and secure boot are needed in modern cyber secure embedded systems.


Increasing regulation related to embedded systems will significantly affect embedded systems in EU in the next few years. The Cyber Security Directive (NIS2 Directive) is designed to protect critical functions of society and the Cyber Resilience Act (CRA) requiring information security for products will affect the development of digital technology products, such as devices and software connected to the Internet. The updated radio equipment directive (RED 2) includes not only the requirements related to radio technology, but also requirements for the cyber security of the whole product.

The most important cyber security standards on the embedded systems are IEC 62443 and ETSI EN 303 645. They can be used to demonstrate that your embedded device has a sufficient level of cyber security. ETSI EN 303 645 defines the baseline cyber security requirements for consumer IoT devices. IEC 62443 covers Automation and Control Systems Cybersecurity.


Today, a large portion of internet traffic is encrypted. Encrypted communication is the transmission of messages or data in a secure format that can only be read by authorized parties. Anything that involves confidential information - passwords, credit card numbers, personal information, etc. - should be conveyed over an encrypted connection. Typical forms of encrypted connections that are used with embedded systems are HTTPS, SSH and Virtual Private Network (VPN).


Usage of MFA, or multi-factor authentication, as increased in recent years because using just a password is not considered to be safe enough in daily work. Multi-factor authentication when working with embedded systems is typically built using centralized authentication servers.


The cost of encryption in the communications and advanced authentication methods are increased complexity of the software stack, the computational cost of doing encryption/decryption and increased round-trip-delay.


Remote software updates are needed to keep the software and firmware in the embedded devices on the field up to date. A continuous, proactive, and often automated process keeps the devices on the field updated effectively and optimally. Centralized management is often needed to handle the remote updates efficiently as well as securely.


You need a life-cycle management of your devices. This life-cycle management should include the commissioning the devices, keeping their configuration safe, keeping their software up to date, vulnerability management and handling the de-commissioning of the devices.


CONVERGENS

CVG Convergens is a long-term partner that offers services over the entire life cycle of products and systems containing electronics. We offer services for the development of embedded systems, from business-level analysis to the implemented and marketed product. We have solid experience in both software and physical hardware solutions.


This article is based on the presentation “Custom vs off-the-shelf – perspectives for 2025” presented by Tomi Engdahl at Embedded Conference Finland 2024.

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