The Future of Embedded Software: Costs, Complexity, and Opportunities

Embedded software is the beating heart of countless products, from simple devices like wireless doorbells to highly complex IoT systems. As more organizations and development teams realize the potential of smart, connected products, they are also faced with higher development costs, stricter regulations, and new security requirements. In this blog, we explore the future of embedded software, the factors driving costs, and how organizations can make smart choices to stay efficient, forward-thinking, and cost-effective.

Software's importance is increasing globally at a remarkable pace. In fact, the size of embedded software is expected to double over the next decade. Europe plays a significant role in this growth, with numerous producers and development teams bringing innovative products to market. However, a shortage of experienced software engineers adds pressure to existing teams.

When considering software development costs, it’s crucial to understand that no two products are the same. Complexity varies greatly, from a basic sensor with a single function to a fully equipped doorbell with a camera, internet connectivity, and robust security protocols. Defining the context and purpose of your product before development begins is essential. Questions like "What functionalities does the product need?", "What regulatory or industry standards must we meet?", and "What are the security risks?" are key to a successful outcome.

A great example of varying product complexity is the comparison between two types of wireless doorbells. A basic version—with just a button and a sound signal—runs on a simple microcontroller and a minimal electronic circuit. The software is straightforward, requires little memory, and the primary costs lie in the hardware components.

In contrast, a smart doorbell with a camera, internet connectivity, and live streaming capabilities involves significantly more software, including network protocols, security layers, audio and video compression, and integration with other devices. These features demand larger investments in time and money for development, testing, and maintenance, demonstrating how product complexity directly influences cost.

As more products connect to the internet, regulations like the European Cyber Resilience Act enforce strict requirements for IoT device security. Manufacturers must prove their products are secure against hacking and meet specific standards. This necessitates Secure Software Development, where security is a priority from the very first step.

Key practices include:

• Threat Modeling: Analyze potential attacks, vulnerabilities, and threats during the design phase to implement preventive measures.
• Secure Coding: Go beyond functionality testing by addressing potential leaks, such as improperly configured pointers or vulnerable external components.
• Software Bill of Materials (SBOM): Maintain a list of all software components and versions to quickly address security issues in third-party libraries.
• Maintenance and Updates: Provide over-the-air (OTA) updates to deliver patches and new features, and ensure you can track and resolve incidents when they occur.

The majority of time and budget in software development is spent on design and implementation. Streamlining these processes can lead to significant savings and improved efficiency.

• Requirements and Design: Clear functional and security requirements reduce rework. Use a centralized system linked to development tools for better tracking.
• Test Automation: Automated testing is faster and more consistent than manual testing, ensuring higher quality in less time.
• Documentation and Compliance: Solid documentation is crucial for certification standards. A traceable process from requirements to the final product simplifies certification.

Balancing short-term costs with long-term investments is a common challenge. Even when creating a prototype to test the market, it’s worth considering future product generations. For example, choosing a slightly more powerful microcontroller can leave room for future upgrades, and investing in automated testing and development tools pays off when scaling production.

• Focus on Your Unique Value: Spend time and resources on what makes your product stand out. Basic software like protocol stacks or operating systems can often be sourced or licensed, provided you maintain security updates.
• Reusability: Design modular code for reuse in future products, saving time and reducing costs.
• Mix Open Source and Closed Source: A hybrid approach combines the flexibility of open source with the deeper functionality and support of paid software.

Embedded software is invisible but has a significant impact on a product's functionality, security, and cost. As its importance grows, so do regulations and security requirements. Development teams must make strategic decisions: plan for the future, integrate software and hardware teams, prioritize security and documentation, and focus on what makes your product unique. This approach ensures not only cost control but also a competitive, secure, and sustainable embedded product.

Want to know more? View our Dutch lecture from our Managing Director, Gilbert Gadet, on "How do you control the cost of embedded software?."