Embedded World 2026 is fast approaching, and as always it acts as a reliable early indicator of where the global electronics and product engineering sector is heading. The conference gathers semiconductor vendors, RTOS providers, device manufacturers, toolchain developers, and system integrators in one place. If you build connected products in the UK, this event matters more than many businesses realise.
For UK companies, the signals coming out of Embedded World are especially important right now. Product businesses are under pressure to shorten development cycles, support devices for longer, and comply with increasingly strict security and data regulations. The trends emerging this year point toward a clear shift in how products will be designed, sold, and maintained over the next decade.
Below are the key developments worth paying attention to and what they mean for UK organisations.
IoT and Edge Computing Continue Steady Expansion
The Internet of Things is no longer a hype phase technology. It is moving into infrastructure. Analysts are projecting approximately 7.36% compound annual growth through 2035, and the focus has noticeably shifted from “connected gadgets” to operational systems that businesses rely on daily.
The most important change is where computation happens. Instead of sending everything to the cloud, more processing is being pushed onto the device itself or onto local gateways. This is edge computing.
Why this matters:
- Reduced latency for real time decision making
- Lower bandwidth and cloud costs
- Improved resilience when connectivity is unreliable
- Better compliance with data protection regulations
At Embedded World 2026, many silicon vendors are prioritising MCUs and SoCs that include integrated accelerators, secure enclaves, and on device analytics capabilities. The direction is obvious: devices are becoming small computers rather than simple sensors.
Implication for UK businesses
For UK manufacturers, utilities, and industrial firms, edge computing solves a practical problem. Not every factory floor, agricultural site, or infrastructure installation has reliable connectivity. Systems that can operate autonomously and synchronise later are far more practical than cloud dependent designs.
Companies building products today should assume their devices will need meaningful local processing capability, not just connectivity.
AI Is Moving Directly Onto Embedded Devices
One of the most visible themes expected at Embedded World 2026 is embedded AI. Not data centre AI, but on device inference. This includes TinyML, vision processing, predictive maintenance algorithms, and behavioural detection models running locally on microcontrollers.
A few years ago, machine learning required cloud infrastructure. Now, models can run on hardware consuming milliwatts of power.
What this enables:
- Predictive maintenance in industrial equipment
- Smart energy optimisation systems
- Safety monitoring in machinery and transport
- Advanced medical and health monitoring devices
The shift is significant because it changes product value. Instead of selling hardware alone, companies can sell intelligence and insight.
Why UK businesses should care
The UK has strong sectors in medical devices, transport technology, and environmental monitoring. These sectors benefit directly from local decision making and data analysis. Running AI on the device reduces regulatory and privacy risk because sensitive data does not always need to leave the device.
For example, a medical monitoring product that processes patient data locally can dramatically simplify compliance and reduce liability exposure.
Hardware Plus Software Is Becoming the Standard Product Model
Perhaps the most important commercial trend visible at the conference is the shift toward integrated solutions. Customers are no longer buying devices. They are buying ongoing services.
This means a successful product now includes:
- Firmware
- Cloud or gateway services
- Remote management tools
- Security updates
- Data dashboards and analytics
In practical terms, every physical product is becoming a software supported platform.
The companies exhibiting at Embedded World increasingly position themselves not as component suppliers but as ecosystem providers. Semiconductor vendors are offering SDKs, cloud connectors, and lifecycle management tools. RTOS vendors are adding security frameworks and remote update systems. Even hardware manufacturers are shipping subscription based management platforms.
The risk for UK SMEs
Many UK engineering companies still treat software as a secondary feature added near the end of development. That approach is becoming commercially dangerous. Without update capability and long term software support, products quickly become insecure or unsupported, which now carries both reputational and regulatory consequences.
In other words, the product does not end when it ships. It begins when it ships.
Security and Lifecycle Support Are Now Core Requirements
Although not always the headline topic, security underpins nearly every discussion at the conference. Regulations are tightening globally, and the UK is following the same direction with connected product security expectations increasing.
Key expectations emerging across the industry:
- Secure boot and hardware root of trust
- Signed firmware updates
- Vulnerability patching over the product lifetime
- Device identity and authentication
Customers and regulators now assume connected devices will receive updates for years, not months. If a device cannot be updated securely, it may become unsellable in certain markets.
Opportunities for UK Businesses
The trends above are not just technical developments. They represent commercial opportunities for UK companies that move early.
1. Product companies can create recurring revenue
By offering monitoring services, analytics dashboards, or maintenance subscriptions, businesses can move from one time hardware sales to predictable revenue models.
2. Consultancies can specialise in integration
Many traditional manufacturers want connected products but lack in house expertise. UK engineering consultancies that combine electronics, firmware, and cloud software are well positioned to support them.
3. Sector specific solutions are valuable
The UK has strong vertical industries where embedded intelligence provides immediate value:
- Agriculture and environmental monitoring
- Energy efficiency and building systems
- Rail and transport infrastructure
- Medical and assistive technology
Focusing on one sector often produces better results than trying to build a general purpose IoT platform.
4. Local data processing is a competitive advantage
With growing concern about data sovereignty, edge processing provides a selling point. Products that minimise cloud dependency are attractive to public sector and regulated industries.
Practical Steps to Take Now
If you are a UK business planning a new product or updating an existing one, consider the following actions:
- Design for updates from day one, not as an afterthought.
- Select hardware that supports secure boot and cryptographic identity.
- Plan the service model alongside the hardware design.
- Evaluate whether AI inference can improve product value.
- Assume long term support expectations of at least 5 to 10 years.
Final Thoughts
Embedded World 2026 does not introduce a single revolutionary technology. Instead, it confirms a shift that is already underway. Connected products are evolving into intelligent, updateable systems with ongoing services attached.
For UK businesses, the opportunity is clear. Companies that treat embedded systems as part of a larger digital service will compete globally. Those that continue to ship standalone hardware will increasingly struggle to differentiate.
The message from the conference is straightforward. The future of product development is not just electronics or software. It is the combination of both, supported over time.
