Embedded Engineering Trends in 2026

Introduction:

As the embedded engineering market continues to evolve, we’re seeing clear shifts in both technology direction and hiring demand. From increased security requirements driven by EU regulation to the rapid adoption of AI, autonomy, and optical systems, companies are competing for increasingly specialised engineering talent as we move towards 2026.

The influence of 2025

We saw plenty of changes in 2025 with large automotive OEM’s reducing their SW headcount and the rise of AI in the technology world, making its way slowly but surely in advancing Edge Computing, Industrial Automation, Machine Vision and Robotics. 

I’m excited and will be watching this space closely as applications are close to infinite. However, companies are competing heavily, with fresh Defence and Military scale ups focused in designing and developing Autonomous & Intelligent systems like Drones, UAV’s, and Space/Satellite products as part of the EU’s programs funding.

Emerging trends

In terms of the market for 2026, a clear trend I have noticed is the integration of security deeper into embedded systems, driven by stricter EU regulation (e.g., the Cyber Resilience Act) and rising IoT connectivity adoption, in line with large corporations which need to make their critical infrastructure secure. 

Another market expected to grow is Optics and the Photonics space. With huge, yet untapped potential, big players like Samsung and TNO are already more than exploring photons rather than electrons as means to carry or transfer “data”. Optical systems have huge implications in Space, Medical and Semicon, with performance that differs heavily for microsystems or communications expected to perform more complicated calculations with a faster speed.

A look to the future

With the future in mind, few things are clear. Multi-disciplinary experience is becoming essential in the Embedded Engineering space, if not, one has to be extremely specialized in one topic. 

Additionally, Validation, Testing, QA/QC roles ensuring Quality, will increase in demand as shipping and building Reliable systems that are secure and safe is vital in 2026. The message for engineers remains “Keep exploring, and keep evolving!”