6 Best Embedded Product Development Companies in Europe

The European embedded systems market is experiencing robust expansion, with the European embedded software market valued at €5.30 billion in 2024 and projected to reach €10.78 billion by 2033, growing at a CAGR of 8.20%. The broader Europe embedded systems market is expected to witness a 5.2% CAGR during the forecast period. This growth is driven by technological advancements in AI/ML integration, machine vision, IoT proliferation, and increasing demand across automotive, industrial automation, healthcare, and smart city applications.

European Market Dynamics and Regional Strengths

Europe's embedded systems ecosystem benefits from strong government investments, advanced manufacturing capabilities, and world-class engineering talent concentrated in key innovation hubs. Germany leads European markets, accounting for approximately 26% of total market value, driven by its automotive industry, industrial automation sector, and strong semiconductor ecosystem. The United Kingdom, France, Italy, and the Netherlands represent additional major markets with significant demand for embedded systems.

The transformation of Europe's automotive sector toward autonomous and connected vehicles relies heavily on embedded systems for safety, navigation, and connectivity features. The automotive sector accounts for over 40% of the embedded systems market share in Europe, according to the German Association of the Automotive Industry. IoT devices are creating new opportunities across various sectors, while healthcare embedded systems enable remote monitoring, diagnostics, and patient management.

European governments have accelerated smart meter deployment, with more than half of all power meters replaced with smart meters as part of ambitious grid modernization efforts, particularly in France, Spain, and the United Kingdom. The rising demand for smart televisions, smartwatches, tablets, smartphones, and consumer electronics further drives market expansion.

6 Leading Embedded Product Development Companies in Europe

1. Yalantis

Yalantis is a full-cycle embedded development company specializing in complex digital product development with deep expertise in IoT and embedded systems. Founded in 2008 and headquartered with development centers in Warsaw (Poland), Dnipro, Kyiv, Lviv (Ukraine), and Larnaca (Cyprus), Yalantis has established itself as a premier embedded development provider serving clients worldwide.

Company Profile and Scale

With over 17 years of experience and more than 500 engineers with strong domain and technical expertise, Yalantis has completed 40+ end-to-end IoT deployments from concept to production, serving 35+ active clients worldwide. The company holds ISO 9001, ISO 27001, ISO 27701, and AWS certifications, demonstrating a commitment to quality management, information security, and privacy. Yalantis is trusted by major enterprises including Toyota Tsusho, Bosch, KPMG, Zillow, and Google X.

Embedded Development Services

Yalantis provides comprehensive embedded software development services delivering scalable, efficient, and resilient solutions designed for long-term growth. The company's embedded capabilities span five core service areas.

• Embedded Architecture Design involves designing modular and scalable system-level architectures that clearly define hardware and software responsibilities, ensuring proper communication between components, ease of maintenance, and accelerated development cycles. Services include system-level architecture design, microcontroller and microprocessor selection based on performance/power/cost analysis, peripheral and sensor integration using I2C, SPI, UART, and CAN protocols, intelligent memory and power management with dynamic scaling and sleep modes, and security features implementation, including secure boot processes and encrypted firmware.
• Firmware Development delivers high-performance firmware using Rust, C, and C++. Capabilities include custom firmware development for embedded devices from industrial controllers to consumer electronics, user-facing and system-level applications for embedded Linux and Android platforms, bare-metal and RTOS-based firmware development using Zephyr and FreeRTOS, power consumption and processing efficiency optimization, and a secure bootloader with encrypted OTA firmware updates.
• Embedded AI enhances embedded systems with AI-driven real-time decision-making. Services encompass AI/ML model integration for edge devices, enabling local processing without cloud dependency; computer vision and real-time data processing for object detection and image recognition; predictive analytics and anomaly detection for maintenance forecasting; and AI optimization for low-power embedded systems through quantization, pruning, and model compression.
• Rust Consulting provides specialized Rust adoption services for embedded systems. Offerings include Rust migration from legacy C/C++ systems, safe and efficient Rust-based firmware development leveraging zero-cost abstractions and memory safety, training and consulting on Rust best practices, and performance and security optimization eliminating vulnerabilities like buffer overflows.
• Firmware Testing ensures reliability, security, and performance through comprehensive validation. Testing services include unit, integration, and system-level testing; compliance and security testing for industry standards such as ISO 26262, IEC 62304, and FDA requirements; performance benchmarking and stress testing under extreme conditions; and automated testing frameworks using CI/CD tools and hardware-in-the-loop setups.

Technology Stack and Industries Served

Yalantis's embedded technology stack includes programming languages such as Rust, C, C++, and Kotlin, development platforms including Arduino, ESP32, STM32, and NRF52, RTOS including Zephyr and FreeRTOS, bootloader and Linux Kernel development, cloud integration with AWS IoT, and wireless protocols including LoRaWAN, MQTT, BLE, and Zigbee.

Yalantis delivers embedded solutions across healthcare, automotive, manufacturing, smart home and building, supply chain, agriculture, industrial automation, logistics, and defense. The company's healthcare expertise includes remote patient monitors and medical device development with FDA, MDR, and ISO 13485 compliance. Industrial and manufacturing applications include predictive maintenance systems, asset tracking, and factory automation.

Client Testimonials and Recognition

Client feedback consistently highlights Yalantis's collaborative approach and technical excellence. One client noted: "The thing that has been unique in my experience working with Yalantis is that they aren't a factory that you send over some requirements and they develop exactly to those requirements. It's a much more interactive process, and the team at Yalantis, from the business analysts to developers, is very good at saying: 'There might be a better way of doing this'."

Reverbico identifies Yalantis as one of the best embedded software developers in Europe, noting that the company's tight collaboration with clients helps transform innovative business ideas into technical solutions, with the majority of partners collaborating for more than 7 years and 30% of clients coming via partner references.

2. N-iX

N-iX is a leading European software development provider with 23 years of experience and over 2,400 tech experts on board. The company operates several R&D centers across Poland, Ukraine, Bulgaria, and other locations globally. N-iX has extensive tech consulting and custom software development expertise spanning manufacturing, logistics, fintech, telecommunications, retail, and other domains.

N-iX's specialists are well-versed in cloud solutions, DevOps services, Data Science, AI and Machine Learning, Generative AI, data analytics, BI, VR & AR, enterprise mobility, and embedded software development. The company partners with enterprise- and midsize-level businesses, providing continuous guidance from Product Discovery through final release and post-launch support.

N-iX's track record encompasses long-term partnerships with over 50 US and European clients, including technology leaders such as Weinmann Emergency, Lebara, and Currencycloud. The company is featured among the top software development companies in Europe in the IAOP Top 100 Global Outsourcing ranking and recipient of the European IT & Software Excellence Award by IT Europa.

N-iX's embedded software development services encompass full-cycle solutions from hardware design to cloud integration. Capabilities include hardware selection and design, custom firmware development for microcontrollers and SoCs, operating system customization, high-level application development, connectivity solutions, hardware-software integration, comprehensive testing, maintenance and support, and DevOps for embedded systems.

3. IntechHouse

Based in Bydgoszcz, Poland, with additional offices in Gdańsk and Warsaw, IntechHouse stands as one of the best hardware development companies in 2025. Operating as the international division of SofBlue SA, the company offers advanced engineering solutions across embedded systems, IoT, PCB design, and full-cycle prototyping.

With over 20 years of experience and recognition as a certified R&D center, IntechHouse maintains an impressive 91.2% employee retention rate with over 100 engineers. The company serves diverse sectors including oil and gas, aerospace, healthcare, financial services, telecommunications, and logistics.

IntechHouse's comprehensive services span hardware design, IoT systems development, embedded development, PCB design, FPGA programming, EMC and environmental testing, data analytics, and AI and process automation. The company maintains a strong European presence with clients in France, Germany, Switzerland, the Netherlands, the UK, and the USA.

4. Prevas AB

Headquartered in Västerås, Sweden, Prevas AB is a publicly traded company on NASDAQ Stockholm, founded in 1985 with over 1,100 employees across Scandinavia and India. The company provides hardware-focused R&D services across embedded systems, automation, and IoT for sectors including life science, automotive, and defense.

Prevas holds ISO 9001 and ISO 13485 certifications, demonstrating compliance with international quality standards. Service portfolio includes PCB layout, FPGA design, enclosure design, and certification support. Prevas has won the Swedish Embedded Award in the Enterprise category four times for innovations, including communications systems for rescue operations, liquid analyzers, wireless breathalyzers, and wireless CPR training manikins.

5. ELEKS

Headquartered in Tallinn, Estonia, ELEKS is a trusted partner for guaranteed software engineering excellence with over 2,000 professionals located in Delivery Centers across Eastern Europe and sales offices in Europe, the US, and the UK. Founded in 1991, ELEKS provides software engineering and consultancy services, delivering high-tech innovations to Fortune 500 companies, big enterprises, and technology challengers.

ELEKS specializes in Data Science, mobility, QA and testing, R&D, technology consulting, Artificial Intelligence, product design, security services, DevOps, cloud, Big Data & Analytics, Machine Learning, and software development. The company serves industries including logistics, fintech, retail, agriculture, and healthtech.

ELEKS's IoT app development services integrate connected technology for better efficiency, collaboration, and data insights. The company builds custom telematics solutions for fleet-wide vehicle data collection and analysis, smart home solutions enabling sensorization and connectivity of devices, and industrial IoT applications. ELEKS's embedded systems services facilitate prototyping, evaluation, and development of connected devices using state-of-the-art tools and standards.

6. Sigma Technology Group

Sigma Technology Group, part of the Sigma Group, is a privately-owned global technology consulting company with operations in Sweden, Hungary, China, Norway, Germany, and Ukraine, with global delivery to Europe, the USA, and China. The company offers cutting-edge expertise in software development, product information, embedded systems design and development, digital solutions, and IT infrastructure.

Sigma Technology Embedded Solutions is an engineering company with a sharp focus on embedded systems and software development. The company has strong expertise in software and embedded systems across diverse industries, including automotive, FinTech, telecom, logistics, MedTech, defense, consumer goods, manufacturing, and high tech.

With over 1,160 employees and headquarters in Gothenburg, Sweden, Sigma Technology Group combines a strong local presence with global reach and capacity. The company's philosophy is "Local Drive -- Global Strength," and it maintains offices worldwide to be close to customers. Sigma Technology's embedded development competencies focus on R&D, new technologies, and new applications, developing solutions for electrification, AI, digitalization, and connectivity.

Regional Embedded Systems Clusters

Germany - Leading European Hub

Germany hosts numerous embedded systems companies with particular concentrations in Munich, Stuttgart, and Frankfurt regions. SYSGO in Klein-Winternheim is a leading European provider of embedded software specializing in real-time operating systems tailored for critical applications. Their products, PikeOS and ELinOS, are designed to meet stringent Safety and Security standards.

Elektrobit Oyj is a leading provider of embedded software products and services specifically for the automotive industry, offering solutions including custom security for embedded systems and support for various operating standards like AUTOSAR. ETAS in Stuttgart specializes in providing development tools and middleware essential for creating software-defined vehicles.

Poland - Emerging Innovation Center

Poland has established itself as a significant embedded systems development hub with 95 embedded systems companies identified in 2025. Key considerations include Poland's well-established technology sector, supported by a skilled workforce and strong educational system, producing qualified engineers.

Notable Polish companies include INFO TECH in Gdańsk, specializing in embedded systems development, FP Instruments in Gliwice, providing development and production services, and Fideltronik in Sucha Beskidzka, a leading Polish EMS provider offering comprehensive solutions, including innovative design and rapid prototyping.

United Kingdom - Silicon Fen

The UK, particularly the Cambridge area known as Silicon Fen, represents a major embedded systems cluster. The region hosts multinationals like Broadcom, Samsung, Google, consultancies like Cambridge Consultants, TTP, and Sagentia, and numerous startups, including Graphcore.

Cambridge Consultants, part of Capgemini Invent, is one of the world's leading product development and technology consultancy firms. As an ARM Approved Design Partner and Functional Safety Partner, Cambridge Consultants has deep expertise across ASICs, IP, and end-product development.

Key Technology Trends

AI and Machine Learning Integration

AI-powered embedded systems enable real-time intelligence at the edge through machine learning and neural networks, transforming applications from predictive maintenance to autonomous vehicles. The European Edge AI hardware market alone is estimated at $14.8 billion in 2025, projected to reach $97.5 billion by 2033 with a CAGR of 27.5%.

Embedded AI applications include predictive maintenance detecting system failures before they occur in industrial automation, autonomous vehicles with real-time object recognition and sensor fusion, smart healthcare devices with ECG monitors and wearable health trackers, and computer vision enabling object detection and image recognition directly on embedded devices.

Rust Adoption for Memory Safety

Rust is emerging as a transformative language for embedded systems development, offering memory safety without garbage collection, zero-cost abstractions, concurrency support, and elimination of common vulnerabilities like buffer overflows and race conditions. Leading European companies like Yalantis provide specialized Rust consulting, including migration from legacy C/C++ systems, Rust-based firmware development, team training, and performance optimization.

IoT and Edge Computing

The proliferation of IoT devices and 5G network rollout drives demand for real-time data processing at the network edge. Modern embedded systems increasingly integrate with cloud platforms for remote monitoring, OTA updates, data analytics, and fleet management. Integration patterns include MQTT and REST API for secure device communication, AWS IoT, Azure IoT, Google Cloud IoT platform integration, digital twins creating virtual replicas for simulation and monitoring, and edge-to-cloud data pipelines.

Selection Criteria for European Partners

Technical Expertise and Breadth

Evaluate comprehensive capabilities spanning firmware development, RTOS expertise, device driver development, hardware design, wireless connectivity, cloud integration, security implementation, and testing/validation. Companies demonstrating expertise across multiple layers of the embedded stack can provide integrated solutions, reducing coordination overhead.

Industry Experience and Domain Knowledge

Proven track record in relevant sectors ensures understanding of specific requirements and regulatory landscapes. Assess experience in target industries, including automotive, healthcare, industrial automation, aerospace, telecommunications, or consumer electronics.

Geographic Presence and Cultural Fit

European-based companies offer advantages, including proximity to clients, understanding of EU regulations such as GDPR, CE marking, and RoHS, cultural alignment, and favorable time zones for collaboration. Companies with multiple European offices provide flexibility for on-site collaboration and local support.

Quality Certifications

ISO certifications indicate commitment to quality management and information security. Look for ISO 9001 for quality management, ISO/IEC 27001 for information security, ISO 13485 for medical device development, and industry-specific certifications relevant to target sectors.

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