With the rise of IoT and Industry 4.0, it’s no surprise to anyone that the embedded systems industry is rapidly expanding. After all, embedded systems power everything: from smart manufacturing, to electrical and autonomous vehicles, to interconnected home appliances and industrial automation.

Although the numbers may vary, with growth rates between 5% and 9% annually until 2030, one thing is clear: the demand for embedded systems experts is outpacing the supply. Simply put, there is a shortage of talent in the industry that is crucial to solve.

Company struggles: managing the embedded systems talent shortage

Sources have predicted that the semiconductor industry, very closely related to embedded systems, will have to deal with a shortage of around 1.5 million skilled workers in the next 5 years. Emerging markets, such as India, China, and Eastern Europe, bear the worst of the brunt. Companies are aggressively recruiting talent, and working to keep it.

A survey of 200 leading embedded systems companies found that 65% of them have difficulties filling key positions, such as:

  • IoT and sensor technology
  • Microcontroller programming
  • Secure and efficient systems development.

Companies that fail to adapt and find ways to add talent to their crew will fall behind the bigger competitors. Fortunately, there are ways to prevent this from happening.

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Dealing with the talent shortage effectively

Leading companies are proactive, because they need to solve the talent gap as fast as possible. For this, we can mention three efficient strategies.

1. Building future-proof expertise

Companies have to start investing in internal training programs to develop crucial skills in this moment, such as AI integration, cybersecurity expertise and IoT protocols. There are firms that focus on letting engineers get more education in hybrid mode, so that their schedules can remain flexible within the company.

2. Partnering up with universities

Another effective strategy is collaborating with academic institutions so new talent can find a good first job. Multinationals like Bosch and Siemens have dual study programs, where people can have practical industry experience with academic coursework. A lot of firms are also investing in research projects and scholarships to secure top graduates early on.

3. Global recruitment & remote work

Businesses can now count on global hiring strategies, with companies such as Tech Teamz providing crucial support by expanding the talent pool and building highly skilled teams of engineering professionals. This kind of service can also take on every legal aspect of hiring a remote team to work for a company, which makes things easier for big multinationals.

Most businesses have also changed their policies to allow remote work options, hiring engineers from all over the world. Others prefer to offer strategic relocation programs, helping high-skilled talent to move to high-demand markets.

In conclusion, hiring top talent has never been more important, but keeping it within the company can have its own set of challenges. 95% of workers today prefer to work from home, and companies that include this, or hybrid jobs as options, are being strategically smart.

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Employer branding and talent acquisition

In the race for top talent, strong employer branding is becoming a critical advantage. Companies that emphasize sustainability, diversity, and a culture of innovation have a higher chance of attracting and retaining top skilled engineers.

95% of workers today prefer remote or hybrid work, making flexibility a strategic advantage. Younger professionals—especially Generation Z—are increasingly drawn to companies that offer:

  • Ethical and socially impactful projects
  • Flexible work arrangements and career growth opportunities
  • A mission-driven workplace culture

Final thoughts: let’s see what the future brings

The embedded systems industry is at a turning point. To sustain the growth and innovation it’s experiencing right now, companies must prioritize talent development and strong corporate culture.

Those that invest in upskilling, university partnerships, and hybrid or remote positions will stay ahead in the competition for engineering talent. With Tech Teamz helping companies connect with top global talent, businesses have new opportunities to thrive in the evolving embedded landscape.