Embedded Software Engineering Market 2026
The embedded systems market is entering 2026 with extraordinary momentum , and we’re feeling the impact firsthand.
Over the past year, we’ve seen a sharp influx of highly skilled embedded software engineers coming to us from sectors such as defence, aerospace, industrial automation, medical devices, automotive, and edge‑AI computing.
Yet, despite this increase in engagement, the overall talent pool itself is shrinking.
But while demand accelerates, the workforce behind it is tightening - and fast.
Why the Talent Pool Is Shrinking?
Across every sector we recruit for, one theme keeps resurfacing: there are fewer embedded engineers available than ever before. And the reasons stretch across multiple parts of the talent pipeline
1. Fewer graduates entering the discipline
Over several years, UK universities have seen fluctuating enrolments in computer engineering, embedded systems, and electronics programmes. Employers tell us they’re receiving fewer graduate applications, and the ones who do apply often lack hands‑on embedded experience unless they’ve completed specialised internships or personal projects.
2. Early retirements & post‑pandemic career shifts
We’re also seeing highly experienced embedded engineers retiring earlier or transitioning into consultancy work. This loss of senior expertise is acutely felt in sectors like aerospace, defence, and industrial controls, where deep domain knowledge is essential and takes years to develop.
3. Reduced visa sponsorship & ongoing Brexit impact
The UK’s tightening approach to work visas - combined with long‑term Brexit repercussions - has significantly reduced international talent flow. Before Brexit, many embedded specialists moved freely into the UK market from Europe; that pipeline is now far narrower. This aligns with broader market data showing declining international technical mobility following Brexit and visa-policy shifts.
4. Rising living costs driving talent out of major hubs
The cost of living continues to push engineers away from parts of the UK - especially the South East and London - where many embedded‑heavy industries operate. For some, remote‑only roles have become a necessity, not a preference.
5.The rise of “passive talent”
Perhaps the most defining characteristic of today’s embedded market is how many engineers are not actively looking. We estimate that more than 70% of embedded engineers we speak to are currently passive - they’re open to hearing about opportunities, but not on the market in the traditional sense. Employers who rely solely on job ads are missing the majority of the available talent
What This Means for Employers in 2026
In the current climate, hiring embedded engineers requires a strategic, relationship‑based approach:
1. Target passive talent
Since most embedded engineers aren’t actively job hunting, success depends on long‑term engagement, personalised outreach, and an understanding of what motivates them - whether that’s technical challenge, career development, or flexibility.
2. Highlight flexibility and work‑life balance
Rising living costs and geographical constraints mean hybrid or remote options make a noticeable difference.
3. Upskill internally where possible
Given the shortage, investing in training existing engineers - particularly firmware specialists transitioning into embedded systems - helps future‑proof teams.
4. Move quickly once you find the right person
In the embedded space, great candidates typically receive multiple offers. The companies that act decisively secure the best engineers.
