Embedded software and IoT

ISCO-08 2152, 2512

Embedded software engineer, Firmware engineer, IoT software engineer, Embedded validation engineer, Connectivity engineer, Embedded software architect

AI exposure48%

Headcount need, in FTE

Exposure range

Your current headcount

FTE

Need in 203092 FTE-8 FTE (-8%)

Need in 203583 FTE-17 FTE (-17%)

How AI is used on these tasks today

Automation 53%Augmentation 47%

In AI conversations about this job's tasks: the AI does the task itself (automation) or helps the person do it (augmentation).Anthropic Economic Index, April and May 2026. Occupations: Software Developers, Computer Hardware Engineers. AEI

1. Exposure 48%Average automation potential of the job's tasks. Range for this family: 29 to 60%.ILO occupations used: Electronics Engineers (42%), Software Developers (53%). ILO data

2. Strategic ceiling 100%Your call: how much of this potential do you want to capture? Nobody can set it for you.

3. Adoption speed midpoint 2030

Inherits your company stance, adjustable for this family.

4. Conversion to headcount sensitive 35%Default 35%: Connected products and cybersecurity requirements create a growing backlog, so faster coding mostly turns into more features and more frequent releases.

Target AI skills

level 1 to 4

Foundation

Use AI assistants every day

Frame and phrase a request

Check and challenge AI outputs

Protect data and respect the rules

Applied

Rethink one's process with AI

Analyse data with AI

Produce content with AI

Delegate to and supervise AI agents

Expert

Build and integrate AI solutions

Evaluate and make AI solutions reliable

Job skills

Growing in value

Embedded architecture under memory and power constraints
Cybersecurity of connected products
Reviewing and testing AI-generated code
Hardware integration and communication protocols
Functional safety (IEC 61508)

Losing value

Writing drivers and boilerplate code
Writing unit tests by hand
Code documentation
First-level debugging of common errors

How the job will change

Code generation tools already write a good share of routine code in an embedded team: peripheral drivers, communication stack configuration, unit tests, documentation. They also help engineers understand legacy firmware nobody has touched for years. Gains are smaller than in web development, because code must fit tight memory and real-time constraints and be validated on real hardware, but they show in daily work.

The job moves towards architecture, integration and security. Rules on connected products require secure updates and vulnerability management over the product's life, which creates work AI does not remove. A good embedded engineer tomorrow will read generated code with suspicion, know the hardware well, and understand what makes a protection relay or a building controller safe in the field.

2026-2027: Code generation for drivers, tests and documentation in daily use.
2028-2030: Agents run test and integration cycles, engineers validate on hardware.
2031+: Fewer junior coders, more architects and product cybersecurity specialists.

Watch out

Junior firmware developers used to learn the hardware by writing drivers, which AI now does. Without structured mentoring on real boards, companies will lack engineers able to debug at hardware level. See the seniority outlook below.

What if you hired fewer juniors?

Your 2036 seniors are the juniors you hire today.

Seniors available in 2036-10%2 FTE short

Gap above 5% from2031

Your seniority mix today

Juniors (0 to 2 yrs in the profession)35%Seniors (6+ yrs)20%

Mid-level (2 to 6 yrs in the profession, the remainder)45%

Cut in junior hiring -40%

For

Advanced settings

Juniors promoted each year33%Juniors leaving each year15%Senior gap filled by external hiring0%If every company makes the same bet, senior profiles will be scarce and expensive.

Seniority mix, % of today's headcount

Juniors35%Mid-level42%Seniors18%

2026 2036

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How the numbers are built

Every headcount figure combines four assumptions. Three come pre-filled from public research and job family defaults. The strategic ceiling is yours to set.

Public researchExposureAverage automation potential of the job's tasks, from the ILO's 2025 task-level scores.

Your decisionStrategic ceilingHow much of that potential you choose to capture. Your decision, not ours.

Your companyAdoption speedHow fast your company moves, set once for the whole company.

Job family defaultConversion to headcountHow much of the productivity gain becomes fewer people rather than more output.

Headcount effect

Seniority outlook

A flow model with three levels of experience in the profession. Promotion and exit rates are set so that today's mix stays stable when hiring does not change: any gap you see comes from the junior hiring cut alone.