Why did Embedded revenue drop throughout 2024?

The revenue of Embedded Systems has experienced a decline throughout 2024, as indicated by the quarterly reports of various companies within the embedded systems sector. Here are the key reasons for the revenue drop:

1. Decline in Constant Currency Revenue: Embecta, a leading medical technology company, reported a revenue decline in its Fiscal Third Quarter 2024, with figures of approximately $272.5 million, marking a 4.8% decrease on an as-reported basis and a 3.9% decrease on a constant currency basis. This decline was partially offset by favorable price and gross to net adjustments.
2. Sector-Wide Challenges: The embedded finance market, including companies like LightPath Technologies, has faced challenges such as decreased demand for certain products and services. For instance, LightPath Technologies reported a 2% decrease in infrared components revenue and a 16% decrease in visible components revenue. These declines reflect broader sector trends rather than company-specific issues.

In conclusion, the revenue drop in the embedded systems sector throughout 2024 is a result of a combination of factors including decline in constant currency revenue and sector-wide challenges.