ByteSnap Design has forecast a wave of convergence across AI, wireless technology, and cybersecurity in 2026, marking what the consultancy describes as a decisive turning point for embedded systems.
The Birmingham-based design firm expects next year to bring the first large-scale commercial deployments of 5G RedCap modules and Bluetooth 6 chipsets, developments that promise lower-power, higher-performance connectivity for industrial IoT equipment, wearables, and automotive systems.
Wi-Fi 6 will remain the dominant choice for most new designs, although Wi-Fi 7 evaluations are gathering pace for higher-throughput use cases, and RISC-V processors are gaining traction in wireless applications.
The firm’s engineers argue that expanding IoT networks are now creating fresh design pressures, with spectrum congestion and interference control emerging as priorities. Suppliers such as Murata and Skyworks are accelerating efforts to improve RF-front-end performance. At the same time, AI-assisted firmware tools are beginning to shorten development cycles, while last year’s cloud outages have driven manufacturers toward locally controlled architectures and open automation systems.
Energy efficiency remains a central constraint. ByteSnap expects deep-sleep modes, energy harvesting, and on-device AI to become key techniques for reducing reliance on the cloud. Demand for ultra-compact wearables and performance-tracking devices is also placing pressure on chipmakers to deliver higher sensitivity and lower power consumption.
Regulatory change will add further complexity. The EU’s CE-Cyber Delegated Act, enforced since August 2025, makes security compliance a legal requirement for wireless products seeking CE marking. Engineers are now embedding certificate management, device authentication, and secure-identity protocols into early design stages rather than treating security as an end-of-line test. The Cyber Resilience Act, due to take effect in 2027, will extend these rules to all connected hardware.
ByteSnap warns that regulatory adoption is likely to lag until a major security incident forces the industry’s hand. Yet global momentum is building, with the FCC in the United States and ANATEL in Brazil developing parallel regimes. As a result, automated threat modelling, local AI-based intrusion detection, and continuous security testing are becoming part of standard build pipelines.
Power management in AI-enabled devices is expected to tighten further next year. Manufacturers are responding by integrating machine-learning acceleration directly into low-power components. STMicroelectronics’ new ISM6HG256X, for example, combines multi-axis sensing with embedded AI for on-device event detection in industrial IoT systems and wearables, while Qualcomm’s work with the Ambient IoT Alliance signals that battery-free, energy-harvesting sensors may reach mass deployment in logistics and asset-tracking for the first time in 2026.
Supply-chain dynamics are shifting too. The UK’s £10 million Innovate UK semiconductor fund, launched in September 2025, has begun supporting domestic efforts in next-generation chip materials and packaging. This follows a wider government push to build local capability through the National Semiconductor Strategy. Meanwhile, the United States is reshaping aspects of the CHIPS and Science Act, prompting companies to diversify manufacturing footprints and avoid relying solely on US subsidies.
Recent UK announcements underline the country’s ambitions. Arm is expanding its local operations, supported by the UK–US AI partnership, while Pragmatic Semiconductor’s Durham facility has started high-volume production of flexible chips. A second fabrication line is due to come online in late 2025, making next year the company’s first full year of scaled output. Pragmatic’s modular fabrication model, backed by the National Wealth Fund and private investors, suggests that specialised chipmaking can be viable onshore for IoT and wearable devices.
ByteSnap also anticipates a shift in ATEX-certified systems used in hazardous environments. As semiconductor efficiency improves, particularly with gallium nitride and silicon carbide technologies, more low-power intelligent devices can meet intrinsic-safety limits. The firm expects to see early deployments of AI-enabled edge devices capable of local processing in Zone 0 and Zone 1 environments, delivering real-time alerts without relying on external servers. The hazardous-area equipment market, worth $11.9 billion in 2023, is forecast to reach $20.9 billion by 2032.
Regionally, the consultancy expects the embedded-technology landscape to become more specialised. China is likely to extend its lead in manufacturing efficiency and renewable integration, the United States will focus on dual-use AI and industrial autonomy, and Europe and the UK will advance standards-driven design backed by investment in secure processors and resilient communications. Early 6G testbeds and private 5G networks are already shaping industrial IoT specifications, particularly in factory and automotive environments.
ByteSnap argues that by 2026, intelligence, efficiency, and security will no longer be separate design considerations but intertwined requirements. For embedded developers, the year ahead will be defined less by experimental concepts and more by implementation, as the industry pushes to build connected devices that are capable of local processing, regulatory compliance, and sustained operation within tight power budgets.
