From 5G RedCap to on-device AI, 2026 marks a turning point for smarter, lower-power wireless systems.
Based on insights from the software and hardware engineers at embedded systems design consultancy ByteSnap Design, the following predictions outline how 2026 will mark a decisive transition for embedded and electronic design. This year, Bluetooth 6 and 5G RedCap will enter real-world production, enabling faster, lower-power connectivity across IoT and industrial devices. The EU’s CE-Cyber Delegated Act will begin enforcement, making cybersecurity compliance a legal requirement for wireless products. At the same time, the UK’s £10 million semiconductor fund will start distributing support for domestic chip development, signalling a broader shift in how hardware is sourced and manufactured.
For developers, 2026 will bring new design constraints and opportunities: regulation will tighten, regional specialisation will deepen, demand for intelligent, low-power devices will accelerate, and ATEX designs will become even smarter. These forces will converge first in wireless performance, low-power design, cybersecurity, and supply-chain resilience; the areas defining the next phase of embedded innovation. Here’s how ByteSnap Design’s engineers see those changes shaping up over the next year:
1. 5G RedCap, Bluetooth 6, and Wi-Fi 6 push wireless design into production
2026 will be the year advanced wireless standards move from certification labs into real products. 5G RedCap modules are entering mass production, enabling faster and more efficient connectivity for industrial IoT, wearables, and automotive systems. Bluetooth 6 chipsets are beginning to ship at scale, offering precision location and ultra-low-power operation in consumer and industrial devices.
At the same time, Wi-Fi 6 remains the dominant design choice, while Wi-Fi 7 evaluation begins for high-throughput applications. RISC-V processors are becoming mainstream in embedded wireless designs, offering greater flexibility and open-source tooling.
As IoT networks grow, spectrum congestion and interference management are emerging as new design priorities. Real-time RF-front-end optimisation and adaptive spectrum allocation will be critical in high-traffic environments. Hardware innovation from suppliers such as Murata and Skyworks is already accelerating this shift.
AI-assisted firmware development is also starting to influence workflows, helping teams accelerate design and verification. After the cloud outages of 2025, locally controlled devices and open automation ecosystems are becoming the default for connected systems that require reliability and autonomy.
Power efficiency continues to drive innovation, with deep-sleep designs, energy harvesting, and smarter on-device AI reducing dependence on constant cloud communication. Together, these shifts make 2026 the year wireless intelligence becomes both practical and scalable.
Ultra-compact wireless wearables and performance-tracking devices are also driving demand for higher sensitivity and lower-power chipsets, extending wireless intelligence from the factory floor to the individual user.
2. New CE-Cyber rules make compliance a core part of product design
With the EU’s CE-Cyber Delegated Act now enforced from August 2025, 2026 is the first full design cycle where compliance is mandatory for wireless products seeking CE marking. For many manufacturers, this marks the first time that product security is not just a best practice but a condition for sale.
Engineers are using AI-based intrusion-detection models and side-channel analysis at the RF layer to guard against leakage and fault-injection attacks. These are new risks as more devices rely on wireless links.
Development teams are now shifting left, building compliance into design stages instead of treating it as an end-of-line certification. This includes device authentication, certificate management, and secure identity protocols as standard design blocks. Looking ahead, the Cyber Resilience Act (CRA), due in 2027, will extend these obligations beyond wireless to every connected product, from Ethernet to USB-based devices.
As cyber-attacks targeting embedded devices escalate, the CRA will move from regulatory burden to business necessity, but likely only after a high-profile scapegoating of a major company forces the industry’s hand. Until then, the extra compliance costs will keep adoption minimal, with brand damage fears ultimately driving change more effectively than the regulation itself.
The change is global too. Similar regulations are being developed by the FCC in the United States and ANATEL in Brazil, meaning compliance will soon be a
worldwide requirement. In response, embedded engineers are adopting real-time security testing, threat modelling, and automated patch validation as part of their build pipelines. At the same time, edge-based AI is beginning to play a role in detecting attacks locally, helping connected devices respond faster and maintain network reliability.
3. Energy harvesting and edge AI redefine low-power design
Power efficiency will become one of the defining constraints of 2026. As more devices include onboard AI processing for sensing, control, and prediction, energy budgets will be tighter than ever. Engineers will focus on deep-sleep design, efficient sensor integration, and energy-harvesting techniques that extend runtime without larger batteries.
Recent component releases illustrate how manufacturers are addressing this challenge, embedding AI processing and energy-harvesting capability directly into the hardware. STMicroelectronics’ newly announced ISM6HG256X brings built-in edge AI for ultra-low-power event detection and contextual awareness in industrial IoT, wearables, and automation. By combining high- and low-g sensing with machine-learning cores, it eliminates the need for multiple sensors while cutting power consumption. Qualcomm’s collaboration with the Ambient IoT Alliance signals that 2026 will be the first year energy-harvesting, but battery-free wireless sensors will reach large-scale commercial deployment across logistics, retail, and asset-tracking applications.
By processing data locally, devices can reduce wireless transmissions, cut latency, and improve privacy while maintaining months-long battery life. The convergence of energy harvesting, embedded intelligence, and efficient wireless systems will define the next stage of sustainable low-power design in 2026.
4. Semiconductor shortages accelerate multi-supplier strategies
In the UK, the government’s £10 million Innovate UK fund, announced in September 2025, has entered its first year of delivery, supporting companies developing next-generation semiconductor materials, packaging, and test facilities. The initiative aligns with the National Semiconductor Strategy and reflects a broader shift toward building domestic capability. Although the overall R&D budget is increasing, this targeted fund signals a new focus on how hardware is designed and sourced.
Across the Atlantic, the U.S. CHIPS and Science Act remains active but is being reshaped under new political leadership. While major funding commitments such as Intel’s multibillion-dollar grant are proceeding, other allocations are being reviewed, driving companies to build regionally balanced supply chains rather than rely on a single subsidy framework.
Recent announcements show how this shift will accelerate through 2026. Arm’s expanded UK operations and its role in the new UK–US AI partnership are strengthening the country’s position in advanced silicon design and secure compute architectures. Pragmatic Semiconductor’s Durham facility has begun high-volume production of flexible, low-cost chips, with a second fabrication line due to start output in late 2025, positioning 2026 as its first full year of scaled manufacturing. Backed by the government’s National Wealth Fund and major private investors, Pragmatic’s modular production model is proving that semiconductor manufacturing can thrive onshore, supporting IoT and wearable device applications.
5. Regional tech ecosystems specialise around efficiency, security, and edge AI
By 2026, global embedded technology will become more regionally distinct yet remain connected through shared edge-AI and wireless architectures. China will lead in manufacturing efficiency and renewable integration, the US will expand dual-use AI and industrial autonomy through the Defense Innovation Unit and CHIPS initiatives, and Europe and the UK will advance secure, standards-driven embedded design backed by new funding for trusted processors and resilient communications research.
Early 6G testbeds and private 5G networks are also beginning to influence industrial IoT standards, bringing ultra-low-latency (URLLC) connectivity into factory and automotive systems.
Across all regions, embedded AI and wireless efficiency are converging. Devices are being built to process data locally, cut latency, and maintain power budgets that make continuous connectivity practical. The line between industrial, consumer, and defence systems will continue to blur as developers adopt open standards for interoperability and security.
For embedded engineers, 2026 will be about building intelligence and trust directly into devices — wherever they’re made.
6. ATEX Devices Get Smarter While Staying Safe
Expect to see a distinct shift in the ATEX space as smarter, lower-power edge devices make their way into hazardous-area environments in 2026, all while upholding intrinsic safety protocols. Traditionally, ATEX compliance has been synonymous with conservatism and caution – and rightly so – but emerging technologies, particularly those at the intersection of IoT and basic AI, are starting to push the envelope.
The main driver is straightforward: as electronics continue to migrate towards lower power consumption, an expanding range of intelligent devices can now operate within the strict energy limits that define intrinsic safety.
Modern semiconductor developments—particularly gallium nitride (GaN) and silicon carbide (SiC)—are delivering better performance at substantially lower consumption. Take edge computing and AI inference for instance: technologies that five years ago would have seemed impossible to deploy in Zone 0 or Zone 1 environments. Intrinsically safe edge devices now process data locally in explosive-risk environments, enabling real-time safety alerts without relying on distant cloud servers.
The hazardous area equipment market is forecast to grow from $11.9 billion in 2023 to $20.9 billion by 2032, driven by this convergence of lower power electronics and intrinsic safety requirements. In a sector where change is measured in years rather than months, this represents real change.
Looking ahead
By 2026, embedded and wireless design will reach a point of convergence. AI, advanced connectivity, and security will no longer be separate priorities but interconnected requirements. The challenge for developers will be to create systems that are both intelligent and power-efficient, and compliant without compromising innovation.
For ByteSnap Design’s engineers, 2026 will be a year defined not by emerging ideas but by implementation, building devices with technologies that make connected intelligence sustainable, secure, and ready for the real world.
The post ByteSnap Design 2026 predictions: Convergence of AI, wireless, and cybersecurity in embedded design appeared first on IoT Business News.