Industry group Artemis, whose members include Airbus, Ericsson, Nokia and Siemens, predicts that embedded computing — the technology that sees microprocessors arriving in everything from phones to cars to shop tills — will grow by around 10 per cent per year and create 150,000 new jobs across the continent by 2007.
In order to keep Europe ahead of its competitors in Europe and Japan, Artemis is calling for an increase in research and development budgets across the continent.
The European Union currently spends €70m (£47m) on researching embedded technology, and Artemis is hoping to see €640m spent by the public sector.
Information society and media commissioner Viviane Reding described the embedded computing as a "priority area" of the EU's ongoing attempt to boost jobs and economy within the tech sector.
Embedded technologies have also been attracting attention beyond the public sector. Microsoft recently targeted the technology with the release of its first vertical-specific operating system: Windows Embedded for Point of Service