Embedded systems cover a range of computer systems from ultra small computer-based devices to large, possibly distributed, systems monitoring and controlling complex processes. COTS-based development in embedded systems, with electronic and mechanical components has a long tradition. However component-based development (CBD) with software components, in particular COTS components, is utilized to a lesser degree. A major reason is the inability of component technologies to cope with specific requirements of embedded systems. In general, component-based technologies do not address timing issues, QoS, dependability, resource constraints, and other extra-functional properties of crucial importance for embedded systems. This raises the question whether Component-based and COTS-based approach is beneficial for development of embedded systems, and which are the specifics to be addressed to make such an approach feasible.