State machines are useful tools for system modelling. They allow for a compact visual notation of discrete systems and provide a formal model of them. However, reasoning about the correctness of an implementation isn't easy due to the large model spaces. Let's take Mealy machines as an example and assume we have some fixed numbers $N$ of states, $I$ of inputs and $O$ of outputs. Then, we have $IN$ transitions in the state machine, each of which can target one of $N$ states and output one of $O$ symbols. So there are $IN^{ON}$ possible Mealy machines to construct with these parameters.
But this expressiveness comes at a cost, as the capacity of the model space greatly complicates the testing of a given state machine implementation. And it is not obvious to me whether the exponentiality of the model space is a necessary property for the usefulness of the model class. Thus, I'm wondering: Are there any model classes for discrete-state systems whose model space does not scale exponentially with their model parameters? I've searched for literature on this topic, but didn't find anything that fits my question. I would be grateful for any pointers.