VITA Technology Market Research

This report reviews highlights and developments during the fourth trading quarter of 2024 and the trends that are driving technology development for VITA technology boards and systems.

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The change in Administration decided by U.S. elections in Q4 has initiated discussions on how expected policy changes may affect U.S. defense manufacturers in 2025 and beyond. Key issues are first, the commercial relationship with China and how proposed tariff increases will impact on supply chains and costs. Second, is the threat of significant federal government spending cuts and how these might impact on the U.S. defense budget and programs. Third is the relationship with NATO allies including threats to withdraw support for Ukraine and the pressure on allies to increase significantly defense budgets.

The latter is already stimulating the growth in European defense spending and the rebuilding of the European defense industry to achieve a more robust, and to some extent less U.S.-reliant, defense posture in the face of Russian aggression.

New European joint ventures have been announced in Q4 which evidence this trend and VITA members are well placed to take advantage of new project opportunities by offering the modular open architecture components to build advanced systems. This may require building stronger direct relationships with European defense companies who see the benefits of following the U.S. military’s preferred open systems approach.

Meanwhile Q3 results for VITA-standard suppliers who publish financial reports continue the strong growth trend achieved to date in 2024 with an average of 13.5% growth compared to the same period in 2023. Many new VPX, XMC and chassis products have been announced in the quarter as well as the announcement of significant contract wins, in particular, Kontron’s major 165m Euro contract win for VPX computing and communication computing units for mobile and stationary surveillance applications.

VITA’s own Embedded Tech Trends conference in San Antonio January 13-14 will provide participating sponsors to showcase news on new standards developments.

This report reviews highlights and developments during the third trading quarter of 2024 and the trends that are driving technology development for VITA technology boards and systems.

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News that the U.S, Air Force future strategy is moving to disaggregate the purchase of mission systems capability from platform supply highlights the importance of the mission computer with the flexibility of exchangeable plug-in cards to achieve varying mission goals. It may also cause many VITA member companies to consider how this may change their future product offerings and customers relationships.

VITA member companies have published record half-year financial results with an average revenue increase of 14.3% on the same period of the previous year. New contract wins announced in Q2 support this growth going forward and it would seem that much of this growth is coming from recently announced new products.

VITA members working on new standards have been busy on two fronts both in terms of the eagerly anticipated VNX+, an emerging VITA small form factor computing standard and the VITA 100, next-generation plug-in module form factor currently being standardized by VITA as a follow-on to OpenVPX. Through the collaborative work of these VITA standards committees, the future of military and critical embedded computing is assured.

This report reviews highlights and developments during the second trading quarter of 2024 and the trends that are driving technology development for VITA technology boards and systems.

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Further confirmation of the significant increase in defense spending was provided by the latest SIPRI data. Meanwhile a boost to the European defense industry has been given by the announcement of €1,031 million of EU funding to support 54 joint European defense research and development projects. It will be interesting to see if VPX becomes the de facto standard for European military embedded computing.

Company results in the first quarter of 2024 continue the trend of generally strong growth in revenues. The semiconductor industry is also experiencing strong growth in shipments and investment in capacity.

It is refreshing to see that confidence is still strong in the veteran VME standard with Intel’s latest Atom processor now made available for customers looking for a simple, cost-effective upgrades to computing capability while remaining within the VME environment.

Several new VPX products have been launched this quarter. Announcements of significant contracts for VPX-based systems is also encouraging and validates VITA’s annual market research which identified the growing opportunities for VITA standard systems suppliers.

This report reviews highlights and developments during the first trading quarter of 2024 and the trends that are driving technology development for VITA technology boards and systems.

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Global defense spending is increasing significantly reflecting global political tensions. New weapon systems are deploying increasing electronic systems content and those systems are embracing technologies such as AI that require knowledge of how to deploy it in compact, rugged platforms. This is the “sweet-spot” where VITA members are supplying product and now that supply chain difficulties are easing, witnessed by the reversal in undersupply of semiconductor chips, most companies attending Embedded Tech Trends expressed upbeat sentiment. Large contract wins have been reported and most companies are reporting substantial annual revenue growth in 2023.

As well as operating at the leading edge of technology, many VITA members have mature product lines for platforms that have been in production for years, if not decades and this can present its own logistics problems. It is encouraging to see that within the VITA community there are companies, like GDCA, Inc., who can manage the lifecycle of critical embedded single board computers and systems as witnessed by its recent partnerships with North Atlantic Industries.

This report reviews highlights and developments during the fourth trading quarter of 2023 and the trends that are driving technology development for VITA technology boards and systems.

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This report reviews highlights and developments during the third trading quarter of 2023 and the trends that are driving technology development for VITA technology boards and systems.

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This report reviews highlights and developments during the second trading quarter of 2023 and the trends that are driving technology development for VITA technology boards and systems.

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This report reviews highlights and developments during the first trading quarter of 2023 and the trends that are driving technology development for VITA technology boards and systems.

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This report reviews highlights and developments during the fourth trading quarter of 2022 and the trends that are driving technology development for VITA technology boards and systems.

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This report reviews highlights and developments during the third trading quarter of 2022 and the trends that are driving technology development for VITA technology boards and systems.

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