October 26, 2021 — VITA, the trade association for standard computing architectures serving critical embedded systems industries has announced the release of the Embedded Market Research report “World Market for VITA Standards-based Board and Systems – 2021 Edition”.
The research and analysis were conducted over the past summer through data collection and discussions with companies supplying merchant products based on key VITA standards. The report was prepared by Brian Arbuckle, Principal Market Analyst at Embedded Market Research on behalf of VITA. The full report is available for purchase from the VITA website at www.vita.com/Market_Research .
Annual sales of VITA-standard based products (VME, VPX and PMC/XMC) to the merchant market are estimated to have increased on average 6.3% from 2019 to 2020. Boards are the highest in revenue while systems sales are the fastest growing aspect. 6U VPX systems are the fastest growing form-factor from 2019 to 2020.
The majority of VME and VPX boards and systems are sold to defense prime contractors that in turn, sell to governments. The largest customer for defense electronics is the United States with the US Department of Defense budget having the greatest impact on market growth. US Defense spending in total remains relatively steady but the budget allocation emphasizes compute-heavy technologies and has supported the increase in demand for VME and VPX boards and systems.
Market trends reported by VITA suppliers include the Open Systems DoD mandate; sensor proliferation using artificial intelligence (AI); and an increased emphasis on security by offering trusted computing solutions. The OpenVPX standard being championed by VITA aligns well with the US Department of Defense demand for improved implementation of open standards and interoperability. VITA members are also harnessing the latest AI chip technology and developing accelerator boards for intensive data-processing applications. VITA market leading companies also offer a rigorous approach to supply chain security.
Business challenges in the reporting period include the supply chain interruption caused by COVID-19 and in particular the global semiconductor shortage. Continuing challenges include product obsolescence particularly regarding VMEbus, already in its 40th year of production. The use of COTS servers and virtualization of applications rather than using dedicated hardware is an ongoing challenge in some markets.
VITA member companies continue to grow both organically and by acquisition and there has been some M&A activity during the period which has placed a significant value on the expertise and capabilities of these VITA-standard suppliers.
The report contents are as follows:
- Executive summary
- Recent mergers and acquisitions
- Report introduction and method
- Market analysis by VITA standard (VME, VPX, PMC/XMC)
- Trends affecting business
- Risks to business operations
Additional market research and quarterly reports can be found at www.VITA.com/MarketData.
Founded in 1984, VITA is an incorporated, non-profit organization of suppliers and users who share a common market interest in critical embedded systems. VITA champions open system architectures. Its activities are international in scope, technical, promotional, and user-centric. VITA aims to increase total market size for its members, expand market exposure for suppliers, and deliver timely technical information. VITA has American National Standards Institute (ANSI) accreditation to develop standards (VME, VXS, VPX, OpenVPX, VPX REDI, XMC, XMC+, FMC, FMC+, VNX, Reliability Community, etc.) for embedded systems used in a myriad of critical applications and harsh environments. For more information, visit www.VITA.com.
About Brian Arbuckle
Brian Arbuckle is a market analyst specializing in embedded computing. Brian has an engineering degree from the University of Warwick and an MBA. His career has spanned marketing management roles in industry for electronic and mechanical components and systems and communications networks. He has worked in analyst roles for technical market research organizations, IHS Markit and Informatech and in recent years has authored an annual market research report on the embedded computing industry.
VITA and the VITA, VMEbus Technology, VXS, VPX, OpenVPX, VPX REDI, XMC, XMC+, FMC, FMC+, VNX, and Reliability Community logos are trademarks of VITA in the United States and other countries. Other names and brands may be trademarks or registered trademarks of their respective holders.