January 30, 2024 — 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 – 2023 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.
VITA member companies were surveyed during 2023 to reflect on performance and business risks and trends in 2021 and 2022. Sales of VITA standard-based products (VME, VPX and PMC/XMC) were surveyed for the merchant market only.
It is estimated that the merchant market rose an estimated 12.3% in 2021 from the 2020 levels reported in the previous edition of this report. The increase in 2021 is largely due to increased defense spending in response to global politics. From 2021 to 2022, annual sales are estimated to have decreased 5.4%. The decrease in 2022 is attributed to the supply chain disruption, principally in long lead-time components, following the Covid 19 epidemic.
The outlook for 2023 is improving as supply chain issues ease and the heavy order backlog begins to unwind, leading to a forecast uptick in sales revenues of 4.9% and with some suppliers hoping to post double-digit increases.
VITA members were also surveyed on the general business environment in terms of business risks and business trends.
Business risks were ranked by VITA members in order of importance as:
- Supply chain resilience (uncertainty of delivery timings)
- The cost of developing products to meet rapidly changing technologies;
- The effect of competition on pricing of products;
- Customers' decision to make rather than buy boards and systems;
- Inflationary pressure on labor, shipping and energy costs.
Business trends were ranked by VITA member in order of importance as:
- Customers requiring compliance to SOSA standards
- Customers accepting the MOSA approach
- Customers requiring smaller form-factor boards or systems
- Customers preferring to buy systems rather than discrete boards and modules
- Customers requiring evidence of supply chain security and resilience
These business risks and trends are described in detail in the report.
The report contents are as follows:
- Executive Summary
- Market Analysis by VITA Standard
- Risks to Business Operations
- Business Trends
- Sales forecast for 2023
- Revenue guidance and forecast for 2023
- VITA Standards-based Board and System Suppliers
- Partnership Agreements
- Recent Mergers and Acquisitions
- Market Opportunity
- Global Defense Spending and Outlook
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, 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, 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.