In the market for embedded computer systems, merchant suppliers are grabbing incremental market share away from the captive market, which is fueling significant growth of the merchant market. According to VDC’s recently published Global Market Analysis of Embedded Integrated Computer Systems (EICSs) and vertical market outlook, the merchant systems market will increase by 64% in terms of dollar volume from 2005 to 2010, with a Compound Annual Growth Rate (CAGR) over the same period equal to 10.4%. The source of this healthy growth rate is a modest increase in market share of the total available market by merchant suppliers from 10.8% in 2005 to 11.1% in 2010. VDC believes much of this growth is being fueled by adoption of more standardized solution for board architectures and their critical subsystems.
The VDC study measures embedded integrated computer system shipments to the six major vertical markets for: communications, military/aerospace, transportation, industrial automation & control, medical, and laboratory/scientific. Embedded integrated computer systems are defined by VDC to be any integrated embedded computer system sold as a partially or fully configured system. This definition does not include board-level embedded products. (Note that the board products alone are analyzed separately in VDC’s Merchant Computer Boards for Embedded & Real-Time Applications (MCBREA) global market analysis.)
Unlike the desktop PC market, the embedded market has different dynamics and slower growth. The embedded market does not support the volume required for drastic market transformation, because of long-end product life cycles for consuming products of these systems. Rather than a market of uniformity of applications that can sustain high quantities, the embedded computing market is one of fragmentation and small volume shipments. Interoperability is always a concern as well for embedded customers switching from proprietary architectures to standardized architectures that include even more mature bus architectures of VME and CompactPCI as well as newer AdvancedTCA solutions.
Venture Development Corporation (VDC) is an independent technology market research and strategy consulting firm that specializes in a number of retail automation, RFID, AIDC, embedded, component, industrial, and defense markets. VDC has been operating since 1971, when the firm was founded by graduates of the Harvard Business School and Massachusetts Institute of Technology. Today, we employ a talented collection of analysts and consultants who offer a rare combination of expertise in the market research process; experience in technology product and program management; and formal training in engineering and marketing. VDC’s clients include thousands of the largest and fastest-growing technology suppliers in the world and the most successful investors participating in the markets we cover.