VDC Releases Embedded Integrated Computer Systems Study

Passive backplane-based computer systems continue to dominate the embedded integrated computer systems market – according to VDC’s recently released Global Market Analysis of Embedded Integrated Computer Systems, which studied the market for system-level computer products sold by embedded vendors into six separate vertical markets.* Fueled by the overwhelming share of the systems in the military/aerospace vertical, the largest of the vertical markets, passive backplane-based systems accounted for 69%of embedded integrated computer system dollar volume shipments in 2005.

Passive backplane-based systems also have a large share of the communications vertical (70%), the third largest vertical market, and the laboratory/scientific vertical (61%). Passive backplane-based systems offer the greatest computing power, which is the reason that these systems excel in compute intensive military and communications applications.

Embedded Integrated Computer Systems, Shipments, and Projects by System Architecture

* Vertical markets studies include: Communications; Military, Defense, and Aerospace; Transportation Infrastructure; Industrial Automation Control and Instrumentation; Medical; and Laboratory and Scientific.

Passive backplane-based systems have long held the largest share of the market for embedded integrated computer systems, as many of the first embedded system vendors worked only with slot passive backplane systems due to lack of computing process and reliability with active backplane systems.

According to VDC’s study, active backplane-based systems are on the rise due to increased processing power and integrated features of CPUs and chipsets. Active backplane-based systems are now more powerful than ever, making them suitable in many vertical markets and application areas where they previously were not adequate.

VDC projects that the share of the embedded integrated computer systems market attributable to active backplane-based systems will grow from 26% in 2005 to 29% by the end of 2007. Active backplane-based systems save customers money and space because they do not require the additional chassis, racks, slot cards that passive backplane systems do require. The biggest verticals for active backplane systems are the industrial and medical markets where price points are paramount over low- to medium-level computing power requirements.

Venture Development Corporation (VDC) is an independent technology market research and strategy consulting firm that specializes in a number of embedded, component, retail automation, RFID, AIDC, 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.