VDC Projects Strong Growth for Embedded Multi-Core CPU Market

According to research recently released by Venture Development Corporation (VDC), revenue growth of the market for multi-core CPUs in embedded applications is projected to be strong through 2011. Multi-core CPU revenues from embedded in 2011 are projected to reach over 6 times 2007 multi-core revenues and over 44 times 2006 levels.

The fuel of the impressive multi-core growth will be a paradigm shift in the embedded market from traditional single-core processors to processors with multiple cores. Single-core processors and the performance imperative of Moore’s Law may be approaching an upper limit in terms of adding increasing processing power simply by increasing clock speeds. In response to this problem, processor suppliers have turned to multi-core architectures in order to achieve performance gains. Multi-core processors have the potential of increasing processing performance while reducing processor footprints and providing better thermal characteristics.

“The embedded multi-core CPU market very much equates to a billion dollar opportunity over the next five years,” said Eric Heikkila, Director of VDC’s Embedded Hardware and Systems Practice. “The immense growth opportunity associated with the CPU piece of the multi-core market is only the tip of the iceberg, as rapid growth is predicted for multi-core DSP and Processor-IP revenues as well. Additionally, the revenue opportunity that exists for software vendors who can successfully address for their customers the problems associated with enabling software for multi-core processors may be even larger than revenue opportunity that exists for processor vendors.”

There is a great deal of opportunities in the embedded multi-core market, however, it is evident to almost all observers that a major gap currently exists between multi-core silicon and software enabled to take advantage of the available performance. VDC’s research report, Multi-Core Computing in Embedded Applications, provides a market assessment that quantifies the current hardware-software gap, and identifies the trends, market forces, user expectations and requirements, and technical factors that will determine just how impressive the adoption rates of multi-core in embedded applications will be.

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