The worldwide market for merchant ATCA integrated systems reached US$ 114.9 million in 2008, according to market intelligence firm VDC Research Group. The market is projected to reach US$ 301.2 million by 2012. This solid growth is projected to begin again in 2010. This is the time quoted by OEMs, Primes and ATCA suppliers surveyed by VDC Research when they believe that production orders will be let and higher volumes shipped. The ATCA integrated systems market is projected to grow marginally during the next 18 months. This is much better performance than most other embedded hardware markets. This superior performance is driven by the ability of OEMs and suppliers to arrive at ROI models that are both material and reasonable.
OEMs consistently – although not universally – state that the time to service revenue and the time to deployment cost reductions enabled by ATCA will drive stronger demand for this technology during the recession.
“Thus far, the consumption of merchant integrated ATCA systems was driven primarily by Tier II Network Equipment Providers and Prime Defense contractors who are building next generation network-centric military systems on ATCA platforms,” said Eric Heikkila, Director of the Embedded Hardware & Systems practice at VDC Research Group.
“The early core of the ATCA market – Tier I Network Equipment Providers – consume primarily merchant ATCA boards, which they then integrate internally on a wide range of platforms. However, an expanding community of OEMs – in this case the Tier II NEPs and military primes – have bought into the value of buying pre-integrated high-performance communications and computing platforms, which spares them the development cost and time of designing, building, deploying and maintaining largely undifferentiated compute platforms internally.”
According to VDC’s report on the xTCA technologies, the ATCA market today is still comprised by far greater merchant board shipment revenues than merchant integrated system shipment revenues. However, the integrated systems market is projected to close the gap by 2013, at which time the shipment values of the merchant ATCA boards and integrated systems markets will be close to even.
This board-system revenue split will be viewed by many as a touchstone of sorts, as it will signal the fact that market acceptance of the ATCA architecture has passed a major gate.
About VDC Research Group
VDC Research Group (VDC) is a technology market research and strategy consulting firm that advises clients in a number of technology markets including: Automatic Identification and Data Collection, Embedded Hardware and Systems, Embedded Software and Tools, Industrial Automation and Control, Mobile and Wireless, and Power Conversion and Control. Using rigorous primary research and analysis techniques, the firm helps its clients identify, plan for, and capitalize on current and emerging market opportunities. We strive to deliver exceptional value to our clients by leveraging the considerable technical, operational, educational and professional experience of our research and consulting staff. During our nearly four decades of ongoing operation, we have had the pleasure of serving most of the world’s leading technology companies, many high-profile start-ups, and numerous blue-chip early and later stage investors. Our products and services consist of research reports, annual research programs, and custom research and consulting services. Founded in 1971, the firm is located in the Boston area.