Embedded Computer Systems
Merchant suppliers are grabbing incremental market share in the embedded computer systems market. According to VDC, 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.
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.
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