Market Research Report
The Global Market for Embedded Integrated Computer Systems: Supply-side Analysis - M2M the Gateway to Increasing Embedded System Revenue
|Published by||VDC Research Group, Inc.||Product code||295781|
|Published||Content info||46 Pages; 88 Exhibits
Delivery time: 1-2 business days
|The Global Market for Embedded Integrated Computer Systems: Supply-side Analysis - M2M the Gateway to Increasing Embedded System Revenue|
|Published: February 11, 2014||Content info: 46 Pages; 88 Exhibits||
The newly revamped VDC M2M Embedded Hardware Platforms report on Embedded Integrated Computer Systems has comprehensive coverage of all significant vertical markets. The latest trends, including M2M, are discussed along with the VDC insights for each market and the relevant suppliers.
Growth has returned to the EICS market, but this growth has become far less predictable and certain, as have the prospects of many EICS suppliers.
Government spending on infrastructure will remain a key driver for EICS purchases, particularly for the transportation market. In the US, defense spending will become even more uneven and COTS systems will be sought to support multiple interrelated applications in a given platform. Lead Systems Integrator (LSI) customers will be purchasing a higher mix of systems as opposed to boards as these entities trim their operations in the hopes of remaining profitable in the face of uncertain order streams. The shift toward outsourcing by LSIs will provide revenue benefits to systems suppliers but will also transfer the associated risks to profit margins.
Many EICS suppliers will find that M2M-related applications will become the gateway to increased revenues, particularly if suppliers are able to expand the product integration to include more of the elements that end customers need as part of a complete solution. In the future, EICS will be used as intelligent gateways in both Greenfield and Brownfield M2M deployments.
Global forecast for EICS by category (US $M)
Source: VDC Research, 2014.
The global market for embedded integrated computer systems (EICS) is projected to grow to $XXB in 2017 from $XXB in 2012, representing a X.X% CAGR. Merchant systems will grow at a X.X% CAGR as they wrest share from captive systems moving from XX% in 2012 to slightly more than XX% of the entire EICS market in 2017, to approach $XXB. The captive market will remain dominant, but many OEMs will increase the outsourcing of systems integration as these activities are now considered as being non-core to the production of the end product. The medical, transportation, emerging, and niche markets will experience the highest growth rates for merchant EICS as they benefit from overall growth and the aforementioned shift away from the captive systems business model.
Regionally, APAC will reach XX% of merchant EICS in 2017 from XX% in 2012, a CAGR in the XX-XX% range. The Americas and EMEA, being more mature, will grow at a X-X% rate.
Passive backplane architectures will still hold more than XX% of the total addressable market but will lose some ground to active backplane and server EICS products as SDN and cloud-based or networked attached configurations are deployed.
Shifts will be seen in the levels of integration requested by customers that will require suppliers to adjust their product and service offerings accordingly. In some cases, and particularly when customers experience a highly unpredictable mix of product configurations, final integration of software will be performed in-house. The suppliers that aim to reverse this trend will need to streamline their operations to provide shorter delivery times. At the other end of the integration spectrum, and particularly where customers already outsource hardware integration there will be trend toward purchasing full solutions. EICS suppliers seeking to capitalize on this trend must add more value through middleware and application software if they expect to increase profit margins and differentiate their product offerings.
XX Commercial in Confidence.