Market for ATCA integrated systems to grow to $301.2 million by 2012, says VDC

NATICK, Mass., 4 March 2009. The worldwide market for merchant ATCA systems should nearly triple over the five-year period from 2008 to 2012, according to analysts at market researcher VDC Research Group in Natick, Mass. Sales of integrated systems based on ATCA boards should rise from $114.9 million in 2008 to $301.2 million by 2012, VDC analysts say.

Mar 4th, 2009

NATICK, Mass., 4 March 2009. The worldwide market for merchant ATCA systems should nearly triple over the five-year period from 2008 to 2012, according to analysts at market researcher VDC Research Group in Natick, Mass. Sales of integrated systems based on ATCA boards should rise from $114.9 million in 2008 to $301.2 million by 2012, VDC analysts say.

Strong growth should begin again in 2010 when OEMs, primes, and ATCA suppliers say they believe production orders will be let and higher volumes of military ATCA systems shipped. ATCA stands for Advanced Telecom Computing Architecture.
The ATCA integrated systems market should grow marginally during the next 18 months, which is better performance than most other embedded computer markets.

"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," says Eric Heikkila, director of the embedded hardware & systems practice at VDC.

"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 Naps 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 still has far greater merchant board shipment revenues than merchant integrated system shipment revenues. However, the integrated systems market should 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.

For more information contact VDC online at www.vdcresearch.com.

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