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Urgency of IoT Driving Embedded Processor Markets, According to VDC Research
Markets Churned by Unprecedented Industry Consolidation and Ramping System Requirements
NATICK, MA | January 5, 2017 - The global markets for embedded processors are undergoing dramatic change driven by ramping system requirements and the proliferation of connectivity, according to VDC Research (click here for more information). The demand for more computing resources is stemming from all sources, including the cloud, the fog or network edge, as well as within the endpoint devices or systems themselves.
The ecosystems surrounding different processor architectures have changed dramatically over the past couple of years to contend with the dynamic IoT and embedded landscape. “Embedded processing components are becoming more specialized, while systems requirements grow and place greater emphasis on the importance of other domains, such as connectivity, software, and security,” said Dan Mandell, Senior Analyst, IoT and Embedded Technology at VDC Research. “Further straining engineering teams is the growing use of, and need for, heterogeneous multicore processors to improve response times for specific processes/workloads, operate at higher frequencies or greater MIPS/watt through parallelism, save on PCB space, and more. As a result, hardware suppliers, OEMs, system integrators, engineering houses, and others throughout the value chain have been pushed to re-evaluate their architectural allegiances and strategy.”
VDC’s research shows that software has emerged as a critical battleground for embedded processor wins and is fueling broad growth of systems-level development platforms. Processor suppliers have realized that, in order to win more sockets, they must support or supply more of the device stack. This includes the operating system, middleware, connectivity, and manageability to ultimately facilitate systems-level development. In accordance with this trend, more manufacturing organizations are being pressured to develop new connected products that often feature design elements beyond the traditional competencies of incumbent engineers.
The embedded processor market continues to see rapid consolidation with a number of market leaders merging within the past year. “Intensifying competition surrounding the IoT is pressuring suppliers to find synergies with competitors to grow their customer/developer base and market share in tandem to address emerging market opportunities now,” said Mandell. Recent acquisitions, such as Qualcomm’s bid for NXP and Intel’s purchase of FPGA technology provider Altera, could have significant implications for many aspects of the embedded processor market. Additionally, embedded processor vendors are building up their own vertical competencies to better address market opportunities for specific applications.
Click here for more information on this research.
About VDC Research
Founded in 1971, VDC Research provides in-depth insights to technology vendors, end users, and investors across the globe. As a market research and consulting firm, VDC’s coverage of AutoID, enterprise mobility, industrial automation, and IoT and embedded technologies is among the most advanced in the industry, helping our clients make critical decisions with confidence. Offering syndicated reports and custom consultation, our methodologies consistently provide accurate forecasts and unmatched thought leadership for deeply technical markets. Located in Natick, Massachusetts, VDC prides itself on its close personal relationships with clients, delivering an attention to detail and a unique perspective that is second to none.