VPX SBC Market Analysis

ID: MRFR/SEM/9541-CR

200 Pages

Aarti Dhapte

November 2022

VPX SBC Market Research Report Information By Rack unit (6U and 3U), By Processor (Intel, NXP Power Architecture, ARM), By Application (Radar, Electronic Warfare, ISR, Mission Computers, and Others), By End-user (Defence, {Land, Naval, and Airforce}, Aerospace, and Industrial, Commercial & Others), and Region (North America, Europe, Asia-Pacific, Middle East & Africa, and South America) - Industry Size, Share and Trends till 2032

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Market Analysis

In-depth Analysis of VPX SBC Market Industry Landscape

Electronic warfare systems play a crucial role in military and intelligence operations, utilizing the electromagnetic spectrum to detect, communicate, and block enemy signals. The escalating conflicts between countries have led to a heightened demand for these systems, driving the growth of the VPX SBC market. In modern warfare, these systems are essential for shaping the battlefield as conflicts unfold. Nations are increasingly focusing on enhancing their war-winning capabilities by integrating new technologies into intelligence and military operations.

The recent conflicts, especially the scale of the Russia-Ukraine war, have underscored the significance of electronic warfare and advanced intelligence technologies. Electronic warfare systems consist of three main components and concepts: electronic attack (EA), electronic warfare support (ES), and electronic protection (EP). During a conflict, electronic attack employs directed energy, electromagnetic energy, or anti-radiation weapons to target facilities, personnel, or equipment. These advanced technologies empower leading military forces to upgrade their offensive capabilities, serving as a deterrent.

The Russia-Ukraine conflict has significantly increased the demand for electronic warfare systems on a large scale. Russia, in particular, has made substantial advancements in its electronic warfare capabilities. Electronic warfare also offers defensive capabilities, including self-protection and force protection measures like low-observable technologies, flares, protection jammers, chaff, towed decoys, and DE infrared (IR) countermeasures.

Additionally, the adoption of electronic warfare systems in India has contributed to the market's demand. The increased use of digital engineering has prompted the need for advanced military and intelligence equipment in the country. Given India's proximity to unfriendly nations with a history of border conflicts, there is a concerted effort to strengthen attack and defense capabilities in critical areas. The growing use of electronic warfare presents a potential threat due to modern technologies. Geospatial and Signal Intelligence technologies hold significant potential to counter these contemporary threats. The rising need to leverage and synchronize space technology to navigate electronic warfare and create new systems for higher resilience and speed is expected to drive substantial demand for the VPX SBC market in the future.

The increasing adoption of electronic warfare systems is poised to generate significant demand for VPX SBC towards the end of the forecast period.

Market Highlights

Author

Aarti Dhapte

Team Lead - Research

She holds an experience of about 6+ years in Market Research and Business Consulting, working under the spectrum of Information Communication Technology, Telecommunications and Semiconductor domains. Aarti conceptualizes and implements a scalable business strategy and provides strategic leadership to the clients. Her expertise lies in market estimation, competitive intelligence, pipeline analysis, customer assessment, etc.

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FAQs

What is the projected market valuation of the VPX SBC Market by 2035?

The VPX SBC Market is projected to reach a valuation of 1.087 USD Billion by 2035.

What was the market valuation of the VPX SBC Market in 2024?

In 2024, the overall market valuation of the VPX SBC Market was 0.27 USD Billion.

What is the expected CAGR for the VPX SBC Market during the forecast period 2025 - 2035?

The expected CAGR for the VPX SBC Market during the forecast period 2025 - 2035 is 13.5%.

Which companies are considered key players in the VPX SBC Market?

Key players in the VPX SBC Market include Curtiss-Wright, Elma Electronic, Mercury Systems, and Kontron, among others.

What are the segment valuations for the 6U and 3U rack units in the VPX SBC Market?

The 6U rack unit segment is valued at 0.15 USD Billion, while the 3U rack unit segment is valued at 0.12 USD Billion.

1. Market Overview

2. Market Trends

3. Market Segment Insights

4. Key Players and Competitive Insights

5. Industry Developments

6. Market Segmentation

7. Report Scope

8. Market Highlights

9. FAQs

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Market Summary

As per MRFR analysis, the VPX SBC Market Size was estimated at 0.27 USD Billion in 2024. The VPX SBC industry is projected to grow from 0.3065 in 2025 to 1.087 by 2035, exhibiting a compound annual growth rate (CAGR) of 13.5 during the forecast period 2025 - 2035.

Key Market Trends & Highlights

The VPX SBC Market is poised for robust growth driven by technological advancements and increasing demand for modular systems.

Technological advancements are reshaping the VPX SBC Market, enhancing performance and capabilities. North America remains the largest market, while Asia-Pacific is emerging as the fastest-growing region. The 6U segment continues to dominate, whereas the 3U segment is witnessing rapid growth. Rising demand for high-performance computing and the integration of artificial intelligence are key drivers propelling market expansion.

Market Size & Forecast

2024 Market Size	0.27 (USD Billion)
2035 Market Size	1.087 (USD Billion)
CAGR (2025 - 2035)	13.5%
Largest Regional Market Share in 2024	North America

Major Players

Curtiss-Wright (US), Elma Electronic (DE), Mercury Systems (US), Kontron (DE), Aitech Systems (IL), General Micro Systems (US), Abaco Systems (US), Nexter (FR), BittWare (US)

Market Trends

The VPX SBC Market is currently experiencing a dynamic evolution, driven by advancements in technology and increasing demand for high-performance computing solutions. This market encompasses a range of single-board computers that utilize the VPX standard, which is known for its robust architecture and ability to support various applications in defense, aerospace, and telecommunications. As industries seek to enhance their operational efficiency and reliability, the adoption of VPX SBCs appears to be gaining momentum. Furthermore, the integration of cutting-edge features such as enhanced processing power, improved thermal management, and greater connectivity options is likely to attract a broader customer base. In addition to technological advancements, the VPX SBC Market is influenced by the growing emphasis on modularity and scalability. Organizations are increasingly looking for solutions that can adapt to changing requirements without necessitating complete system overhauls. This trend suggests a shift towards more flexible designs that can accommodate future upgrades. Moreover, the rising focus on cybersecurity within the defense sector may further propel the demand for secure and resilient VPX SBCs. Overall, the market landscape seems poised for continued growth, with various factors converging to shape its trajectory in the coming years.

Technological Advancements

The VPX SBC Market is witnessing rapid technological progress, with innovations in processing capabilities and energy efficiency. These advancements are enabling the development of more powerful and compact systems, which are essential for modern applications.

Modularity and Scalability

There is a noticeable trend towards modular designs in the VPX SBC Market. This approach allows for easier upgrades and customization, catering to the diverse needs of various industries while minimizing downtime.

Focus on Cybersecurity

As threats to data integrity and system security grow, the VPX SBC Market is increasingly prioritizing cybersecurity features. Enhanced security measures are becoming a critical consideration for customers, particularly in defense and sensitive applications.

VPX SBC Market Market Drivers

Increased Focus on Modular Systems

The VPX SBC Market is witnessing a shift towards modular systems, which offer enhanced flexibility and scalability. Modular designs allow for the easy integration of various components, enabling users to customize their systems according to specific requirements. This trend is particularly relevant in sectors such as defense and aerospace, where adaptability is crucial. The modular approach not only reduces development time but also lowers costs associated with system upgrades and maintenance. As organizations seek to optimize their operations, the demand for modular SBC solutions is likely to increase, further driving growth in the VPX SBC Market.

Growing Emphasis on Ruggedized Solutions

The VPX SBC Market is increasingly focusing on ruggedized solutions that can withstand harsh environmental conditions. Industries such as military, aerospace, and industrial automation require SBCs that are durable and reliable under extreme temperatures, vibrations, and moisture. The demand for ruggedized systems is expected to rise as organizations prioritize operational reliability in challenging environments. Market data indicates that the rugged computing segment is projected to grow at a CAGR of around 6% over the next few years. This trend underscores the importance of developing SBCs that meet stringent military and industrial standards, thereby enhancing the overall resilience of the VPX SBC Market.

Expansion of Internet of Things Applications

The expansion of Internet of Things (IoT) applications is significantly influencing the VPX SBC Market. As more devices become interconnected, the need for SBCs that can efficiently process and transmit data is becoming increasingly critical. The rise of smart cities, industrial IoT, and connected vehicles is driving demand for SBCs that can support real-time data analytics and communication. Market forecasts suggest that the IoT sector will continue to grow rapidly, with the VPX SBC Market positioned to capitalize on this trend by providing innovative solutions that cater to the evolving needs of IoT applications.

Rising Demand for High-Performance Computing

The VPX SBC Market is experiencing a notable surge in demand for high-performance computing solutions. This trend is driven by the increasing need for advanced processing capabilities in various sectors, including defense, aerospace, and telecommunications. As applications become more data-intensive, the requirement for robust single-board computers (SBCs) that can handle complex computations efficiently is paramount. Market data indicates that the demand for high-performance computing systems is projected to grow at a compound annual growth rate (CAGR) of approximately 8% over the next five years. This growth is likely to propel the VPX SBC Market, as organizations seek to enhance their computational power while maintaining energy efficiency.

Integration of Artificial Intelligence and Machine Learning

The integration of artificial intelligence (AI) and machine learning (ML) technologies into the VPX SBC Market is transforming the landscape of embedded computing. These technologies enable SBCs to process vast amounts of data in real-time, facilitating smarter decision-making and automation. As industries increasingly adopt AI and ML for applications such as predictive maintenance and autonomous systems, the demand for SBCs that support these technologies is expected to rise. Market analysis suggests that the AI and ML sectors are anticipated to grow significantly, with the VPX SBC Market poised to benefit from this trend as manufacturers develop more sophisticated and capable SBCs.

Market Segment Insights

By Rack Unit: 6U (Largest) vs. 3U (Fastest-Growing)

In the VPX SBC market, the 6U rack unit has established itself as the market leader, accounting for a significant portion of the total market share. This segment is favored by many enterprises due to its ability to accommodate higher processing power and advanced functionalities. On the other hand, the 3U rack unit has shown a commendable rise in market presence, appealing particularly to applications where space is a concern without compromising on performance.

6U (Dominant) vs. 3U (Emerging)

The 6U rack unit is recognized for its robust design, versatility, and superior thermal management capabilities, making it a dominant choice among industries requiring high-performance computing solutions. It supports more complex deployments, which is essential for demanding applications like military and aerospace. In contrast, the 3U rack unit is rapidly gaining traction as an emerging option, particularly in sectors focused on compact solutions without sacrificing functionality. Its lighter and smaller footprint makes it ideal for mobile or space-constrained environments, contributing to its accelerated adoption across various sectors.

By Processor: Intel (Largest) vs. NXP Power Architecture (Fastest-Growing)

In the VPX SBC market, the processor segment showcases a competitive landscape where Intel emerges as the dominating force. Its extensive portfolio and robust performance have cemented its position as the largest player, significantly influencing market dynamics. NXP Power Architecture, while smaller in share, is rapidly gaining traction due to its innovative solutions tailored for high-performance applications, indicating a shifting preference among customers toward advanced architectures. The growth trends in this segment reflect a strong demand for efficient and powerful processing capabilities. The increasing need for advanced data processing in embedded systems and event-driven applications drives the adoption of ARM-based processors and NXP Power Architecture. Meanwhile, Intel continues to invest heavily in technology advancements and strategic partnerships to maintain its dominance in the face of emerging competition.

Intel (Dominant) vs. ARM (Emerging)

Intel represents the dominant force in the VPX SBC market, known for its high-performance processors that cater to a wide array of applications. Its products are widely used in military and industrial applications, providing reliability and advanced processing power. In contrast, ARM is emerging as a significant player, offering energy-efficient processors that are increasingly appealing in resource-constrained environments. The proliferation of IoT devices and embedded systems has enabled ARM to capitalize on its strengths in scalability and flexibility, allowing it to penetrate markets where Intel traditionally held sway. As both companies innovate and adapt, their competing strengths will shape the future of the VPX SBC market.

By Application: ISR (Largest) vs. Electronic Warfare (Fastest-Growing)

In the VPX SBC Market, the application segment exhibits a diverse landscape with ISR leading in market share. The ISR segment captures significant attention due to its critical role in surveillance and reconnaissance missions, thereby influencing its prominence in overall market dynamics. Electronic Warfare, while smaller in share, is emerging rapidly, owing to the increasing need for advanced technologies to combat modern threats and enhance military effectiveness.

ISR (Dominant) vs. Electronic Warfare (Emerging)

ISR is characterized by its reliance on advanced processing capabilities and real-time data analysis, making it essential for informed decision-making in military and defense operations. As the largest segment, it benefits from continuous investment in surveillance technologies, ensuring robustness and efficiency. Conversely, Electronic Warfare is swiftly becoming an integral part of military strategies due to the rising emphasis on cyber capabilities and electronic countermeasures. This segment's growth is driven by ongoing technological advancements and the demand for systems that can adapt to a dynamic threat environment, positioning it as a critical area of focus for future budget allocations and technological initiatives.

By End-User: Defence (Largest) vs. Aerospace and Industrial (Fastest-Growing)

In the VPX SBC market, the End-User segment is diversified among Defence, Aerospace and Industrial, Commercial, and Others. Defence holds the largest market share, driven by increasing demand for robust and reliable computing solutions in military applications. The Aerospace and Industrial sector is witnessing a surge in adoption, propelled by technological advancements and an emphasis on high-performance computing, emphasizing the importance of VPX SBCs in critical operations. Growth trends in this segment indicate a shift toward integrated solutions in both Defence and Aerospace industrial applications. Rapid technological advancements, along with an increase in defense budgets globally, are driving substantial investment in the sector. Furthermore, the push for efficiency and reliability in commercial applications is influencing the fast-paced growth of Aerospace and Industrial, making it an emergent player in the market.

Defence: Dominant vs. Aerospace and Industrial: Emerging

The Defence segment in the VPX SBC market is characterized by its stringent requirements for durability, performance, and security, making it a longstanding leader in the industry. It caters to military applications that necessitate rugged computing platforms capable of withstanding harsh environments. Conversely, the Aerospace and Industrial segment is rapidly emerging, driven by innovations in technology and increased demand for efficient processing capabilities. This segment is becoming essential for commercial applications requiring high reliability and performance, highlighting the transformative role VPX SBCs play in modern aerial and industrial systems.

Get more detailed insights about VPX SBC Market Research Report - Global Forecast till 2035

Regional Insights

North America : Technology Leadership and Innovation

North America is the largest market for VPX SBCs, holding approximately 45% of the global share. The region's growth is driven by advancements in defense technologies, increased demand for high-performance computing, and supportive government regulations. The U.S. Department of Defense's initiatives to modernize military systems further catalyze market expansion, alongside rising investments in aerospace and defense sectors. Key players such as Curtiss-Wright, Mercury Systems, and Abaco Systems dominate the competitive landscape. The U.S. leads in technological innovation, while Canada is emerging as a significant player due to its growing defense budget and focus on advanced computing solutions. The presence of established companies and a robust supply chain enhances the region's market position, ensuring continued growth in the VPX SBC Market sector.

Europe : Emerging Market with Strong Demand

Europe is the second-largest market for VPX SBCs, accounting for around 30% of the global share. The region's growth is fueled by increasing defense budgets, particularly in countries like Germany and France, and a focus on enhancing military capabilities. Regulatory frameworks supporting defense modernization and technological advancements are key drivers, alongside the rising demand for rugged computing solutions in various sectors. Leading countries include Germany, France, and the UK, with significant contributions from companies like Elma Electronic and Kontron. The competitive landscape is characterized by a mix of established players and innovative startups, fostering a dynamic environment. The European Union's commitment to defense initiatives and collaboration among member states further strengthens the market, positioning Europe as a vital player in the VPX SBC industry.

Asia-Pacific : Rapid Growth and Innovation

Asia-Pacific is witnessing rapid growth in the VPX SBC Market, driven by increasing defense expenditures and technological advancements. Countries like China and India are investing heavily in military modernization, contributing to a market share of approximately 15%. The region's demand for high-performance computing solutions in defense and aerospace sectors is on the rise, supported by government initiatives aimed at enhancing national security and technological capabilities. China, India, and Japan are the leading countries in this market, with a growing presence of local manufacturers and international players. The competitive landscape is evolving, with companies focusing on innovation and cost-effective solutions. The region's strategic importance in The VPX SBC Market forward.

Middle East and Africa : Strategic Growth in Defense Sector

The Middle East and Africa region is emerging as a potential market for VPX SBCs, holding about 10% of the global share. The growth is primarily driven by increasing defense budgets in countries like Saudi Arabia and the UAE, alongside a focus on enhancing military capabilities. Regulatory support for defense procurement and modernization initiatives are key catalysts for market expansion, as governments prioritize national security and technological advancements. Leading countries in this region include Saudi Arabia, the UAE, and South Africa, with a mix of local and international players vying for market share. The competitive landscape is characterized by partnerships and collaborations aimed at leveraging advanced technologies. The region's strategic geopolitical position and ongoing conflicts further emphasize the need for robust defense solutions, positioning it as a growing market for VPX SBCs.

Key Companies in the VPX SBC Market market include

Industry Developments

This was achieved by acquiring WSC, Inc. in February 2024, which is a company that specializes in developing simulation technologies for nuclear plants. The $34 million acquisition will enable Curtiss-Wright to improve its capabilities in the power generation and naval sectors.

Vulcan – The New VPX-based Development System was unveiled by Concurrent Technologies in October 2022.

On August 15th, 2022, Aitech Integrated Systems (US) announced the development of three rugged cyberspace-enabled VPX boards for SOSA, which are among the latest product solutions with advanced technology features aimed at boosting the security of military systems. Aitech innovatively produces sturdy computer-embedded versions towards improved security for tomorrow.

On July 8, 2022, Kontron AG (Germany), a German multinational engaged in designing and manufacturing embedded computer modules, boards and systems, introduced the high-performance 3U VPX single-board computer VX3060.The latter rugged single-board computers got Intel SoC technology needed in demanding applications involving computer vision and media processing. High-reliability 3U VPX embedded computing boards are specifically designed for military and rail applications.

April 2021 saw AMETEK Abaco Systems introduce the DEVPX3 development chassis, developed to conform to OpenVPX and SOSA™ standards while offering a flexible platform that is cost-effective for building and testing open standard-based applications.

Exlar SA-R080 rotary actuators and SA-L080 linear actuators were newly launched by Curtiss-Wright in October 2021 as part of their expansion strategy into the industrial electromechanical actuation market.

In September 2021, TE Connectivity acquired ERNI Group AG, known for electronic connectivity, particularly used in factory automation as well as the automotive industry, thus enhancing a portfolio of both high-speed connectors as well as fine-pitch connectors among various industrial applications.

Future Outlook

VPX SBC Market Future Outlook

The VPX SBC Market is projected to grow at a 13.5% CAGR from 2024 to 2035, driven by technological advancements, increased demand for high-performance computing, and defense applications.

New opportunities lie in:

Development of modular VPX SBC Market solutions for rapid deployment in military applications.Expansion into emerging markets with tailored VPX SBC Market products for local industries.Partnerships with cloud service providers to integrate VPX SBCs into hybrid cloud solutions.

By 2035, the VPX SBC Market is expected to achieve substantial growth, solidifying its position as a critical technology sector.

Market Segmentation

VPX SBC Market End-User Outlook

Defence
Aerospace and Industrial
Commercial
Others

VPX SBC Market Processor Outlook

Intel
NXP Power Architecture
ARM

VPX SBC Market Rack Unit Outlook

VPX SBC Market Application Outlook

Radar
Electronic Warfare
ISR
Mission Computers
Others

Report Scope

MARKET SIZE 2024	0.27(USD Billion)
MARKET SIZE 2025	0.3065(USD Billion)
MARKET SIZE 2035	1.087(USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR)	13.5% (2024 - 2035)
REPORT COVERAGE	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR	2024
Market Forecast Period	2025 - 2035
Historical Data	2019 - 2024
Market Forecast Units	USD Billion
Key Companies Profiled	Market analysis in progress
Segments Covered	Market segmentation analysis in progress
Key Market Opportunities	Integration of advanced artificial intelligence in VPX SBC systems enhances performance and operational efficiency.
Key Market Dynamics	Rising demand for high-performance computing drives innovation and competition in the VPX Single Board Computer market.
Countries Covered	North America, Europe, APAC, South America, MEA