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News Release from: Venture Development Corp
Edited by the Electronicstalk Editorial
Team on 14 July 2006
VME growth outpaces 2005 projections
According to VDC's recently released report, the market for COTS VME slot cards reached US $408.7 million in 2005 for the North American and European markets combined.
According to VDC's recently released report, the market for COTS VME slot cards reached US$ 408.7 million in 2005 for the North American and European markets combined This compares to US$ 354.1 million, which was forecast for 2005 in the second edition of VDC's market demand analysis released in 2004 and based on year 2003 data
This article was originally published on Electronicstalk on 17 Dec 2004 at 8.00am (UK)
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This represents 5.9% of additional dollar volume of VME slot card shipments to North America for military, aerospace, and defence applications compared to the projections made for 2005 from the 2003 data.
The European market experienced an increase of 37.4% of additional dollar volume shipments from the projections made from 2003 data.
The North American and European markets combined increased 15.4% over the previous projections for 2005.
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Factors to which the larger than projected 2005 shipments of COTS VME slot cards can be attributed include an increase in military budgets since 2003.
This is especially true in developing European nations and the United States, which accounts for 47% of worldwide spending on defence.
The continued armed conflicts in Iraq and Afghanistan have not only been a major factor in forcing increased defence spending, but they have also prolonged the implementation of VME slot cards in some military systems.
The reason for this is that many systems may be switching to a newer architecture such as CompactPCI or down the road ATCA, however the upgrades away from VME are delayed until the conflicts are over because the militaries are wary of making changes/upgrades to equipment that is being used routinely in battle situations.
The VME architecture continues to be an extremely versatile, resilient, and adaptive technology that continues to reinvent itself.
The current development of the VXS (VITA 41) and VPX (VITA 46) standards for switch fabric implementation make the architecture much more competitive from a technology standpoint, which makes an upgrade to CompactPCI or other architecture less attractive because the advantages over VME are less.
This is not to say that the VME architecture is completely safe from competing architectures and the inroads these architectures are making into the COTS market and military/defence applications, which in the past has been predominately a VME market.
CompactPCI in particular poses a large risk for VME as many military applications are using CompactPCI, especially new projects.
VME is projected to be the slowest growing architecture as the others make major inroads into the military embedded COTS market.
The category "Other Architectures" includes PCI, ATCA, ISA, PCI-ISA, and other legacy architectures and has a large CAGR largely due to projected demand for ATCA and MicroTCA (although these are highly speculative in the MIL COTS market).
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