Industry: Semiconductor & Electronics | Publish Date: 07-Feb-2025 | No of Pages: 551 | No. of Tables: 457 | No. of Figures: 423 | Format: PDF | Report Code : SE2909
The global VPX SBC Market size was valued USD 209.8 million in 2024, and it is projected to reach USD 499.9 million by 2030, with a CAGR of 14.4% from 2025-2030.
The VPX single board computer (SBC) also known as VITA 46 represents a system architecture that includes processing power, memory and I/O interfaces within a single electronics board through advanced ethernet and other integrative connections that promote fast data movement and flexible system design. The factors including rising military expenditure along with expenditure towards aerospace sector and growing semiconductor industry propels the growth of the market.
However, high cost associated with the development of VPX SBCs is significant restraining the industry’s growth. On the contrary, introduction of 5G and AI-enabled SBCs creates significant opportunity for the VPX SBC industry.
Moreover, leading players in the industry such as Logic Fruit Technologies, Kontron AG, and others are taking initiatives including product launch to maintain their market position and enhance their product offerings. These initiatives are expected to foster innovation and drive the adoption of VPX SBCs across various industries, ensuring robust growth for the market.
The rising global military expenditure fuels the growth of the market as defense organizations modernize their systems to meet advanced operational requirements. Applications that include radar systems alongside UAV and electronic warfare systems heavily depend on VPX SBCs due to their combination of high compute capabilities with flexibility and durable construction. Latest report published by the Stockholm International Peace Research Institute, demonstrates that military spending worldwide rose from USD 2.28 trillion during 2022 to USD 2.44 trillion in 2023 showing a 6.8% escalation across the year.
Moreover, increasing investments in defense electronics R&D and the focus on network- centric warfare further boosts the adoption of VPX SBCs. The growing use of unmanned systems and the need for robust solutions in extreme environments underscore their importance in military platforms.
Regional defense spending trends, particularly in the U.S., North Atlantic Treaty Organization (NATO) countries, and Asia-Pacific military powers such as China, India, and South Korea among others further highlight the pivotal role of VPX SBCs in modernizing defense technologies.
The rapid expenditure towards the aerospace industry propels the market growth due to the sector’s reliance on advanced, reliable computing solutions for mission-critical applications. With surging investment in commercial and military aerospace, the need for finally advanced systems to support avionics, real-time data processing, and communication becomes compelling.
The latest report published by Aerospace Industries Association (AIA) shows that the U.S. aerospace and defense industry generated revenues over USD 955 billion in sales, up 7.1% from 2022 to 2023. On the other side, Europe's aerospace and defense industry kept the growth in 2023, with a year-over-year growth in turnover by 10.1% to reach USD 301.87 billion.
The growth of next-generation aircraft and space exploration initiatives drives the need for powerful embedded systems, including VPX SBCs. Moreover, the development of autonomous air vehicles and satellite technology requires scalable and robust computing platforms, that matches the capabilities of VPX SBCs. With the investment of aerospace companies in enhancing their technological infrastructure, the embedded computing solutions find wider applications and foster their position in the industry’s evolution.
The increasing semiconductor industry further boosts the market growth since semiconductors are core component of modern electronic systems, providing the performance, reliability, and miniaturization necessary for the latest computing platforms.
Therefore, such advanced semiconductor parts are witnessing demand from end-users in strategic defense, aerospace, and telecommunication businesses for equipping these equipment’s with unparalleled processing at unrivalled energy efficiency and scalability. For instance, the World Semiconductor Trade Statistics report stated that, global semiconductor sales reached a record USD 526.88 billion in 2023 and are likely to climb to as high as USD 697.18 billion in 2025, a growth of 32.2% over two years.
Furthermore, advancements in semiconductor materials and manufacturing processes especially System-on-Chip technology with high-density packaging enable VPX SBCs to serve as essential components for high-demand advanced reliable computing solutions across multiple sectors.
The industrial growth of VPX SBCs faces a barrier because their development processes have high production costs. The combination of complicated designs along with sophisticated materials and technologies needed to build VPX SBCs drives their high cost and reduces market adoption particularly in small business where cost considerations prevail.
For example, the average selling of finished 12-inch wafers increased by 22.7% from USD 5,384 in Q4 to USD 6,611 in Q4 2023, making it more challenging for smaller players to enter the market. These rising costs creates barriers for new entrants, as only large, well-established companies are able to afford the investment, slowing down the widespread adoption of VPX SBC Market growth.
The introduction of 5G and AI-enabled SBCs creates significant opportunity for the VPX SBC industry. As 5G networks require high-speed, low-latency processing capabilities, AI integration with SBCs enhance their ability to handle complex tasks such as real-time data analysis and decision-making.
VPX SBCs with their robust architecture, are well-suited to support these advanced applications, driving demand for reliable, scalable solutions in sectors such as telecommunications, defense and aerospace. The convergence of 5G and AI technologies presents a future growth avenue for VPX SBCs, as these industries look for powerful, efficient platforms to support next-generation technologies.
The standard VPX SBCs arrive as ready-to-use systems that feature general industrial-prepared configurations. Standard VPX SBCs are extensively used in military applications together with aerospace systems and industrial control solutions because of proven performance characteristics and dependable operation.
These boards obtain high value from their modular nature together with their seamless integration capability and expedited deployment processes. VPX SBC standard platforms match the needs of organizations requiring dependable ready-to-implement solutions while needing minimal customization work. The necessity for standardized systems in defense and aerospace applications driven by regulatory requirements leads organizations to use standard VPX SBCs.
The 3U VPX SBCs are smaller form-factor systems designed to fit in 3U-sized racks that provides compact and space-efficient solutions. The systems are commonly deployed in applications where size and weight constraints are crucial, such as military, aerospace, and industrial sectors.
The 3U VPX SBCs strike a balance between performance and portability, making them ideal for embedded systems, unmanned vehicles, and lightweight mission-critical operations. The growing demand for 3U systems is fueled by the need for compact, high-performance computing solutions in space-constrained environments, including small aircraft, naval vessels, and drones.
The increased investment in the defense sector by the government fuels the VPX SBC market demand in the North America region, with increasing demand from such sectors that require high-density, high-performance computing solutions for mission-critical activities.
Modernization of military technologies, satellite communication, and aerospace innovations collectively lead the demand toward VPX single-board computers. Data from the Stockholm International Peace Research Institute shows the United States boosted its defense budget by USD 55 billion between 2022 and 2023 as part of increased military assistance for Ukraine's war against ongoing aggression. VPX SBCs experience elevated demand because the United States allocates military funding that exceeds combined funding from the following nine national defense leaders China, Russia, India, Saudi Arabia, the UK, Germany, Ukraine, France and Japan.
Moreover, the regional aerospace industry contributes to market expansion because aerospace applications require increasingly sophisticated computational solutions. The increasing production of commercial and defense aircraft, alongside innovations in space exploration technologies, fuels the adoption of reliable and high-performance systems such as VPX single-board computers.
The State of Canada's Aerospace Industry Report - Summer 2024 demonstrated that aerospace activities contributed USD 20.09 billion to national GDP growth and maintained 218,000 jobs by 2024 while demonstrating growth through additional USD 1.18 billion and 5,400 jobs from 2022. The industry achieved export success by delivering worth USD 13.21 billion of goods and services into global markets through active global supply chain participation.
The rapid growth of 5G deployment and the integration of industrial IoT technologies across sectors such as manufacturing, transportation, and energy create significant growth opportunities for the VPX industry in the region. The advancements in 5G enable high-speed, low-latency communication critical for industrial IoT applications, driving the need for reliable and efficient computing platforms including VPX systems.
As per the Asian Insiders, China aims to transition from low-cost manufacturing to an advanced industrial technology hub, driven by significant growth in industrial automation. The factory automation market, valued at nearly USD 150 billion in 2024, is expected to surpass USD 250 billion by 2029. With over six million manufacturing firms contributing 31% of global output, China leads in industrial robot adoption, though exact figures are uncertain due to potential subsidy-related data inflation.
Furthermore, the renowned semiconductor and electronics industry in the region further boosts the VPX SBC market expansion. The strong presence of leading semiconductor manufacturers and advanced electronics production capabilities drives innovation and improves the availability of high-quality VPX systems.
For instance, South Korea's exports increased 1.4% year-on-year in November 2024, reaching USD 56.35 billion, up for 14 consecutive months. This increase primarily driven by a 30.8% surge in semiconductor exports, reaching USD 12.5 billion, a record for the fourth consecutive month.
The VPX SBC industry comprises various key market players such as Curtiss-Wright Defense Solutions, Kontron AG, Mercury Systems, Inc., ADLINK Technology Inc., General Electric Company, Logic Fruit Technologies, Elma Electronic, North Atlantic Industries, Aitech, Extreme Engineering Solutions, Inc, General Micro Systems, Inc., Interface Concept, Acromag, EIZO Rugged Solutions, Sital Technology and others.
These market players are adopting strategies including product launch across various regions to maintain their dominance in VPX SBC industry.
DATE |
COMPANY |
RECENT DEVELOPMENTS |
December, 2024 |
Kontron AG |
Kontron launched the VX6011-S a 6U VPX SBC to enhance performance in demanding applications across various sectors including defense, aerospace, and in other industries. |
September, 2024 |
Logic Fruit Technologies |
Logic Fruit Technologies launched Kritin iXD 6U VPX SBC designed specifically for high-demand applications in the aerospace and defense sectors that support up to 10 cores and features advanced capabilities such as Intel® AVX-512 for enhanced vector processing. |
August, 2024 |
ADLINK Technology Inc. |
ADLINK Technology Inc. launched 3.5-inch SBCs designed specially to meet the growing demands for compact and efficient computing solutions in various sectors including automation, IoT, and edge computing. |
March, 2024 |
Abaco Systems |
Abaco Systems launched SBC3513L designed to provide robust processing capabilities while incorporating FPGA-based Time Sensitive Networking (TSN) Endpoint functionalities, essential for mission-critical systems. |
Standard
Custom
3U
6U
Intel-based Architecture
NXP Power Architecture
ARM Architecture
Low
Medium
High
0-16 GB
16-32 GB
32-48 GB
48-64 GB
Ethernet
InfiniBand
PCI Express (PCIe)
Serial RapidlO (SRIO)
Other Switch Fabrics
Air-Cooled
Conduction-Cooled
Other Cooling Modes
Radar Processing
Electronic Warfare
Signal Processing
Mission Computing
Interrupt Service Routine (ISR)
Military
Land
Naval
Airforce
Aerospace
Industrial
Transportation
Telecommunications
Healthcare
Energy
Others
North America
The U.S.
Canada
Mexico
Europe
The UK
Germany
France
Italy
Spain
Denmark
Netherlands
Finland
Sweden
Norway
Russia
Rest of Europe
Asia-Pacific
China
Japan
India
South Korea
Australia
Indonesia
Singapore
Taiwan
Thailand
Rest of Asia-Pacific
RoW
Latin America
Middle East
Africa
Curtiss-Wright Defense Solutions
Kontron AG
Abaco Systems
Mercury Systems, Inc.
ADLINK Technology Inc.
General Electric Company
Logic Fruit Technologies
Elma Electronic
North Atlantic Industries
Aitech
Extreme Engineering Solutions, Inc
General Micro Systems, Inc.
Interface Concept
Acromag
EIZO Rugged Solutions
Parameters |
Details |
Market Size in 2024 |
USD 209.8 Million |
Revenue Forecast in 2030 |
USD 499.9 Million |
Growth Rate |
CAGR of 14.4% from 2024 to 2030 |
Analysis Period |
2024–2030 |
Base Year Considered |
2024 |
Forecast Period |
2025–2030 |
Market Size Estimation |
Million (USD) |
Growth Factors |
|
Companies Profiled |
10 |
Market Share |
Available for 10 companies |
Customization Scope |
Free customization (equivalent up to 80 working hours of analysts) after purchase. Addition or alteration to country, regional, and segment scope. |
Pricing and Purchase Options |
Avail customized purchase options to meet your exact research needs. |