LONDON--(EON: Enhanced Online News)--Technavio market research analysts forecast the global advanced telecommunications computing architecture (ATCA) CPU blades market to grow at a CAGR of more than 10% during the forecast period, according to their latest report.
“The growing focus on leveraging network infrastructure across the globe is one of the growth drivers for the market.”
The market study covers the present scenario and growth prospects of the global ATCA CPU blades market for 2016-2020. The report also lists communications and network infrastructure; transportation, military, and aerospace; industrial and medical equipment and others as the four major end-user segments for the market. Communications and network infrastructure emerged as the market leader with a share of over 80% owing to the worldwide growth of data traffic.
According to Sunil Kumar Singh, a lead analyst at Technavio for embedded systems research, “The growing focus on leveraging network infrastructure across the globe is one of the growth drivers for the market.”
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Technavio hardware and semiconductor analysts highlight the following four market drivers that are contributing to the growth of the global ATCA CPU blades market:
- Rapid increase in data traffic
- Increased deployment of next-generation LTE wireless networks
- Rapid data explosion in networks
- Increase in number of devices connected through IoT and M2M modules
Rapid increase in data traffic
The increased use of smartphones, tablets, and other wireless communication devices has resulted in an increase in mobile data traffic in recent years. The increase in mobile video content also adds to the increased mobile data traffic. The mobile data crossing a network will exceed 30 exabytes per month and video traffic will account for more than 70% of the total data consumed by 2020. Therefore, to increase the capability and reduce the cost per bit, mobile network operators are increasingly implementing ATCA for 3G and LTE packet core systems.
Increased deployment of next-generation LTE wireless networks
The exponential growth in network traffic because of the increased popularity of communication devices has led to the growth of LTE technology. Thus, there is continued global deployment of next-generation LTE wireless networks such as 3G and 4G that provide carriers with the necessary bandwidth to meet the required network traffic demand. ATCA systems provide network operators with a platform to reduce their capital expenditure by deploying services such as voice over long-term evolution (VoLTE). These systems also provide new personalized and synchronized data-rich mobile applications to the customers.
Rapid data explosion in networks
Enterprise data is generated through different sources including web applications, social networks, cloud computing, and mobile computing. There is a rapid growth in digital content being transmitted across networks. Technavio’s market analysis shows that the amount of digital information worldwide is doubling every two years. By 2020, it is expected that the worldwide digital information would account for around 45,000 exabytes, out of which one-third of the information can be used for analysis purposes. However, in 2015, not more than 1% of the digital information available worldwide was being used by organizations for analysis.
Large data blocks require faster and high-performance computing and large storage space for storage. The complex computations to be performed on large data blocks are leading to higher demand for ATCA CPU blades.
“The big data must be easily accessible to end-users and efficient computing must be performed to derive desired conclusions for better decision making. This need to manage big data has led to the adoption of ATCA CPU blades in enterprises,” says Sunil.
Increase in number of devices connected through IoT and M2M modules
It is estimated that there will be over 25 billion devices connected through IoT and M2M modules in 2020, and they will account for 40% of the devices. IoT involves M2M communication, helping devices to exchange information without the need of any human-to-human or human-to-computer interaction. The installed base of cross-industry IoT devices, such as heating, ventilation, and air conditioning (HVAC) systems, building management systems, and connected light bulbs, will reach 1.01 billion by 2016. Thus, IoT is driving the demand for connected devices, which have significantly increased the bandwidth requirements.
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