Embedded operating systems will top a billion units in 2003

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24 October 2001 News

Demand for comprehensive, easy to evolve, and reliable software platforms for OEM electronic products utilising software run-time components is sending growth in the embedded operating systems market soaring. Worldwide embedded OS shipments are expected to increase at a compound annual growth rate of 31%, from 363 million units in 1999 to over one billion units in 2003, according to IDC.

"Proprietary environment operating system (PEOS) and realtime operating system (RTOS) solutions will dominate the analytic framework through 2002, at which time special purpose operating system (SPOS) solutions will burst on the scene," said Paul Zorfass, Senior Analyst at IDC. "Although the PEOS segment will continue to be the largest of all OS classes, we predict its market share will erode to 49% in 2003, from 68% in 1999. The SPOS market, meanwhile, will experience explosive growth, increasing at a 1999-2003 CAGR of 99%. The primary reason for this is the continued dominance of mobile and wireless phones."

Because of demand for mobile and wireless phones and other smart communicators, IDC projects the communications sector - comprising both telecom and datacom - will remain the largest embedded OS market segment, increasing market share from 56% of OS units shipped in 1999 to 59% in 2003. This sector will also grow the fastest, with shipments increasing at a 1999-2003 CAGR of 33%. The office automations market will grow the second-fastest, with shipments increasing 30% during the same time.

Despite lucrative opportunities in the embedded OS industry, several challenges confront many vendors in the market. The biggest one is developing business models with achievable pricing components. "This is difficult to fashion since vendors usually do not have a clear count of units shipped nor do they generally have access to OEM shipment data. In many instances, OEMs do not disclose the number of units shipped," added Zorfass.

For further information contact IDC, (011) 789 6257, [email protected]

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Embedded operating systems will top a billion units in 2003

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