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Searching for the Total Size of the Embedded Software Engineering Market
 

Searching for the Total Size of the Embedded Software Engineering Market

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  • VDC Research Group (VDC) provides exceptionally detailed direct-contact primary market research and consulting services to many of the world's largest technology suppliers, innovative start-ups and leading investors.
  • VDC Research Group (VDC) provides exceptionally detailed direct-contact primary market research and consulting services to many of the world's largest technology suppliers, innovative start-ups and leading investors.
  • The firm is organized around six practices, each with its own focused area of coverage, but all committed to the firm’s core philosophy.
  • This philosophy is applied in our syndicated research and in the wide variety of other services we provide to meet our clients specific tactical and strategic decision support needs. All of our services are built on a foundation of highly skilled professionals applying robust methodologies to VDC’s large and continuously refreshed datasets.

Searching for the Total Size of the Embedded Software Engineering Market Searching for the Total Size of the Embedded Software Engineering Market Presentation Transcript

  • Searching for the Total Size of the Embedded Software Engineering Market?
    FEBRUARY 2011
    WEBCAST
    Steve Balacco– Practice Director
    Christopher Rommel– Senior Analyst
    Jared Weiner – Analyst
    You’re not alone – it’s the most sought after statistic and frequently asked question of VDC
  • Recording Available
    A full audio recording is available for download at:
    http://www.vdcresearch.com/market_research/embedded_software/freeresearch.aspx
  • About Us
    Market Intelligence for Technology Vendors & Investors
    • Direct-Contact Primary Market Research
    • Deeply Segmented Data
    • Expert Insights
    • Validated Results
    Custom Consulting Services for Your Most Critical Business Decisions
    • Research-Based Consulting
    • Transparent Tools & Methodology
    • Highly Customized Survey Guides & Output Templates
    • Sophisticated Market Estimate & Forecast Models
    • Detailed, Flexible Stakeholder Maps & Profiles
    • Industry Development Scenarios
    • Market Opportunity Fit Screening, Rating & Ranking
  • Our Core Coverage Areas
    Embedded Hardware& Systems
    Mobile & Wireless
    AutoID & TransactionAutomation
    Industrial Automation& Control
    Embedded Software & Tools
    Emerging Technologies
  • Ways to Work With Us
    Syndicated Research
    Our syndicated research is the basis for the many ways VDC can help you grow your business. We offer a wide variety of services designed to meet specific tactical and strategic decision support needs. All of our services are built on a foundation of highly skilled professionals applying robust methodologies to VDC’s large and continuously refreshed datasets.
     
  • Today’s Speaker
    Stephen Balacco
    Practice Director, Embedded Software & Tools Practice
    Steve has more than ten years experience conducting market research studies and managing all of the market research programs for VDC’s Embedded Software and Tools practice. His project-related experience is diverse and includes coverage of a number of embedded software technologies for syndicated research including embedded operating systems, software development tools, java, databases, and Linux, Windows Embedded, market statistics, and test automation tools. Steve holds a BSBA from Eastern Nazarene College.
  • Proliferation of Embedded Computing Presenting Opportunity to Solution Suppliers
    > 10 Billion processors ship annually
    98% Embedded
    Multi-billion dollar market for embedded software and tools
    Amount of software content defining system functionality and end product value continues to increase
    Continuing shift to software as a critical element of the device/system engineering process
    Software development costs are greater than 50% of total development costs
    Engineers performing tasks outside of their primary discipline
    Development projects under pressure – > 40% behind schedule
    In 2010, >10 Billion connected embedded devices
    So what is the opportunity?
    Where do I focus my strategy?
    How big is the total market for embedded software engineering?
    What regions and industries are growing the fastest?
    Are my products aligned with types of investments being made by engineering organizations for commercial software solutions?
    What’s the population for the number of embedded engineers and how are they segmented by industry?
  • VDC’s Embedded Systems Market Statistics Model
    Key Inputs to Model
    • The Model–
    • A tool and methodology for estimating and forecasting key metrics in the embedded systems market.
    • Output offers a detailed view of specific data for certain segments of interest across geographies, industries and engineer types.
    • Key metrics describing the growth and health of the embedded industry
    • Number and types of embedded software engineers
    • Number of embedded project starts
    • Commercial products spend
    • R&D labor spend
    • Why should these metrics be important to you?
    • Identifies the potential for development seats
    • Number of project starts reveals opportunities
    • Commercial product spend indicates what type of product investments are being made and inform in formulating product strategies.
    • R&D labor spend – the hidden opportunity for commercial software solution providers.
    Number of Engineers
    Timeon-Task
    R&DSpend
    $B
    Commercial ProductsSpend
  • So How Many Embedded Engineers Are There?
    TMESE Embedded Engineer Estimates
    2009 ~ 820k
    2010 ~ 880k
    YoY growth > 7%
    Software & QA/Test Engineers Grew the Fastest
    Industry View
    Automotive, industrial automation, mil/aero, and telecom/datacom have the largest population of engineers
    Regardless of industry, software engineers represent the largest population
    Key Drivers
    Increasingly complex project requirements, shrinking time-to-market windows
    Anticipated software growth out pacing growth in human engineering resources
    Average embedded project has > one million lines of software code
    >7%
  • Total Market for Embedded Software Engineering
    TMESE Embedded Market Size Estimates
    > $40B market in 2009 growing to nearly $50B in 2010
    Software engineering labor spend represents > 90% for both years
    Industry View
    Automotive, consumer electronics, and mobile phones growing fastest
    Regardless of industry, labor spend dwarfs spend on commercial products
    Key Drivers
    Continued reacceleration of R&D spending; organic embedded device market growth
    Demand for higher levels of connectivity capabilities
    Infiltration of consumer feature sets (UIs, etc.) into new device classes
    Growing demand for COTS SW/tools
    Increasing percentage of total development cost attributable to SW
    >11%
  • Continued Growth Forecasted
    Proliferation of embedded devices/systems
    Improving macroeconomic conditions
    Key Growth Drivers
    Rapid growth of the mobile device market
    Growing complexity and increased software content
    More complex system/hardware components/ architectures
    Implementation of more sophisticated engineering methods
    Utilization of more advanced tools, SW
    Spending on engineering labor represents a large piece of the opportunity for software suppliers – Hidden Opportunity
    If your looking for an embedded market TAM or what VDC calls our TMESE – trends – or opportunities – give us a call
    Modeling Tools
    Development Tools
    Testing Tools
    3rd Party Runtime Software
    Operating Systems
    Spend on Commercial Embedded
    Software Solutions
    Spend on Embedded Software Engineering Labor
    Algorithm Engineers
    Software Engineers
    System Engineers
    Board Engineers
    Test Engineers
    IC/SoC Engineers
    Conclusions
  • Thank You for Attending this VDC Webcast
    For more information please contact:
    Cyril Bernard – Account Directorcbernard@vdcresearch.com|508.653.9000x142
    Stephen Balacco – Practice Director sbalacco@vdcresearch.com|508.653.9000x124
    Christopher Rommel– Senior Analystcrommel@vdcresearch.com| 508.653.9000 x123
    Jared Weiner – Analystjweiner@vdcresearch.com|508.653.9000 x127