VPX SBC Market is Expected to Reach USD 499.9 Million by 2030

The rising military expenditure and increasing semiconductor industry are significantly boosting the VPX SBC market growth.  

The global VPX SBC market size valued at USD 209.8 million in 2024 and is expected to reach USD 499.9 million at a CAGR of 14.4% during the forecast period of 2025-2030.

Rapid expenditure towards the military sector supports the VPX SBC market demand as defense sectors upgrades their systems to meet the needs in critical situations. VPX SBCs important role in applications including radar systems, UAVs, and electronic warfare are based on computational performance and robust design. As per the Stockholm International Peace Research Institute report, defense spending reached USD 2.44 trillion in 2023 from USD 2.28 trillion in 2022, an increase of 6.8%. 

Moreover, ongoing investments into defense electronics research development trigger faster adoption rates of VPX SBCs due to their focus on network-centric warfare. The deployment of unmanned systems and the demand for durable solutions in extreme conditions emphasize their significance in military platforms. Regional defense spending trends particularly in the U.S., NATO countries, and Asia-Pacific military powers such as China, India, and South Korea, underscore the essential role of VPX SBCs in advancing defense technologies.

Furthermore, rapidly expanding semiconductor industry further drives the market growth as semiconductors form the core of modern electronic systems, driving performance, reliability, and miniaturization of advanced computing platforms. It finds applications in sectors like defense, aerospace, telecommunications, and industrial automation, among others, because such advanced semiconductor components are capable of delivering superior processing power, improved energy efficiency, and scalability.

The World Semiconductor Trade Statistics reports that the global semiconductor sales reached USD 526.88 billion in 2023 and are expected to reach USD 697.18 billion by 2025, up 32.2% in two years. 

Also, improvements in semiconductor materials and production methods, such as system-on-chip configurations and high-density packaging, are boosting the functionalities of VPX SBCs. These advancements respond to the growing need for sophisticated, dependable, and strong computing solutions in multiple sectors.

However, the high development costs of VPX SBCs, driven by complex designs and advanced materials, pose a significant challenge to market growth. Rising prices such as the 22.7% increase in 12-inch wafer costs from USD 5,384 to USD 6,611 in Q4 2023, limit adoption in cost-sensitive sectors and hinder market entry for smaller players, restricting widespread adoption and overall growth of the industry.

On the contrary, the emergence of 5G and AI-enabled SBCs offers significant opportunities for the VPX SBC market expansion. VPX SBCs meet the high-speed, low-latency demands with their robust architecture of 5G and enable complex AI-driven tasks including real-time data analysis. This positions them as essential solutions for advancing technologies in sectors such as telecommunications, defense, and aerospace.

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According to the report, leading players operating in the VPX SBC market include 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. For instance, in December 2024, 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.

Moreover, in September 2024, 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.

Key Insights from the VPX SBC Market Report:  

• The information related to key drivers, restraints, and opportunities and their impact on the VPX SBC market is provided in the report.

• The value chain analysis in the VPX SBC market study provides a clear picture of the roles of each stakeholder.

• The report provides an analysis of the VPX SBC market share and competitive landscape of key players in the industry.