Increasing demand for smart devices coupled with the emergence of new services such as video services has led to increased mobile data traffic, which is one of the factors contributing to ATCA blades market growth. Growing functionality provided by smartphones as compared to conventional phones has led to increased mobile computing which in turn serves higher ATCA blades implementation. Need for fast processing speed in the upper cloud, higher capacity along with network speed and the ability to construct economic service applications are the factors expected to drive the market over the next six years. ATCA server system is expected to facilitate rapid construction of communication systems and enable the services to operate with enhanced functionality and higher flexibility. In addition, utilization of tablet PCs as a next-generation computing device is expected to favorably impact market growth.
Modernization in ATCA system technology coupled with higher performance per watt has resulted in increased demand in aerospace and military applications. The ATCA blades provide network-centric warfare approach coupled with carrier grade reliability. Hence innovative advancements in the military sector are expected to project higher opportunities for market penetration over the forecast period. However, high cost of implementation could pose a challenge on ATCA blades market growth. This is attributed to added costs due to additional components these components include connectors and backplanes among others.
The ATCA blades market can be segmented by product into t-series integrated platforms, packet processing, compute modules, switch & controls, chassis, and hub systems. Increase in adoption of ATCA in military and aerospace applications can be observed in the market. Key market participants include Agilent Technologies Inc., Mercury Computer Systems, Advantech Corp., Kontron AG, and Emerson Network Power.
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In order to ensure business continuity amidst the COVID-19 crisis, business organizations, especially in highly affected countries are allowing their employees to work from home. The increase in people working from home has led to a surge in demand for online video viewing, downloading, and communication through video conferencing, all of which are leading to increased network traffic and data usage. COVID-19 shall accelerate the demand for agile and flexible work styles and further push the adoption of communication services that tend to improve work-life balance. On the flip side, telecom regulators worldwide have postponed their plans of 5G spectrum auction amidst the global pandemic. This is expected to have an impact on the commercialization of commercial 5G standalone deployments and revenue generated through 5G services. The ongoing pandemic has forced telecom operators worldwide to test their network resiliency and revisit their planned investments, especially in 5G technology. The report will account for Covid19 as a key market contributor.