More Embedded Linux Market Highlights

VDC expects that the sale of commercial products and services in the embedded market will continue to experience strong growth across the major geographic regions. The Americas region is expected to be the largest market for commercial Linux software in 2005. The EMEA region will be the fastest-growing market for embedded Linux solution through 2007.

Linux continues to receive broad acceptance within a growing number of embedded verticals. The platform’s flexibility and the demand for increased connectivity and functionality continue to drive developers to the operating system. The consumer electronics, telecom/datacom, military/aerospace, and industrial automation industries were significant markets for embedded Linux solutions.

MontaVista was the leading vendor of Linux-based embedded solutions in 2004. However, Wind River System’s entrance into the Linux market will considerably impact the competitive landscape, as VDC expects explosive Linux growth from the company in 2005.

In addition to competing against rival commercial Linux vendors, market participants also face threats from the open source community, semiconductor vendors, board vendors, and other competitive operating system vendors, including Microsoft and others.