The embedded hypervisor market size is expected to grow from US$ 5,046.7 million in 2021 to US$ 7,823.2 million by 2028; it is estimated to grow at a CAGR of 6.5% during 2021-2028.
An RTOS enables real-time applications to process incoming data without significant buffering delays. Embedded hypervisors are considered to be the best security practices for network devices, as they protect hostile networks. These hypervisors run specific programs efficiently, with layered frameworks offering adequate modules protection. Due to technological advancements and increased adoption of IoT and AI in various industrial verticals, such as the automotive industry, aerospace and defense industries, and IT and telecom, the demand for embedded hypervisors has increased.
The market for embedded hypervisors is experiencing rapid growth in the automotive industry due to the increasing popularity of electric vehicles. This trend is fueling market growth as advanced driver assistance systems (ADAS) become more prevalent, using sensors like cameras and radars. The growing adoption of V2I and V2V features also boosts the market for embedded hypervisors.
The aerospace & defense industry is experiencing a growing need for layered-based security in critical components and systems. Real-time operating systems also contribute to the demand for embedded hypervisors. Many real-time applications require safety, security, and virtualization support. Moreover, increasing geopolitical tensions between neighboring countries such as India, China, and Pakistan, and ongoing wars in regions such as Russia and Ukraine and the Middle East & Africa have led governments to spend heavily on developing their defense security. For instance, the US Department of Defense (DOD) has requested $715 billion in funding, India's Defense budget for 2022-2023 is estimated at US$ 54.20 billion (Rs 4,05,470.15 crores), Saudi Arabia's 2021 defense budget totaled US$ 46.7 billion, and Russia's national defense budget is set to total $154 billion through 2022. As a result, the increasing defense budget has created numerous profitable opportunities for key vendors of embedded hypervisors.
Impact of COVID-19 Pandemic on Embedded Hypervisor Market
The emergence of the COVID-19 pandemic in 2020 had a profound impact on the global economy, and the crisis disrupted business operations in the IT industry. Prior to the outbreak, the embedded hypervisor market was experiencing significant growth, driven by the increasing demand for IoT platforms, adoption of artificial intelligence and cloud computing across various industries such as healthcare, smart homes, smart buildings, smart cities, transportation, and manufacturing. There were significant investment initiatives underway to facilitate the massive shift in the manufacturing sector towards industry 4.0 and the widespread adoption of IoT in various enterprises. However, the onset of the COVID-19 pandemic slowed down the deployment and investment in IoT and cloud-based solutions, which adversely affected the growth prospects of the embedded hypervisor market. The pandemic imposed severe restrictions on business deals, collaborations, and partnerships, significantly impeding the growth of the embedded hypervisor market.
The embedded hypervisor market is categorized based on technology, enterprise size, component, industry, and geography. Regarding technology, the market is segmented into desktop virtualization, server virtualization, and data center virtualization. The desktop virtualization segment had the largest market share in 2021. Based on enterprise size, the market is divided into small and medium enterprises and large enterprises, with the large enterprises segment having a larger market share in 2021. The market is segmented based on components into solutions and services, with the solution segment accounting for a larger market share in 2021. The industry segment includes BFSI, IT and telecom, aerospace and defense, automotive, healthcare, transportation, and others, with the BFSI segment having the largest market share in 2021. Geographically, the embedded hypervisor market is segmented into North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South America (SAM), with North America having the largest market share in 2021.
The Embedded Hypervisor market size has been determined using a combination of primary and secondary sources. The research process began with extensive secondary research from both internal and external sources to gather qualitative and quantitative information related to the market. This process also helped in obtaining an overview and forecast for the Embedded Hypervisor market across all segments, as well as the five major regions of North America, Europe, Asia Pacific, Middle East & Africa, and South America. Furthermore, primary interviews were conducted with industry participants such as VPs, business development managers, market intelligence managers, national sales managers, and external consultants including valuation experts, research analysts, and key opinion leaders who specialize in the Embedded Hypervisor market. This was done to validate data and obtain more analytical insights.
The key companies operating in the Embedded Hypervisor market include Citrix Systems, Inc.; IBM Corporation; Microsoft Corporation; VMware, Inc.; Wind River Systems, Inc.; NXP Semiconductors; Thales Group; Fent Innovative Software Solution; S.L.; Lynx Software Technologies; and Siemens AG.