Today, the world around us is becoming increasingly digital as companies and consumers alike begin to adopt and leverage new technology like the edge and enter the age of software. Edge technology is already transforming the way work gets done, with faster speeds and more versatility, scalability, and security. Collaboration and integration spaces are changing, as suddenly, it is commonplace for a manufacturer to be able to upgrade their systems to new heights with simple software changes.
Edge-enabled software is seeping into every industry today as more companies realize the various benefits the technology has to offer when it comes to daily work processes. Businesses are finding that adopting edge computing software can dramatically improve performance by achieving the next level of security, such as edge-based threat detection, data minimization, and decentralized infrastructure.
Overall, the edge software global market size came in at 36.5 billion to end out 2021, but with adoption in every field, that number is predicted to rise substantially. Expected to grow at a CAGR of 19 percent over the next five years, experts anticipate the edge software global market size to reach 87.3 billion by the end of 2026.
The flexibility and range of uses edge software can have are what is really driving the technology’s adoption in all industries. Telecommunications, industrial manufacturing, and even the future of automotive transportation can all be optimized with the help of edge-enabled software, which is why companies today are looking to bolster their edge portfolios in any way possible as we move forward into a software-defined future.
Recently, Aptiv PLC, a global technology company focused on making mobility safer, greener, and more connected, announced a definitive agreement to acquire Wind River® from TPG Capital, the private equity platform of global alternative asset management firm TPG, for $4.3 billion in cash.
Wind River is a global leader in delivering software for the intelligent edge. Used on over two billion edge devices across more than 1,700 customers globally, Wind River’s software enables the secure development, deployment, operations, and servicing of mission-critical intelligent systems. This edge-to-cloud software portfolio spans the aerospace and defense, telecommunications, industrial and automotive markets and is anchored by Wind River Studio, a highly versatile, comprehensive cloud-native intelligent systems software platform that enables full product lifecycle management for edge-to-cloud use cases. Wind River generated approximately $400 million in revenues in 2021.
“Wind River has established itself as a worldwide leader in cloud-native, intelligent edge software that delivers the highest levels of security, safety, reliability, and performance,” said Kevin Dallas, president, and chief executive officer of Wind River. “Combining Wind River’s industry-leading software, customer base, and talent with Aptiv’s complementary technologies, global resources, and scale will realize our vision of the new machine economy. Together we will accelerate the digital transformation of our customers across industries through best-in-class intelligent systems software. We look forward to working with the Aptiv team to reach even greater heights and provide further growth opportunities for our customers and partners.”
The acquisition allows Aptiv to execute against the large software-defined mobility opportunity and expand into multiple high-value industries with Wind River’s world-class team and leading intelligent systems software platform. The combination will enable multiple end-use innovations and applications, particularly as compute and processing continues to move closer to the edge and connected devices, including vehicles, expand in complexity and capabilities.
“The automotive industry is undergoing its largest transformation in over a century, as connected, software-defined vehicles increasingly become critical elements of the broader intelligent ecosystem,” said Kevin Clark, president, and chief executive officer of Aptiv. “Fully capitalizing on this opportunity requires comprehensive solutions that enable software to be developed faster, deployed seamlessly and optimized throughout the vehicle lifecycle by leveraging data-driven insights.”
“These same needs are driving the growth of the intelligent edge across multiple end markets. With Aptiv and Wind River’s synergistic technologies and decades of experience delivering safety-critical systems, we will accelerate this journey to a software-defined future of the automotive industry. In addition, we are committed to further strengthening Wind River’s competitive position in the multiple industries it serves. We look forward to welcoming the world-class Wind River team to the Aptiv family as we continue to develop a safer, greener, and more connected world.”
Aptiv will combine Wind River Studio offering with its complementary SVA™ platform and automotive expertise to extend its position in automotive software solutions, providing automotive customers with a faster and economical path to full vehicle software architecture. Led by Kevin Dallas, Wind River will continue to operate as a stand-alone business within Aptiv as part of the Advanced Safety & User Experience (AS&UX) segment.
“It has been a privilege to partner with Kevin Dallas and the management team to transform Wind River into a leader in the intelligent systems market,” said Nehal Raj, co-managing partner, and Art Heidrich, principal at TPG Capital. “The mission-critical industries they serve are digitally transforming at a rapid pace, and we see significant opportunity ahead as companies look to adopt innovative software solutions that allow them to leverage data to make better and faster decisions. We are excited to see what Wind River and Aptiv will accomplish together.”
Edited by Luke Bellos