Military Embedded COTS Computer Board Market to Grow

The market for merchant embedded COTS computer boards in military/aerospace/defense applications is projected to grow in North America and Europe over the next two years according to a new research report on the market released by VDC. The market totaled US$ 766.8 million in 2006, with North America responsible for a 75% share of this and Europe the remaining 25%. The market is expected to reach US$ 983.4 million by 2009 with Europe increasing its share to 26%. While the European market will gain share, spending in both regions will grow.

Regional COTS Merchant Board Markets, North America & European Union,
2006 & 2009 (% of Dollar Volume Shipments)
Regional COTS Merchant Board Markets

The market is projected to grow as a result of two important growth factors.

The first is increased use of more complex military systems, such as unmanned autonomous vehicles (UAVs), which require heavy processing capability. Systems such as these comprise a higher usage of embedded boards and systems, creating increased demand for these products.

The second is the expansion and proliferation of military communications into other application areas. Future Combat Systems and the latest military equipment links people with one another, and with vehicles, aircraft, ships, and command centers. Many applications areas now require embedded computers to enable this communication. In addition, applications that previously included embedded computers now require more powerful systems to enable a higher level of communication and functionality. The increase in military communications also creates a new requirement to process, route and if necessary store all of the new data that is created by having a greater number of connected elements in the military telecom/datacom network.

The EU market is projected to show slightly higher growth. European military spending, both internal and external to the European Union, is expected to increase as some of the old European powers (e.g., France, Germany and Russia) wish to play a larger part in ensuring the security of the world. In addition, certain Eastern European nations, after years of fast-paced economic growth, are beginning to have the wherewithal and the stability required to invest in advanced military technology.

Venture Development Corporation (VDC) is an independent technology market research and strategy consulting firm that specializes in a number of industrial, embedded, component, retail automation, RFID, AIDC, datacom/telecom, and defense markets. VDC has been operating since 1971, when the firm was founded by graduates of the Harvard Business School and Massachusetts Institute of Technology. Today, we employ a talented collection of analysts and consultants who offer a rare combination of expertise in the market research process; experience in technology product and program management; and formal training in engineering and marketing. VDC’s clients include thousands of the largest and fastest-growing technology suppliers in the world and the most successful investors participating in the markets we cover.