Modest gains forecast for ruggedized computer market

Demand for ruggedized industrial computer systems in North America and Western Europe is expected to grow at a compound annual growth rate (CAGR) of 4.4% between 2003 and 2006, a recent Venture Development Corp . report shows. Although highest growth rates are anticipated in the defense and aerospace markets—estimated at 5% CAGR through 2006, the report states—the industrial automation control and instrumentation segment was second in market size, forecast to achieve a 3.5% CAGR. Estimated shipments in U.S. dollars for the automation control segment are expected to rise to $537 million by 2006, up from $484 million in 2003, according to the VDC research .

Factors driving demand in defense and aerospace applications, says the study, include a changing worldwide political environment, which has affected defense budgets; and the expanding use of computers as controllers in defense and aerospace systems. Through the late 1990s, communications experienced high demand; however, this segment underwent a significant contraction between 2000 and 2004. The communications market is beginning to recover now, but predicted growth rates remain modest through 2006 at 4.5%.

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—Jeanine Katzel, senior editor, Control Engineering, jkatzel@reedbusiness.com

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