The embedded military COTS (commercial off-the-shelf) electronics market will grow at a CAGR (compound annual growth rate) of 6.27 percent, to reach $3.25 billion by 2008, according to VDC (Venture Development Corporation). The US accounted for more than three-quarters of sales in the sector in 2003.

(Source: VDC)
VDC valued the merchant COTS market at close to $2.4 billion in 2003, or 0.4 percent of the total combined North American and Western European defense expenditures for the year. The market includes boards, systems, operating systems, and software development tools.

The United States accounted for 76.4 percent of sales of embedded COTS products that VDC examined. Recent conflicts in Afghanistan and Iraq help explain this high percentage, VDC says. Additionally, some merchant boards and systems shipped to the US were likely resold to foreign governments as part of weapons, aircraft, and vessel sales.

The United States expends twice as much money on military expenses as Western Europe, VDC notes, and accounts for 47 percent of military expenditures worldwide.

The findings above are from VDC's report Embedded COTS Systems in Military, Aerospace, and Defense: North American and European Market Assessment. Information about the report is available online.

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