North American and Western European market demand for ruggedized/industrial computer systems is expected to grow at a compound annual growth rate (CAGR) of 4.4 percent, reaching approximately $1.9 billion by 2006, according to a recent report published by market analyst firm Venture Development Corp. (VDC).

(Source: VDC © 2004)
Through the late 90s, Communications showed the greatest demand for ruggedized computer systems, but the segment underwent a well-documented contraction between 2000 and 2004, according to VDC. The Communications segment is now beginning to recover, although growth expectations through 2006 remain modest at 4.5 percent, in VDC's view.

VDC's latest research forecasts that the Defense & Aerospace markets will experience the highest growth rates, swelling 5.0 percent annually through 2006. Factors driving demand in Defense and Aerospace applications, according to VDC, include:

• The changing worldwide political environment, which has impacted defense budgets, particularly in regards to countries acquiring more weapons.
• Expanding use of computers, as controllers, in defense and aerospace systems.

VDC's full report, “North American and Western European Market Demand for Ruggedized/Industrial Computer Systems,” is available here.

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