VDC Expects Rugged-Industrial Computer Systems to Grow 3.9% Annually
4/8/2004 - According to a recent study by Venture Development Corporation, "North American and Western European Market Demand for Ruggedized/Industrial Computer Systems," shipments of ruggedized/industrial computer systems to markets in North America and Western Europe are estimated to have totaled $91 million of U.S. dollars in 2003 for energy, utilities, and transportation infrastructure applications.
The combined total is expected to increase at a 3.9% Compound Annual Growth Rate (CAGR), reaching $102 million in 2006.
Shipments and Shipment Forecasts of Ruggedized/Industrial Computer Systems for Energy, Utilities, and Transportation Infrastructure Applications to Markets in North America and Western Europe
| Forecast | |||||
| 2003 | 2004 | 2005 | 2006 | CAGR | |
| Dollar Volume(in Millions) | 91 | 95 | 99 | 102 | 3.9% |
| Units | 25257 | 26821 | 28432 | 29807 | 5.7% |
| Average Selling Price (Dollars) | 3603 | 3542 | 3482 | 3422 | -1.7% |
 | | | | | |
Unit shipments to these markets are expected to increase at a 5.7% CAGR over the forecast period, with a decline in the average selling price of 1.7% per year. Following are some of the more significant factors leading to lower prices:
- Decline in the price of commodity components - components such as microprocessors and displays have experienced a drop in price; these savings have been passed on to manufacturers of ruggedized/industrial computer systems.
- Competition - new market entrants are helping to keep price competition strong.
- Reduced time to market - greater use of common components and open software is decreasing the time it takes to manufacturer these systems.
- New technology - new microprocessors that are more energy-efficient require less expensive heat-dissipation packaging.
VDC Industrial Automation Practice Director Jim Taylor adds, "Price decline expectations would be even sharper were it not for offsetting factors that will tend to increase or hold prices steady. These include general inflation of labor and material costs, and the introduction of more functionality, along with new and better technologies."
About VDC
Founded in 1971, VDC is a technology market research and consulting firm that specializes in industrial and commercial electronics, computing, communications, software and power systems markets.
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