Beruflich Dokumente
Kultur Dokumente
Summary
Market Overview
The electromagnetic compatibility (EMC) and electromagnetic interference (EMI) testing
services market for aerospace and defense in the United States is projected to grow, despite an
expected decrease in defense spending. The growth of the overall market largely depends on
the progress made in contractual requirements and sophistication of unmanned aerial vehicles (UAV). The future of the EMC test services market is also tied to the growing
development and complexity of electronic systems in flight operations, which have increased
concerns for the safe operations of these systems. Overall, the future looks bright for the
EMC testing services market in the aerospace and defense segment, which help prevent costly
redesigns for customers and ensure required compliance with standards.
Prices are relatively stable and charges increase depending on specific demand requirements.
"There is a wide range and sometimes prices are very competitive and other times very
specialized, but prices are stable in different regions and charges increase depending on
demand", sustained a leading EMC testing services vendor. "Actually, prices vary on the
East coast and are stable on the West Coast", added another leading vendor.
In 2011, the total EMC testing services in the U.S. aerospace and defense market generated
$91.3 million in revenue. This market is expected to reach $129.0 million in 2016, with an
estimated compound annual growth rate (CAGR) of 7.2 percent from 2011 to 2016.
Frost & Sullivan believes that sustained growth in the aerospace and defense EMC testing
services market will occur during the next few years. The overall market growth is expected
to be steady due to maintenance and product improvement programs for existing aerospace
and defense systems for the next few years.
Chart 1.1 shows the Market Engineering measurements for the U.S. aerospace and defense
EMC testing services market in 2011.
#9840-30
www.frost.com
Chart 1.1
Aerospace and Defense EMC Testing Services Market: Market Engineering Measurements,
U.S., 2011
Challenge
Identification
Market
Engineering
System
Market
Research
Market
Engineer
Market
Strategy
Implementation
Market
Planning
Measurement Name
Measurement
Trend
Development stage
--
$91.3 million
Increasing
$129.0 million
Increasing
6.8%
Increasing
7.2%
Stable
Stable
Stable
High
Stable
More than 30
Stable
Stable
Stable
Degree of competition
Increasing
High
Increasing
Customer satisfaction
Stable
Customer loyalty
Stable
44.8%
Stable
Market age
Revenues
Potential revenues (maximum future market size)
Average price
Price range
Price sensitivity
Competitors (active market competitors in base year)
Note: All figures are rounded. The base year is 2011. Source: Frost & Sullivan analysis.
#9840-30
www.frost.com
Competitive Overview
More than 30 companies existed in the EMC testing services market for the U.S. aerospace
and defense industry in 2011. This is a market with well-defined companies. The entry
barrier is extremely high due to significant investments required in testing equipment and
expertise. The top market participants include Dayton T. Brown, Elite Electronic Engineering, Inc., National Technical Systems, Wyle Laboratories, and Intertek.
Key factors that determine market success are: having the technical capabilities required for
the full range of testing services, a number of local test laboratories across the country, and
participation in standards committees to set and meet standards ahead of competition. The
facilities ranged from low-end laboratories with skeletal staff to large corporations with very
high-end capabilities focused on hard testing. A lot of competitors are moving toward the
hard-testing arena. Most surviving laboratories are operating on a single-shift basis. Larger
corporations are either forming partnerships with smaller competitors or buying strategic
niche service providers to become more diverse providers of testing services and increase
market penetration. An example is National Technical Systems, Inc., (NASDAQ: NTSC) with
the acquisition of Lightning Technologies, Inc., (LTI), a market leader in lightning protection.
Service providers are striving to increase value for customers by focusing on the full product
lifecycle from designing to environmental evaluation, to designation of military standards
and test reports. EMC testing providers are striving to meet the increasing demand for
cost-effective and strong product design in the aerospace and defense industry.
Aerospace
and
Defense
EMC
Te s t
Services
Market
Market Scope
Testing services in this study include EMC testing, EMI testing, and high-intensity radiated
fields (HIRF) testing on electronic systems, commercial aircraft avionics, power-generating
equipment, and other flight-support testing services. The research includes radiated emission
testing and radiated magnetic field testing services on military vehicles and defense equipment. The research focuses on EMC testing services covering all requirements of all versions
of MIL-STD-461/462 and RTCA DO 160.
The objective of this research is to assess the market for EMC testing services in the U.S.
aerospace and defense industry in 2011 and forecast the market growth for the next five
years. In addition, the research also analyzes the competitive landscape and provides an
understanding of the market shares of the leading market participants.
#9840-30
www.frost.com
The U.S. aerospace and defense EMC test services market generated $91.3 million in revenue
during 2011.
Aerospace and Defense EMC Testing Services Market: Market Drivers Ranked in Order of
Impact, U.S., 2012-2016
Rank
Driver
1-2 Years
3-4 Years
5 Year
High
High
High
Medium
High
High
Medium
High
High
#9840-30
www.frost.com
S o p h i s t i c a t i o n o f U AV s t o P r o p e l D e m a n d f o r E M C
Te s t i n g S e rv i c e s
The speed of development and sophistication of UAV systems holds significant potential for
EMC testing service providers. According to research, UAV systems show rapid growth from
military and civil government programs. The effectiveness of UAVs in providing real-time
information has contributed to their adoption. As technology changes to support UAVs, regulatory measures need to evolve to ensure safety. To date, the deployment of these technologies
has been limited. However, the rate of development and sophistication of UAVs is expected to
accelerate in the United States during the next three to five years, which augurs well for the
growth of the EMC testing services market.
Wireless Capability and Increased Number of
Electronics Systems in Aircraft to Provide a Number of
G r ow t h O p p o r t u n i t i e s f o r t h e E M C Te s t i n g S e rv i c e s
Market
The last several years of constant large-scale deployments have deteriorated all types of aerospace and defense equipment. The need for repair and equipment upgrades in addition to the
increased amount of complex electronic systems and armament systems in extreme environments increase concerns about safety and drive demand for EMC testing services.
Plenty of opportunities for the U.S. aerospace and defense EMC testing services market are
expected to come from the increasing sophistication of systems featuring higher wireless
capability, frequency ranges greater than 1 GHz, and higher power levels for sensitivity
testing. During the past decade, wireless technology has received a lot of interest. The
increase in technology available to the public increases the risk of RF interference, making
EMC testing increasingly valuable.
In addition, an industry trend across various applications is to make equipment with a
greater number of different types of electronics. An increasing number of electronic systems
and advanced materials in flight operations are expected to promote the growth of EMC
testing services in the U.S. aerospace and defense industry. For certain environments, faster
switching rates are impacting electronic systems and becoming an important driving factor
for EMC testing services.
These new opportunities are expected to bring higher demand for EMC testing services and a
more robust market throughout the forecast period.
#9840-30
www.frost.com
Aerospace and Defense EMC Testing Services Market: Market Restraints Ranked in Order of
Impact, U.S., 2012-2016
Rank
Restraint
1-2 Years
2-3 Years
5 Year
Medium
Medium
High
Medium
Medium
Medium
Medium
Medium
Low
#9840-30
www.frost.com
L ac k o f Q ua l i t y o f S e rv i c e L i m i t s E M C Te s t i n g S e rv i c e s
Demand in the United States
Despite the enforcement of legal contractual requirements, there is a lack of quality of service
in the industry affecting the test report, with variations between service providers in terms of
engineering support and meeting the latest industry standards. Until a higher level of service
and engineering content is provided by EMC testing service providers to customers to facilitate interpretation of results, the demand for EMC testing services is likely to remain limited.
D i f f i c u l t y i n M e e t i n g N e w E M C Te s t i n g Sta n da r d s
Limits Growth
One of the key challenges in the EMC testing services industry is specifications. As technology changes, standard committees revise standards and service providers are challenged to
keep up with those changes to run laboratory tests and record data accurately. To address
this challenge, several Tier I companies participate in committees to get ahead of the competition by participating in defining those standards. However, smaller participants lack time
and resources for those activities. This represents a continuous challenge in the market and
limits growth for the industry.
Revenue Forecast
Figure 1-3 and Chart 1.2 indicate the revenue forecast for the U.S. aerospace and defense
EMC testing services market from 2011 to 2016.
Figure 1-3
Aerospace and Defense EMC Testing Services Market: Revenue Forecast, U.S., 2011-2016
Revenue
Revenue
Growth Rate
Year
($ Million)
(%)
2011
91.3
6.8
2012
97.5
6.8
2013
104.4
7.1
2014
111.7
7.0
2015
119.9
7.3
2016
129.0
7.6
#9840-30
www.frost.com
Chart 1.2
140.0
7.8
120.0
7.6
100.0
7.4
80.0
7.2
60.0
7.0
40.0
6.8
20.0
6.6
0.0
2011
2012
2013
2014
2015
2016
Revenue
91.3
97.5
104.4
111.7
119.9
129.0
Growth Rate (% )
6.8
6.8
7.1
7.0
7.3
7.6
Revenue ($ Million)
Aerospace and Defense EMC Testing Services Market: Revenue Forecast, U.S., 2011-2016
6.4
Year
Note: All figures are rounded. The base year is 2011. Source: Frost & Sullivan analysis.
The U.S. EMC testing services market is expected to remain flat or witness a slightly decelerating growth rate from 2013 through 2014, partially due to the threat of lower government
spending on defense. However, overall research indicates that growth is expected to be
sustained and arise from several fronts as explained in the Drivers section of this deliverable.
The current level of demand is the result of new upgrades of aircraft, increased complexity of
electronics and sophistication of UAVs, and an increase in enforcement levels of standards.
Frost & Sullivan believes the next few years will see sustained growth in the aerospace and
defense EMC testing services market. The overall market growth is expected to be steady due
to current and future stable demand. This trend is likely to continue unless further reductions
in defense spending occur or new EMC standards are enforced.
As stated previously in this deliverable, the U.S. Aerospace and Defense EMC testing services
market generated $91.3 million in revenue during 2011. The market is highly fragmented.
While additional research would be required to establish the market size by region, primary
research indicates that the Pacific North region generated about $20.4 million in 2011.
#9840-30
www.frost.com
Competitive Structure
Figure 1-4 gives a snapshot of the competitive structure in the U.S. aerospace and defense
EMC testing services market in 2011.
Figure 1-4
Aerospace and Defense EMC Testing Services Market: Competitive Structure, U.S., 2011
Number of Companies in the Market
More than 30
Leading Providers
Tiers of Competition
Competitive Factors
Price
Location and number of laboratories across the country
Full service offering
Hard and high-power testing
Participation in standard committees
Capabilities of trained personnel
Source: Frost & Sullivan analysis.
The entry barrier to the U.S. aerospace and defense EMC test services market is extremely
high from a technological investment standpoint. Certainly, an investment of $1 million is
required for those companies starting from scratch.
This is a market with well-defined companies. Companies need to identify their core competencies to differentiate themselves. A strong need exists for leading providers to increase the
scope of their laboratories' capabilities to cover the full range of testing services. EMC
testing mainly occurs at the product testing stage to check for emission, immunity, or both.
However, some manufacturers only find out emission problems with their products once they
fail compliance testing. By this time, product development is almost complete, and going
back to the design stage is time-consuming, while on time delivery is essential for market
leadership and/or to gain market share. This is a key reason why customers prefer providers
that act as a one-stop shop offering a full range of testing services.
Moreover, strong trained senior personnel are needed to simplify the test setup and be able to
perform testing in the same laboratory and location a manufacturer might need. Laboratories
should be local to facilitate transportation. The EMC test services market lays high importance on maintaining strong customer relationship.
#9840-30
www.frost.com
One of the most significant challenges faced by market participants is keeping up with new
standards. Leading companies participate in standards committees to meet customer requirements faster than their competitors. Service providers willing to understand new standards
and make the required investments in equipment and time are expected to be ahead of their
competitors.
Dayton T. Brown
Wyle Laboratories
Intertek
However, the market for testing services is very fragmented and a number of stand-alone
companies are providing EMC test services on a regional basis.
Figure 1-5 and Chart 1.3 show the revenue market share analysis of major market participants in the U.S. aerospace and defense EMC testing services market in 2011.
Figure 1-5
Aerospace and Defense EMC Testing Services Market: Revenue Market Share Analysis of
Major Market Participants, U.S., 2011
Revenue ($ Million)
Dayton T. Brown
15.3
16.8
14.2
15.6
11.3
12.4
Wyle Laboratories
10.8
11.8
7.4
8.1
Others
32.3
35.3
Total
91.3
100.0
Companies
Intertek
Note: Others include Advanced Compliance Solutions, Alion Science and Technology Corp, CKC
Laboratories, D.L.S. Electronic Systems, Inc., DNB Engineering, Inc., EMC Integrity, E-labs, Garwood
Laboratories, L3 Communications, METLaboratories, MTK Electronics, NAVAIR, Retlif Testing
Laboratories, Rhein Tech Laboratories, and TV SD America Inc, among others
Note: All figures are rounded. The base year is 2011. Source: Frost & Sullivan analysis.
#9840-30
www.frost.com
10
Chart 1.3
Aerospace and Defense EMC Testing Services Market: Revenue Market Share Analysis of
Major Market Participants, U.S., 2011
Dayton T. Brown
16.8%
Others
35.3%
National Technical
Systems
15.6%
Elite Electronic
Engineering
12.4%
Intertek
8.1%
W yle Laboratories
11.8%
Note: All figures are rounded. The base year is 2011. Source: Frost & Sullivan analysis.
The top five participants in the aerospace and defense EMC test services segment contributed
64.6 percent of the total market revenue. Dayton T. Brown led the pack in 2011 with
16.8 percent. Dayton T. Brown and NTS are expected to dominate the market throughout the
forecast period due to the breadth of testing services they offer to customers and their participation in standards committees.
Dayton T. Brown is expected to dominate the market throughout the forecast period with a
market share of 16.8 percent in 2011. The company is especially strong in electromagnetic
pulse (EMP) (Method RS105) testing. Dayton offers testing services for equipment situated
outside to a hardened facility or nonmetallic platforms for safety-critical equipment. Dayton
covers the basic scope of MIL-STD-461 Revision F, E, D, C, B, and A, MIL-464, RTCA DO
160E, ADS-37A-PRF, and HIRF testing in excess of 200 V/m from 10 kHz to 40 GHz.
NTS ranked second in the U.S. aerospace and defense EMC test services market with a
market share of 15.6 percent in 2011. About 65 percent of the company's business is focused
on aerospace and defense. NTS covers the basic scope of MIL STD 461 and RTCA DO 160.
It provides a number of test services to the Department of Defense and covers the full
product life cycle of the aerospace and defense industry, including design, certification, and
supply-chain management. Acquisitions are part of the company's strategy to increase its
market share. In September 2011, NTS acquired Lightning Technologies, Inc., (LTI) a market
leader in lightning services, to become a more diverse provider of testing services.
#9840-30
www.frost.com
11
Elite Electronic Engineering ranked third in the aerospace and defense EMC test services
market in 2011 with a market share of 12.4 percent. Elite covers the basic scope of
MIL-STD-461/462 Revision F, E, D, C, B, and A, MIL-STDD810, RTCA DO 160E at level 5
and HIRF testing in excess of 200 V/m from 10 kHz to 40 GHz, and higher levels at other
ranges. The company is highly regarded by major aircraft original equipment manufacturers.
Wyle is ranked number four with a market share of 11.8 percent in 2011. Wyle is focused on
performance stability testing for aerospace and defense. The company holds a leading position on a wide range of Department of Defense programs. Wyle covers the basic scope of
MIL STD 461, and MIL STD 462.
Intertek ranked fifth in 2011 with a market share of 8.1 percent. Intertek covers the basic
scope of MIL STD 461 and RTCA DO 160. The company provides a full range of testing
services covering the preliminary project stage and test plan initiation, as well as precompliance testing. The company offers two methods of radiated susceptibility testing: ALSE and
reverberation. Intertek offers some performance testing to complement EMC offerings and
uses EM Scan testing capabilities to avoid unexpected EMC issues and reduce production
costs.
Conclusion
Main Conclusions
Frost & Sullivan foresees continued and steady growth in the U.S. aerospace and defense
EMC test services market, although it may not be a steep increase during the next few years.
Despite an expected decrease in government defense spending, the market is projected to
grow. Frost & Sullivan is of the opinion that the reduction of government spending on
defense could lead to increased testing in aerospace and defense due to a greater reliance on
existing equipment. However, on the other hand, it could also lead to a slight decrease in
R&D activity. Yet in 2012, the industry will see a number of programs move forward.
The demand for the U.S. aerospace and defense EMC test services market is expected to be
sustained and result in single-digit growth (CAGR of 7.2 percent). Key factors expected to
drive such market growth include upgrades of contractual requirements, sophistication of
UAVs, and the diversification of electronics and armament systems for the next three to five
years.
Overall, the growing focus of wireless technology and its availability to the public drives the
risk for RF interference. That is expected to enhance the growth potential of EMC testing
services as a means to mitigate this risk.
#9840-30
www.frost.com
12
The U.S. aerospace and defense EMC test services is a market with very well-defined companies. Dayton T. Brown, NTS, and Elite Electronic Engineering are expected to dominate the
market throughout the forecast period due to the breadth of their service offering. Competitors need to identify their core competencies to differentiate themselves in the market. The
key factors that determine market success are: the technical capabilities required to become a
one-stop shop, the number of local test laboratories across the country, and participation in
standards committees.
Appendix
#9840-30
www.frost.com
13