The 2011 iNEMI Aerospace/Defense Roadmap is a part of the most comprehensive report published to date by the International Electronics Manufacturing Initiative (iNEMI). The complete roadmap report is available here. The document, created by individuals representing all aspects of the electronics manufacturing supply chain, features 27 chapters that provide in-depth discussion of six product sectors and 21 different  manufacturing, component/subsystem, business process and design technologies.

The roadmap identifies major trends in the evolution of technology across numerous disciplines, with an emphasis on identifying potentially disruptive events (business and technology). It provides the information needed to identify critical technology and infrastructure gaps, prioritize R&D needs to meet those gaps, and initiate activities that address industry needs.

Through its roadmaps, iNEMI charts future opportunities and challenges for the electronics manufacturing industry. These widely utilized roadmaps:

  • Help OEMs, EMS providers and suppliers prioritize investments in R&D
     and technology deployment

  • Influence the focus of university-based research

  • Provide guidance for government investment in emerging technologies

The 2011 iNEMI Aerospace/Defense Roadmap forecasts the business and technical needs of Aerospace/Defense sector, based on input from industry-leading OEMs. 

The Aerospace/Defense market is expected to continue to increase at an average rate of about 4% per year to reach $151Bn in 2015.  This projected growth rate is slower than in recent years, mostly as a result of a projected decline in military procurement in the US over the next three to five years.  The military budget authority and program timing are known well in advance.

The projected growth is largely due to increases in procurement by non-US and European countries, benefiting the hardware producers with significantly higher exports over the next few years.  In addition, China is growing its military electronics spending quite dramatically off a small base today.

The US Defense Department is in the midst of changing its military hardware procurement priorities to adjust to the realities of an unconventional warfare environment and the anticipated withdrawal from Iraq and Afghanistan over the next two years.  Missile defense and other large complex integrated warfare platform products will likely be de-emphasized in favor of more dual-use and flexible systems (UAV, rotorcraft, portable communications and computing).

Given that the vast majority of military hardware spending is generated in the US and Europe, it is to be expected that the majority of production will reside within these regions.  In 2009, the Americas accounted for 69% of production, followed by Europe with 20% share, Asia with 7% share (a reflection of rapid growth in China and India), and finally Japan with 4% share.