Rugged Equipment Market Analysis North America, Europe, APAC, South America, Middle East and Africa - US, Canada, China, Germany, UK - Size and Forecast 2024-2028

Rugged Equipment Market Forecast 2024-2028

The Rugged Equipment Market size is estimated to grow by USD 13.50 billion at a CAGR of 5.93% between 2023 and 2028. Market dynamics are driven by industrial end-users demanding rugged displays for harsh environment tools like industrial equipment and construction tools, ensuring durability in extreme condition gear scenarios such as mining. Manufacturers respond with specialized solutions, like WinMate's displays for oil and gas operations. Simultaneously, defense and military sectors witness a surge in unmanned aerial vehicles (UAVs), including military-grade killer drones and portable unmanned aerial systems (UAS), influencing the global defense market. This convergence of trends drives market growth, shaping the landscape for outdoor adventure gear and mining sector resilience.

What will be the Size of the Rugged Equipment Market During the Forecast Period?

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Market Segmentation

This market report extensively covers market segmentation by end-user (government military and defense, aerospace, and industrial and commercial), product (communication equipment, computer system, and display), and geography (North America, Europe, APAC, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2018 to 2022.

By End-user

The government military and defense segment is estimated to witness significant growth during the forecast period. The market for rugged equipment by the government, military, and defense segment solely relies on the military expenditure by countries. In addition, government organizations that are responsible for public safety, security, and public works have emerged as leading customers for various types of equipment, including communication equipment, which have rugged displays installed on them.

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The government military and defense segment was the largest segment and was valued at USD 20.90 billion in 2018. Moreover, governments across the globe are investing in the installation of rugged equipment, which, in turn, will drive the growth of the market. Therefore, there is significant potential for the growth of the rugged display market in the government sector as well as the defense and aerospace industries. Furthermore, the increase in the annual military budget helps to modernize rugged military computer systems and helps to protect them against security threats. For example, in June 2020, officials of the US Defense Logistics Agency's aviation activity in Philadelphia announced a USD12.5 million purchase to Northrop Grumman for AN/AAQ-24 threat warning sensors. Hence, such factors are fuelling the growth of this segment which in turn will drive the market growth during the forecast period.

By Product

The increasing demand for the communication equipment segment in military and industry applications will increase the market growth. Communication equipment is mainly deployed in harsh environments in the military and industrial sectors. Several market players are offering reliable communication devices to keep military personnel connected during combat. In addition, the communication systems for the military include military communication headsets and field telephone systems. Furthermore, the segment is driven solely by defense and military funding. Even if there is a reduction in the defense expenditure in certain countries, the budget allocation for intelligence, surveillance, and reconnaissance (ISR) operations is expected to fuel the growth of this segment which in turn will drive the market growth during the forecast period.

Regional Overview

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North America is estimated to contribute 35% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The growth in the defense sector in the US is fuelled by the increasing focus on strengthening the country's military. 

For instance, in 2022, the US military expenditures account for about 40% of all international military spending. In addition, there is significant growth in the aerospace sector in the US due to better employee productivity when compared with companies in Europe, MEA, and APAC. Moreover, better employee productivity is due to its greater flexibility to rationalize factories and timely manage cost structures. Furthermore, the growing data center market in North America is expected to fuel the demand for rugged equipment in the region. Hence such factors drive the market growth in North America during the forecast period.

Market Dynamics and Customer Landscape

The market thrives on the demand from industrial end-users seeking reliable gear for harsh environments. From impact-resistant appliances to waterproof devices and vibration-resistant tools, industries such as construction, mining, and outdoor adventures rely on these heavy-duty electronics. Military-grade specifications ensure tactical durability and longevity assurance in extreme conditions, driving the deployment of rugged computing and tactical gear, including military equipment. Ruggedization techniques bolster outdoor durability and robust design, crucial for worksite tools enduring harsh condition endurance.

Despite challenges like high initial procurement costs, advancements in off-grid functionality and resilience in the mining sector through rugged equipment sustain market growth. With weather-resistant machinery and shockproof equipment, the market caters to diverse needs, ensuring reliability in even the most extreme conditions.

Key Market Driver

One of the pivotal factors propelling the market is the expansion of industrial end-users. Rugged displays, alongside other rugged devices, find myriad applications across various industries such as oil and gas, mining, and aviation, rendering them indispensable to these sectors. The burgeoning growth in these end-user industries significantly contributes to the market, given that these devices are engineered to endure extreme temperatures, challenging work environments, and adverse weather conditions, thereby prolonging their lifespan. The level of ruggedness exhibited by these displays enables them to withstand rain and a broad temperature spectrum. Numerous manufacturers are innovating rugged displays capable of withstanding harsh environments, including explosions, which are prevalent in the oil and gas and mining industries.

For instance, WinMate, a company headquartered in Taiwan, specializes in rugged displays tailored specifically for use in the oil and gas sectors. The mining industry also stands out as a significant end-user of such displays. Moreover, these displays find applications in communication equipment, computer systems, aerospace, industrial & commercial sectors, as well as defense & military operations. Consequently, the growth in industrial end-user industries is poised to stimulate demand for rugged displays, thereby energizing the global market throughout the forecast period.

Significant Market Trends

A key factor shaping the market is the increased deployment of unmanned aerial vehicles (UAVs) by defense and military. The UAVs, also referred to as drones, are used in situations where manned flights are considered too risky or difficult. Moreover, in military applications, the UAV provides a 24-hour view to troops for seven days a week. In addition,  each aircraft can stay aloft for up to 17 hours at a time, covering an area and sending real-time imagery of activities on the ground.

Moreover, military-grade killer drones can be operated by a crew of one or two and can carry precision-guided microbombs.  As a result, these drones are making their way into the global defense market. Furthermore, micro aerial vehicles (MAVs) and portable unmanned aerial systems (UAS) are equipped with autopilot, navigation systems, airframes, engines, sensor packages, and communication links. In addition, there is an increased implementation of miniature unmanned systems for electronic attack, destruction of enemy air defense, communication transfer, suppression of enemy air defense, combat search and rescue, and ISR operations. Hence, such factors drive the market during the forecast period.

Major Market Challenges

The high initial cost of procurement compared with non-rugged devices is one of the key challenges hindering the market. There is nearly twice as costly as commercial equipment regarding procurement. In addition, consumer-grade products may seem to be more attractive for enterprises and businesses for their computing needs due to the initial low cost of acquisition.

Moreover, one can do a simple analysis of the total cost of ownership (TCO) to reveal that consumer-grade products can end up costing the enterprise and business much more. As per the estimation, the procurement cost of this is high, although the annualized TOC is lesser than the non-rugged equipment. Therefore the initial cost will limit its adoption and hinder the market growth during the forecast period.

Market Customer Landscape

The market report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.

Global Market Customer Landscape

Who are the Major Rugged Equipment Market Companies?

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

AMETEK Inc: The company offers Abaco rugged, SBC347D 3U OpenVPX SBC, and SBC329 3U OpenVPX SBC.

Curtiss Wright Corp: The company offers 901D Rugged enclosures and consoles, custom rugged enclosures, and semi-custom rugged enclosures.

General Dynamics Corp: The company offers GD3015 Tablet PC that stands up to the dirt and weather of field environments and takes the bumps and vibration from life on the road in stride.

The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:

• Dell Technologies Inc
• Ecrin Systems
• Extreme Engineering Solutions Inc.
• Getac Technology Corp.
• Honeywell International Inc.
• Kontron AG
• L3Harris Technologies Inc.
• Leonardo DRS Inc.
• Panasonic Holdings Corp.
• Raytheon Technologies Corp.
• Siemens AG
• Trimble Inc.
• Zebra Technologies Corp.
• MilDef Group AB
• Sparton Rugged Electronics
• Systel Inc.
• Winmate Inc.

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Segment Overview

The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028. 

• End-user Outlook 
  • Government military and defense
  • Aerospace
  • Industrial and commercial
• Product Outlook 
  • Communication equipment
  • Computer system
  • Display
• Geography Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Chile
    • Argentina
    • Brazil
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Market Analyst Overview

The market thrives in harsh usage environments, addressing data security and privacy concerns. Rugged Communication Equipment and computers withstand wet or dusty conditions, offering superior products for industrial settings, healthcare facilities, automotive, and outdoor activities. With increased durability and resistance to physical impact, these devices endure extreme environmental conditions, including harsh temperatures and dampness. They utilize advanced engineering techniques like protective coatings and reinforced casings to ensure longevity and tolerance to harsh temperature changes and electromagnetic interference. A SWOT analysis guides current strategies, emphasizing winning imperatives for this dynamic Rugged Electronics Industry, marked by distinctive trends and potential challenges.

Moreover, the market encompasses a spectrum of robust devices, including rugged computers and communication equipment, designed to withstand severe operating conditions. Production and sales of such equipment are bolstered by expansion drivers, catering to diverse industries' needs for dependable and long-lasting products. These devices feature a strong build and specialized materials, providing ingress protection against external elements and mitigating electromagnetic interference (EMI). With a focus on production capacity and sales strategies, manufacturers navigate the Global Rugged Electronics Market, offering solutions for consumer electronics and industrial applications alike. Current strategies prioritize innovation in difficult components and emphasize the production of ruggedized computers to meet the demand for resilient electronic devices in challenging environments.

The Rugged Equipment Market thrives with dependable products crafted from specialized materials. With a focus on production capacity and sales strategies, it encompasses global rugged communication equipment. Manufacturers emphasize their current strategies to meet demand, ensuring resilience and reliability in harsh environments on the production side.

Rugged Equipment Market Scope
Report Coverage	Details
Page number	174
Base year	2023
Historic period	2018-2022
Forecast period	2024-2028
Growth momentum & CAGR	Accelerate at a CAGR of 5.93%
Market Growth 2024-2028	USD 13.50 billion
Market structure	Fragmented
YoY growth 2023-2024(%)	5.25
Regional analysis	North America, Europe, APAC, South America, and Middle East and Africa
Performing market contribution	North America at 35%
Key countries	US, Canada, China, Germany, and the UK
Competitive landscape	Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks
Key companies profiled	AMETEK Inc., Curtiss Wright Corp., Dell Technologies Inc., Ecrin Systems, Extreme Engineering Solutions Inc., General Dynamics Corp., Getac Technology Corp., Honeywell International Inc., Kontron AG, L3Harris Technologies Inc., Leonardo DRS Inc., Panasonic Holdings Corp., Raytheon Technologies Corp., Siemens AG, Trimble Inc., Zebra Technologies Corp., MilDef Group AB, Sparton Rugged Electronics, Systel Inc., and Winmate Inc.
Market dynamics	Parent market analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period.
Customization purview	If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2023 and 2027
• Precise estimation of the size of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market industry across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough market growth analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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