To address the market focus, a short brief on the world of components is useful to understand how complex it is. And to deliver a comprehensive vision of market drivers, and customer needs for the execution of a marketing plan.
Components are everywhere and directly linked to the evolution of electronics or the “all electric” requirements for measurement, control, command of real time and safety. Whether for a nuclear reactor or for a subsea control unit there is a demand for more and more products and technologies similar to those developed for the Aviation, Defense and Space markets.
For example, the last generation of plane as Airbus A350 includes more than 3 million components from 500 global suppliers. A geostationary satellite of 4,000 kg requires about 800,000 space grade components.
That’s a market of millions of part numbers supervised by international, national specifications or quite often by customer source control drawing (SCD).
Hundreds of manufacturers are serving this components industry. If we just take reference to the connectors industry, more than 800 suppliers are still specialized today in these activities. And with exception of big players as TE Connectivity, Amphenol , Molex, most of them are still private family-owned companies of less than $ 250 million in annual revenue.
The focused markets for PEMCO or EEE parts are primarily:
- Civil and military aeronautics
- Defense
- Space
But also in some industrial sectors such as the Rail or Energy markets where components originated from Military Specifications ( Mil-Spec.) or Military Standards ( Mil-Std.) are widely used today.
Market drivers are new platforms or upgrading projects with their production rates Generally, – the components specifications are supervised by the System Integrator and the OEMs (Original Equipment Manufacturers). The procurement is done either by OEMs directly or their Contractors (CEMs) or through the Distribution Channel.