The European RF/Microwave
Industry – Focus on the UK within
Geographic Europe
by
Terry Edwards of
Being presented @ the Interlligent
Seminar, Cambridge City Hotel on
25th June 2014
Guess Who?
Major European Industrialised Countries
(#1 - Germany) Source: CIA Factbook
• Population = 81M
• GDP = £2.07 Trillion
• Industrial labour force
= 30%
• Services labour force
= 70%
• 110M mobile phones
• 21M Internet hosts
©
2014
And now: Guess Who?
Major European Industrialised Countries
(#2 - France) Source: CIA Factbook
• Population = 66.3M
• GDP = £1.46 Trillion
• Industrial labour force
= 21%
• Services labour force
= 79%
• 66M mobile phones
• 18M Internet hosts
©
2014
OK, so who IS this guy?
Major European Industrialised Countries
(#3 – UK) Source: CIA Factbook
• Population = 63.7M
• GDP = £1.59 Trillion
• Industrial labour force
= 18%
• Services labour force
= 82%
• 84M mobile phones
• 8.5M Internet hosts
©
2014
UK, France & Germany Labour Force Divisions
Compared
Labour Force divisions in Major European Countries (%)
18
82
UK
Industrial
79
21
France
Services
30
70
Germany
0
20
40
60
80
100
©
120
2014
UK, France & Germany – Numbers of
Mobile Phones
Numbers of Mobile Phones (Millions)
UK: 84
Germany 110
France: 66
©
2014
UK, France & Germany: Numbers of Internet
Hosts
Numbers of Internet Hosts (Millions)
UK: 8.5
Germany: 21
France: 18
©
2014
Some Abbreviations:
MW = microwave
MMW = millimetre-wave
OEM = original equipment manufacturer
IM = indigenous manufacturer (including
foreign-headquartered companies with local
manufacturing)
FD = foreign distributor
(i.e. distributor of mainly
foreign-manufactured products)
TAM = total addressable market =
“total market minus captive market”
©
2014
Europe MW & MMW Market
Approximately £23BN
(adding together components, modules &
systems)
Germany, France & UK dominate but there
are some important players in other countries
©
2014
Germany: RF/microwave Industry (1)
• Some major IMs:
– Cassidian
(transmit/receive
modules, radars)
– HBH Microwave (RF
modules thro’ MMW)
– Infineon (world’s largest
automotive chip mfr.)
– Ingun Pruefmittelbau
(test equipment)
– Rohde & Schwarz (test
equipment)
– UMS (see also France)
©
2014
Germany: RF/microwave Industry (2)
• Some major FDs &
sales subsidiaries:
• At least 5 FDs including:
– Globes Elektronik
– Gigacomp
– RUPPtronik
– Tactron
• Sales subsidiaries include:
–
–
–
–
Aeroflex
Anritsu
Mercury Systems
Sumitomo
©
2014
France: RF/microwave Industry (1)
• Some major IMs:
– AA-MCS (passives &
some turnkey
subsystems)
– Europa Electronics
(frequency sources)
– HCM/Systrel
(microelectronic
assemblies)
– OMMIC (MMICs)
– Thales (microelectronics
& systems)
– UMS SAS (MMICs)
©
2014
France: RF/microwave Industry (2)
• Some major FDs :
– Elexience
– ELEXO
– ELHYTE
– Equipments
Scientifiques
– INOVEOS
– MATECH Electronique
– MB Electronique
©
2014
Some Notable MW/MMW Players in Countries
other than Germany, France or UK
Anapico (Switzerland: instruments)
AR Europe (Ireland) & AR Benelux (Netherlands:
amplifiers)
ES-Lindgren (Finland)
Huber & Suhner (Switzerland: coaxial cables &
connectors)
NXP (Netherlands: semiconductors)
Selmic (Finland)
SIAE Microelettronica (Italy: microelectronics)
Swedish Microwave (Sweden: SATCOM electronics)
TTE Norte (Spain: systems)
©
2014
The UK
• Electronics industry (briefly)
• RF/Microwave side
©
2014
UK Electronics Production by Monetary
Value (Relative Data)
100
Relative output
(100 in 2000)
33
33
2000
2013
Year
Production was at an all-time maximum in year 2000.
Signs that production is tending to flatten-out now.
©
2014
UK Electronics Main segments c. 2013
Computer
hardware,
6%
Communica
tions, 39%
Other, 45%
Radar &
navigational
, 10%
©
2014
Short History of “UK Microwaves” to
Date
• 1980s through 1990s – into the 21st Century:
– Enthusiastic ventures but ------------:
• Marconi (notably MEDL), Teledyne Labtech (closed September
2013)
•
IQE (Cardiff) continues very important for epitaxial wafers
• Through the 21st Century to date & onwards:
-
RFMD acquired the Newton Aycliffe operation from
Filtronic. But after several years sold-up. This is now
home to the successful Filtronic Broadband
http://www.filtronic.co.uk/broadband/
– Major acquisitions are on-going by UK companies e.g.
Smiths Group, Cobham (acquiring Aeroflex ~+ 3,000)
– Continued organic growth from several SMEs
– Well positioned for millimetre-wave technology including 60
GHz for 5G
©
2014
So: What are the Main Market (Systems)
Drivers?
• Growing significantly:
AESA Radars
Base stations
Point-to-point MW & MMW
Radio “cams”
SATCOM: ground-based equipment & onboard transponders
• Surveillance systems
•
•
•
•
•
©
2014
UK: RF/microwave Industry (1)
Overall TAM around £5.5 BN
• Some major IMs:
–
–
–
–
–
–
–
Chemring
Cobham
CSR
e2v
SELEX ES
Sepura
Smiths Group
©
2014
UK: RF/microwave Industry (2)
• Some major FDs :
– ACAL Bfi
– APC-Novacom
– Aspen electronics
– Castle Microwave
– Marketron
– Microwave Marketing
– Richardson RFPD
– Tony Chapman
– UKRF
©
2014
Some International/PanEuropean FDs
Acal Bfi (Pan-European)
Arrow Europe (Pan-European)
RfMW (International)
Richardson RFPD (International)
Sematron (Pan-European)
HITEK (Pan-European)
©
2014
Symbols for Various Types of
Companies
• Indigenous manufacturer (IM):
“IM1”
• Foreign manufacturer:
MMICs1
• Foreign distributor (FD):
RF Marketing1
Portion of the UK Supply Chain
Thales UK
Cobham
Anglia
Microwave
Marketing
RFMW
Richardson
Solutioninsilicon
MwT
Triquint
RFMD
Tower Jazz
©
2014
Some UK Companies with Substantial RF/microwave
Activities – UK Headcounts
Agilent: 1,035
SELEX ES: 2,200
Thales UK: 8,000
Sepura: 300
©
2014
Major UK-Headquartered Players - Global Headcounts
Smiths Group:
23,000
CSR: 1,800
Chemring: 4,000
Cobham: 10,000
Astrium: 18,000
e2v: 1,500
©
2014
Summary Points
• The UK is amongst the Top 3 European countries with
substantial RF/microwave technology activity (overall TAM
about £5.5BN)
• This country has a strong complement of IMs and other
RF/microwave companies
• Corporate growth is by acquisition as well as organically
• There are several strong end-user system market growth
areas – ranging through MW & MMW applications
• The service side dominates over the IMs activity (compared
with France & Germany) and this imbalance should be
addressed
• (Fewer distributors – more IMs)
©
2014