MARKET OVERVIEW
Megatrends drive structural growth Megatrends such as electrification, digitalisation and urbanisation have been major drivers of growth in electronic components, and will continue to create significant opportunities in the decades ahead.
These megatrends present significant opportunities for discoverIE to deliver innovative solutions to meet the growing demand for a more sustainable, digitally connected, and secure future.
Our target markets
Our products are critical components in a wide range of industrial applications. We focus on markets that demonstrate sustainable, long-term growth, driven by global megatrends. For more than a decade, we have maintained a strategic focus on markets with sustainable, long-term growth prospects, specifically renewable energy, transportation, medical and industrial & connectivity. In September 2024, we added security, a market that has seen particularly strong demand in recent years, which is expected to continue as the world is becoming more volatile. All of our target markets are aligned with the UN Sustainable Development Goals (“SDGs”).
In FY 2025/26, 79% of Group revenue was generated from these target markets. The diversification across these markets, each with varying cycles and different economic drivers, helps to smooth out overall cyclicality and provides a more resilient growth profile for the Group. During the ten years up to FY 2025/26, the Group grew revenue by 9% CAGR at Constant Exchange Rates (“CER”) and 4% organically through the economic cycle, reflecting the resilience and strength of these structural growth markets.
Electrification The global transition toward a low-carbon economy is accelerating demand for renewable energy, energy storage, and smart energy management systems. Governments and businesses around the world are setting ambitious targets and implementing comprehensive plans to reduce carbon emissions, including phasing out fossil fuels through the electrification of transport networks and industrial processes. Electrification is not only essential for achieving net-zero emissions, but also a major driver of efficiency and productivity. This megatrend is poised to reshape many industries, such as transportation, manufacturing and construction. For example, the electrification of transportation is creating entirely new markets, such as electric vehicles and the infrastructure that supports them, and existing modes of transport, such as railways and shipping, are being converted to allow them to run on electricity. Digitalisation Advances in AI, 5G and fibre connectivity, cloud computing and edge processing are accelerating digital transformation across industry, infrastructure and healthcare. As connected devices generate more
data, organisations are investing in networks, sensors and secure computing to enable real-time monitoring, automation, predictive maintenance and better decision- making. These trends are driving sustained demand for electronic components that deliver performance, reliability and connectivity at scale. Urbanisation Urbanisation is a major growth driver for security, transportation, and communication technologies. As cities grow denser, the need to protect people, infrastructure, and public spaces drives demand for advanced surveillance, access control and threat detection systems. Meanwhile, rising populations require more efficient and sustainable mobility solutions, accelerating investment in public transport, electric vehicles, and smart traffic systems. To support this urban complexity, high-speed communication networks – including 5G, fibre optics, and IoT infrastructure – are essential for real-time connectivity, automation, and the functioning of smart city ecosystems.
Wind Solar Hydrogen
Off highway vehicles Rail
Automation Harsh environment Environmental & monitoring
Maritime Aviation
Revenue from target markets (% of total revenue)
79%
Clinical/surgical equipment Diagnostics & biotech Portable medical devices
Physical access controls Detection systems Surveillance systems Defence
% of total revenue Industrial & connectivity Medical Renewables Transport Security Other
e
Communication networks
Aerospace and low earth orbit economy
18
19
discoverIE Group plc Innovative Electronics
Annual Report and Accounts for the year ended 31 March 2026
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