The lighting segment alone is expected to double in sales by 2010; the industrial segment will grow by 10 percent in 2007; and the automotive semiconductor segment indicators show increases of six percent annually through 2010. By listening to the distinct needs of our customers across all market segments, North American Components posted sales results of $4.7 billion, an increase of 12 percent compared with 2005.
Throughout 2006, Europe saw improved economic conditions and continued movement of manufacturing to Eastern Europe. The Eastern European distribution market alone grew at a compound annual rate of 24 percent during the past four years. Capitalizing on these opportunities, our European business grew its revenues to $3.6 billion, an increase of more than 18 percent from 2005. 2006 also marked a milestone in Europe that affected our customers globally as the European Union implemented its environmental regulations for the Restriction of Hazardous Substances (RoHS). During the past several years, Arrow worked with customers and suppliers to ensure a smooth transition to meeting these guidelines.
Growing in Enterprise Computing Solutions
Our Enterprise Computing Solutions business has expanded from North America to Europe. The value-added resellers (VARs) it serves provide computing solutions to a wide range of end markets, spanning from small local governments to large financial institutions to almost any enterprise that requires a server, data storage or software solution.
Throughout 2006, Europe saw improved economic conditions and continued movement of manufacturing to Eastern Europe. The Eastern European distribution market alone grew at a compound annual rate of 24 percent during the past four years. Capitalizing on these opportunities, our European business grew its revenues to $3.6 billion, an increase of more than 18 percent from 2005. 2006 also marked a milestone in Europe that affected our customers globally as the European Union implemented its environmental regulations for the Restriction of Hazardous Substances (RoHS). During the past several years, Arrow worked with customers and suppliers to ensure a smooth transition to meeting these guidelines.
Growing in Enterprise Computing Solutions
Our Enterprise Computing Solutions business has expanded from North America to Europe. The value-added resellers (VARs) it serves provide computing solutions to a wide range of end markets, spanning from small local governments to large financial institutions to almost any enterprise that requires a server, data storage or software solution.
In 2006, revenues from Enterprise Computing Solutions grew to $2.5 billion, a more than 22 percent increase compared with our 2005 results. In 2005, we embarked on an acquisition strategy with the goal of expanding our global presence as well as the breadth of the computing solutions we offer. To lead our continued growth, we named Kevin J. Gilroy and M. Catherine Morris to a newly created office of the president for Enterprise Computing Solutions.
In 2005, we began our expansion of this business with the acquisition of DNSint.com AG, based in Munich, Germany. We continued in 2006 with the acquisition of InTechnology plc’s storage and security distribution business, headquartered in Harrogate, England. With the completion of these acquisitions, Enterprise Computing Solutions now serves resellers in 17 countries.
In 2006, we also extended our strong position in North America. In Canada, we acquired SKYDATA Corporation, the country’s largest distributor of EMC² brand data storage products. With the acquisition of Alternative Technology, Inc. based in Englewood, Colorado, we increased our ability to serve VARs with software solutions that optimize, accelerate, monitor and secure an end-user’s network.
In early 2007, we announced our planned acquisition, subject to customary closing conditions, of the Agilysys KeyLink Systems Group (KeyLink), a leading enterprise computing solutions distributor with headquarters in Cleveland, Ohio. The addition of KeyLink will strengthen our partnerships with International Business Machines Corporation (IBM) and Hewlett-Packard Company (HP), and create a new partnership with Oracle Corporation.
In 2005, we began our expansion of this business with the acquisition of DNSint.com AG, based in Munich, Germany. We continued in 2006 with the acquisition of InTechnology plc’s storage and security distribution business, headquartered in Harrogate, England. With the completion of these acquisitions, Enterprise Computing Solutions now serves resellers in 17 countries.
In 2006, we also extended our strong position in North America. In Canada, we acquired SKYDATA Corporation, the country’s largest distributor of EMC² brand data storage products. With the acquisition of Alternative Technology, Inc. based in Englewood, Colorado, we increased our ability to serve VARs with software solutions that optimize, accelerate, monitor and secure an end-user’s network.
In early 2007, we announced our planned acquisition, subject to customary closing conditions, of the Agilysys KeyLink Systems Group (KeyLink), a leading enterprise computing solutions distributor with headquarters in Cleveland, Ohio. The addition of KeyLink will strengthen our partnerships with International Business Machines Corporation (IBM) and Hewlett-Packard Company (HP), and create a new partnership with Oracle Corporation.
Our more than 140,000 customers and 600 suppliers worldwide rely on Arrow for the technical design, materials management, inventory planning and manufacturing services they need to bring electronic components and enterprise computing solutions to market. As we listen, understand and deliver, we are well positioned to capture growth opportunities in both our Global Components and Enterprise Computing Solutions businesses.