Aitum Accelerates Entry into Core Defense Transformer Market: Due Diligence Completed, Targeting $3.6 Billion Market

Aitum is accelerating its entry into the transformer market, which is essential for supplying power to operate defense products.

On June 26, Aitum announced that it had recently completed due diligence on its capability to supply transformers for defense applications, conducted by a subsidiary of a KOSDAQ-listed company that is a key partner of major domestic defense firms. Since this company manufactures power supply units for defense, Aitum is expected to begin generating defense-related revenue in earnest depending on the results of the due diligence.

Unlike general transformers, defense transformers must operate in extreme temperatures, withstand electromagnetic interference (EMI), and endure vibrations, requiring them to pass rigorous performance and reliability standard tests. Once verified, these transformers are used extensively in core defense products such as radar systems, communication networks, and missile defense systems.

A company representative explained, "A failure in a transformer can damage the entire core system," adding, "It is not just a simple electrical component, but a key part that enhances military capability."

Through this due diligence, Aitum verified its technology and production systems related to transformers. Considering that existing defense transformers have faced challenges in field operations due to durability and reliability issues, Aitum's technology is attracting attention as an alternative to resolve these problems.

In particular, the company noted that global defense budgets have recently focused on strengthening technologies such as electronic systems and unmanned systems (UAVs). As transformers are a core component of defense electronic equipment, demand is increasing, opening up various business opportunities.

The representative emphasized, "Since the company that conducted the due diligence has a solid position in the defense sector, the defense transformers that Aitum will supply are highly likely to be applied as key components in various defense systems," adding, "This is expected to contribute not only to increased sales for Aitum but also to the advancement of domestic defense technology."

Meanwhile, according to market research firm Market Research Future, the board-mounted transformer market for the aerospace and defense industry was valued at $1.8244 billion (approximately KRW 2.47 trillion) in 2022. The market is expected to grow at an average annual rate of 4.83%, from $1.9032 billion (approximately KRW 2.62 trillion) in 2023 to $2.6484 billion (approximately KRW 3.6 trillion) by 2030.