By Richard Sterk, Senior Defense Electronics Analyst, Forecast International.
Forecast International reports that sales of its Electronics Forecast services have increased significantly over the past year. This suggests that there is a jolt of excitement energizing the worldwide defense electronics market as the wounds caused by the Great Recession finally stop hemorrhaging funding cuts. Budgets remain tight, but there is a discernible drive to develop new groundbreaking electronic technologies and get them into markets as quickly as possible.
While the production of new military platforms has declined from the highs of the post-2001 war years, new and ongoing retrofit and modernization programs have become a market-driving force in defense electronics.
Forecast’s Platinum Forecast System 2.0, which projects markets up to 15 years ahead, sees a complex global defense electronics market worth well over $500 billion in new business through 2029. This forecast is based upon the leading military programs tracked by FI, leaving the probability that many of the smaller programs will swell the market even higher.
The values of the individual market segments provide some meaningful intelligence as to where the major interest lies. Although there is some overlap, the Platinum Forecast System projects the value of the Airborne Electronics market to be in excess of $140.58 billion over the forecast period, while the various Land & Sea-based Electronics Systems are projected to have a combined value of $91.97 billion. Among markets that impact all segments (Land, Sea & Air), the market for Radar Systems stands out as the most lucrative at a projected $125.15 billion. Others in this category include the market for Electro-Optical Systems, expected to be worth around $43.50 billion; Electronic Warfare Systems, $43.85 billion; and C4I Systems, $88.62 billion. Finally, the all-encompassing market for Electronics Systems such as networks and software will, together with R&D projects, be worth some $72.60 billion over the forecast period.
Every sector of the Electronics market boasts of programs that are forecast to shine during the next several years. Among these are the following:
- Northrop Grumman’s APG-81 AESA radar for F-35 aircraft, forecast to be worth more than $6 billion alone over the next 10 years.
- The Northrop Grumman APG-68 pulse-Doppler fire control radar for the F-16 and APG-77 low-probability- of-intercept radar for the F‑22.
- The AQS-20 naval minehunting sonar made by Raytheon and the Navy Multi-band Terminal C4I system, also from Raytheon.
- The Warfighter Information Network-Tactical (WIN‑T), a tactical communications system for the U.S. Army developed and produced by General Dynamics.
Also in demand will be night vision goggles, avionics systems, and various high-performance computing technologies for both offensive and defense capabilities.
Although the defense budgets of countries throughout the world are tightening, the need to procure new electronics systems remains a vital objective for military planners. The U.S. Army serves as a prime example of this trend. Despite significant pressure on the U.S. defense budget, developing advanced electronic capabilities and improving defense networks remain among the service’s top budget priorities.
Forceast International’s eight Electronic Systems Market Intelligence Services cover the full range of defense-related systems and programs in the radar, communications, electro-optical, and electronic warfare markets, presenting a comprehensive market outlook for current equipment as well as new systems being developed as the modern battlefield moves toward a technology-based warfare approach with network-centric capabilities. Forecast International’s detailed market research and long-range forecasts make the future as predictable as possible. For more details, visit the website by clicking here.
For 50 years, Forecast International intelligence reports have been the aerospace and defense industry standard for accurate research, analysis, and projections. Our experienced analysts compile, evaluate, and present accurate data for decision makers. FI's market research reports offer concise analysis of individual programs and identify market opportunities. Each report includes a program overview, detailed statistics, recent developments and a competitive analysis, culminating in production forecasts spanning 10 or 15 years. Let our market intelligence reports be a key part of reducing uncertainties and mastering your specific market and its growth potential. Find out more at www.forecastinternational.com
