By Richard Sterk, Defense Electronics Analyst, Forecast International.
America’s political landscape experienced a tectonic shift with the November 8, 2016 election of Donald Trump as President of the United States. Add to that phenomenon the Republican capture of a monopoly in the legislative branch. The result is a configuration of power in Washington that will play a serious role in shaping the U.S. defense budget as well as the overall defense market.
Forecast International’s “The Market for U.S. Defense Electronics” forecasts that the 500+ leading defense programs in its sampling will be worth at least $135.485 billion between 2017 and 2026.
Based on the results of FI’s modeling, the top five defense electronics companies in the ten-year period are projected to be: Northrop Grumman, Lockheed Martin, Raytheon, Harris, and BAE.
The U.S. defense electronics market shows signs of strength and growth, with only a 27.17 percent ($4.283 billion) drop in projected market value (based on the sampling) over the forecast period, from a start of $15.761 billion in 2017 to a low of $11.478 billion in 2026. This is a very good sign, as it means only slightly more than a quarter (27.17 percent) of the programs sampled will be ending over the course of the forecast period, while almost three-quarters (72.83 percent) will still be active. This indicates a rather healthy defense electronics segment in the overall American defense market.
The major influence on the U.S. defense electronics market continues to be the development and production of systems for use in network-centric warfare (cyber warfare) – systems that connect as many information systems together as possible, allowing maximum flow of information between decision-makers and soldiers in the field.
Programs forecast to profit during the next 10 years include: the APG-81 AESA radar for F-35 aircraft; the ICNIA (Integrated Communications, Navigation, Identification, Avionics) system that will integrate aircraft avionics for the F-22 and the F-35 Joint Strike Fighter; the APG-68 pulse-Doppler fire control radar for the F-16; the AAQ-33 Sniper Advanced Targeting Pod; the ALQ-210 situational awareness and threat warning system; the VUIT-2 video system; the SPY-6 Air and Missile Defense Radar (AMDR) to be installed aboard aircraft carriers and destroyers; the AQS-20 minehunting sonar and AQS-22 ALFS (Airborne Low Frequency Sonar) naval systems; the Navy Multi-band Terminal C4I system; the PRC-150 and PRC-152 combat radios; the Bowman radio; and the Warfighter Information Network-Tactical (WIN-T).
FI’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.
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
