NEWTOWN, CONN., Feb. 25, 2014 (GLOBE NEWSWIRE) -- Forecast International's "The Market for U.S. Defense Electronics" forecasts that the 500-plus leading programs reviewed in the study will be worth at least $137.418 billion from 2014-2023.
"Although statistically the economy is doing better, little has changed in reality compared to 2013," said the editor of the report, Richard Sterk, Senior Analyst at Forecast International. Sterk added that "the U.S. government continues its efforts to control spending while at the same time stimulating the economy. Platform-related programs – especially for development of new platforms – are projected to take major hits in the defense budget."
The U.S. defense electronics market has emerged from the Great Recession and is recovering. The 27.31 percent ($4.33 billion) drop in market value projected in the analysis – from a high of $15.852 billion in 2014 to a low of $11.521 billion in 2023 – is actually a good indicator. It means that only 27.31 percent – just over one-quarter – of the programs sampled will be ending over the course of the forecast period, while nearly three-quarters (72.68 percent) will still be active.
While this drop may not appear to be cause for optimism, it is indicative of two positive developments. First, the economic free fall has ended (for the decade 2013-2022, the 10-year drop was forecast to be 39.73 percent; for 2012-2021, 50.23 percent; and for 2011-2020, 56.77 percent). Second, defense issues themselves, rather than economic conditions, are now the reason for the steadily decreasing defense budgets.
"The big push remains on developing groundbreaking technologies, but due to tight budgets, this goal will be very hard to achieve," said Sterk. "Militaries are having a difficult enough time getting funding for required items, much less for "pipedream" acquisitions based on advanced concept development – no one is currently willing to risk the limited money available to flesh out a new and unproven idea."
The top five defense electronics companies in the U.S. market continue to draw from the upper tier of corporate America. Based on the results of this sampling, the top five are, in order: Northrop Grumman, Raytheon, Lockheed Martin, Exelis, and General Dynamics.
Forecast International, Inc. (www.forecastinternational.com) is a leading provider of Market Intelligence and Analysis in the areas of aerospace, defense, power systems and military electronics. Based in Newtown, Conn., USA, Forecast International specializes in long-range industry forecasts and market assessments used by strategic planners, marketing professionals, military organizations, and governments worldwide. To arrange an interview with Forecast International's editors, please contact Ray Peterson, Vice President, Research & Editorial Services (203) 426-0800, firstname.lastname@example.org. Questions regarding sales may be directed to email@example.com
CONTACT: Contact: Richard Sterk, Sr. Aerospace and Defense Analyst Phone: (203) 426-0800 Fax: (203) 426-4262 Web site: www.forecastinternational.com E-mail: firstname.lastname@example.org Forecast International, Inc. 22 Commerce Rd. Newtown, CT 06470 USA
Source:Forecast International, Inc.