NEWTOWN, CONN., March 21, 2016 (GLOBE NEWSWIRE) -- Forecast International's "The Market for U.S. Defense Electronics" forecasts that the 500+ leading programs reviewed in the study will be worth at least $134.729 billion from 2016-2025. While overall U.S. defense spending may be down, the U.S. defense electronics market is showing signs of strength and growth, with only a 24.02 percent ($3.615 billion) drop in projected market value (based on the study's sampling) over the forecast period, from a start of $14.764 billion in 2016 to a low of $11.216 billion in 2025. This means less than a quarter (24.02 percent) of the programs sampled will be ending over the course of the forecast period, while nearly three-quarters (75.98 percent) will still be active.
This drop is an indicator of two developments: first, the economic free fall is truly over (the 10 year drop was forecast to be 24.69 percent for 2015-2024; 27.31 percent for 2014-2023; 39.73 percent for 2013-2022; 50.23 percent for 2012-2021; and 56.77 percent for 2011-2020); and second, defense issues themselves, rather than economic conditions, are now the reason for steadily decreasing defense budgets.
"Defense electronics spending continues to emphasize the development of new technologies, but tight budgets are still restricting R &D," said the editor of the report, Richard Sterk, Senior Analyst at Forecast International. "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 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, Lockheed Martin, Raytheon, General Dynamics, and BAE Systems.
Programs forecast to shine during the next 10 years include the APG-81 AESA radar for F-35 aircraft, which is forecast to be worth more than $6 billion alone over the next 10 years; 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 Bowman radio; and the Warfighter Information Network-Tactical (WIN T).
About Forecast International
Forecast International, Inc. 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.
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Source:Forecast International, Inc.