Business

June 4, 2012

Has ASW market lost its Cold War glamour on Wall Street?

According to Richard Sterk, Senior Analyst at Forecast International, hunting submarines “hasn’t been sexy since the end of the Cold War.”

Sterk sees an irony in this perception because, as he states, “tracking non-nuclear-propelled submarines in coastal waters is many times more challenging than stalking a big, lumbering Soviet boomer.”

Forecast International’s “The Market for Airborne ASW Sensors” examines nearly 50 of the leading airborne anti-submarine warfare sensors worldwide and reviews 10 of the leading companies involved in producing such systems. This report projects an airborne ASW sensors market worth at least $2.470 billion over the next 10 years, based on development and production of these roughly 50 sensors.

More specifically, the value of the programs covered by the study will total $429.42 million in 2012 and then decline to $119.44 million in 2021. The market begins to decline in the first half of the forecast period. The market has a projected worth of $429.42 million in 2012 and then drops in value to $238.85 million in 2016 – a roughly 44.37 percent ($190.57 million) drop. The second half of the forecast period – 2017 through 2021 – fares even worse, with a projected 50.57 percent ($122.19 million) market decline.

As this analysis is limited to covering a sampling of existing and future programs, the projected 72.18 percent ($309.98 million) decline in sales between 2012 and 2021 indicates that nearly three-quarters of the programs examined will be completed by the end of the 10-year forecast period. In addition to defense budget cuts and economic conditions, some of this decline can be attributed to a wind-down in production, with the AQS-22 being one case in point.

Among the companies reviewed in this analysis, Raytheon, Griffon Corp’s Telephonics Corp, L-3 Communications, CAE, and Thales are projected to be the top five airborne ASW sensors companies over the next 10 years based on forecast sales volume and percentage of market share.

“Overall, trends in the ASW sensors market (particularly the airborne ASW segment) continue to reflect trends in the submarine and related undersea warfare markets,” Sterk said. He adds, “Emerging international trends have sidelined ASW. While the U.S. undersea warfare segment does have its role in the war on terrorism, it is very much secondary to the surface warfare, land attack, and special operations/special projects sectors. Airborne ASW is now a long way down on the list of priorities. However, it will not always remain so, and the extensive research and development funding being expended will lay the groundwork for coping with future threats.”




All of this week's top headlines to your email every Friday.


 
 

 

NASA awards Raytheon $240 million contract for earth science data system

NASA’s Goddard Space Flight Center has awarded the Raytheon a five year contract valued at up to $240 million to continue its support of the Earth Observing Systems Data and Information System. This system ingests, archives and makes earth science data available to the scientific community worldwide. The latest EOSDIS Evolution and Development contract is...
 
 
U.S. Chamber of Commerce photograph

Boeing, Embraer to collaborate on ecoDemonstrator technology tests

U.S. Chamber of Commerce photograph Frederico Curado, president & CEO of Embraer, and Marc Allen, president of Boeing International, at the Brazil-U.S. Business Summit in Washington, D.C. The event occurred during an offici...
 
 
LM-Legion

Lockheed Martin’s Legion Pod™ takes to skies

Lockheed Martin photograph by Randy Crites Lockheed Martin’s Legion Pod recently completed its first flight test, successfully tracking multiple airborne targets while flying on an F-16 in Fort Worth, Texas. Legion Pod was in...
 

 

Raytheon wins U.S. Army contract award

Will provide R&D for ground vehicles, ground robotics The U.S. Army Contracting Command ñ Warren recently awarded Raytheon the TACOM Strategic Service Solutions indefinite delivery/indefinite quantity contract. The five-year multiple-award vehicle has a ceiling value of $634 million. The agreement covers future work on sensors, fire control systems, active protection systems, and robotics...
 
 

Lockheed Martin’s EW pod delivers proven ability to protect, control electromagnetic spectrum

Lockheed Martin is testing an electronic warfare pod in the company’s advanced anechoic chamber. The pod is designed to fit a variety of platforms, and is a self-contained electronic warfare package, encompassing an entire suite of capabilities in one unit.  Electronic warfare is the art and science of controlling the electromagnetic spectrum—from jamming enemy communications...
 
 
Northrop Grumman photograph

Northrop, Navy successfully conduct E-2D Advanced Hawkeye aerial refueling CDR

Northrop Grumman photograph An E-2C test aircraft assigned to Air Test and Evaluation Squadron (VX) 20 conducts an aerial refueling dry-plug engagement with an F/A-18. Northrop Grumman along with the U.S. Navy have successfully...
 




0 Comments


Be the first to comment!


Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>