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.


 
 

 
Air Force photograph by Joe Davila

Boeing, Air Force demonstrate Minuteman III readiness in flight test

Air Force photograph by Joe Davila Boeing supported the launch of an unarmed Minuteman III intercontinental ballistic missile at Vandenberg Air Force Base, Calif., on Sept. 23, 2014. Boeing supported the U.S. Air Force’s succ...
 
 

Pentagon going to court for refusing to release Sikorsky data

PETALUMA, Calif. – The Pentagon is refusing to release any data on any prime contractors participating in the 25-year-old Comprehensive Subcontracting Plan Test Program. The American Small Business League launched a program in 2010 to expose the fraud and abuse against small businesses the CSPTP had allowed. As a test the ASBL requested the most...
 
 
Northrop Grumman photograph

Raytheon Griffin C flight tests demonstrate in-flight retargeting capability

Northrop Grumman photograph Northrop Grumman has received a contract from the U.S. Marine Corps for low-rate initial production of the AN/TPS-80 Ground/Air Task Oriented Radar (G/ATOR). G/ATOR is the first ground-based multi-mi...
 

 
insitu-scan-eagle1

Insitu announces ScanEagle 2 – the next generation of ScanEagle platform

  From its booth at the Euronaval Exhibition and Conference in Paris, Insitu Oct. 29 announced ScanEagle 2, the next generation of its revolutionary ScanEagle platform. Leveraging lessons learned from more than 800,000 ope...
 
 

DOD, Lockheed Martin announce principle agreement F-35 purchase

The U.S. Department of Defense and Lockheed Martin have reached an agreement in principle for the production of 43 F-35 Lightning II aircraft.  Officials anticipate the Low-Rate Initial Production lot 8 (LRIP 8) contract to be finalized in the coming weeks.  The contract is for fiscal year 2014 with deliveries beginning in 2016. Cost details...
 
 

Boeing delivers Emirates’ 100th 777-300ER

Boeing and Emirates Airline are celebrating the delivery of the airline’s 100th 777-300ER (Extended Range), marking another milestone in a partnership that began over two decades ago when the Dubai-based airline ordered its first 777. With this delivery, Emirates will have 142 777s in operation and is the only airline in the world to operate...
 




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=""> <strike> <strong>