Business

May 10, 2013

Forecast International expects C4I market will face budget limitations in tight economy

Information: Who has it, who needs it, and how to distribute it remain the core of C4ISR.

Forecast International’s “The Market for C4I” examines 222 leading C4I programs worldwide and reviews 22 companies involved in the production of C4I systems.

It projects that the combined market value of these programs will be $50.756 billion over the next 10 years. Broken down, the value of the programs covered by the study will continually decline over the decade from $6.988 billion in 2013 to $3.711 billion in 2022. This 46.88 percent drop ($3.277 billion) in projected annual sales indicates that less than half of the programs explored will be completed by the end of the 10-year forecast period of 2013-2022.

“Upcoming defense budgets will be tight – very tight – as the world economy continues to struggle in the aftermath of the global recession,” said Richard Sterk, Senior Electronics Analyst at Forecast International, adding that “much government money has been diverted to other areas in order to keep a country’s economy solvent.”

“Spending on defense may seem like the last thing a country would do to stimulate its economy, but in reality, it is one of the first targets for spending,” said Sterk. “A nation’s defense is as much a ‘public works’ as a new road. Money pumped into defense stimulates an economy by providing jobs to local populations (most work stays in-country due to security concerns) and gives the military the tools it needs.”

Based on the market as reviewed in this analysis, the top five C4I defense companies over the next 10 years in terms of sales volume and percent market share will be Raytheon, General Dynamics, Harris, Northrop Grumman and Lockheed Martin.

 




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