Press Release
Contact: Richard Sterk, Sr. Aerospace and Defense
Analyst
Phone: (203) 426-0800
Fax: (203) 426-4262
Web site: www.forecastinternational.com
E-mail: richard.sterk@forecast1.com
Forecast International, Inc.
22 Commerce Rd. Newtown, CT 06470 USA
FOR IMMEDIATE RELEASE
C4I Sector Adjusts to Life After the 9/11
Buildup
NEWTOWN, Conn. [March 24, 2008] ― The C4I
market peaked in 2008, reports Forecast International’s “C4I Market
Overview.” Richard Sterk, Senior Analyst at Forecast International, comments,
“The world C4I market is now in the beginning of the predicted
‘market correction’ with the completion of many 9/11-inspired programs and
efforts.”
The “C4I Market Overview” examines over 200
leading programs and some 25 companies that are expected to produce at least
$64.1 billion in market value over the next 10 years. The programs examined
are expected to be worth $11.645 billion in 2008, and then steadily decline in
value to $3.384 billion in 2017. This drop is not unexpected, as it represents
the end of the initial response to the 9/11 terrorist attacks that flooded
money into defense and homeland security programs with the hope of immediate,
short-term fixes.
“Another effect of the 9/11 acceleration has been the
creation of a market void in new technology development for the next few years,”
said Sterk, in explaining that technology development is usually spaced evenly
to allow for both technological maturity and funding. However, in order to pay
for the accelerated program efforts that were originally not budgeted for,
defense departments basically had to borrow from future spending. “Many new
R&D efforts were placed on hold, Sterk said. “Unfortunately,” he added, “now
that they are set to go again, the money to fund them has already been spent.”
Of the companies examined in the analysis, Raytheon, General
Dynamics, AGS Industries, Northrop Grumman, and Thales are projected to be the
top five C4I defense companies over the next 10 years based on
forecast sales volume and percentage of market share.
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. To arrange an interview with Forecast
International’s editors, please contact Ray Peterson, Vice President, Research
& Editorial Services (203-426-0800, ray.peterson@forecast1.com).
