Press Release

Contact: Greg Giaquinto, Research Analyst

Phone: (203) 426-0800

Fax: (203) 426-4262

Web site: www.forecast1.com

E-mail: greg.giaquinto@forecast1.com

Forecast International, Inc.

22 Commerce Rd. Newtown, CT  06470 USA

FOR IMMEDIATE RELEASE

Forecast Study Projects $11.4 Billion Surface Communications Market

NEWTOWN, Conn. [July 6, 2004] — The cost-saving advantages of software-operated communications systems and the need for radios that work effectively in joint missions are prompting defense departments worldwide to invest in new, state-of-the-art surface communications systems.   A Forecast International study projects that defense departments will spend some $11.42 billion developing, buying, and maintaining 58 different surface communications systems over the next decade.  The new study, entitled "The Market for Surface-Based Communications Systems," further projects that defense departments will purchase some 269,270 individual products from this assortment of systems over the next 10 years.  

 

Greg Giaquinto, author of the study, said that because defense departments will be procuring software-driven radios, the manufacturers of military communications systems will be motivated to create a new business model.  Said Giaquinto, "That model might include selling software-operated surface communications systems to homeland security organizations, developing and selling the software used by these systems, and selling non-software-operated surface communications systems to countries with moderate defense budgets,"

Having particular influence over the surface communications systems market over the next decade will be the Joint Tactical Radio System (JTRS), the Bowman tactical radio program, and the Falcon II Communications System. JTRS is a program of the U.S. Department of Defense aimed at developing and acquiring a single, standard, software-operated radio system for use by all of the U.S. armed services.  Forecast International projects that the U.S. Army, Air Force, and Marine Corps will procure some 8,317 Cluster 1 Ground JTR Sets over the next decade. 

At the same time, the U.K. Ministry of Defence has launched the Bowman program with the goal of developing a tactical radio to replace the Clansman tactical radio currently used by the British Army.  Forecast International expects some 74,300 radios to be built under the Bowman program by year-end 2013.

Finally, the Falcon II Communications System is a family of software-operated tactical radios manufactured by Harris Corporation.  The Falcon II handles simultaneous voice and data transmission.  According to the study, defense departments worldwide will buy some 22,822 Falcon II radios over the next decade. 

Competition in the surface communications systems market will be fierce throughout the decade.  Dominating the market will be Boeing Company, General Dynamics, and Thales, which together will represent 73.66 of market share over the decade.  

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, CT, USA, Forecast International specializes in long-range industry forecasts and market assessments, including regular 10-year forecasts. Its products are utilized by strategic planners, marketing professionals, military organizations, and governments worldwide.  To arrange an interview with Forecast International's analysts, please contact Monty Nebinger (203-426-0800, monty.nebinger@forecast1.com)