Press Release

Contact: Richard Sterk, Electronics Group Leader & Senior Defense Analyst

Phone: (203) 426-0800

Fax: (203) 270-8919

Web site: www.forecast1.com

E-mail: richard.sterk@forecast1.com

Forecast International, Inc., 22 Commerce Rd. Newtown, CT  06470 USA

 

FOR IMMEDIATE RELEASE

 

Netcentric Warfare the Driving Force for Today's C⁴I Market

 

NEWTOWN, Conn. [June 1, 2004] ―The global war on terrorism, highlighted by military operations in Afghanistan and Iraq, is propelling new demand for Command, Control, Communications, Computers & Intelligence (C⁴I) technology and equipment.   According to Forecast International's annual  "C⁴I Market Overview," the world C⁴I market value will be worth more than $83.899 billion over the course of the 10-year period reviewed in the analysis (2004-2013).

 

"Network-centric warfare is the catch-phrase of the day," said Richard Sterk, Electronics Group Leader and Senior Defense Analyst at Forecast International.  "What it means is that several different organizations are able to communicate with one another smoothly through their own computer networks.  This emphasis on netcentric warfare is one of the leading drivers of the current C⁴I market."

 

Sterk said that this is not an easy task "given the range in age of technology in use around the world, as well as the technological hurdles to be faced in trying to disseminate vast amounts of information on such a grand scale."

 

The next few years will be characterized by various minor fluctuations, with the market starting strong at $9.064 billion in 2004, but then declining to $8.932  billion in 2007 and  $8.708 billion in 2008. It will then rise slightly to $8.884 billion in 2010, but is expected to drop thereafter to $6.987 billion in 2013 in conjunction with a decline in R&D and production of existing systems.

 

Unfortunately, the war on terrorism has not produced the market goldmine that many had predicted, said Sterk.  "Many defense manufacturers had originally hoped to cross their military products over into the civilian market and begin outfitting municipalities with military-like information networks that would allow for greater coordination in responding to an emergency or threat," Sterk said, adding, "this just hasn't happened."

 

The following represent the top five C⁴I companies as projected for the next 10 years (2004-2013) based on forecast sales volume and percentage of market share using the criteria identified in the analysis.  Raytheon Co, with 12.31 percent of anticipated 10-year market share, valued at $10.324 billion, is seen as  leading the C⁴I market.  General Dynamics is ranked number two with 6.71 anticipated market share, or $5.625 billion.  Lockheed Martin Corp is third with an expected market share of 6.20 percent, representing $5.198 billion in value.  Boeing ranks fourth with a predicted 4.0 percent hold on the C⁴I market, representing a 10-year sales total of $3.356 billion.  Rounding out this survey at number five is Northrop Grumman, which is predicted to harvest 3.63 percent of the market, for a value of $3.043 billion over the next 10 years.

 

"While there is some market in homeland defense for C⁴I producers, such a market is going to be more of a whimper than a bang," said Sterk.

 

Forecast International, Inc., is a leading provider of Market Intelligence and Analyses 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 innovative marketing presentations, including regular 10-year forecasts.  To arrange an interview with Forecast International's analysts, please contact Monty Nebinger (203-426-0800, monty.nebinger@forecast1.com).