Press Release

Contact: Larry Dickerson, Missile Systems Analyst

Phone: (203) 426-0800

Fax: (203) 426-4262

Web site: www.forecast1.com

E-mail: larry.dickerson@forecast1.com

Forecast International, Inc.

22 Commerce Rd., Newtown, CT  06470 USA

 

FOR IMMEDIATE RELEASE

 

Air Defense to Generate $22.6 Billion in Sales

 

NEWTOWN, Conn. [May 20, 2004] — The surface-to-air missile (SAM) market is expected to generate $22.6 billion in revenues over the next 10 years with the production of more than 88,000 SAMs, according to Forecast International's "The Market for Surface-to-Air Missiles."

 

"The quick defeat of the Iraqi air defense network is not expected to hinder sales of surface-to-air missiles over the next 10 years," said Larry Dickerson, senior missile analyst for Forecast International.  "In fact, the aerial dominance enjoyed by the United States and the United Kingdom during Operation Iraqi Freedom is likely to motivate many countries to upgrade their air defense networks," he said.

 

SAM production over the next ten years is expected to peak in 2004 at about 11,100 units and gradually decrease to some 6,900 missiles in 2013.

 

"Although the number of missiles produced annually is expected to decline, the value of this market will increase throughout most of the next decade," said Mr. Dickerson.  "The leading players in this market remain American and European firms, specifically Lockheed Martin, Raytheon and MBDA," said Dickerson.

 

Helping to increase the value of this market is the growing demand for systems capable of engaging hostile ballistic missiles.  "Raytheon and Lockheed Martin have the advantage of being ahead of their competitors in meeting the growing demand for missile defense systems," Dickerson added. 

 

Raytheon produced the Patriot air defense system, which is equipped with the Lockheed Martin PAC 3 missile interceptor.  These systems have a symbiotic relationship that helps to fuel demand for each other. 

 

MBDA is trying to interest countries in a missile defense system that uses its ASTER missile, but this air defense weapon is not expected to be available before 2010.

 

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 assessment - 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