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

Tight Funding Will Limit Innovation in the C4I Market

NEWTOWN, Conn. [April 2, 2012] — The C4I market normally follows an accordion cycle of funding, shifting from a concentration on production to R&D then back to production. According to Richard Sterk, Senior Electronics Analyst at Forecast International, this ebb and flow was greatly interrupted by the events of 9/11 and then the operations in Iraq and Afghanistan. Production was accelerated by as much as 60 percent to get much needed equipment into the field as quickly as possible. Sterk maintains that this acceleration of production came at the price of future R&D in both scheduling and funding.

Forecast International's "The Market for C4I" examines nearly 200 leading C4I programs worldwide and reviews 18 companies involved in the production of C4I systems. It projects the combined market worth of these programs to be $40.882 billion over the next 10 years. More specifically, the value of the programs covered by the study will total $6.992 billion in 2012 and then decline over the decade to $2.391 billion in 2021. This 65.79 percent drop ($4.6 billion) in projected annual sales indicates that more than half of the programs explored will be completed by the end of the 10-year forecast period of 2012-2021.

"Governments have borrowed from the future but unfortunately, the future is here – now," Sterk said. He added, "Until the overall economy improves, R&D will be very limited and imagination (technology-wise) stifled. Any technology innovation will have to come from the private sector that will – and rightly so – reap the rewards."

Among the companies reviewed in this analysis, General Dynamics, Raytheon, Northrop Grumman, Lockheed Martin, and Harris 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. (www.forecastinternational.com) 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. Questions regarding sales may be directed to sales@forecast1.com.