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

 

Raytheon to Dominate Air Defense Missile Market

 

NEWTOWN, Conn. [May 31, 2005] — Raytheon will be the leading supplier of air defense missiles over the next 10 years, according to Forecast International’s “The Market for Surface-to-Air Missiles.” 

 

Revenues from the production of surface-to-air missiles (SAMs) between 2005 and 2014 will reach $22.8 billion.  More than 88,000 air defense missiles will be produced by countries around the world.

 

“As has been the case since the 1950s, American and European companies, including Russia, will dominate this market,” said Larry Dickerson, senior missile analyst for Forecast International. “The combined market share of these firms will exceed 53 percent of this market’s total value. Of this total, Raytheon’s market share will be over 25 percent, double its nearest competitor.”

 

Although Iraqi's once vaunted air defense network was no match for the combined U.S. and British airpower, the experiences of Operation Iraqi Freedom will have an effect on the surface-to-air missile market.

 

“Operation Iraqi Freedom did help to reinforce the idea that a growing number of air defense systems need to incorporate at least a minimal anti-missile capability,” said Dickerson.  “The proliferation of strike, cruise and ballistic missiles is generating demand for countermeasures, and not only among the major powers,” he said.

 

Spending on surface-to-air missiles should be steady over the next 10 years at around $2.2 billion annually.  Declines in production volumes in the outyears can be attributed to a drop in the manufacture of man-portable SAMs and of all types of missiles by China.

 

“China has been producing missiles at an artificially high rate for years under the notion that more is always better,” said Dickerson.  “This,” added Dickerson, “has given China a SAM inventory bloated with low-quality missiles.” Dickerson further remarked that Beijing is expected to abandon this policy in the future as it refocuses on purchasing higher quality missiles but in lower quantities.

 

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 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).