Press Release

Contact: Greg Giaquinto, 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

General Dynamics to Dominate Surface Communications Market

 

PARIS [June 13, 2005] ― Forecast International is projecting that defense departments worldwide will spend some $12.88 billion on 28 different surface communications development, acquisition or maintenance programs over the next decade.  In its new study, entitled “The Market for Surface-Based Communications Systems,” FI further projects that defense departments will purchase nearly 261,173 individual products from this assortment of programs over the next 10 years. 

According to the study, some surface communications suppliers may choose to conduct the bulk of their business within the software-operated market segment over the next decade.  Of these suppliers, some will mostly supply hardware, with others primarily providing software.  Conversely, other surface communications suppliers may decide to conduct the lion’s share of their business within the traditional market segment.  These suppliers will likely sell non-software-operated systems to nations that possess modest funds for purchasing military communications equipment. 

"The Joint Tactical Radio System, the Bowman Tactical Radio and the Falcon II Tactical Radio will all have a major impact on the market for surface communications systems over the next decade," said Electronic Systems Analyst Greg Giaquinto, author of the study.

The Joint Tactical Radio System (JTRS) is being developed under a U.S. Department of Defense program with the goal of developing a single, standard, software-operated radio system that can be used by all of the U.S. armed services.  The U.S. Defense Acquisition Board’s program review of the JTRS Cluster 1 early operational assessment will provide the foundation for recommended cost, schedule, and funding changes prior to Cluster 1 development and production. The review is expected to be completed by fall 2005.

The U.K. Ministry of Defence launched the Bowman tactical radio program with the intent of developing and procuring man-portable and vehicle-mounted combat radios to replace the Clansman radios used by the British Army.  Forecast International expects over 20,000 British military vehicles to be equipped with Bowman equipment by the end of 2007. 

Finally, the Falcon II Tactical Radio is a family of software-operated radios manufactured by Harris Corporation.  The study anticipates Falcon II sales to be healthy over the coming decade.

"Competition within the surface-based communications market will be tough over the next 10 years," Giaquinto said.  Dominating the market will be General Dynamics, Rockwell Collins and Thales, which together will represent 47.17 percent of market share.  General Dynamics will lead with $4.985 billion, and Rockwell Collins and Thales will follow with $586.990 million and $503.862 million, respectively.

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).