Press Release
Contact: Theresa Hartley, Defense Analyst
Phone: (203) 426-0800
Fax: (203) 426-4262
Web site: www.forecastinternational.com
E-mail: theresa.hartley@forecast1.com
Forecast International, Inc.
22 Commerce Rd. Newtown, CT 06470 USA
FOR IMMEDIATE RELEASE
Forecast International Projects $35 Billion Airborne
and Space-Based Electro-Optical Market
NEWTOWN, Conn. [October 2, 2006]
— Forecast International is projecting that countries worldwide will spend more
than $35 billion on 33 different Airborne and Space-Based EO programs over the
next 10 years. According to its new study, "The Market for Airborne and
Space-Based Electro-Optical Systems," the supply of potential EO platforms
will be abundant over the next decade. This analysis consists of three major market
segments: the Airborne Electro-Optical sector, which accounts for 38.4 percent;
the Space-Based EO programs, which represent approximately 38.2 percent; and
the Special Mission Aircraft program, which accounts for the remaining 23.4
percent of this study.
The Airborne EO sector is an
emerging market, supported by a number of major manufacturers. Two Airborne EO
programs alone account for almost $5 billion in sales, with targeting pods providing
for over $3 billion. Lockheed Martin, Northrop Grumman, Rafael Armament
Development Authority, and Raytheon each manufacture a targeting pod, which has
found favor with the U.S. military. This market is expanding due to Operation
Iraqi Freedom and the use of pods for non-traditional intelligence, surveillance,
and reconnaissance (NT-ISR) missions, as well as close-air support missions.
Lockheed Martin is the prime on the approximately $2 billion Target Acquisition
and Designation Sight/Pilot Night Vision Sensor (TADS/PNVS) and its modernized
version, Arrowhead. These electro-optical fire control systems are designed
for the AH-64 Apache and its international derivatives.
Space-Based EO programs form
the second major market segment. Two major space programs represent 90 percent of
the space-based portion of this analysis. The Space Tracking and Surveillance
System (SSTS) and the Space-Based Infrared System (SBIRS High) are planned
constellations of satellites that rapidly detect and track ballistic missile
launches from anywhere on Earth. “Recent launches in North Korea highlight the
need for these types of reconnaissance systems,” said Defense Electronics
Analyst Theresa Hartley, author of the study.
The special mission aircraft portion, the report’s third
major market segment, consists of only one program: Boeing’s YAL-1A Airborne
Laser program. However, this technically challenging and expensive program is
in danger of being canceled if any major program difficulties emerge or if
funding is needed for higher-priority projects.
There are five major players in the Airborne and Space-Based
Electro-Optical market. Dominating this market are Lockheed Martin, The Boeing Company,
and Northrop Grumman, which together represent almost three-quarters of the
market share of this analysis. However, Boeing’s revenues are tied to the
Airborne Laser Program, and extensive cutbacks would affect the outcome of this
analysis considerably. BAE Systems and Raytheon round out the top five
companies. “These five corporations remain on top because they are prime
contractors for multimillion-dollar projects, as well as subcontractors to each
other’s major programs,” Hartley said.
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, 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 (203-426-0800,
ray.peterson@forecast1.com).
