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Army Radio Market Worth $11 Billion (July 17)

NEWTOWN, Conn. --- A new study from Forecast International projects defense departments worldwide to spend $11.1 billion on developing, buying, and maintaining 57 different surface communications systems over the next decade. The study, entitled “The Market for Surface-Based Communications Systems,” also projects these same defense departments will purchase nearly 339,500 individual products from this assortment of surface communications systems over the next ten years.

Greg Giaquinto, author of the Forecast International study, says the desire of defense departments throughout the world to use tactical radio systems that run by software will be driving surface communications systems spending over the next decade.

“The Market for Surface-Based Communications Systems” says software-operated radios are composed of two components, a radio unit, and software. The radio unit houses the software. The software provides the radio unit with the ability to communicate. Because software programs can upgrade the information exchange capabilities of these radio systems, the life span of software-operated tactical radio units is extended. An increase in the life span of tactical radio units has the effect of decreasing world demand for tactical radio units, says the study.

“For sellers to prosper in the tactical radio market, they must develop a long run business strategy,” said Giaquinto. “The strategy must be founded on the premise that application software, not radio units, is the lifeblood of software-operated tactical radio systems.” In the long run, sellers that shift their business from building and selling tactical radio units to creating and selling tactical radio software “will maximize profits in the world market for tactical radio systems,” according to Giaquinto.

The Joint Tactical Radio System, the Bowman Tactical Radio System, and the Falcon II Communications System will have a major impact on the surface communications market over the next decade, according to the study.

The Joint Tactical Radio System (JTRS) is a Pentagon program to develop and buy a single, standard radio system for the US armed services. The JTRS will run by software. The study projects the US Department of Defense to buy nearly 260,600 JTRS radio units.

The Bowman Tactical Radio System is a UK Ministry of Defence program to replace the Clansman tactical radio used by the British Army. Forecast International expects 25,000 vehicles, 40 ships, 10,600 soldiers, and 500 aircraft to be equipped with the Bowman Tactical Radio.

Lastly, the Falcon II Communications System is a family of tactical radios manufactured by Harris Corporation. Falcon II tactical radios run by software. The Forecast International study projects defense departments worldwide to purchase 29,289 Falcon II tactical radios over the next ten years.

“The Market for Surface-Based Communications Systems” says competition for business within the surface communications market will be stiff over the next decade. The study projects General Dynamics, Boeing, and Raytheon to receive 55.2 percent of the total dollar amount defense departments worldwide are forecast to spend on developing, buying, and maintaining surface communications systems over the next ten years.

Forecast International/DMS Inc., is a leading provider of Market Intelligence and Analyses 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 innovative marketing presentations, including regular 10-year forecasts.

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Forecast Study Says Software Radios Driving $11 Billion Communications Market