Technological Advances Create Opportunities for Players In the Airborne Communications Market
MOUNTAIN VIEW, Calif. -- Although the airborne communications market is forecast to peak, it is currently still growing due to several technological advances and conceptual changes in air traffic control. Some market trends that are positively affecting growth are the smaller VHF channel size and the move toward digital systems. According to new strategic research conducted by Frost & Sullivan (www.frost.com), World Military and Commercial Airborne Communications Market, total revenues were estimated to be USD1 billion in 1998. Growth is occurring mainly in the commercial sector as a result of a strong economy and demand for air travel. The military airborne communications market is maturing, as reflected by its low overall growth rate, says Frost & Sullivan Analyst Sermin Suer. Technological advances are creating replacement opportunities for competitors, but the market is limited by the number of available platforms and procurement budgets. Changes in air traffic control are having a positive impact on the commercial segment, although some of the impact will occur after the forecast period 1998 to 2005. The European channel size reduction increases growth potential, and new equipment will be required as a result of the shift from voice to data, which will drive the commercial airborne communications market. Technological advances in this market are a reflection of the overall electronics market. Advances in integrated circuits have enabled size and weight reductions, and the military segment has utilized commercial off-the-shelf components to reduce costs, says Suer. To maintain current growth rates, it is expected that competition will increase, which may trigger consolidation. The competitive structure may shift as a result of consolidations in the European military market and the possibility of cross-Atlantic mergers. To remain competitive, smaller companies would be wise to engage in partnerships and alliances to offer a broader product line. Frost & Sullivan's new study, World Military and Commercial Airborne Communications Market, covers communications systems mounted on airborne platforms that communicate with others on land, air, or sea. Included in the study are line-of-sight radios, over-the-horizon radios, satellite data links, line-of-sight data links and over-the-horizon data links. This study is segmented into the commercial and military markets. Also provided are revenue forecasts, market shares, market and technology trends, competitive issues and strategies. Frost & Sullivan presents Market Engineering awards to companies in the airborne communications market to recognize those who have worked hard to make a positive contribution to industry. Winners are selected from an in-depth analysis of the market competitors and interviews with those companies that make up the industry. Frost & Sullivan honors ARNAV with the 1998 Market Engineering Customer Focus Award for taking its customers' needs and resources into account when designing its data link system, resulting in an affordable, flexible system that offers value to the customers. The 1998 Market Engineering Competitive Strategy Award is presented to Rohde & Schwarz/AlliedSignal. Rohde & Schwarz through its alliance with AlliedSignal has done well in the HF airborne radio market, and the companies have begun to make inroads with their product on the market share of the leader. In addition, Frost & Sullivan gives the 1998 Market Engineering Product Line Strategy Award to Rockwell Collins for serving a wide range of airborne customers with a varied product list. This aerospace industry research has integrated the Market Engineering consulting philosophy into the entire research process. Critical phases of this research include: Identification of industry challenges, market engineering measurements, strategic recommendations, planning and market monitoring. All of the vital elements of this system help market participants navigate successfully through the airborne communications market.
World Military and Commercial Airborne Communications Market Report: 5787-22 Publication Date: Feb. 1998 Price: USD2950
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Technological Advances Create Opportunities for Players In the Airborne Communications Market
