|By PR Newswire||
|December 19, 2012 07:50 AM EST||
MOUNTAIN VIEW, Calif., Dec. 19, 2012 /PRNewswire/ -- Planned vehicle procurement programs in the U.S. Military are ending, and new programs are several years away from implementation. For the vetronics market, this means that retrofits and vehicle modifications will account for the bulk of its revenue over the next five years.
New analysis from Frost & Sullivan (http://www.aerospace.frost.com), U.S. Military Vetronics, finds that the 2013 U.S. military budget requests $909.3 million in vetronics procurement, which will decline at a rate of 8.6 percent till 2017.
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The Department of Defense (DoD) budget's emphasis will be on equipment modifications and rebuilding of current systems, rather than procuring new vehicles. Future vehicle purchases will be limited to next-generation brigade combat team ground combat vehicle (BCT GCV) and the joint light tactical vehicle (JLTV).
The DoD will also increasingly adopt mature commercial-off-the-shelf (COTS) technologies for use in command, control, communications, computers, intelligence, surveillance, and reconnaissance (C4ISR) systems. The benefits using COTS equipment include reduced costs, ease of integration and upgrades, faster adoption and refresh, higher integrator margins, and a greater operational capability.
"From combat vehicles to tactical network communications networks, COTS hardware and software are performing very well in the vetronics market," said Frost & Sullivan Industry Manager Wayne Plucker. "Reliability and standards-based technology have eased fears about security, though supply chain integrity remains a concern."
Currently, R&D funds are being channeled away from vetronics toward procurement and operations, as well as maintenance. However, research, development, test & evaluation (RDT&E) is expected to grow noticeably to support the development of the BCT GCV and JLTV vehicles. COTS equipment are likely to form the bulk of the DoD's RDT&E initiatives.
"The emphasis is on multi-purpose technologies that fuse various collection disciplines and standardize reporting," said Plucker. "Processing and dissemination of full-motion video will continue to be an area of robust growth in vetronics."
U.S. Military Vetronics is part of the Defense Growth Partnership Services program, which also includes research in the following markets: Commercial Aviation, Military Aviation, Homeland Security, and DoD Budget. All research services included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.
About Frost & Sullivan
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U.S. Military Vetronics
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SOURCE Frost & Sullivan
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