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Frost & Sullivan: Defense Equipment Demand, Spending to Grow $60B Through 2018

Frost & Sullivan: Defense Equipment Demand, Spending to Grow $60B Through 2018 - top government contractors - best government contracting event
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solider, equipment, c4isrFrost & Sullivan‘s newest Global Defense Outlook study projects defense procurement activities to grow by $60 billion between 2013 and 2018 due to equipment nearing end-of-life and requiring maintenance, repair and similar work.

The business consulting firm said Thursday most spending and demand in 2013 were on C4ISR equipment such as radars and sensors, although recent economic conditions and declining budgets are suppressing continued demand.

“Not surprisingly, market participants are facing a situation of overcapacity, which is forcing the industry to consolidate or enter joint ventures and engage in technology transfer,” said Brad Curran, a Frost & Sullivan senior industry analyst on aerospace and defense.

“Market participants are also adopting a long-term perspective, maintaining smaller margins, and forging partnerships with commercial providers.”

The company also recommends vendors to address “unmet” demand in submarines, unmanned vehicle systems and networked communications and sensor technology.

According to Curran, further growth opportunities could occur as North Korea, China, Iran and Russia build up their missile stockpiles, naval systems and bases.

Frost & Sullivan also sees India, Japan, Poland, South Korea, Taiwan and Turkey as emerging markets for defense equipment sales.

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