Frost & Sullivan, LONDON, UK: NATO force goals are motivating the shift towards smaller but more capable combat fleets, expanded ground surveillance and more efficient airborne early warning capability. Force modernisation and stock replacement programmes will, therefore, promote strong and sustainable growth across the European airborne intelligence, surveillance, target acquisition and reconnaissance (ISTAR) radar market. To benefit from growth opportunities, however, market participants will need to focus on developing next-generation technologies.
Recent research by Frost & Sullivan's Aerospace & Defence Group, estimates that the total size of the European airborne radar market (comprising frontline aircraft radar, other fixed-wing aircraft radar and helicopter/rotorcraft radar) over 2005-2014 is likely to be $5.44 billion, of which $440 million will represent revenues from new opportunities in the market.
Currently, a few, strong manufacturers are dominating the European airborne radar industry. However, as competition intensifies and a host of new challenges emerge, leading manufacturers will be compelled to re-examine their position on the value-chain.
Uncertain procurement numbers for next-generation frontline fighter aircraft, together with the limited orders expected for fixed-wing surveillance and airborne early warning and control (AEW&C) aircraft beyond 2014 is placing tremendous pressures on airborne radar manufacturers. Such anxieties are being exacerbated by the increasing longevity of current platforms and the rising cost-sensitivity of smaller and mid-sized nations.
“To maintain their market share, large manufacturers will need to move up the value-chain and provide more capable solutions in an ever-more networked combat environment,” comments Frost & Sullivan Defence Analyst, Marko Lukovic. “To achieve this, market leaders will need to offer more capabilities to their customers by developing next-generation technologies across all three market segments.”
For instance, development of lightweight antenna and faster processors along with the need to equip smaller platforms are underlining the growing indispensability of synthetic aperture radar (SAR) technology. Radars with SAR and inverse-SAR (ISAR) capabilities are already standard equipment on most relevant platforms and this trend likely to persist on fighter aircrafts, large dedicated platforms and helicopters.
The radar with SAR capabilities that is likely to offer particularly robust growth opportunities will be active electronically scanned array (AESA) radar. With its unmatched picture resolution, AESA is set to be the radar of the future for all types of aircraft. Next-generation fighter aircrafts purchased by NATO are either likely to already have AESA or upgrade to this radar at a later stage.
In addition to powerful and precise sensors, modern air forces are demanding easy upgrade, flexibility and low cost, all of which are features of commercial off-the-shelf (COTS) technologies. The close links between COTS technologies and sophisticated radar systems means that the increased use of COTS will have a positive ripple effect on the procurement of radars.
“Only the companies that make the right decisions today about which technologies to develop will be the ones still competing a decade from now,” says Mr. Lukovic. “Technology will be the key 'enabler' of the transformation process that is radically altering the defence marketplace.”
While major defence companies have already embraced this strategy, second-tier producers with a lower-cost base and closer relations with national suppliers will need to concentrate on technology innovation, thereby creating more competition in the market. This will be of special importance in markets for smaller, lighter and cheaper airborne radar, such as ones fitted on helicopters.
European Airborne ISTAR: Airborne Radar, a part of the C4ISR service, provides an overview and outlook for the market. It segments the market into frontline aircraft radar, other fixed-wing aircraft radar and helicopter radar. This research service includes detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.
Frost & Sullivan, a global growth consulting company, has been partnering with clients to support the development of innovative strategies for more than 40 years. The company's industry expertise integrates growth consulting, growth partnership services and corporate management training to identify and develop opportunities.
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