Strategic Analysis of European Soldier Modernisation Markets

Research and Markets, DUBLIN, Ireland: Research and Markets has announced the addition of “Strategic Analysis of European Soldier Modernisation Markets” to their offering. 
 
Over the last century military technology has had spasms of revolutionary change; combat aircraft, armoured transport, helicopters and tanks have changed the characteristics of modern warfare. However, until recently the dismounted soldier has improved its capabilities in an evolutionary rather than revolutionary manner. 
 
“Today, many NATO countries are seeking to revolutionise dismounted close combat capabilities through improving Command, Control, Communications, Computing and Intelligence (C4I), survivability, mobility and transportability, providing important opportunities for manufacturers and systems providers with diverse expertise to enter a new dynamic market,” notes the analyst of this research. “Accordingly, the European market for soldier modernisation programmes (SMPs) is currently set to expand considerably as European SMPs shift from evaluation and testing to production and use in operations.” 
 
The need to protect forces in more challenging operational environments will ensure SMPs remain a priority. In addition to force protection, the availability of commercial off-the-shelf (COTS) technology and common standards will reduce the unit price of SMPs, driving market expansion. The trend towards using modular systems and to develop network-centric warfare (NCW) capability will also promote market prospects. 
 
“The rapid increase in interest for fulfilling a vision of a modernised 21st century force has stimulated intense competition across Europe from the communications component, with consideration of alliance-wide requirements for the latest advanced and interoperable technologies,” states the analyst. “Still, expected short-term re-allocation of funds is one factor the industry needs to remain aware of.” 
 
The prohibitive cost of soldier modernisation, continuing technical dilemmas related to weight and power issues and challenges related to information management are hurdles that market participants will need to confront. While price sensitivity will pose a significant restraint, SMPs will also have to focus on methods of best integrating the lessons learnt from recent operations. 
 
C4I to be Largest Segment, SSM to be Fastest Growing 
 
The European soldier modernisation market is estimated to be worth a total of $5.6 billion over the period 2006-2015. Currently, the market is constrained while countries complete test and evaluation criteria, but the market is expected to significantly expand, with revenues set to peak in 2009. 
 
It is now a key time to secure position on the most valuable markets. The C4I segment is the backbone of the market and a key enabler of operations in a NCW environment. Although the smallest, the lethality segment, nevertheless, provides significant revenues. The market for sustainability, survivability and mobility (SSM) is the fastest growing segment. 
 
Advanced countries (the United Kingdom, France, Germany, the Netherlands, Norway, Italy, Spain, Portugal and Sweden) are the most attractive markets and offer higher revenues. Currently, they account for nearly 80 per cent of the market. They will dominate spending revenues, although emerging programmes represent the fastest growing sectors. 
 
Major opportunities exist in the fast follower markets (Austria, Belgium, the Czech Republic, Slovenia, Spain and Hungary), both as prime contractor and in component supply. Key to success here will be a proven track record in SMP leadership and integration capability.  
 
This Frost & Sullivan research service titled Strategic Analysis of European Soldier Modernisation Markets provides a detailed strategic forecast of key European markets in addition to analysis of current and future trends. In addition to analysing soldier modernisation programmes in Europe, the research also covers market value and volume of these initiatives, market leaders, as well as an overall roadmap showing the direction soldier modernisation is heading towards over the next ten years.