Radar manufacturers will have to focus on developing new technologies that offer more capabilities and better value to their customers to take advantage of the potential $5.44 billion European airborne radar market between 2005 and 2014, says a report by consultancy Frost & Sullivan.
The report’s author, defence analyst Marko Lukovic, says $440 million of this could be revenues from new opportunities in the market, which include frontline aircraft radars, other fixed-wing aircraft radars and helicopter/rotorcraft radars.
“Currently, a few strong manufacturers are dominating the European airborne radar industry. However, as competition intensifies and a host of new challenges emerges, leading manufacturers will be compelled to re-examine their position on the value chain,” Frost & Sullivan says.
There has been significant investment in research and development, and businesses that have anticipated the forthcoming needs of customers will be at an advantage as competition grows, says Lukovic. “Companies that are already there will capture the biggest chunk of the market,” he says, adding that some smaller companies that have not made the necessary investment may be reduced to supplying components to other manufacturers.
Frost & Sullivan says NATO force goals are sparking the shift towards smaller and better equipped combat fleets, increased ground surveillance and greater efficiency in airborne early warning capability. In turn “force modernisation and stock replacement programmes will therefore promote strong and sustainable growth across the European airborne intelligence, surveillance, target acquisition and reconnaissance radar market”.
Airborne radar manufacturers face challenges in the form of uncertainty over procurement of next-generation fighters and expectations of limited orders for fixed-wing surveillance aircraft and airborne early warning and control aircraft after 2014.
HELEN MASSY-BERESFORD/LONDON
Source: Flight International
