Defense companies that wish to claim a stake in the intensely
competitive unmanned aircraft system (UAS) market will find the task
challenging. Mature technologies, coupled with increasing
consolidation, are making the UAS market a difficult space to enter.
[prnewswire.com] These challenges are not likely to hold back the market, especially
with the Department of Defense’s (DoD’s) demand for UAS at an all-time
high due to the ongoing war operations in Iraq and Afghanistan. Although
the troop withdrawal in Iraq and lower defense budgets could have a
long-term negative impact on the UAS market space, the market is
expected to increase between 2009 and 2013.
New analysis from Frost & Sullivan (http://www.aerospace.frost.com), U.S. Unmanned Aircraft Systems Market, finds that the market earned revenues of $3.16 billion in 2008 and estimates this to reach $3.81 billion in 2013.
"By
focusing on UAS subsystems, the U.S. defense industry will still be
able to take advantage of a market space that is rapidly changing both
technologically and competitively," says Frost & Sullivan
Industry Analyst Lindsay Voss. "Six years after the onset of rapid UAS
procurement, the U.S. DoD is still demanding more persistent
intelligence, surveillance, and reconnaissance (ISR) assets in the air.
This ensures growth in the UAS space while many other areas of
aerospace and defense are contracting."
Apart
from the benefits of lower costs of purchase and operation, unmanned
aircraft eliminate the need for an onboard crew, making it easier for
the military to tackle more advanced missions. Warfighters are
demanding more full-motion video and since unmanned aircraft are the
foundation for this vital resource, they are emerging as critical
assets in the battlefield.
"From
nano and small systems weighing less than 2 pounds to the 10,000 pound
Global Hawk, UAS is changing the dynamics of the military aviation
market space," notes Voss. "Companies that have traditionally provided
manned assets to their military customers can no longer ignore the
trend, and many are embracing unmanned aviation."
The
overwhelming demand for constant ISR from warfighters has kicked the
UAS market into overdrive, stimulating dramatic growth for key UAS
companies.
New participants
are not likely to find the going as easy as the entrenched competitors.
Companies that could provide an 80 percent UAS solution ten years ago
dominate the market today across all key platform categories. Market
domination by well-established companies has already driven some
participants out of the market and forced others to diversify their
product and/or service offerings.
"Diversification
is proving to be an important strategy as new market participants seek
to be profitable in the UAS space," observes Voss. "Companies that are
able to offer value to their military customers through current product
offerings while expanding into key UAS market sub-segments are
improving their competitive positions."
The
emergence of vital growth sub-segments such as UAS services and
subsystems are creating numerous opportunities for participants,
especially with UAS continuing to proliferate in the battle space.
Companies will have to make the most of the opportunities in these
diversified areas if they wish to solidify their positions in the
market.
Unmanned Aircraft Systems Market
is part of the Defense Growth Partnership Services program, which also
includes research in the following markets: U.S. DoD 2010 budget, U.S.
military software defined radio markets, U.S. C4ISR services market,
Middle East land ISR radar market assessment, European air ISR sensors,
and maritime security assessment – EU. All research services included
in subscriptions provide detailed market opportunities and industry
trends that have been evaluated following extensive interviews with
market participants.
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