Tuesday, January 10, 2006

Backed by Advanced Functional Capabilities, UAV Remote Sensors Market Charts out a Successful Flight Path

Frost Soaring demand for unmanned aerial vehicles (UAVs) is being accompanied by rising demand for remote sensor technologies. All the three sensor types - electro optics (EO), infrared (IR) and synthetic aperture radar with moving target indicator (SAR/MTI) - are becoming standard requirements across all emerging UAV platforms.

Accelerated expansion of the global market for UAV remote sensors has been predicated on the benefits that UAVs with advanced remote sensors provide as complements to existing intelligence, surveillance and reconnaissance (ISR) platforms. Technological advances are moreover constantly improving upon the ability of UAV remote sensors to operate remotely in dangerous environments and for extended time periods.

In recent operations, UAV remote sensors have demonstrably enhanced situational awareness (SA) and surveillance capabilities through early and effective detection, identification, tracking and engagement of targets. The need for positive ID in battlefield settings has further ramped up demand for UAVs with sensor capabilities.

Stand off engagement has encouraged greater accuracy in remote sensors - EO/IR sensors are continuously being refined to increase resolution, enhance auto-focusing techniques and sensitivity to thermal differences while frequent improvements in SAR have aimed to produce more user-friendly images (photographic-like radar images) and at higher resolutions and longer ranges.

Technological developments promoting SA including higher resolution optics, hyperspectral imaging, low light and night vision (light intensifying) imaging have underlined the appeal of UAV EO/IR systems. The ability of SAR/GMTI (ground moving target indicator) to detect and track moving targets over wide areas has significantly reduced tactical decision making.

Superior remote sensor technology paralleled by the emergence of UAVs with more payload weight capabilities will further drive market expansion. By 2014, the total European, Asia Pacific and Middle Eastern UAV remote sensors market is forecast to be $1.8 billion with China, India, Japan, Germany, France, the United Kingdom, Australia and South Korea accounting for over 70 per cent of revenues. Of the three remote sensor types, SAR/MTI sensors are projected to reach the highest aggregated revenues between 2005 and 2014.

Cost advantages, in terms of maintenance, training and inventory management costs, are set to promote the acquisition of UAVs over manned aircraft. However, in countries where the perceived costs of switching have been regarded as being unacceptably high, development programmes for manned aircraft have been initiated even in areas where UAVs with remote sensors would seem to offer more benefit.

Despite the capability advantages that UAVs have over manned assets, there remains certain segments of military capability that are well served by current manned assets, which can remain in service for a considerable period. The maritime patrol segment, for example, is typically served at the moment by manned aircraft based on large and functional airframes designed, not for performance, but for lift capability and long service, utilising the same remote sensors for many years.

Nevertheless, maritime operations present key growth opportunities for UAVs with dedicated remote sensors, particularly in Asia Pacific. Continual tensions and surveillance requirements will result in the Asia Pacific region experiencing higher revenue growth than Europe and also offset the sluggish Middle Eastern market (excluding Israel, Iran and Syria).

Europe is projected to account for a 25 per cent share of the three-region UAV remote sensing market from 2005 to 2014 with revenue growth credited to new UAV programmes and replacements of existing UAVs as well as manned-aircraft reaching their out-of-service dates (OSDs).

The need for effective military deployments over large distances, enhanced interoperability and surveillance requirements together with the shift of some forces to NCW capabilities is making a strong case for the uptake of advanced UAV remote sensing systems in Europe.

The retirement of several ageing aircrafts from active service during the period 2005-2014 is also creating strong growth potential for UAVs possessing advanced ISR capabilities and integrated remote sensors. Based on these trends, considerable opportunities for next generation UAVs exist in Europe, particularly in France, the United Kingdom, Germany, Italy, Turkey and Spain.

As the market picks up momentum, leading European-based manufacturers of remote sensors for UAVs, including EADS, SAGEM, BAE Systems and Thales have to urgently address the existing capability gap between Europe and the United States while confronting competition from their US-based rivals.

Market participants will have to establish a successful track record if they are to thrive. "Manufacturers need to get on board emerging UAV programmes and work closely with end-users. Partnering with various airframe manufacturers and integrators as well as militaries is a strong advantage," advises Mr. Cohen.

"By joining and contributing to UAV manufacturers, remote sensor manufacturers can establish partnerships between themselves and end users enabling them to differentiate their product. UAV end users prefer remote sensor systems that have also established successful performance records in demonstrations on existing scenarios and even manned platforms, and better still, in full service with militaries.

Europe, Asia Pacific and Middle East UAV Remote Sensors Market Publ 20060110