Competitors in the European Air Battle Space Market to Develop Sophisticated Technology and Benefit from Potential Growth Opportunities

Frost : The requirement for different technologies within each vertical segment of the European air battle space management (ABSM) market has encouraged several competitors to step into the market but has also rendered it difficult for any one company to exclusively dominate it.

The market (comprising static ground-based systems, deployable ground systems, air platforms and missile defence systems) is undergoing changes and estimates reveal that $14.00 billion is likely to be spent on ABSM from 2003 to 2014.

With NATO in the process of upgrading its ABSM program to a single common system that can be used by all NATO forces, revenues in the static ground-based systems segment are set to grow. Members are also making efforts to provide the necessary hardware and software to integrate or replace legacy ABSM equipment across the alliance. The Air Command and Control System (ACCS) is projected to have a fully deployable component that is likely to provide NATO with the capacity to deploy a ground-based ABSM facility during expeditionary and littoral operations.

Moreover, the procurement of commercial off-the-shelf (COTS) technology will assist in reducing the high costs involved in research and development and the trend of investing in new technology and integrating it with existing legacy equipment will further contribute to the growth of the static ground-based systems market ).

The deployable ground-based systems market is also likely to grow, with an increased emphasis on deployable assets and out-of-area operations. This shift in focus, away from the European mainland, has encouraged greater investment in littoral and expeditionary operations and this trend, together with the global war on terror will also spur revenue growth in this segment. It is likely that the deployable ground-based systems market will reach $843.1 million between 2005 and 2014.

Countries are also developing a growing range of air platforms (aircraft) to support both expeditionary and domestic operations. This is crucial in situations when it becomes impossible to employ ground-based systems in certain regions and out-of-area operations are essential. As a result, uptake of air platforms is set to expand.

Moreover, upgrades of maritime patrol aircraft, plans by the United Kingdom for an extensive airframe and avionics upgrade and airborne early warning and control (AEW&C) upgrades to modernise fleets will further contribute to the growth of the air platforms market.

However, while the modernisation of fleets under the radar system improvement programmes (RSIPs) will drive the air platforms market, some of the replacement programmes will remain in the design and development phase until 2010. Moreover, once nations have completed the acquisition of their intended projects, the market may be inactive for a while.

More: European Air Battle Space Management Platforms Market

Publ 20060117