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Global C4ISR Outlook Global C4ISR Outlook Capabilities in Demand Capabilities in Demand Brad Curran, Industry Analyst Aerospace & Defense 11 February 2014 11 February 2014 © 2014 Frost & Sullivan. All rights reserved. This document contains highly confidential information and is the sole property of Frost & Sullivan. No part of it may be circulated, quoted, copied or otherwise reproduced without the written approval of Frost & Sullivan.

Global C4ISR Market Offers International Opportunities for Defense Technology Sales and Services

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Page 1: Global C4ISR Market Offers International Opportunities for Defense Technology Sales and Services

Global C4ISR OutlookGlobal C4ISR Outlook

Capabilities in DemandCapabilities in Demand

Brad Curran, Industry Analyst

Aerospace & Defense

11 February 201411 February 2014

© 2014 Frost & Sullivan. All rights reserved. This document contains highly confidential information and is the sole property of

Frost & Sullivan. No part of it may be circulated, quoted, copied or otherwise reproduced without the written approval of Frost & Sullivan.

Page 2: Global C4ISR Market Offers International Opportunities for Defense Technology Sales and Services

Today’s Presenter

Brad focuses on monitoring and analyzing emerging trends, technologies

and market behavior in the Command & Control, Communications, Computers, Intelligence, Surveillance & Reconnaissance (C4ISR)

industry.

Brad Curran, Industry Analyst

Frost & Sullivan

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• Brad joined Frost & Sullivan after a US Marine Corps career in

Electronic Warfare/Signals Intelligence operations.

• He is quoted regularly concerning the C4ISR market and defense technology issues in publications such as the New York Times, Dow

Jones, Washington Post, Washington Times, National Defense, COTS

Journal, C4ISR and Networks, Military Embedded Systems, and Signal.

Page 3: Global C4ISR Market Offers International Opportunities for Defense Technology Sales and Services

Focus Points

• Poll Questions

• C4ISR Segments and Technologies

• Major Challenges

• Major Drivers

• C4ISR Segments Market Share

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• C4ISR Regional Overview

• Key Countries

• Conclusions

• Next Steps

Page 4: Global C4ISR Market Offers International Opportunities for Defense Technology Sales and Services

Poll Questions

• Do you expect any major defense industry mergers in 2014?

• Will nations like Saudi Arabia, Taiwan, and Vietnam be allowed access to more advanced C4ISR systems in 2014?

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• Will unmanned vehicles or missile defense systems be more in demand over the next decade?

Page 5: Global C4ISR Market Offers International Opportunities for Defense Technology Sales and Services

C4ISR Segments and Technologies

Global C4ISR: Segments, Technologies, and Services

C4ISR applications are used across a variety of platforms such as satellites, aerostats, aircraft, ships, ground vehicles, fixed-ground bases, weapons, and unmanned vehicles. In this study, contracts labeled as multipurpose are included. Multipurpose

refers to contract information that includes technologies and services in more than one application area.

Command and Control (C2)

Communications Computers Intelligence S&R EW/IO

• Antennas

• Cybersecurity

• Information assurance

Networks

• Antennas

• Battle management

• Components

• Cybersecurity

• Cloud computing

• Components

• Cybersecurity

• Data Analytics

• Geospatial intelligence (GEOINT)

• Human intelligence (HUMINT)

• Biometrics

• Chemical, biological, radiological, nuclear, high-yield explosives (CBRNE)

• EO/IR/MS/laser

• Information operations tools (Attack)

• IR countermeasures

• Multipurpose

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• Networks

• Satellite communications

• Telecommunica-tions

• Datalinks

• Information assurance

• Multipurpose

• Networks

• Radio

• Satellite Communications

• Smart Phones

• Telecommunications

• Displays

• Hardware

• Mobile Devices

• Multipurpose

• Networks

• Software

(HUMINT)

• Imagery/video

• Language/culture

• Measurement and signature intelligence (MASINT)

• Multipurpose

• Networks

• Processing exploitation dissemination (PED)

• Signals intelligence (SIGINT)

• EO/IR/MS/laser

• Full Motion Video

• Global positioning system (GPS)

• Identification friend or foe (IFF)

• Motion detection

• Multipurpose

• Night vision

• Radar/Lidar

• Sonar/acoustic/ magnetic

• Targeting pods

• Unmanned vehicles

• Weather

• Multipurpose

• Radio frequency (RF) countermeasures

• Radar warning receivers

Page 6: Global C4ISR Market Offers International Opportunities for Defense Technology Sales and Services

Major Challenges

• Reduced defense budgets, force structure, tables of equipment, and platforms results in fewer C4ISR systems.

• Export restrictions result in lost opportunities and less capable equipment.

• COTS challenges include a lack of standardization,

questionable supply chain integrity, and component

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questionable supply chain integrity, and component reliability, especially under harsh conditions.

Page 7: Global C4ISR Market Offers International Opportunities for Defense Technology Sales and Services

Major Drivers

• An emphasis on networked forces is spreading to all nations seeking to modernize their C4ISR systems.

• Increased spending by Middle Eastern and Asian Pacific nations drives improved and networked sensors, processing, and communications.

• A Surge in COTS systems acquisition reduces costs, speeds

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• A Surge in COTS systems acquisition reduces costs, speeds procurement schedules, eases integration, and promotes more frequent technology refresh rates.

Page 8: Global C4ISR Market Offers International Opportunities for Defense Technology Sales and Services

C4ISR Segments Market Share

Total C4ISR Market: Estimated Percent Spending Forecast by Segment, Global, 2012-2021

C2, Intelligence and Electronic Warfare segments are expected to increase in relative marketshare through 2021

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Source: Frost & Sullivan

Page 9: Global C4ISR Market Offers International Opportunities for Defense Technology Sales and Services

C4ISR Regional Overview

Market Growth Europe

MiddleEast

High Attractiveness

MediumAttractiveness

High

Asia-Pacific

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Source: Frost & Sullivan

Growth

Low

Low High

LATAM

Europe

LowAttractiveness

NorthAmerica

Africa

Market Value

The table represents spending and growth rate for C4ISR from 2014 to 2021.

Page 10: Global C4ISR Market Offers International Opportunities for Defense Technology Sales and Services

Key Countries

Country Program Segment Technology Value ($ M) Contractor

Australia Wideband Global SATCOM-6 C2 SATCOM 234 Boeing

Brazil Army Communications and EW CommunicationsRadio, RF CM

400 Embraer Atech

Canada Arctic Patrol RQ-4B Polar Hawk UAV S&R EO/IR TBDNorthrop Grumman/L-3

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Source: Frost & Sullivan

France Battlefield Digitization MOIE SIC Terre Computers Networks 300 Thales/Airbus

Germany Combat Vehicle C4 Upgrades Communications Radio 150 Rohde & Schwarz

India Integrated Air Command & Control C2 Radar 300 Bharat

IsraelIron Dome, David’s Sling, Arrow 3 Missile Defense

S&R Radar TBDRaytheon, Rafael, IAI, Boeing

Italy Opsat 3000 Satellite S&R EO/IR 270IAI, Elbit, Finmeccanica/ Thales-Telespazio

Page 11: Global C4ISR Market Offers International Opportunities for Defense Technology Sales and Services

Key Countries (continued)

Country Program Segment Technology Value ($ M) Contractor

JapanHawkeye Airborne Early Warning Replacement

S&R Radar TBDTBD-Northrop Grumman, Kawasaki

Saudi Arabia

Falcon Family Tactical Radios Communications Radio 500 Harris

South Africa

Project Hoefyster Infantry Fighting Vehicle Replacements

Multipurpose Radio 350Patria, Denel, Airbus, Saab

Hyundai, Daewoo,

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Source: Frost & Sullivan

South Korea

KDX-III Aegis Destroyers S&R Radar TBDHyundai, Daewoo,Lockheed Martin, Raytheon

Taiwan Patriot Advanced Capability 3 S&R Radar 1,300Lockheed Martin,Raytheon

Turkey Standoff Jamming Capability EW RF CM 1,000 Aselsan and TBD

United Kingdom

Airseeker ISR RC-135 Rivet Joint Intelligence SIGINT 400 Boeing

United States

Satellite Control Network C2, S&R SATCOM 550 Honeywell

Page 12: Global C4ISR Market Offers International Opportunities for Defense Technology Sales and Services

Conclusions

• The Global C4ISR market is expected to grow steadily despite budgetary pressure among western nations. There will be increased demand for networked communications, national C2, sensor upgrades, space capability, intelligence, and electronic warfare systems among emerging and developing countries.

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developing countries.

• Missile Defense, Unmanned Vehicles of all types, and Software Defined Radio are areas of focus.

• COTS dominated solutions with open, scalable, and modular architecture are anticipated to eventually replace most legacy systems over the study period.

Page 13: Global C4ISR Market Offers International Opportunities for Defense Technology Sales and Services

Next Steps

Develop Your Visionary and Innovative SkillsGrowth Partnership Service Share your growth thought leadership and ideas or

join our GIL Global Community

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Join our GIL Community NewsletterKeep abreast of innovative growth opportunities

Phone: 1-877-GOFROST (463-7678) Email: [email protected]

Page 14: Global C4ISR Market Offers International Opportunities for Defense Technology Sales and Services

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Page 15: Global C4ISR Market Offers International Opportunities for Defense Technology Sales and Services

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Page 16: Global C4ISR Market Offers International Opportunities for Defense Technology Sales and Services

For Additional Information

Jennifer Carson

Corporate Communications

Aerospace & Defense

(210) 247-2450

[email protected]

Brad Curran

Industry Analyst

Aerospace & Defense

(210) 477-8496

[email protected]

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Wayne Plucker

Research Manager

Aerospace & Defense

(210) 247-3869

[email protected]

Gary Leikin

Vice President

Aerospace & Defense

(415) 888-8074

[email protected]