Military Avionics - North America

A fragmented market living in the shadow of sequestration.


Click Here for 360° Research Overview and TOC

Research Overview

The Canadian and United States military have spent a considerable amount of money purchasing avionics for new aircraft and retrofits for older aircraft.  As pressure on the budgets of both countries forces reassessments of that spending the military services will need to think strategically about the future procurements and methodologies.  The market is defined as the spending for avionics products and services by the U.S. Department of Defense (DoD) and the Royal Canadian Air Force (RCAF) with government contractors. Research was conducted in July and August of 2012 and used the DoD and RCAF budget materials from calendar year (CY) 2012 and the contracts awarded in CY 2011.

Market Overview

The military avionics market in North America is declining, but only slightly over the period between 2011 and 2017 in both the United States and Canada. The relatively small numbers of new aircraft models will limit the number of market participants able to play a role in the development and manufacture of those aircraft.  Funding for modification of Royal Canadian Air Force, U.S. Army, and U.S. Navy aircraft will decline over the forecast period. In a departure from past studies on this market, this study will segment the market into platform-based submarkets.  As a result, the principal segments will be; tanker/transport, fighter/attack/bomber, C4ISR/special mission, trainers, unmanned aerial systems, and helicopters

Table of Contents

  1. Executive Summary

  2. Market Overview

  3. Total Market
    1. External Challenges:  Drivers and Restraints
    2. Forecasts and Trends
    3. Market Share and Competitive Analysis
  4. Market Segment Breakdowns

  5. Country Breakdowns

  6. The Last Word (Conclusions and Implications)

  7. Appendix

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Military Avionics - North America


Frost & Sullivan: North American Military Avionics Market Fragmented by Mergers and Acquisitions

Dynamics of market changing while living in the shadow of sequestration

MOUNTAIN VIEW, Calif.—Nov. 28, 2012— Frost & Sullivan’s recent research North American Military Avionics Market establishes the current and expected spending for avionics in the United States and Canada. The spending is segmented by type of aircraft and additional sub-segmentation is included by military service budget category and type of avionics.

Frost & Sullivan’s Aerospace and Defense practice (www.defense.frost.com) finds that the North American Military Avionics market earned revenue of $13.48 billion in 2011 and estimates this to decline to $13.31 billion in 2017.

If you are interested in more information on this research, please send an email to Jeannette Garcia, Corporate Communications, at jeannette.garcia@frost.com, with your full name, company name, title, telephone number, company email address, company website, city, state and country.

“Past programs often involved completely new aircraft and avionics designs,” said Frost & Sullivan Industry Manager Wayne Plucker. “The relatively small numbers of new aircraft models will limit the number of market participants able to play a role in the development and manufacture of those aircraft.”

Most of the new programs rely on common airframes modified for specific missions.  Some of these airframes are commercial aircraft designs and use largely commercial avionics for flight avionics.  However, integrated avionics will offer new opportunities for niche suppliers.  Additionally, major component providers are becoming greater market forces.

Overall, the total number of suppliers in the avionics market has been declining due to mergers and acquisitions (M&A). However, these M&A have actually enhanced the competitive nature of the market.  Aircraft OEMs have been more aggressively pursuing opportunities as avionics integrators, while component suppliers who often supplied stand-alone systems in the past are now providing integrated solutions.

“As a result of these market forces, Boeing and Lockheed Martin are accruing more direct avionics revenue, and Northrop Grumman and Raytheon are now major market participants,” said Plucker.   “Aircraft programs are becoming more international, resulting in increasing competition for roles in the few new aircraft programs.”

North American Military Avionics Market is part of the Aerospace & Defense Growth Partnership Services program, which provides global Mega Trends, information on emerging markets and the latest technology innovations, market, economic, customer, competitive, and best practices research. This CEO 360 degree perspective will enable your company to effectively plan your strategies for growth. 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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 North American Military Avionics Market
NBA8-16

Contact:

Jeannette Garcia
Corporate Communications – North America
P: 210.477.8427
E: jeannette.garcia@frost.com
Twitter: @Frost_Sullivan
Facebook: www.facebook.com/FrostandSullivan

www.frost.com

About The Research Team

Lead Analyst

Wayne Plucker

Contributing Analyst

John Hernandez

Strategic Review Committee Leader

Brad Curran