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Ballistic Missile Defense System Sheds the Label of a 'Science Project' and Emerges as a Formal Procurement Venture Reports Frost & Sullivan - Research, development, test and evaluation spending shrinks, while procurement budgets balloon
Ballistic Missile Defense System Sheds the Label of a 'Science Project' and Emerges as a Formal Procurement Venture Reports Frost & Sullivan

 

PRZOOM - /newswire/ - Mountain View, CA, United States, 2012/05/23 - Research, development, test and evaluation spending shrinks, while procurement budgets balloon.

   
 
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Since its inception under the Reagan administration, the U.S. missile defense set up had been characterized by research, development, test & evaluation (RDT&E) spending. Over time, the former ‘Star Wars’ system has become a three-pronged program comprising of Aegis-based systems, Patriot-based systems, and a system based on the existing ballistic missile defense system (BMDS).

Analysis from Frost & Sullivan (aerospace.frost.com), U.S. DoD Missile Defense, finds that the market earned revenues of $9.45 billion in 2010 and estimates this to drop to $8.44 billion in 2016. The market is expected to recover by 2020.

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, job title, telephone number, company email address, company website, city, state and country.

The BMDS, originally an experimental initiative, has now matured into a much more cooperative venture that includes the Army, Navy and Missile Defense Agency. In a far cry from its earlier days, spending on RDT&E is progressively reducing to the benefit of procurement.

“Most new RDT&E projects are focused on initial fielding and follow-on upgrades,” said Frost & Sullivan analyst Wayne Plucker. “Many of the more expensive RDT&E projects have been shelved in favor of ‘tweaks’ to existing systems such as Aegis and Patriot.”

Missile manufacturers have made inroads into the missile defense market space, on the strength of their technologies, relegating research to the background.

Despite the enthusiasm for procurement in the DoD, the unfavorable economic climate and consequent budget cuts will have a telling impact on procurement. The decision to determine the programs that will be funded will depend on perceived need and assumed risk. As the dissolution of the Soviet Union reduced the threat of ballistic missiles, the U.S. DoD is reluctant to spend on ballistic missile defense.

“Procurement is now focused on improved ‘kill packages’, radar modifications, and improved missiles,” said Plucker. “In general, the market is moving closer to a sustainment model, but true sustainment can be achieved only after the next six to seven years.”

U.S. DoD Missile Defense is part of the Defense Growth Partnership Services program, which also includes research in the following markets: maintenance repair and overhaul, homeland security, C4ISR, and unmanned aerial systems. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.

About Frost & Sullivan
Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants.

Our “Growth Partnership” supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.

The Integrated Value Proposition provides support to our clients throughout all phases of their journey to visionary innovation including: research, analysis, strategy, vision, innovation and implementation.
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U.S. DoD Missile Defense / N9C6-16

 
 
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Ballistic Missile Defense System Sheds the Label of a 'Science Project' and Emerges as a Formal Procurement Venture Reports Frost & Sullivan

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