Troop Reduction and Austerity Measures to Delay Soldier Modernisation Efforts, Cautions Frost & Sullivan

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• Publié par: frost-sullivan
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• Langue: English

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Troop Reduction and Austerity Measures to

Delay Soldier Modernisation Efforts, Cautions

Frost & Sullivan

PR Newswire

LONDON, June 7, 2012

- Increasing Preference for Incremental and Hybrid Acquisition Models

LONDON

,

June 7, 2012

/PRNewswire/ -- Many soldier modernisation

programmes have been delayed or reduced in scope due to budgetary

pressures and technology issues. Despite such obstacles, there still exists

significant growth opportunities, particularly in many untapped European and

Asian programmes.

The genesis of soldier modernisation programmes began in the early 1990s

when military forces sensed the need to reposition their capabilities to counter

modern-day threats. Asymmetric and urban warfare were identified as future

threats and countries started conceptualising the future soldier in accordance

with these trends. However, most countries felt that these planned

programmes were too ambitious and difficult to manage.

New analysis from Frost & Sullivan (http://www.aerospace.frost.com),

Global

Soldier Modernisation Market Assessment

, finds that the total market

revenue is likely to be

$12.73 billion

across the forecast period 2011-2020. It is

estimated that the soldier modernisation market will grow from

$420.2 million

in 2011 to

$1.54 billion

in 2020.

"Countries are aiming for ultra-professional armed forces and, as a result,

troop strength is being reduced in most countries," notes Frost & Sullivan Senior

Research Analyst Mahendran Arjunraja. "Decreasing troop numbers will have

an impact on procurement volumes, limiting the opportunity for volume

business."

Decreasing troop size is poised to limit the potential for economies of scale. But

it would open up opportunities for premium solutions.

The recent operations in

Afghanistan

and

Iraq

have influenced soldier

modernisation plans. With operational withdrawal, most countries are expected

to focus on planned procurement programmes.

Market revenues are set to peak in 2015, when the market grows to be worth

$1830.5 million

and such trends are anticipated to sustain till 2017. This is

largely a result of major programmes entering the production phase.

"Upcoming soldier modernisation programmes in

India

,

South Korea

, and

Brazil

are in their initial stages," remarks Arjunraja. "Significant spending is expected

only in the second half of the forecast period."

Frost & Sullivan has identified three different modernisation approaches: total

system (a defined programme where modern equipment is acquired as a single

kit), incremental (soldier modernisation is conducted in phases), and hybrid (a

mix of both total and incremental approaches). The total system approach is

being adopted by a few European countries such as

France

,

Germany

,

Spain

and

Italy

while others have shown a preference for the incremental or hybrid

approach.

"Technology issues such as power and weight continue to be key technical