Frost: Modernization Drives Growth of Euro Land-Based ISTAR Vehicle Electronics Markets
July 22, 2008 // Published as a news service by IHS
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The European land-based intelligence, surveillance, target acquisition and reconnaissance (ISTAR) vehicle electronics markets continue to witness good growth as countries across the region are actively undertaking programs to modernize their defense forces.
According to Frost & Sullivan, the growing focus on network-centric warfare and the European Union (EU) battle group and response force concept of the North Atlantic Treaty Organization (NATO) are other major factors driving the market forward.
Recent analysis from Frost & Sullivan of the European land-based ISTAR vehicle electronics markets found revenues are expected to reach more than $5.4 billion between 2008-2017.
"Electro optic and infrared systems seem to have a major share within the ISTAR vehicle electronics market, followed by navigation systems and vehicle intercom systems, which are a must for every other vehicle that is upgraded and manufactured," said Frost & Sullivan research analyst Harish Balasubramanian.
"On the other hand, remote overhead weapon stations (ROWS) and surveillance, target acquisition and reconnaissance (STAR) systems have the least share as their usage is limited to particular vehicles."
The U.K. is the highest spender in the European land-based ISTAR vehicle electronics markets and is expected to account for a major share of expected procurements between 2008 and 2017.
Analysts said Germany, France, Italy and the Netherlands are the other countries expected to have a major share in the European land-based ISTAR vehicle electronics markets over the same period.
"However, keeping pace with the continuous advances in defense technology is a major challenge for participants in the European land-based ISTAR vehicle electronics markets," said Balasubramanian. "Restricted defense budget allocations and reductions in the total number of active troops in service can be seen as restraints for the market, but are unlikely to have a major impact."
Development of total unmanned vehicle systems is going to be a key factor in the European land-based ISTAR vehicle electronics markets in the coming years. Analysts said the integration of current vehicle electronics systems, as well as working toward network-centric warfare, would help participants last in the market, as these are expected to dominate the future of military operations.
Source: Frost & Sullivan.