Straitened economic circumstances and troop withdrawals are expected to reduce command, control, communications, computers, intelligence, surveillance, and reconnaissance (C4ISR) funding, restricting the Department of Defense's (DoD's) spending to applications that have direct relevance to counter-insurgency or terror operations. Planned force structure reductions, particularly for ground forces and satellite assets, will curtail C4ISR spending and instead, turn the DoD's attention to intelligence and special operations.
New analysis from Frost & Sullivan (defense.frost.com), DoD C4ISR, finds that the 2013 U.S. DoD C4ISR budget request is $42.97 billion and will decline at a moderate rate through 2017. C4ISR spending is about 6.9 percent of the total DoD budget.
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.
"While research, development, test & evaluation (RDT&E) spending will reduce, the following: repair, maintenance, training, information assurance, and operational services will continue to be funding priorities," said Frost & Sullivan Senior Industry Analyst Brad Curran. "The DoD budget will be mostly earmarked for acquiring cost-efficient, general-purpose equipment."
There will be fewer platforms of all types, as the DoD will eschew high-end platforms in favor of proven and reliable designs that afford maximum flexibility.
Most of the available C4ISR equipment has reached the end of their serviceable life and are awaiting upgrades. The DoD is looking to spruce up neglected 'conventional' capabilities as missile defense and electronic warfare require substantial investments to keep pace with the advances made by potential adversaries. Electronic warfare and information operation activities will experience the fastest growth rate till 2017.
The DoD is perceptibly leaning toward multi-purpose technologies that fuse various collection disciplines and standardize reporting. Processing and dissemination of full-motion video will also continue to be an area of robust growth.
There has been a surge in the adoption of practical, rapid, inexpensive platforms such as aerostats and commercial off-the-shelf (COTS) tools like wireless fidelity (Wi-Fi). C4ISR services such as language and cultural skills, maintenance, engineering, integration, training, project management - especially for cyber security and cloud computing applications - are in high demand.
"Funding by segment reflects an attempt to rebalance technical sensors and collection with less expensive, but vital analysis and 'people skills' required for successful military operations," said Curran.
DoD C4ISR is part of the Defense Growth Partnership Services program, which also includes research in the following markets: Commercial Aviation, Military Aviation, Homeland Security, and DoD Budget. 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 (frost.com), 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.
The Partnership Infrastructure is entirely unique as it constructs the foundation upon which visionary innovation becomes possible. This includes our 360 degree research, comprehensive industry coverage, career best practices as well as our global footprint of more than 40 offices.
For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organization prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?
Contact Us: Start the discussion | Join Us: Join our community | Subscribe: Newsletter on "the next big thing" | Register: Gain access to visionary innovation.
DoD C4ISR / NB32-16