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Commercial Off-the-shelf-based IT and Internet of Things Systems to Bolster Revenues in US DoD C4ISR Market Finds Frost & Sullivan - Reasonable pricing and upgrades of mature and proven systems will help suppliers win forthcoming contracts, finds Frost & Sullivan - Frost.com
Commercial Off-the-shelf-based IT and Internet of Things Systems to Bolster Revenues in US DoD C4ISR Market Finds Frost & Sullivan

 

NewswireToday - /newswire/ - Mountain View, CA, United States, 2015/11/12 - Reasonable pricing and upgrades of mature and proven systems will help suppliers win forthcoming contracts, finds Frost & Sullivan - Frost.com.

   
 
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The U.S. Department of Defense (DoD) command, control, communications, computers, intelligence, surveillance and reconnaissance (C4ISR) spending is expected to be flat during 2014 through 2020 due to force structure reductions. However, the application of commercial off-the-shelf (COTS)-based computing, storage, security, networking and collaboration tools will accelerate over time. As cloud and big data technologies will be required to complement the adoption of COTS-based smart phones, tablets, wireless networks and productivity applications of all kinds, the DoD’s appetite for cloud computing virtualized ‘as a service’ enterprise networks will grow dramatically, despite lingering security concerns.

New analysis from Frost & Sullivan, US DoD C4ISR, finds a total of $39.54 billion has been earmarked for 2016 DoD programs for C4ISR, electronic warfare and information operations as well as multipurpose technologies. This is an increase of 8.8 percent from 2015. The C4ISR spending will continue to grow at a compound annual growth rate of 1.4 percent during 2014 through 2020.

“Sharp procurement spikes without significant corresponding research reductions for ballistic missile defense, unmanned vehicles and satellites resulted in a substantial uptick in requested 2016 C4ISR spending,” said Frost & Sullivan Aerospace & Defense Senior Industry Analyst Brad Curran.

Combat systems integration, collaborative targeting and improved surface ship self-defense are priorities for the U.S. DoD through 2020. Its focus will be on these areas as well as moderately priced mature technologies and proven services.

“With C4ISR products and services likely to experience price and technology upgrade pressure from the commercial process control, imagery, IT as well as energy and power industries, market participants must quickly revise their strategies for success,” noted Curran. “Additionally, adequate emphasis on maintenance, spares, logistics and training services will be essential for new sales.”

In 2014, the top 10 firms held 40.9 percent of U.S. DoD C4ISR contract value. Their growth rates and margins from hereon will depend on the extent to which they adapt to emerging market requirements.

US DoD C4ISR is part of the Defense Growth Partnership Service program. Frost & Sullivan’s related studies include: Global Military Aircraft Maintenance, Repair, and Overhaul (MRO) Market, Rapidly Evolving Defense Markets, Part 1, US DoD 2016 Budget Assessment, and Global Military Avionics Market Assessment 2014-2023. All studies included in subscriptions provide detailed market opportunities and industry trends 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?

US DoD C4ISR / NFA9-16

 
 
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Commercial Off-the-shelf-based IT and Internet of Things Systems to Bolster Revenues in US DoD C4ISR Market Finds Frost & Sullivan

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Publisher Contact: Kayla Belcher - Frost.com 
210-247-2450 kayla.belcher[.]frost.com
 
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