U.S. Department of Defense's C4ISR Services Provide Ample Opportunities for More Market Participants, Finds Frost & Sullivan
In overall defense spending contracts, C4ISR services contracts have positive growth
MOUNTAIN VIEW, Calif., Dec. 6, 2012 /PRNewswire/ -- Though service businesses tend to have low margins, spending on services almost matches procurement. The use of mature commercial technology is easing integration, engineering and sustainment requirements.
Frost & Sullivan's Aerospace & Defense (www.frost.defense.com) practice finds that Department of Defense (DoD) spending for command and control, communications, computers, intelligence, surveillance and reconnaissance (C4ISR) services totaled $20.89 billion in 2011. These expenditures are estimated to reach $28.00 billion in 2017.
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Continuing combat operations drives the demand for logistics, installation, and operational services not only in Afghanistan, but across the C4ISR enterprise. As the planned drawdown of troops in Afghanistan accelerates, the lessons learned will be applied to new areas of operations.
"Anti-access and area denial challenges invigorate engineering and management services as the DoD seeks to assign new missions, increase the range of sensors, enable collaboration, and ensure network survivability," said Frost & Sullivan Senior Industry Analyst Brad Curran. "This operational concept will require extensive C4ISR services contracts through 2017."
Cloud computing and cybersecurity requirements put focus on commercial services and integration as the DoD seeks to improve reliability and security while simultaneously reducing costs.
C4ISR services spending through 2017 is expected to focus on joint service command and control networks.
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