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United States Defense Budget Cuts Threaten "New Start" Ground Combat Vehicles, Finds Frost & Sullivan


News provided by

Frost & Sullivan

03 Oct, 2012, 11:48 GMT

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- Upgrades and re-manufactured platforms favored over completely new systems

MOUNTAIN VIEW, California, Oct. 3, 2012 /PRNewswire/ -- The Budget Control Act (BCA) of 2011 could force the Department of Defense (DoD) to cut approximately $1 trillion in spending over the next 10 years, as well as significantly reduce military expenditures for new weapons systems. This is expected to drive the development of cost-effective, modern, multi-purpose ground combat vehicles (GCV) that can be deployed in urban, rural and coastal terrain.

New analysis from Frost & Sullivan (http://www.defense.frost.com), Analysis of the DoD Ground Combat Vehicle Market, finds that the GCV market generated revenues of over $3.67 billion in 2011 and estimates that revenues will decrease to $3.19 billion by 2017. The DoD has earmarked a budget of $2.61 billion for GCVs, with the Army accounting for $2.18 billion of the total purse.

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.

The February 2011 report on defense intelligence from the Defense Science Board Task Force identified 24 countries that could pose counterinsurgency (COIN) challenges to the United States, revealing that traditional combat is giving way to irregular warfare (IW). COIN operations usually involve long, sustained ground engagements and current COIN as well as nation-building activities in countries such as Iraq, Afghanistan, Libya and Yemen drive the continued need for GCVs.

"Mandated budget cuts, reductions in ground troops and the shift in military strategy to the Asia Pacific will force armed services to make tough decisions on the type of programs they need to cut, reduce, maintain or increase," said Frost & Sullivan Senior Industry Analyst Michael Blades. "If sequestration occurs, all GCV modernization programs are likely to be terminated."

To maintain a balanced force, services need networked vehicles for full-spectrum operations. Future combat vehicles must give soldiers the option of off-road maneuvering, greater protection against improvised explosive devices (IEDs) on established roads, better mobility in urban areas and enhanced on-the-move communication and networking capabilities.

"Next-generation platforms are also likely to be based on existing commercial or government off-the-shelf vehicles," said Blades. "Upgrades will be preferred over building vehicles from-the-ground-up."

Analysis of the DoD Ground Combat Vehicle Market is part of the Defense Growth Partnership Services program, which also includes research in the following markets: Commercial and Military Aviation, as well as Homeland Security. 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, 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

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Analysis of the DoD Ground Combat Vehicle Market

NB25-16

Contact:
Jeannette Garcia
Corporate Communications – North America
P: 210.477.8427
E: jeannette.garcia@frost.com

http://www.frost.com

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