UAS Demand Might Decrease in the US

UAS Demand Might Decrease in the US

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US: A new research from Frost & Sullivan's Analysis of the US Department of Defense (DoD) Unmanned Aerial Systems Market finds the market earned revenue of USD 4.97 billion in 2013 and estimates this to reach USD 6.53 billion in 2018. A large part of this increase is due to research, development, test and evaluation (RDT&E) funding for long range strike bombers. However, if budget constraints hit RDT&E funding, more reasonable revenue projections for 2018 represent an overall decreasing market at USD 3.7-4 billion.

Besides shrinking DoD budgets, the high cost of developing new platforms is compelling several manufacturers to merely modify existing aircraft and subsystems. In addition, an open systems approach intensifies competition. In such an environment, companies that can create modular, size, weight and power (SWaP)-efficient UAS sensors and subsystems will remain competitive. "Future UASs, tactical and larger, will need defensive features and integration capabilities with manned systems. Platforms that can reliably deliver payloads over greater ranges and for longer periods will also be favored. Large defense contractors like Boeing, Northrop Grumman and Lockheed Martin will likely acquire and/or partner with technologically-advanced small businesses to enhance their capabilities in the face of reducing market potential. These acquisitions will help firms widen their profit margins as well as compete in the nascent civil UAS market,” said Michael Blades, Senior Research Analyst, Frost & Sullivan Aerospace and Defense

Source: Broadway world