Naval communications market to remain flat

BOSTON, USA: The growing sophistication of naval platforms will be offset by long production cycles and spiraling costs that will limit the overall opportunity for communications systems and resulting demand for radio semiconductors.

The recently published Strategy Analytics Advanced Defense Systems (ADS) data model, “Naval Communications Platforms - Advanced Electronics Component Forecast,” projects initial growth followed by a flat market for naval communications through 2020.

The total naval communications market is projected to grow from an estimated $488 million in 2008 to a peak of $680 million in 2011, before falling off to slightly less than $500 million in 2020. This Strategy Analytics analysis also segments the communications systems down to their constituent radio electronics and semiconductors. The market will approach $85 million by 2020.

“Naval platforms play a significant role in network-centric battle strategies. This translates into multi-band and higher frequency requirements for these radios,” noted Asif Anwar, Director of the Strategy Analytics ADS Service. “Despite the development cycles and cost of these naval platforms, which will keep the quantity relatively flat, increasingly challenging radio requirements will create attractive opportunities for suppliers.”