Production Cancellation Will Cost Defense Industry $20 Billion
Boston, MA - July 16, 2009 –The Strategy Analytics Advanced Defense Systems (ADS) service report, “Electronic Component Demand Scenarios for the Lockheed Martin F-22,” concludes that there is a strong case for continued production of the F-22 beyond 2011 and extended through to 2020. Strategy Analytics believes that failure to do so will translate to lost revenues for the defense industry to the tune of $20 billion, including $1.9 billion of electronic component revenues.
This study provides in-depth analysis of the development and technologies used in the Lockheed Martin F-22 Raptor. By detailing historical developments, key systems and operational service and based on extensive experience covering enabling technologies, Strategy Analytics provides estimates on the market for advanced electronics used in F-22 systems.
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Advanced Radar;
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Communications
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EW and;
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Weapon Systems
He continues, “We estimate that the annual market for electronics in these systems translates into hundreds of millions of dollar per year.”
“Strategy Analytics acknowledges the increased importance of focusing on platforms targeting ISR (intelligence, surveillance and reconnaissance) duties, but stopping the F-22 production line in 2011 is a short-term solution to budgetary requirements,” notes Asif Anwar, principal analyst on the ADS service. “Our analysis shows the potential loss in defense industry revenues will run into billions of dollars--this is also without considering the strategic advantages offered by the platform.”