This research looks at the overall DoD spending for avionics, each of the military service departments overall expenditures for avionics as well as what kind of avionics the services are supporting. The study also looks at the top companies providing products and services in each type of avionics: communications, navigation, identification, mission systems, defensive systems and sensors. Research was conducted in March and April of 2010 and used the DoD and service budget materials from FY2009-FY2011 and the contracts awarded in Fiscal Year (FY) 2009. This information was also used in the forecasting of spending. Values may change as the FY2011 Budget is not final.

Military Avionics Market Expects Significant Shift in Spending after a Prolonged Phase of Stability

While the programmed Department of Defense (DoD) spending shows a planned 4.7 percent increase in overall military avionics spending through 2015, there could be significant shifts in spending patterns. Spending will become more selective and specialized, except for new installations on the F-35 and remanufactured helicopters. The move toward more general-purpose aircraft and unmanned aerial vehicles (UAVs) require modular, integrated avionics, and greater information flow. “Traditional avionics are making way for interconnected, fully integrated systems that provide pilots with greater situational awareness, giving them a fully integrated view of the battlefield,” says the analyst of this research. “As part of this data-rich environment, UAVs will be providing more tactical information to both ground forces and airborne assets.” The 2011 DoD budget, including the overseas contingency operations (OCO) segment, provides significant retrofit funding. However, the 2012 budget is expected to significantly reduce the OCO funds, which will, in turn, lower war-related retrofit spending. Spending on intelligence, surveillance, reconnaissance (ISR) for avionics will continue to be strong, but the number of ISR airframes is declining.

“The DoD has been consistently spending modification dollars to update legacy aircraft for compliance with global air traffic management (GATM) requirements,” observes the analyst. “There will also be considerable and continuous spending on communications and data capabilities, which allow for better coordination among assets.” Further, identification systems, which are crucial to the new air traffic systems, and operational necessities will require further purchases of Mode S and Mode 5 transponders.

One of the high-volume areas in military avionics over the next several years is likely to be datalink units and equipment that accommodate datalinkage. Spending on avionics research, development, test & evaluation (RDT&E) is likely to suffer on account of the DoD’s preference for commercial-off-the-shelf (COTS) solutions. “DoD increasingly searches out COTS-based solutions using mature, proven technology to meet the needs of end users, thus reducing the need for avionics RDT&E,” notes the analyst. “Commercially mature equipment that can be configured for military-approved data configurations are in demand and many of the current military modification requests center around COTS technology.” Meanwhile, the integrated architecture of fifth-generation fighters is expected to become the norm for military avionics. Manufacturers need to make plug and play-compatible components as a standard offering to acquire a bigger share of DoD revenues.

TABLE OF CONTENTS

Executive Summary
  Introduction
  Definitions and Scope
  Summary of Key Findings
  Conclusions and Recommendations

U.S. Military Avionics Market Dynamics - Overall
  Market Overview
  Market Engineering Measurements
  Industry Challenges
  Market Drivers and Restraints

U.S. Military Avionics Market Assessment -Overall
  Spending Overview
  Spending Forecasts

U.S. Military Avionics Market Assessment - Communications Navigation & Identification (CNI)
  Spending Overview
  Spending Forecasts
  Competitive Overview

U.S. Military Avionics Market Assessment - Mission
  Systems
  Spending Overview
  Spending Forecasts
  Competitive Overview

U.S. Military Avionics Market Assessment - Defensive Systems
  Spending Overview
  Spending Forecasts
  Competitive Overview

U.S. Military Avionics Market Assessment - Sensor Systems
  Spending Overview
  Spending Forecasts
  Competitive Overview

LIST OF CHARTS

Military Avionics Market Assessment: Avionics Forecasts (U.S.), FY 2010-2015    
Military Avionics Market Assessment: Overall Market Engineering Measurements (U.S.), FY 2009                   
Military Avionics Market Assessment: Overall Avionics Spending Percentage by Category (U.S.), FY 2009    
Military Avionics Market Assessment: Overall Avionics Spending Percentage by Service (U.S.), FY 2009        
Military Avionics Market Assessment: Overall Avionics Spending Percentage by Equipment (U.S.), FY 2009      
Military Avionics Market Assessment: Overall Avionics Modification Spending Percentage by Type (U.S.), FY 2009  
Military Avionics Market Assessment: Overall Avionics Forecasts (U.S.), FY 2010-2015                            
Military Avionics Market Assessment: CNI Avionics Spending Percentage by Category (U.S.), FY 2009           
Military Avionics Market Assessment: CNI Avionics Spending Percentage by Service (U.S.), FY 2009                
Military Avionics Market Assessment: CNI Avionics Equipment Modification Percentage (U.S.), FY 2009           
Military Avionics Market Assessment: CNI Avionics Modification-Aircraft Type Percentage (U.S.), FY 2009     
Military Avionics Market Assessment: CNI Avionics Forecasts (U.S.), FY 2010-2015                             
Military Avionics Market Assessment: CNI Avionics Market Share (U.S.), FY 2009 
Military Avionics Market Assessment: Mission Avionics Spending Percentage by Category (U.S.), FY 2009          
Military Avionics Market Assessment: Mission Avionics Spending Percentage by Service (U.S.), FY 2009          
Military Avionics Market Assessment: Mission Avionics Equipment Modification Percentage (U.S.), FY 2009      
Military Avionics Market Assessment: Mission Avionics Modification-Aircraft Type Percentage (U.S.), FY 2009    
Military Avionics Market Assessment: Missions Systems Avionics Forecasts (U.S.), FY 2010-2015                
Military Avionics Market Assessment: Missions Systems Avionics Market Share (U.S.), FY 2009                  
Military Avionics Market Assessment: Defensive Systems Avionics Spending Percentage by Category (U.S.), FY 2009
Military Avionics Market Assessment: Defensive Systems Avionics Spending Percentage by Service (U.S.), FY 2009
Military Avionics Market Assessment: Defensive Avionics Equipment Modification Percentage (U.S.), FY 2009    
Military Avionics Market Assessment: Defensive Avionics Modification-Aircraft Type Percentage (U.S.), FY 2009   
Military Avionics Market Assessment: Defensive Avionics Forecasts (U.S.), FY 2010-2015                         
Military Avionics Market Assessment: Defensive Avionics Market Share (U.S.), FY 2009                             
Military Avionics Market Assessment: Sensor Avionics Spending Percentage by Category (U.S.), FY 2009          
Military Avionics Market Assessment: Sensor Avionics Spending Percentage by Service (U.S.), FY 2009            
Military Avionics Market Assessment: Sensor Avionics Equipment Modification Percentage (U.S.), FY 2009          
Military Avionics Market Assessment: Sensor Avionics Modification-Aircraft Type Percentage (U.S.), FY 2009     
Military Avionics Market Assessment: Sensor Avionics Forecasts (U.S.), FY 2010-2015                         
Military Avionics Market Assessment: Sensor Avionics Market Share (U.S.), FY 2009