In March 2019 in the US Navy’s FY20 budget, the MH-60R Seahawk Multi-Mission Maritime Helicopter was stated to be the primary ASW (Anti-Submarine Warfare) sensor in the Carrier Strike Group. But despite its crucial importance, production for the US Navy will be ending soon, and some electronics suppliers face an uncertain future. There may soon be no companies left outside the “Big Three” of Raytheon, Northrop, and Lockheed to maintain a competitive military radar market.
Teal Group’s Military Electronics Briefing Market Overview forecasts the military electronics market available to U.S. manufacturers will rise steadily with a 4.4% CAGR over the next five years (FY18-FY23), while new-platform procurements will continue to decline over the next decade. Teal Group forecasts a $486.1 billion total military electronics market from FY18-FY27.
Teal Group’s Military Electronics Briefing has added new forecasts for the biggest naval EW (electronic warfare) programs of the next ten years, including the multi-prime contractor AN/SLQ-32 & SEWIP (Surface Electronic Warfare Improvement Program) programs – in several “Blocks”, Raytheon’s SSDS (Ship Self Defense System), and Lockheed Martin’s Nulka and AN/ALQ-248 Advanced Off-Board Electronic Warfare (AOEW) decoy systems. When including all versions of the SLQ-32 and SEWIP, those programs alone will be worth $6.4 billion in Teal’s forecast. The MEB has also added a new, speculative Future US Air Force RF ECM Pods forecast.
Teal Group Corporation's overall, cumulative military electronics Manufacturer Market Shares Forecast for the next ten years (FY18-FY27) shows 33.1% of the total market will be available for new primes (worth a whopping $161.0 billion), when considering that continuing production for most current programs is locked up by the incumbent. Note that a much higher share than this 33.1% will be available for subcontractors.
Teal Group recently updated its outlook for ground-based air defense radar programs, including BMDS systems, as well as a few airborne ISR systems. The financial value of these programs is great – with several multi-billion programs (and much still uncontracted).
One of the largest future programs, despite being a legacy system, is Raytheon’s radars for the Patriot air defense missile system. Teal Group forecasts Patriot radar and C4I funding of between $900 million and $1.2 billion annually throughout our forecast period.