2 Pages
English

Complexity of Modern Combat Platforms to Promote Military Support in Service Market, Says Frost & Sullivan

Gain access to the library to view online
Learn more

Description

Complexity of Modern Combat Platforms to Promote Military Support in Service Market, Says Frost & Sullivan PR Newswire LONDON, Dec. 6, 2012 - Defence suppliers need to educate end users about the cost-effectiveness of outsourced SIS LONDON, Dec. 6, 2012 /PRNewswire/ -- Despite defence budget cuts in many countries, military support in service (SIS) outsourcing is set to increase, mainly due to the complexity of modern combat platforms which need permanent support. The rising cost of military maintenance, repair and overhaul (MRO), the need to mitigate the increasing complexity of equipment and systems as well as the difficulty of providing resources (cost of staff, complexity of training and staff retention) are all intensifying the pressure on defence budgets. As a result, industry involvement in military SIS will continue to rise as armed forces look to streamline SIS costs. New analysis from Frost & Sullivan (http://www.defence.com), Global Military Support in Service Market Assessment, finds that the market earned revenues of $49,444.4 million in 2011 and estimates this to reach $59,643.3 million by 2020. The research covers four main military SIS segments: MRO, modernisation, training and simulation, and total solution. "The modernisation segment has one of the most promising and stable outlooks for the forecast period," noted Frost & Sullivan Defence Industry Analyst Dominik Kimla.

Subjects

Informations

Published by
Reads 19
Language English

Exrait

Complexity of Modern Combat Platforms to Promote Military Support in Service Market, Says Frost & Sullivan
PR Newswire LONDON, Dec. 6, 2012
- Defence suppliers need to educate end users about the cost-effectiveness of outsourced SIS
LONDON, Dec. 6, 2012 /PRNewswire/ -- Despite defence budget cuts in many countries, military support in service (SIS) outsourcing is set to increase, mainly due to the complexity of modern combat platforms which need permanent support.
The rising cost of military maintenance, repair and overhaul (MRO), the need to mitigate the increasing complexity of equipment and systems as well as the difficulty of providing resources (cost of staff, complexity of training and staff retention) are all intensifying the pressure on defence budgets. As a result, industry involvement in military SIS will continue to rise as armed forces look to streamline SIS costs.
New analysis from Frost & Sullivan(http://www.defence.com),Global Military Support in Service Market Assessment, finds that the market earned revenues of$49,444.4 millionin 2011 and estimates this to reach $59,643.3 millionby 2020. The research covers four main military SIS segments: MRO, modernisation, training and simulation, and total solution.
"The modernisation segment has one of the most prom ising and stable outlooks for the forecast period," noted Frost & Sullivan Defence Industry Analyst Dominik Kimla. "Decreasing defence procurement budgets and the rising prices of new combat defence platforms are resulting in end users looking to modernise equipment rather than replace it."
Shrinking defence outlays, however, remain a key challenge. Many Western forces are downsizing their equipment fleets, resulting in fewer platforms to service in the marketplace. In addition, limited procurement budgets mean that Ministries of Defence (MODs) are unable to replace retired platforms with newer equivalents. The resulting reduction in combat platforms will have a direct im pact on military SIS revenue, particularly in Europe.
"It is expected that defence contractors will provide a complex SIS package as part of the main contract for a supply of modern weapons and combat platforms which are already in service," remarked Kimla. "Defence suppliers will also need to demonstrate how outsourcing of SIS can lead to reduced operation costs in both the mid- and long-term to appeal to MoD agendas that focus on cost reduction while ensuring force preparedness."
For more information this research, please send your contact details toJoanna Lewandowska, Corporate Communications atjoanna.lewandowska@frost.com.
Global Military Support in Service Market Assessment(M83F-16) is part of theDefenceGrowth Partnership Service programme, which also includes research in the following markets: European Defence Support in Service Market Assessment, Global Military Training & Simulation Market Assessment and, Analysis of the US Department of Defence Training and Simulation. All research included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.
About Frost & Sullivan
Frost & Sullivan, the Growth Partnership Company, w orks in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants.
Our "Growth Partnership" supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.
The Integrated Value Propositionprovides support to our clients throughout all phases of their journey to visionary innovation including: research, analysis, strategy, vision, innovation and implementation. The Partnership Infrastructureis entirely unique as it constructs the foundation upon which visionary innovation becomes possible. This includes our 360 degree research, comprehensive industry coverage, career best practices as well as our global footprint of m ore than 40 offices.
For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organization prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?
Contact Us: Start the discussion
Join Us: Join our community