MOUNTAIN VIEW, Calif.: The U.S. Department of Defense (DoD) is
expected to offset a dip in research, development, test, and evaluation
(RDT&E) with a hike in spending on ground forces supplies, services,
and technologies. Command, control, communications, computers,
intelligence, surveillance, and reconnaissance (C4ISR) funding is
likely to remain stable, with robust growth restricted to current
deployments and applications that have direct relevance to
Open-source intelligence (OSINT) and human intelligence (HUMINT)
will be helpful in successful counter-terror/insurgency warfare.
New analysis from Frost & Sullivan, U.S. DoD C4ISR Markets,
finds that the 2011 U.S. DoD C4ISR budget requests $43.3 billion. This
is a $600.0 million increase over the 2010 enacted level. C4ISR
spending continues to account for about 6.1 percent of the total DoD
The DoD will be particularly focusing on intelligence and special operations and therefore, repair, maintenance, training, information assurance, and operational services will continue to be funding priorities.
“Funding by segment reflects an attempt to rebalance technical
sensors/collection with less expensive but vital analysis and other
‘people’ skills required for successful military operations,” says
Frost & Sullivan Industry Analyst Brad Curran. “Intelligence
activities of all types will have the largest growth rate through 2015.”
“There is a great need for C4ISR services such as language and
cultural skills, maintenance, engineering, integration, training,
project management, especially for the popularinformation assurance and coalition partnering applications,” notes Curran. “Surveillance & Reconnaissance is also receiving robust funding as unmanned vehicles and improved sensors are deployed, new units are stood up, and existing unit Tables of Equipment are expanded.”
Considerable investments are required for the upgrade of neglected
‘conventional’ capabilities, increasing the DoD’s spending. There is
substantial demand for practical, rapid, and inexpensive platforms such
as balloons and commercial-off-the-shelf (COTS) tools such as WiFi.
With the trend of collaboration through social media gaining currency in operational and intelligence communities, continued investment in network infrastructure, software analysis, and dissemination tools is necessary.
Meanwhile, the DoD continues to make cuts in space budgets. While export controls constrain international sales,
the commercial and foreign competition constantly escalates. Overall,
there are likely to be fewer platforms of all types. Future sales
trends are likely to move away from high-end platforms toward proven
and reliable designs that afford maximum flexibility.
Frost & Sullivan enables clients to accelerate growth and
achieve best-in-class positions in growth, innovation and leadership.
The company’s Growth Partnership Service provides the CEO and the CEO’s
Growth Team with disciplined research and best-practice models to drive
the generation, evaluation, and implementation of powerful growth
strategies. Frost & Sullivan leverages over 45 years of experience
in partnering with Global 1000 companies, emerging businesses and the
investment community from 40 offices on six continents.