NEWTOWN, CT -- The US defense electronics market shows signs of strength and growth, despite a projected 27.2% drop in market value from 2017 to 2026, according to a new report.

Forecast International projects the defense electronics market will be worth at least $135.5 billion for the 2017-2026 period.

The forecast is based on reviews of more than 500 leading defense electronics programs. Based on the results of FI's modeling, the top five defense electronics companies in the 10-year period are projected to be Northrop Grumman, Lockheed Martin, Raytheon, Harris and BAE.

Current forecasts call for military spending on electronics to be $15.8 billion in 2017 and to hit a low of $11.5 billion in 2026.

Despite the projected drop, the figures bode well for the market, FI says, because they mean most programs will remain on course during that period. Moreover, the data do not account for new programs that may come online.

"This is a very good sign," said Richard Sterk, senior analyst, explaining that it means only slightly more than a quarter of the programs sampled will be ending over the course of the forecast period, while almost three-quarters (72.8%) will still be active. "This indicates a rather healthy defense electronics segment in the overall American defense market."

"The major influence on the US defense electronics market continues to be the development and production of systems for use in network-centric warfare (cyber warfare)," said Sterk. "These systems connect as many information systems together as possible, allowing maximum flow of information between decision-makers and soldiers in the field."

Programs forecast to profit during the next 10 years include: the APG-81 AESA radar for F-35 aircraft; the ICNIA (Integrated Communications, Navigation, Identification, Avionics) system that will integrate aircraft avionics for the F-22 and the F-35 Joint Strike Fighter; the APG-68 pulse-Doppler fire control radar for the F-16; the AAQ-33 Sniper Advanced Targeting Pod; the ALQ-210 situational awareness and threat warning system; the VUIT-2 video system; the SPY-6 Air and Missile Defense Radar (AMDR) to be installed aboard aircraft carriers and destroyers; the AQS-20 minehunting sonar and AQS-22 ALFS (Airborne Low Frequency Sonar) naval systems; the Navy Multi-band Terminal C4I system; the PRC-150 and PRC-152 combat radios; the Bowman radio; and the Warfighter Information Network-Tactical (WIN‑T).

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