Military Smart Weapons Market 2014-2024

Military Smart Weapons Market 2014-2024

Radar, GPS / INS, Infrared & Laser Precision Guided Weapons, Munitions, Bombs & Missiles

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Contents 1. Report Overview

1.1 Military Smart Weapons Market 2014-2024 Overview

1.2 Military Smart Weapons Market Segmentation

1.3 Why You Should Read This Report

1.4 How This Report Delivers

1.5 Key Questions Answered by This Analytical Report Include:

1.6 Who is This Report For?

1.7 Methodology

1.8 Frequently Asked Questions (FAQ)

1.9 Associated Visiongain Reports

1.10 About Visiongain

2. Introduction to the Military Smart Weapons Market 2014-2024

2.1 Military Smart Weapons Market Background

2.2 Military Smart Weapons Market Structure

2.3 Military Smart Weapons Market Definition

2.4 Military Smart Weapons Submarket Definition

2.4.1 Radar-Guided Smart Weapons Submarket Definition

2.4.2 GPS/INS-Guided Smart Weapons Submarket Definition

2.4.3 Infrared-Guided Smart Weapons Submarket Definition

2.4.4 Laser-Guided Smart Weapons Submarket Definition

2.4.5 Other-Guided Smart Weapons Submarket Definition

2.5 Significant Trends in the Military Smart Weapons Market

3. Global Military Smart Weapons Market 2014-2024

3.1 Global Military Smart Weapons Market Forecast 2014-2024

3.2 Global Military Smart Weapons Market Drivers and Restraints

4. Military Smart Weapons Submarkets Forecast 2014-2024

4.1 Military Smart Weapons Submarket Forecasts 2014-2024

4.2 Radar-Guided Smart Weapons Submarket Forecast 2014-2024

4.2.1 Missile Defence Investment Central to Radar-Guided Smart Weapons Spending

4.2.2 Technological Trends in the Radar-Guided Smart Weapons Submarket

4.3 GPS/INS-Guided Smart Weapons Submarket Forecast 2014-2024

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Contents 4.3.1 GPS/INS-Guided Missiles Forecast to Account for One Fifth of Total Smart Weapons

Procurement

4.3.2 GPS/INS Kits Upgrading “Dumb” Bombs to Smart Weapons

4.4 Infrared-Guided Smart Weapons Submarket Forecast 2014-2024

4.4.1 Infrared-Guided Missile Submarket Forecast to Surpass GPS/INS-Guided Missile

Submarket in 2016

4.4.2 Infrared-Guided Missiles Remain a Potent Capability

4.5 Laser-Guided Smart Weapons Submarket Forecast 2014-2024

4.5.1 Strongest Growth in the Laser-Guided Smart Weapons Submarket

4.5.2 Inherent Limitations to Laser-Guided Precision Strike Capabilities

4.6 Other-Guided Smart Weapons Submarket Forecast 2014-2024

4.6.1 Limited Growth Prospects in the Other-Guided Military Smart Weapons Submarket

4.6.2 Upgrades, Research and Development Patterns

5. Leading National Military Smart Weapons Markets 2014-2024

5.1 Leading 20 National Military Smart Weapons Market Forecasts 2014-2024

5.1.1 Leading 20 National Military Smart Weapons Markets Share of Global Spending

5.1.2 Leading 20 National Military Smart Weapons Markets Growth Forecast 2014-2024

5.1.3 Largest 5 National Military Smart Weapons Markets

5.1.3.1 Growth Prospects for the 5 Largest National Military Smart Weapons

Markets

5.1.4 Global Military Smart Weapons Market Barriers to Entry Analysis

5.2 US Military Smart Weapons Market 2014-2024

5.2.1 US Smart Weapons Procurement Forecast to be Weak Between 2014 and 2024

5.2.2 US Military Smart Weapons Submarket Breakdown 2014-2024

5.2.2.1 Radar and Infrared-Guided Systems Dominate US Smart Weapons

Procurement

5.2.2.2 Smart Weapons Providing Critical Capability Enhancements

5.2.2.3 R&D Important as Budgetary Uncertainty Persists

5.2.3 US Military Smart Weapons Budget Breakdown 2013-2019

5.2.3.1 US Navy & Marine Corps Smart Weapons Spending 2013-2019

5.2.3.2 US Army Smart Weapons Spending 2013-2019

5.2.3.3 US Missile Defense Agency Smart Weapons Spending 2013-2019

5.2.3.4 US Air Force Smart Weapons Spending 2013-2019

5.2.4 US Military Smart Weapons Market 2014-2024 Major Contracts and Programmes

5.3 Chinese Military Smart Weapons Market 2014-2024

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Contents 5.3.1 Significant Advancements in Chinese Smart Weapon Technologies

5.3.2 China’s S-400 Purchase and the Prospect of Reverse Engineering

5.3.3 Chinese Military Smart Weapons Submarket Breakdown 2014-2024

5.3.3.1 China Expected to Broaden its Smart Weapons Capabilities

5.3.3.2 China to Invest in Upgrades to its C4ISR Systems

5.3.4 Chinese Military Smart Weapons Market 2014-2024 Major Contracts and

Programmes

5.4 Russian Military Smart Weapons Market 2014-2024

5.4.1 Russia Undertaking an Ambitious Modernisation of its Missile Capabilities

5.4.2 Russian Military Smart Weapons Submarket Breakdown 2014-2024

5.4.2.1 Smart Missile Defence a Key Investment Priority for Russia

5.4.2.2 Decreasing the Smart Weapons Capability Gap with the USA

5.4.3 Russian Military Smart Weapons Market 2014-2024 Major Contracts and

Programmes

5.5 UK Military Smart Weapons Market 2014-2024

5.5.1 The UK’s $14,8bn Investment in Complex Weapons Systems

5.5.2 UK Military Smart Weapons Submarket Breakdown 2014-2024

5.5.2.1 Multiple Projects Planned in the UK’s Complex Weapons Programme

5.5.2.2 The UK’s Complex Weapons Programme is a New Approach to

Procurement

5.5.3 UK Military Smart Weapons Market 2014-2024 Major Contracts and Programmes

5.6 Saudi Arabian Military Smart Weapons Market 2014-2024

5.6.1 Saudi Arabia Leading the Middle East Region in Smart Weapons Procurement

5.6.2 Saudi Arabian Military Smart Weapons Submarket Breakdown 2014-2024

5.6.2.1 Saudi Arabia Investing in Rounded Precision Strike Capabilities

5.6.6.2 Middle East Spending on Smart Weapons Forecast to Soar

5.6.3 Saudi Arabian Military Smart Weapons Market 2014-2024 Major Contracts and

Programmes

5.7 Japanese Military Smart Weapons Market 2014-2024

5.7.1 Japan Procuring Smart Weapons as Shinzo Abe Looks to Revise the Pacifist

Constitution

5.7.2 Japanese Military Smart Weapons Submarket Breakdown 2014-2024

5.7.2.1 Surface-to-Air Missile Prioritised in Japan’s Smart Weapons Procurement

5.7.2.2 Significant Political Uncertainties Shaping Japan’s Smart Weapon

Procurement

5.7.3 Japanese Military Smart Weapons Market 2014-2024 Major Contracts and

Programmes

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Contents 5.8 French Military Smart Weapons Market 2014-2024

5.8.1 France’s Flat Defence Spending Reflected in its Smart Weapons Procurement

5.8.2 French Military Smart Weapons Submarket Breakdown 2014-2024

5.8.2.1 French Smart Weapons Procurement Programmes Facing Threats

5.8.2.2 Uncertainties Persist in Future French Smart Weapons Spending

5.8.3 French Military Smart Weapons Market 2014-2024 Major Contracts and Programmes

5.9 Indian Military Smart Weapons Market 2014-2024

5.9.1 Indian Smart Weapons Investment Set to Double Between 2014 and 2024

5.9.2 Indian Military Smart Weapons Submarket Breakdown 2014-2024

5.9.2.1 India’s Smart Weapons Procurement to Become More Balanced by 2024

5.9.2.2 Indigenous Development Central to India’s Smart Weaponry

5.9.3 Indian Military Smart Weapons Market 2014-2024 Major Contracts and Programmes

5.10 German Military Smart Weapons Market 2014-2024

5.10.1 Defence Budget Pressures Affecting Germany’s Smart Weapons Procurement

5.10.2 German Military Smart Weapons Submarket Breakdown 2014-2024

5.10.2.1 Germany’s Uncertain Missile Defence Programme

5.10.3 German Military Smart Weapons Market 2014-2024 Major Contracts and

Programmes

5.11 UAE Military Smart Weapons Market 2014-2024

5.11.1 UAE Military Smart Weapons Market Forecast to Double in Size

5.11.2 UAE Military Smart Weapons Submarket Breakdown 2014-2024

5.11.2.1 The UAE Second Only to Saudi Arabia in Middle East Smart Weapons

Procurement

5.11.2.2 UAE Prioritising Indigenous Research & Technical Development

5.11.3 UAE Military Smart Weapons Market 2014-2024 Major Contracts and Programmes

5.12 Israeli Military Smart Weapons Market 2014-2024

5.12.1 Regional Instability Underpinning Israeli Military Smart Weapons Spending

5.12.2 Israeli Military Smart Weapons Submarket Breakdown 2014-2024

5.12.1 Radar-Guided Missile Defence Increasingly Dominating the Israeli Market

5.12.3 Israeli Military Smart Weapons Market 2014-2024 Major Contracts and

Programmes

5.13 South Korean Military Smart Weapons Market 2014-2024

5.13.1 South Korea’s Defence Budget Focussed on Missile Defence

5.13.2 South Korean Military Smart Weapons Submarket Breakdown 2014-2024

5.13.2.1 South Korea’s Precision-Guided Munitions Spending Profile

5.13.2.2 South Korea’s Procurement Based on the Threat from the North

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Contents 5.13.3 South Korean Military Smart Weapons Market 2014-2024 Major Contracts and

Programmes

5.14 Italian Military Smart Weapons Market 2014-2024

5.14.1 Italian Smart Weapons Procurement Forecast to Decline Between 2014 and 2024

5.14.2 Italian Military Smart Weapons Submarket Breakdown 2014-2024

5.14.2.1 Italy Achieving Deployment of its MBDA Manufactured Surface-to-Air

Missile System

5.14.3 Italian Military Smart Weapons Market 2014-2024 Major Contracts and

Programmes

5.15 Brazilian Military Smart Weapons Market 2014-2024

5.15.1 Brazil’s Investment in Smart Weapons will Consolidate its Regional Power

5.15.2 Brazilian Military Smart Weapons Submarket Breakdown 2014-2024

5.15.2.1 Brazil’s Varied Smart Weapon Requirements

5.15.3 Brazilian Military Smart Weapons Market 2014-2024 Major Contracts and

Programmes

5.16 Kuwaiti Military Smart Weapons Market 2014-2024

5.16.1 Kuwaiti Smart Weapons Spending Driven by Missile Defence Needs

5.16.2 Kuwaiti Military Smart Weapons Submarket Breakdown 2014-2024

5.16.2.1 Kuwait Deploying its Patriot Missile Defence Umbrella

5.16.3 Kuwaiti Military Smart Weapons Market 2014-2024 Major Contracts and

Programmes

5.17 Australian Military Smart Weapons Market 2014-2024

5.17.1 Modest Growth in the Australian Smart Weapons Market

5.17.2 Australian Military Smart Weapons Submarket Breakdown 2014-2024

5.17.2.1 Australia Set to Become the First JDAM-ER User from 2015

5.17.3 Australian Military Smart Weapons Market 2014-2024 Major Contracts and

Programmes

5.18 Qatari Military Smart Weapons Market 2014-2024

5.18.1 Qatar Accelerating its Military Modernisation Programme

5.18.2 Qatari Military Smart Weapons Submarket Breakdown 2014-2024

5.18.2.1 Radar and GPS/INS-Guided Missile Defence Systems Central to Qatar’s

Smart Weapons Procurement

5.18.3 Qatari Military Smart Weapons Market 2014-2024 Major Contracts and

Programmes

5.19 Turkish Military Smart Weapons Market 2014-2024

5.19.1 Turkey’s Smart Weapons Development Strategy

5.19.2 Turkish Military Smart Weapons Submarket Breakdown 2014-2024

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Contents 5.19.2.1 Understanding Turkey’s Controversial Missile Defence Programme

5.19.3 Turkish Military Smart Weapons Market 2014-2024 Major Contracts and

Programmes

5.20 Omani Military Smart Weapons Market 2014-2024

5.20.1 Oman’s Defence Budget Growth will be Reflected in its Smart Weapons

Procurement

5.20.2 Omani Military Smart Weapons Submarket Breakdown 2014-2024

5.20.2.1 Omani Smart Weapons Market Dominated by Missile Defence

Procurement

5.20.3 Omani Military Smart Weapons Market 2014-2024 Major Contracts and

Programmes

5.21 Taiwanese Military Smart Weapons Market 2014-2024

5.21.1 China’s Missile Threat Driving Growth in the Taiwanese Market

5.21.2 Taiwanese Military Smart Weapons Submarket Breakdown 2014-2024

5.21.2.1 Torpedo Upgrades a Critical Component of Taiwan’s Smart Weapons

Procurement

5.21.3 Taiwanese Military Smart Weapons Market 2014-2024 Major Contracts and

Programmes

5.22 Rest of the World Military Smart Weapons Market 2014-2024

5.22.1 Robust Growth in the Rest of the World Smart Weapons Market

5.22.2 Rest of the World Military Smart Weapons Submarket Breakdown 2014-2024

5.22.2.1 Rest of the World Military Smart Weapons Submarket Spending Set to

Mirror Global Market Patterns

5.22.3 Rest of the World Military Smart Weapons Market 2014-2024 Major Contracts and

Programmes

6. SWOT Analysis of the Military Smart Weapons Market 2014-2024

7. Expert Opinion

7.1 Oto Melara

7.1.1 Development and Initial Production of Guided Munitions

7.1.2 Several Calibres of Guided Munitions Under Development

7.1.3 High Performance and State of the Art Guided Ammunition

7.1.4 30% Target for Revenues from Guided Ammunition

7.1.5 Numerous Potential Markets for Precision-Guided Ammunition

7.1.6 Primary Competitors in the Guided Ammunition Market

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Contents 7.1.7 Emerging Trends and Technologies in the Precision-Guided Ammunition Market

8. Leading Companies in the Military Smart Weapons Market

8.1 Alliant Techsystems Inc (ATK)

8.1.1 ATK – Significant Competitor in the Smart Weapons Market

8.1.2 Alliant Techsystems Inc (ATK) Competitors

8.1.3 Alliant Techsystems Inc (ATK) Regional Focus

8.1.4 Alliant Techsystems Inc (ATK) M&A Activity

8.1.5 Alliant Techsystems Inc (ATK) Future Outlook

8.2 BAE Systems PLC

8.2.1 BAE Marketing its Advanced Precision Kill Weapon System

8.2.2 BAE Systems PLC Competitors

8.2.3 BAE Systems PLC Regional Focus

8.2.4 BAE Systems PLC M&A Activity

8.2.5 BAE Systems PLC Future Outlook

8.3 The Boeing Company

8.3.1 The Boeing Company’s Harpoon Missile & Small Diameter Bomb

8.3.2 The Boeing Company Competitors

8.3.3 The Boeing Company Regional Focus

8.3.4 The Boeing Company Future Outlook

8.4 China North Industries Group Corporation (Norinco)

8.4.1 Analysis Suggests Norinco Will Emerge as a Global Missile Market Leader

8.4.2 China North Industries Group Corporation (Norinco) Competitors

8.4.3 China North Industries Group Corporation (Norinco) Focus

8.4.4 China North Industries Group Corporation (Norinco) Future Outlook

8.5 China Precision Machinery Import-Export Corporation (CPMIEC)

8.5.1 China Precision Machinery Import-Export Corporation (CPMIEC)’s Lateral Missile

Relationships

8.5.2 China Precision Machinery Import-Export Corporation (CPMIEC) Competitors

8.5.3 China Precision Machinery Import-Export Corporation (CPMIEC) Regional Focus

8.5.4 China Precision Machinery Import-Export Corporation (CPMIEC) Future Outlook

8.6 Denel SOC Ltd

8.6.1 Denel Dynamics Pursuing International Opportunities Through Joint Ventures

8.6.2 Denel SOC Ltd Competitors

8.6.3 Denel SOC Ltd Regional Focus

8.6.4 Denel SOC Ltd M&A Activity

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Contents 8.6.5 Denel SOC Ltd Future Outlook

8.7 Finmeccanica SpA

8.7.1 Oto Melara SpA Developing Precision-Guided Munitions

8.7.2 Finmeccanica SpA Competitors

8.7.3 Finmeccanica SpA Regional Focus

8.7.4 Finmeccanica SpA M&A Activity

8.7.5 Finmeccanica SpA Future Outlook

8.8 Israel Aerospace Industries Ltd

8.8.1 Israel Aerospace Industries Ltd’s Barak Missile Contracts

8.8.2 Israel Aerospace Industries Ltd Competitors

8.8.3 Israel Aerospace Industries Ltd Regional Focus

8.8.4 Israel Aerospace Industries Ltd M&A Activity

8.8.5 Israel Aerospace Industries Ltd Future Outlook

8.9 Kongsberg Gruppen

8.9.1 Missile Systems a Key Source of Revenue for Kongsberg Gruppen

8.9.2 Kongsberg Gruppen Competitors

8.9.3 Kongsberg Gruppen Regional Focus

8.9.4 Kongsberg Gruppen M&A Activity

8.9.5 Kongsberg Gruppen Future Outlook

8.10 Lockheed Martin Corporation

8.10.1 Lockheed Martin Corporation Ranked 3rd in the Smart Weapons Market

8.10.2 Lockheed Martin Corporation Competitors

8.10.3 Lockheed Martin Corporation Regional Focus

8.10.4 Lockheed Martin Corporation M&A Activity

8.10.5 Lockheed Martin Corporation Future Outlook

8.11 MBDA

8.11.1 MBDA Ranked 2nd in the Precision-Guided Missiles Market

8.11.2 MBDA Competitors

8.11.3 MBDA Regional Focus

8.11.4 MBDA M&A Activity

8.11.5 MBDA Future Outlook

8.12 Rafael Advanced Defense Systems Ltd

8.12.1 Rafael Competing for a Major Indian Anti-Tank Missile Contract

8.12.2 Rafael Advanced Defense Systems Ltd Competitors

8.12.3 Rafael Advanced Defense Systems Ltd Regional Focus

8.12.4 Rafael Advanced Defense Systems Ltd M&A Activity

8.12.5 Rafael Advanced Defense Systems Ltd Future Outlook

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Contents 8.13 Raytheon Company

8.13.1 Raytheon the Undisputed Smart Weapons Market Leader

8.13.2 Raytheon Company Competitors

8.13.3 Raytheon Company Regional Focus

8.13.4 Raytheon Company M&A Activity

8.13.5 Raytheon Company Future Outlook

8.14 Roketsan AS

8.14.1 Roketsan Emerging as a Competitive Force in the Military Smart Weapons Market

8.14.2 Roketsan AS Competitors

8.14.3 Roketsan AS Regional Focus

8.14.4 Roketsan AS Future Outlook

8.15 Textron Inc

8.15.1 Textron Inc’s Recent Financial Performance

8.15.2 Textron Inc Competitors

8.15.3 Textron Inc Regional Focus

8.15.4 Textron Inc M&A Activity

8.15.5 Textron Inc Future Outlook

8.16 Selected Other Leading Companies in the Military Smart Weapons Market

9. Conclusions

9.1 Military Smart Weapons Market Outlook 2014-2024

9.2 Military Smart Weapons Submarket Forecasts 2014-2024

9.3 Leading 20 National Military Smart Weapons Market Forecasts 2014-2024

9.4 Military Smart Weapons Market Drivers and Restraints

9.5 Significant Trends in the Global Military Smart Weapons Market

9.5.1 Patterns of Demand for Smart Weapons Capabilities

9.5.2 Importance of Research & Development

9.6 Commercial Outlook

precision-guided weapons or munitions,

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Military Smart Weapons Market 2014-2014: Radar, GPS / INS, Infrared & Laser Precision Guided Weapons, Munitions, Bombs & Missiles

5.11.3 UAE Military Smart Weapons Market 2014-2024 Major Contracts and Programmes

Table 5.41 UAE Military Smart Weapons Market 2014-2024 Major Contracts & Programmes 2010-2014 (Company, Date, Value $m, Details)

Company Date Value ($m) Details

Raytheon Company Ongoing $1,060.0m

(est.) The UAE has requested the purchase of 973 AGM-154C joint stand-off weapons with infrared guidance systems.

The Boeing Company Ongoing $250.0m (est.) The UAE has requested the purchase of 300 infrared

AGM-84H SLAM-ER.

Boeing Integrated Defense Systems

Ongoing $600.0m (est.) Saudi Arabia has requested the purchase of 1,000 GPS/INS guided GBU-39/B small diameter bombs.

Lockheed Martin Missiles & Fire Control

May 2014-2017

$212.3m PAC-3 FMS support services contract for Japan, Taiwan,

Germany, Netherlands, Kuwait and the UAE.

Raytheon Integrated Defense Systems

May 2014-2017

$10.1m Services, hardware, facilities, analysis and maintenance of

pre-Patriot advanced capability missile rounds.

March 2014-2015

$8.3m Repair and return of Patriot missile parts under a FMS.

Raytheon and Tawazun Dynamics

November 2013

Undisclosed TALON missile systems for the UAE in a joint programme

between Raytheon Missile Systems and Tawazun.

Tawazun Dynamics November

2013 $500.0m

The UAE to procure an undisclosed quantity of Al Tariq precision GPS guided weapons.

Raytheon Integrated Defense Systems

October 2013


September 2013


Hellfire Systems LLC

August 2013

$8.2m Fiscal year 2012 funding for Hellfire II FMS to the UAE.

July 2013 $7.6m Fiscal years 2012 and 2013 funding from a total contract worth 873.7m for Australia, Saudi Arabia and the UAE.


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5.21 Taiwanese Military Smart Weapons Market 2014-2024

Table 5.70 Taiwanese Military Smart Weapons National Market & Submarket Forecasts 2014-2024 ($m, AGR %, CAGR %, Cumulative)

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

2014-2024

Sales $m 281.0 294.5 312.7 296.8 290.9 344.7 389.1 362.3 377.9 407.3 440.3 426.7 3943.2

AGR (%)

4.8 6.2 -5.1 -2.0 18.5 12.9 -6.9 4.3 7.8 8.1 -3.1

CAGR 2014-19 (%) 5.7

2019-24 1.9

CAGR 2014-24 (%) 3.8

Radar 131.5 145.7 158.2 136.6 130.0 157.8 173.3 175.1 176.2 188.9 208.5 186.7 1837.0

AGR (%)

10.8 8.6 -13.7 -4.8 21.4 9.8 1.0 0.6 7.2 10.4 -10.5

GPS/INS 29.2 24.5 25.7 26.3 28.8 36.6 44.2 31.7 41.2 55.7 70.3 89.5 474.5

AGR (%)

-16.1 4.9 2.3 9.5 27.1 20.8 -28.3 30.0 35.2 26.2 27.3

Infrared 17.0 11.5 12.8 14.9 16.1 22.1 29.5 33.9 30.3 41.2 52.3 41.3 305.9

AGR (%)

-32.4 11.3 16.4 8.1 37.3 33.5 14.9 -10.6 36.0 26.9 -21.0

Laser 15.8 10.3 8.5 10.6 11.5 15.4 22.3 20.0 26.5 30.0 38.5 42.4 236.0

AGR (%)

-34.8 -17.5 24.7 8.5 33.9 44.8 -10.3 32.5 13.2 28.3 10.1

Other 87.5 102.5 107.5 108.4 104.5 112.8 119.8 101.6 103.7 91.5 70.7 66.8 1089.8

AGR (%)

17.1 4.9 0.8 -3.6 7.9 6.2 -15.2 2.1 -11.8 -22.7 -5.5

Source: Visiongain 2014

Figure 5.112 Taiwanese Military Smart Weapons Market Share Forecast 2014, 2019 and 2024 (% Share)

2014 2019 2024


1.7% 1.8% 1.6%


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7. Expert Opinion

7.1 Oto Melara

Oto Melara is a well-established defence contractor which produces land systems, naval systems,

air systems, guided munition and robotic systems. Since 2001 it has been a subsidiary of

Finmeccanica SpA, a leading Italian defence and industrial conglomerate. Oto Melara has sold its

naval, land and air weapon systems to over 60 countries worldwide, establishing a global

reputation in the process.

Visiongain would like to thank Oto Melara for their contribution to this report.

7.1.1 Development and Initial Production of Guided Munitions

Visiongain: How do precision-guided munitions fit into Oto Melara’s operations?

Oto Melara: Oto decided to enter in the field of guided munition since it represents the most

effective tool to increase the effectiveness of guns that are deployed on either naval or land

platforms. Our activities in this market started in early 2000 and are have continued to progress

with several current developments and initial productions.

7.1.2 Several Calibres of Guided Munitions Under Development

Visiongain: What products and services do you offer in the precision-guided weapons market?

Oto Melara: We have developed several calibres of guided munitions for a range of platforms and

applications. We have developed the 127mm and 155m Vulcano family of guided munitions which

can be used for very long range precision firing. We have also transferred Vulcano technology to

the 76mm calibre long range precision ammunition which uses GPS-IMU navigation and IR or SAL

terminal sensors. In addition, the 76mm guided ammunition DART is under development for

proposed anti-aircraft and anti-surface warfare.

7.1.3 High Performance and State of the Art Guided Ammunition

Visiongain: Which of your guided ammunition products are most important for your business?

Oto Melara: Our guided ammunition for 127mm and 76mm naval guns are our most important

products since they are completed products that can be marketed to customers as a high

performance and state of the art product. Furthermore, after the completion of in progress

development we plan to look at developing other calibres of precision-guided ammunition.


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8.1 Alliant Techsystems Inc (ATK)

Table 8.2 Alliant Techsystems Inc (ATK) Company Overview 2013 (Total Revenue $m, HQ, Ticker, Smart Weapons Subsidiary/Division, Website)

2013

Total Company Revenue $m $4,362m

Headquarters Virginia, USA

Ticker NASDAQ : ATK

Smart Weapons Subsidiary/Division Armament Systems; Defense Electronic Systems; Missile Products

Website www.atk.com


Table 8.3 Alliant Techsystems Inc (ATK) Revenue 2009-2013 (Revenue $bn, AGR %)

2009 2010 2011 2012 2013

Revenue ($bn) $4.58bn $4.81bn $4.84bn $4.61bn $4.36bn

AGR (%)

4.9% 0.7% -4.7% -5.4%


Figure 8.1 Alliant Techsystems Inc (ATK) Revenue 2009-2013 (Revenue $bn, AGR %)


-6

-4

-2

0

2

4

6

0

1

2

3

4

5

6

2009 2010 2011 2012 2013

AGR

(%)

Reve

nue

($bn

)

Year


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8.1.1 ATK – Significant Competitor in the Smart Weapons Market

ATK, already a major competitor in the military smart weapons market (and the broader aerospace

and defence markets) is aiming for a significantly enhance market presence through a merger of

equals with Orbital Sciences Corporation (see below). The combined company, with 2013 sales of

approximately $4.5bn would enjoy a significantly enhanced ability to compete with existing smart

weapons market leaders, most notably Raytheon Company and Lockheed Martin Corporation. The

merger also represents the ongoing process of consolidation in the US defence market as

companies react to budgetary constraints, reduced defence spending and falling revenues.

Table 8.4 Alliant Techsystems Inc (ATK) Major Company Contracts in the Military Smart Weapons Market 2010-2014 (Date, Country, Value $m, Details)

Date Country Value ($m) Details

April 2014-2016

USA $83.4m Full rate production (FRP) of the advanced anti-radiation guided missile

(AARGM) to convert 110 AGM-88B HARM to AGM-88E missiles.

September 2013-2015

USA $102.4m FRP lot II of the AARGM to convert 112 AGM-88B HARMs to AGM-88E

for the US Navy and Government of Italy.

September 2012-2015

USA $8.0m AARGM block I upgrade including software improvements and

enhancements.

September 2012-2012

USA $70.6m FRP of the AARGM including conversion of US AGM-88B HARM into 53

AGM-88E AARGM for the USA (49) and Italy (4).

April 2012-2015

USA $10.6m ATK Operations LLC’s Defense Electronics Systems division to perform

AARGM block I upgrade including software improvements and enhancements.

October 2011-2013

USA $9.6m Missile Defense Agency contract to improve performance and reduce risk

for the Standard Missile-3 Block IIB.

July 2011-2013

USA $54.4m LRIP of the AARGM and conversion of 51 US AGM-88B HARM to 44

AGM-88E AARGM and seven AGM-88E AARGM for Italy.

September 2013-2015

USA $102.4m FRP lot II of the AARGM to convert 112 AGM-88B HARMs to AGM-88E

for the US Navy and Government of Italy.

September 2012

USA $70.6m FRP of the AARGM including conversion of US AGM-88B HARM into 53

AGM-88E AARGM for the USA (49) and Italy (4).

July 2011-2013

USA $54.4m LRIP of the AARGM and conversion of 51 US AGM-88B HARM to 44

AGM-88E AARGM and seven AGM-88E AARGM for Italy.

July 2010-2012

USA $50.1m ATK Mission Systems Group Defense Electronics Systems contract for

AARGM converting HARM from AGM-88B to AGM-88E for US Navy & Italy.


Military Smart Weapons Market 2014-2024

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