The Counter-IED Market :
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1 The Counter-IED Market : Systems notice This material is visiongain. It is against the law to reproduce any of this material without the prior written agreement of visiongain. You cannot photocopy, fax, download to database or duplicate in any other way any of the material contained in this report. To check the T&C of your user license please visit /terms.
2 Key areas covered in this report will include: You will gain a comprehensive understanding of the global counter-ied market and how it will develop over the next ten years. The analysis and forecasting has been reinforced by extensive consultation with expert opinion. Within the report, you will read full transcripts of an original and exclusive interview with an expert from a company operating in the counter-ied market: - NIITEK Inc -- Juan Navarro, President You will find 71 tables, charts and graphs quantifying, analysing and forecasting the counter-ied market in detail from You will receive national market forecasts and analysis from for 10 leading national counter-ied markets with a comprehensive review of programmes within each of the 10 national markets. - United States - United Kingdom - France - Germany - Italy - Canada - Australia - India - Israel - Iraq You will receive submarket forecasts from for the following counter-ied submarkets: - Mine-resistant vehicles - Electronic countermeasures - Detection systems - Unmanned systems You will find profiles of 20 leading companies operating within the counter-ied market. You will view a SWOT analysis of the main strengths, weaknesses, opportunities and threats to the counter-ied market over the next ten years.
3 1. Executive Summary This report, The Counter-IED Market : Systems, analyses the market for counter-ied systems at the global level and in 10 leading national markets. It finds that the counter-ied market is in decline from previous high levels but it will still see significant spending despite defence cuts in many countries. This report classifies counter-ied systems in four submarkets: mine-resistant vehicles, electronic countermeasures or jammers, detection and disposal systems, and unmanned systems intended for the purpose. This report covers the forecast period of , with 2010 as the base year. 1.1 Key Drivers and Restraints The key drivers to the counter-ied market include the recognition that IEDs are extensively and effectively employed by insurgent groups, the continued prioritisation of spending on systems that combat the IED threat, the effectiveness of some counter-ied systems in reducing casualties and the massive demand from the US that will continue at least through the next few years which will be sustained at more moderate levels over the decade. Among the possible restraints of the counter-ied market are threats posed by defence spending cuts in many countries, the planned withdrawal of US-led coalition from Afghanistan and sooner in Iraq which could dampen demand for such systems, a possible saturation of the market, and the reluctance of some nations to heavily invest in counter-ied systems beyond those intended for a small part of their armed forces. 1.2 Highlights of the Report The highlights of this report, The Counter-IED Market : Systems and Technologies for Force Protection include the following: Analysis and forecasts of projected total sales (in US$) of the global counter-ied market and for 10 leading national markets Analysis and forecasts for four submarkets at the global level in projected total sales (US$): o Mine-Resistant Vehicles Page 20
4 o Electronic Countermeasures (Jammers) o Detection Systems o Unmanned Systems Intended for Counter-IED Analysis and forecasts for the total counter-ied market in 10 leading national markets in total projected sales (US$). Review of significant counter-ied programmes in 10 leading national markets. Analysis of strengths, weaknesses, opportunities and threats in the global counter-ied market. Expert opinion from a key company involved in developing and producing counter-ied solutions. Profiles of 20 key companies involved in developing and producing counter-ied systems. Chapter 2 discusses general trends in the global counter-ied market, including how the submarkets were defined for this report. Chapter 3 analyses the global counter-ied market, providing forecasts and analytical discussions for the following: Global counter-ied market in terms of projected sales (US$), along with growth rates Submarkets in terms of projected sales (US$): o Mine-Resistant Vehicles o Electronic Countermeasures (Jammers) o Detection Systems o Unmanned Systems intended for Counter-IED Chapter 4 covers 10 leading national markets: the United States and Canada in North America; the United Kingdom, France, Germany and Italy in Europe; Israel and Iraq in the Middle East; and India and Australia in the Asia-Pacific. This chapter surveys key programmes involving counter-ied systems and provides individual country forecasts in terms of sales (US$). Chapter 5 lists the main strengths, weaknesses, opportunities and threats for the counter-ied market. Page 21
5 Chapter 6 provides comments from an in the counter-ied sector: Juan Navarro, President of NIITEK Inc (Non-Intrusive Inspection Technology), a leading producer of ground-penetrating radar (GPR) for the Husky mine detection system (HMDS) and which also being adapted for robots or small unmanned ground vehicles (UGVs). Chapter 7 provides profiles of 20 key companies involved in the counter-ied sector. Chapter 8 highlights conclusions from Visiongain's research and analyses. Chapter 9 provides a glossary of terms used in this report. 1.3 Methods The Counter-IED Market : Systems has been compiled by combining information gleaned from a wide range of both primary and secondary research sources, producing a broad industry overview. This analytical study draws on a diverse range of official corporate and governmental announcements, media reports, policy documents, industry analyst briefings and expert opinion from industry experts as basis for discussing and predicting developments in the global counter-ied market between 2011 and Visiongain considers that this research methodology results in an accurate, objective mixture of analyses and forecasts that offer the reader an informed outlook on the counter-ied market over the coming decade. Page 22
6 4.14 Indian Counter-IED Market Forecast Table 4.16 Indian Counter-IED Market Forecast Summary 2011, 2016 and 2021 ($m, Rank, % Share, CAGR %, Cumulative) Market size $m $130m $245m $305m Global market ranking 6th 2nd 2nd Global market share % 2.0% 6.4% 7.9% CAGR % 8.9% CAGR % ranking 1st cumulative market $2.5bn Market Outlook Very positive Figure 4.11 Indian Counter-IED Market Share Forecast 2011, 2016 and 2021 (% Share) % 6.4% 7.9% Page 96
7 Table 4.17 Indian Counter-IED Market Forecast ($m, AGR %) Sales $m AGR(%) Table 4.18 Indian Counter-IED Market Forecast CAGR (%) , , and CAGR (%) Figure 4.12 Indian Counter-IED Market Forecast ($m) Sales $m Year Page 97
8 6. Expert Opinion 6.1 NIITEK Juan Navarro, President NIITEK (Non-Intrusive Inspection Technology Inc) produces ground-penetrating radar (GPR) used to detect buried improvised explosive devices (IEDs) and mines. Mr Juan Navarro is the president of NIITEK. The company s GPR is installed in the Husky Mounted Detection Systems (HMDS) used by the US military, which it has deployed to Afghanistan and Iraq, and also by the Canadian Forces. GPR is also undergoing development for use with small robots or unmanned ground vehicles. NIITEK, based in Virginia, USA, is part of UK-based Chemring Group Plc. Visiongain interviewed Mr Navarro by telephone in October 2011 and we are grateful for his contribution Impact of Defence Spending Cuts on Counter-IED Market Visiongain: Given the recent defence spending cuts, particularly in North America and Europe, what would be the impact on the demand for counter-ied systems? NIITEK s Juan Navarro: I think there s still a requirement to have technology to locate and identify IEDs so I don t see any significant cut on counter-ied spending. Everybody s going to take some cut but the counter-ied technology is of foremost importance. For example, JIEDDO (the US Joint IED Defeat Organisation) is still being funded for over $2bn. If you think about that, although JIEDDO was at $4bn when they were in both Iraq and Afghanistan, they re still getting over $2bn. That s an indicator that the US Department of Defence (DoD) is still very focused on this counter-ied problem Impact of Withdrawal from Iraq and Afghanistan on Counter-IED Systems Demand Visiongain: With the imminent full withdrawal from Iraq and the planned withdrawal in a few years from Afghanistan by US-led coalition forces, do you see a decline in counter-ied systems in the near future? NIITEK s Juan Navarro: The technology for route clearance is becoming part of standard US Army equipment so there s not going to be immediate, quick surge-type requirement where you have to ramp up and deliver. But there is a plan for a programme of record where the Army will buy significant Page 119
9 7. Leading Companies in the Counter-IED Market The following chapter profiles some of the major vendors in the counter-ied market. Given the complexity of the market, we offer the following as a representative sample rather than an exhaustive one. We acknowledge the potential for oversights in attempting to create such a survey. In a fluid market, we have endeavoured to ensure that all information was accurate at the time when our research was originally undertaken. 7.1 Allen Vanguard Corporation Allen Vanguard is a Canadian company that supplies a range of counter-ied products and technologies. Among its products are the Equinox jammer, a vehicle-based electronic countermeasures (ECM) system against radio-controlled IEDs (RCIEDs). It also produces the Vanguard and Defender remotely operated vehicles (ROVs) or robots used by explosive ordnance disposal (EOD) teams in counter-ied operations. It also markets the Scorpion manportable ECM solution for use by soldiers on foot patrols. With its acquisition of Med-Eng, it also supplies personal protective equipment used by personnel in demining and counter-ied operations. Allen-Vanguard supplies jamming devices to Canada, Australia, and a number of European militaries. The company s headquarters are located in Ottawa, Ontario. 7.2 BAE Systems Land Systems BAE Systems Land Systems OMC supplies the RG-31 mine-resistant vehicles. The RG-31 is a 4x4 vehicle that can typically carry two crew along with six dismounts. BAE Systems Land Systems OMC supplies the RG-31 to the US military in conjunction with General Dynamics Land Systems Canada. BAE Systems also markets the Caiman series of MRAPs, which is based on the Family of Medium Tactical Vehicles (FMTV), the US Army's platform of 5-ton and 2.5-ton trucks. The FMTV were built by Stewart & Stevenson, which was later acquired by Armor Holdings. The latter also produced the Caiman. BAE Systems acquired Armor Holdings. The company's corporate headquarters are located in Farnborough, UK. BAE Systems have more than 100,000 employees worldwide. Page 124
The Global Counter IED Market
TABLE OF CONTENTS 1 Introduction... 12 1.1 What is this Report About?...12 1.2 Definitions...12 1.3 Summary Methodology...14 1.4 About Strategic Defence Intelligence (www.strategicdefenceintelligence.com)...15
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