Military Support in Service Market: Air Modernisation Segment on the Rise, Says Frost & Sullivan

Military Support in Service Market: Air Modernisation Segment on the Rise, Says Frost & Sullivan PR Newswire LONDON, Oct. 29, 2012 - The modernisation sector is one of the most stable and promising markets in terms of revenue growth LONDON, Oct. 29, 2012 /PRNewswire/ -- Despite austerity measures implemented by most Western countries, the military Support in Service (SIS) market seems to be relatively immune from the effects of the economic recession. Among SIS segments, the modernisation sector is one of the most stable and promising in terms of revenue growth. According to recent Frost & Sullivan analysis, the military modernisation market will increase in value from USD14,837.1 million in 2011 to USD18,031.5 million in 2020. "Decreasing defence procurement budgets and the rising prices of new complex combat defence platforms are resulting in end users looking to modernise equipment rather than replace it," says Frost & Sullivan Industry Analyst, Dominik Kimla. "The Ministries of Defence (MoDs) are trying to manage the existing air defence platforms fleet more efficiently, and balance cost savings with the higher availability rates from lesser fleet numbers. Therefore, many more life extension programmes are expected in the coming years." The highest revenue for the defence industry will be generated by the air segment of military modernisation sector that will exhibit a Compound Annual Growth Rate (CAGR) of 2.6 percent from 2011 to 2020.