The technological superiority of the United States armed forces is being challenged by new and evolving threats constantly being developed by potential adversaries. To counteract these challenges, the country's Department of Defense (DoD) is expected to spend an estimated $481 billion between 2018 and 2024 to identify and develop new technologies for advanced weapon systems, giving rise to numerous revenue opportunities in this space.
"According to the most recent Defense budget (FY2021), combined spending on research, development, testing, and evaluation (RDT&E) for over 1,100 programs by defense-wide organizations is estimated to reach $106.56 billion," said John Hernandez, Senior Industry Analyst. "This wide variety of projects provides opportunities for a large number of commercial markets to collaborate with the DoD."
The RDT&E sector is rife with market opportunities in an array of innovative technological concepts, such as artificial intelligence (AI), autonomous vehicles, robotics, cybersecurity, counter-drone technology, and hypersonics. Pursuing further developments in these areas will prove to be rewarding for companies that can successfully integrate these new capabilities into existing weapons systems.
"Most concepts being explored by the armed forces will have an impact in commercial market spaces as well," noted Hernandez. "Companies working with the DoD on RDT&E development programs will have an advantage toward the development of parallel commercial solutions."
Companies operating in this sector should explore the following opportunities to cultivate growth:
Source: Frost & Sullivan
Date: Mar 17, 2020