Increased Government Spending Aids Military Power Supplies Market

Business Wire, Jan 28, 2008

PALO ALTO, Calif. -- A rise in military spending, along with greater budget allocation for modernization of joint forces since 9/11, encourages the military power supplies market. Government knowledge of electronics in the battlefield increases and gives a significant boost to market growth.

New analysis from Frost & Sullivan (http://www.powersupplies.frost.com), North American Military Power Supplies Market, finds that the market earned revenues of $612.4 million in 2006 and estimates to reach $832.2 million in 2013.

If you are interested in a virtual brochure, which provides manufacturers, end users, and other industry participants with an overview of the North American Military Power Supplies Market, then send an e-mail to Johanna Haynes, Corporate Communications, at johanna.haynes@frost.com with the following information: your full name, company name, title, telephone number, e-mail address, city, state, and country. We will send you the information via e-mail upon receipt of the above information.

Following the decision to digitize the battlefield, radio communication equipment, night vision goggles and other electronic equipment become essential items in a foot soldier's backpack. The government is also likely to rely on alternate energy sources to save lives and costs.

"For instance, the U.S. Army is testing portable solar panels that can be layered on top of a tent and rolled up into backpacks," says Frost & Sullivan Research Analyst G. Vimal Krishna Kumar. "Tents using solar panels can provide up to 1 KW of energy, sufficient enough to power fans, lights, radios and laptops, and they can reduce the usage of diesel-powered generators."

The energy sources can be recharged using smaller flexible panels, which soldiers can unfold during the day to collect energy. This lessens the burden for soldiers since there is an increasing need to reduce the size and weight of electronic gear carried into battlefields.

"Increased use of light armored vehicles, tanks, fighter aircrafts, unmanned aerial vehicles, littoral combat ships and missile defense systems also expects to aid market growth," observes Kumar.

Despite these positives, the power supplies market will likely be challenged to widen its profit margins, as customized solutions in military applications see a fall in demand due to rising popularity of commercial off-the-shelf (COTS) products. This triggers price wars; users are content with the more proven COTS products than the lesser known customized ones.

This will adversely affect the power supplies market, as users will be reluctant to pay for the engineering cost involved in designing power supplies. This situation can be remedied to an extent by modifying COTS without compromising on military specifications and requirements.

"Major defense original equipment manufacturers (OEMs) begin to subcontract their power supplies from regular vendors, as it is a cost-effective solution and gives them exposure to a wide range of products," notes Kumar. "It also enables them to find manufacturers that could meet their custom design demands."

Since OEMs have to deal with specific requirements for various applications, they could do well to source the power supply from these niche participants.

North American Military Power Supplies Market is part of the Power Supplies & Batteries Growth Partnership Service program, which also includes research in the following markets: World DIN Rail Power Supplies, World Power Supply Market for Medical Application and World AC-DC SPS. All research services included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants. Interviews with the press are available.

Frost & Sullivan, the Global Growth Consulting Company, partners with clients to accelerate their growth. The company's Growth Partnership Services, Growth Consulting and Career Best Practices empower clients to create a growth focused culture that generates, evaluates and implements effective growth strategies. Frost & Sullivan employs over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 30 offices on six continents. For more information about Frost & Sullivan's Growth Partnerships, visit http://www.frost.com.

North American Military Power Supplies Market

N050