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PRIVATE & CONFIDENTIAL
A quantitative analysis of Colombia
Key Export Markets for U.S. Defense Suppliers
Prepared for:
PRIVATE & CONFIDENTIAL | AVASCENT | 2
Executive Summary
The Virginia Economic Development Partnership asked Avascent to evaluate four defense export markets based on current and future procurements of defense materiel
Colombia exhibits growth in defense spending generally, and defense procurement in particular; further, their historic preference for U.S. equipment makes them attractive export markets
However, the mix of defense investment priorities is shifting in these markets in response to changes in the internal and regional threat environment
Further, an increasing desire to maintain diverse supplier relationships and to develop indigenous industry may present challenges to U.S. firms wishing to serve these markets
PRIVATE & CONFIDENTIAL | AVASCENT | 3
Structure and Definitions
The data used in these reports is sourced from Avascent’s Global Platforms and Systems tool, which takes a bottom-up and top-down approach to identifying and forecasting defense procurement in the U.S. and abroad
In addition to qualitative market analysis, each country report features the following quantitative views:
– Defense Platforms. This view depicts current and future procurements of integrated ground, airborne, and ship platforms as well as integrated air defense systems
– Defense Systems. This view disaggregates platforms into their component electronic systems, spanning C4I, electronic warfare, and sensing equipment
–Prime Contractors. This view displays the market share among major platform integrators
–Sub-Contractors. This view represents a level of granularity below prime contractors and displays the market share among major sub-system manufacturers
–Opportunity Space. This view categorizes emerging stated or projected military requirements by platform type and electronic systems market category
Note: Additional methodology slides are available in the appendix
PRIVATE & CONFIDENTIAL | AVASCENT | 4
Key Colombian officials advocate maintaining a robust defense budget, despite an anticipated peace plans with the FARC
— Colombian officials have been conducting peace talks with the FARC since 2012 and negotiations are rumored to be heading towards a final agreement in 2016
— The Colombian defense and finance ministers are committed to funding a robust defense budget over the next five years whether or not the peace talks are successful
— However, other officials argue that defense spending should be cut to reintegrate fighters into society, build infrastructure, and compensate victims from the war
— While tension between these two groups may lead to some volatility in Colombia’s defense spending in the near-term, overall defense spending will continue to grow to fund increasing salaries and training for personnel
Colombia is expected to continue with major air and sea modernization programs
— The Navy has announced plans to procure eight frigates with IOC expected by 2022
— The Air Force is expected to spend over $1.3B on a future fighter procurement within the 2018-2022 timeframe
Colombia:Defense spending grows despite peace plan with FARC
Budget Transparency Not
TransparentTransparent
Economic Outlook
Threat Environment and Spending DriversGDP & Defense Spending (millions USD)
Forecast Summary
Exchange Rate
2376
Defense spending will slow as Colombian negotiations with the FARC near a successful conclusion, and O&M is likely to bear the brunt of this slowdown
The high investment spending growth rate is an artifact of an extreme decrease in the procurement budget in 2015-2016, which will rise to normal levels again in the out-years
GDP Growth
7.6%
Defense Growth
2.9%
Investment Growth
20%
Defense Spending Outlook
Defense Accounts Outlook
Falling oil prices and declining oil production likely led the IMF torevise Colombia’s GDP downwards for 2015
However, Colombia is expected to have strong GDP growth from2016 onwards as the economy adjusts
NOTE: GDP is drawn from the IMF and all figures are nominal; growth rates are for 2016-2021
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$0
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Procurement R&D Personnel O&M Pensions GDP
PRIVATE & CONFIDENTIAL | AVASCENT | 5
Market Overview: Defense PlatformsA combination of declining Colombian spending and the wrap-up of Plan Colombia reduced spending from 2013-2015, but platform spending will increase as major procurement programs get underway
• Future Main Battle Tank
• Future Air Defense Vehicle
• Future Self-Propelled Howitzer
Wheeled & Tracked
Combat Vehicles
• Future Fighter Aircraft
• Future Trainer Aircraft
• KC-390 Development & Production
Fixed Wing
Aircraft
Market Segment OverviewMarket Size and Forecast (2011-2021)
• Future Frigate
• ARC 20 de Julio OPV
• Landing Craft Utility VesselSurface Vessels
Key:
$104.6M 25%Wheeled & Tracked Combat Vehicles
Fixed Wing Aircraft $40.5M 51%
2016 CAGR 2016-21
• UH-60M Batch I
• UH-60L Batch II - Army
• UH-60L Batch II - Police
• UH-60L Batch IRotorcraft
Surface Vessels $100.9M 19%
Rotorcraft $0M 0%
• $357M
• $290M
• $180M
• $1.1B
• $106M
• $60M
• $200M
• $180M
• $3M
• $87M
• $72M
• $72M
• $56M
2011-21 Value
$-
$100
$200
$300
$400
$500
$600
$700
$800
$900
$1,000
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Wheeled & Tracked Combat Vehicles Fixed Wing Aircraft
Surface Vessels Rotorcraft
Unmanned Aerial Systems Logistics Vehicles
Mill
ion
s
PRIVATE & CONFIDENTIAL | AVASCENT | 6
Market Overview: Defense SystemsSpending on weapons will continue to be a major part of defense investment activity to procure new munitions and replenish weapons expended during ongoing operations
• Torpedoes & Weapon Support Equipment
• Missiles
• Ammunition
• Gun Systems
Weapons
• Communications Equipment
• Command & Control Equipment
• Other C4I Equipment
• Network EquipmentC4I
Market Segment OverviewMarket Size and Forecast (2011-2021)
• Optical Systems
• Radar Systems
• Other Sensors
• Sonar SystemsSensors
Key:
$133 M 11%Weapons
C4I $115 M 12%
2016 CAGR 2016-21
• RF-Based EW Systems
• Other EW/Information Warfare
• Optical-Based EW Systems
• EW Expendables
Electronic Warfare
Sensors $26 M 28%
Electronic Warfare (EW) $4 M 68%
• $929M
• $220M
• $153M
• $64M
• $578M
• $260M
• $94M
• $60M
• $156M
• $148M
• $100M
• $6M
• $177M
• $35M
• $5M
• $5M
2011-21 Value
$-
$100
$200
$300
$400
$500
$600
$700
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Weapons C4I Sensors EW Avionics
Mill
ion
s
PRIVATE & CONFIDENTIAL | AVASCENT | 7
Prime Contractor Activity 2011-2021
Market Overview: Prime ContractorsIndigenous contractors will remain important parts of defense activity, but major platform acquisitions tend to come from well-established foreign primes
Top Contractors
• Indumil
• Cotecmar
• Lockheed Martin
• ThyssenKrupp AG
• Elbit Systems Ltd.
• Thales
• General Dynamics
• Textron
• LIG Nex1
• Airbus Group
Historical tendency towards American imports creates significant opportunities in Colombia
2011-21 Value
• $790M
• $545M
• $430M
• $390M
• $350M
• $200M
• $133M
• $129M
• $100M
• $98M
$-
$200
$400
$600
$800
$1,000
$1,200
$1,400
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Mill
ion
s
Indumil Cotecmar Lockheed Martin
ThyssenKrupp AG Elbit Systems Ltd. Thales
General Dynamics Textron LIG Nex1
Airbus Group Contractor Not Yet Selected
PRIVATE & CONFIDENTIAL | AVASCENT | 8
Subcontractor Activity 2011-2021
Market Overview: SubcontractorsGovernment to government transactions make the U.S Department of Defense one of the top subcontractors in Colombia, presenting an attractive sales channel for U.S. firms
Top Contractors
• U.S. Department of Defense
• Indumil
• Cotecmar
• Elbit Systems Ltd.
• Lockheed Martin
• Government of Germany
• Thales
• General Dynamics
• ThyssenKrupp AG
• LIG Nex1
Beyond direct government-to-government sales, Colombia will, where possible, source from local contractors
2011-21 Value
• $1.2B
• $790M
• $383M
• $352M
• $271M
• $257M
• $192M
• $135M
• $133M
• $100M
$-
$200
$400
$600
$800
$1,000
$1,200
$1,400
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Mill
ion
s
U.S. Department of Defense (DoD) Indumil Cotecmar
Elbit Systems Ltd. Lockheed Martin Government of Germany
Thales General Dynamics ThyssenKrupp AG
LIG Nex1 Contractor Not Yet Selected
PRIVATE & CONFIDENTIAL | AVASCENT | 9
Market Overview: Defense Platform OpportunitiesMajor investments in ground, air and maritime platforms represent significant opportunities for exporters
Wheeled & Tracked
Combat Vehicles
Fixed Wing
Aircraft
Platform Opportunities (2016-2021)
Surface Vessels
Key:
$0M $1,250MWheeled & Tracked Combat Vehicles
Fixed Wing Aircraft $0M $1,190M
2016 Total 2016-21
Unmanned Aerial
SystemsSurface Vessels $16M $421M
Unmanned Aerial Systems $10M $113M
• Future Main Battle Tank
• Future Air Defense System
• Future Self-propelled Howitzer
• Wheeled Combat & Support Vehicles
• Future Multirole Fighter Aircraft
• Future Trainer Aircraft
Market Segment Overview
• Surface Vessel Development
• Future Frigate
• Projected Indigenous UAV
• Projected Tactical UAV
• Projected Man-portable UAS
• $357M
• $290M
• $178M
• $64M
• $1.1B
• $107M
• $221M
• $200M
• $60M
• $37M
• $16M
2016-21 Value
$-
$100
$200
$300
$400
$500
$600
$700
$800
$900
2016 2017 2018 2019 2020 2021
Wheeled & Tracked Combat Vehicles Fixed Wing Aircraft
Surface Vessels Unmanned Aerial Systems
Logistics Vehicles Rotorcraft
Mill
ion
s
PRIVATE & CONFIDENTIAL | AVASCENT | 10
Market Overview: Defense Systems OpportunitiesDefense communications equipment represents a major opportunities for potential exporters, as Colombia will look to local suppliers for ammunition and small caliber gun systems
C4I
Weapons
System Opportunities (2016-2021)
Sensors
Key:
$22M $650MC4I
Weapons $17M $612M
2016 Total 2016-21
Electronic Warfare
Sensors $12M $384M
Electronic Warfare $1.6M $215M
• Communications Equipment
• Command & Control Equipment
• Other C4I Equipment
• Networking Equipment
• Torpedoes & Weapon Support Equipment
• Missiles
• Ammunition
• Gun Systems
Market Segment Overview
• Optical Systems
• Radar Systems
• Other Sensors
• Sonar Systems
• RF-Based EW Systems
• Other EW/Information Warfare
• Optical-Based EW Systems
• EW Expendables
• $264M
• $191M
• $94M
• $60M
• $302M
• $220M
• $48M
• $41M
• $139M
• $134M
• $100M
• $6M
• $171M
• $35M
• $5M
• $4M
$-
$50
$100
$150
$200
$250
$300
$350
$400
$450
2016 2017 2018 2019 2020 2021
Mill
ion
s
C4I Weapons Sensors EW Avionics
2016-21 Value
PRIVATE & CONFIDENTIAL | AVASCENT | 11
Policy Priorities
Structure
Colombia’s two main defense customers, the military and national police, are both managed under the Ministry of Defense
Colombia Ministry of DefenseColombia’s defense ministry includes a variety of homeland security functions, most importantly the National Police
Ministry of Defense Organizational Chart
Military commands are a separate part of the organizational structure from the planning and industrial ministries
The National Police are a significant part of the Ministry of Defense
The Deputy Minister of Corporate Sector Defense and Welfare is responsible for managing offsets and industrial policy
Military Chaplain
General Command
Military Forces of Colombia
Cabinet Secretary
National Police of Colombia
Minister of National Defense
Luis Carlos Villegas Echeverri
Deputy Minister of Corporate
Sector Defense and Welfare
General Secretary
Deputy Minister for Strategy and
Planning
Deputy Minister for International Policies & Issues
Army NavyAir
Force
The Colombian government has had two main priorities for its arms procurement:
– Acquiring equipment to sustain operations against FARC rebels and drug cartels
– Supporting and expanding their industrial base
Higher end equipment typically imported from the United States
PRIVATE & CONFIDENTIAL | AVASCENT | 12
Challenges
Trends
Colombia Offsets and Defense PolicyColombia has significant offset requirements that it uses to improve both its defense industrial base and provide social services through the Office of the Deputy Minister of Corporate Sector Defense Group and Welfare
• Reduced US aid may put pressure on defense spending
• High requirements for offsets for any sale
• Corruption has been a recurring issue in the Colombian military
• Colombian support for indigenous defense firms limits imports to more complex/higher end platforms and systems
Colombia’s defense policy currently plans for aggressive increases in defense spending in spite of progress being made on peace talks with FARC
Major acquisitions in the near-term will require significant offsets (Main Battle Tank procurement, future fighter and trainer aircraft)
Any transaction with a value greater than $1.5 million (US) carries a 100% minimum offset obligation
Offsets are then directed to one of two areas:
– Social and Enterprise Group of Defense (GSED)
– Social Policies
Physical Rehabilitation
Education & Childcare
Job Training
Biofuels
Direct foreign investment into the Colombian defense industrial base is not allowed
Companies are required to propose a Framework Offset Agreement describing the offset that would accompany their contract and specific terms of implementation
Significant Colombian Defense Firms
Weapons Ships AircraftCorporation of the
Colombian Aeronautical
Industry
PRIVATE & CONFIDENTIAL | AVASCENT | 13
Colombia Defense Summary
Colombia remains one of the larger South American defense markets for exporters
Colombian defense spending is scheduled to grow from 2016 to 2021 (3%)
Defense spending growth may slow as Colombian negotiations with the FARC near a successful conclusion
Planned investments will require the purchase of non-Colombian equipment
–New tanks and armored vehicles
–New fighter and trainer aircraft
–New frigates
–Weapons purchases and replenishment
Air-to-Air Missile
Air-to-Ground Missile
100% offset requirement adds substantial cost to export sales
There are significant opportunities for defense exporters, but downside risks and high offset requirements temper attractiveness of the market
PRIVATE & CONFIDENTIAL | AVASCENT | 14
AppendixThe slides that follow describe the methodology employed in collecting the
underlying market data and offer definitions of the market categories depicted in the “Defense Systems” slides; more granular definitions and representative
examples are available by request
PRIVATE & CONFIDENTIAL | AVASCENT | 15
Top Down and Bottom-up Analysis: Avascent places a detailed bottom-up build of defense procurement in international markets in the context of budget realities
$-
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$8
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Bill
ion
s
Awarded Stated Opportunity Projected Opportunity
Projected White Space Investment Topline
1
2
3
4
5
First, Avascent identifies the sum of the R&D and Procurement accounts to use as a bounding function for the bottom-up analysis
Next, the build of Awardedprograms looks at acquisitions that are in progress or that will not be competed
Third, Avascent looks at government documents and statements to identify Stated Opportunities that will be competed
Fourth, Avascent uses gap analysis, life expectancy, and other factors to derive Projected Opportunities that do not reflect a gov’t statement
Finally, the delta between identified spending and the topline is Shapeable Opportunity Space not associated with a requirement
Example: Composition of Defense Investment in Brazil by Opportunity Type Relative to the Procurement and R&D topline
PRIVATE & CONFIDENTIAL | AVASCENT | 16
Platform and System-Level Analysis: Avascent disaggregates spending on acquisition programs to allow for analysis at the level of the major sub-system, integrated platform, or total program
Eurofighter Typhoon
Omani Air Force
$3.8 billion
12 Units to be delivered between 2017 and 2024
Initial Services
$1.2 billion
Total Hardware Cost
$2.6 billion
Training and Support
$257 million
Installation and Fielding
$902 million
Airframe and Structures
$1.1 billion
CAPTOR-E Radar
$227 million
Passive IR Tracking
$136 million
Mission Computers
$90 million
Praetorian Defensive Aid
$113 million
Other Systems
$588 million
Total Program
Integrated Platform
Major Sub-System
PRIVATE & CONFIDENTIAL | AVASCENT | 17
Ground Systems*
Theater Deployable
Tactical/Mobile
Strategic Weapons
Enterprise Fixed
0Manportable
ManportableSystems
Satellites &Launch Vehicles
Space Range Systems
Launch Vehicles
Space Vehicles
Other Systems
Robotics Technology
Multiple Systems
Other
Airborne
Unmanned Aerial Systems
Rotorcraft
Fixed Wing Aircraft
Airship/Aerostat
Aircraft Technology
Multiple Aircraft
• Combat UAS• MALE/HALE• Man-Portable UAS• Other/Various UAS• Tactical UAS• Target Drone• VTOL UAS
• Attack/Armed Reconnaissance
• Maritime• Multiple Rotorcraft• Other Rotorcraft• Utility/Multi-Role
• Fighter/Attack/Bomber• ISR/EW/Special Mission• Mobility Aircraft• Other/Multiple Aircraft• Special Operations• Trainer Aircraft
Ground Vehicle
Logistics Vehicle
Unmanned Ground Systems
Multiple Vehicles
Ground Vehicle Technology
Wheeled & Tracked Combat Vehicles
• Other/Multiple Vehicles• Tracked Vehicles• Wheeled Combat /
Support Vehicles
Maritime
Surface Vessels
Submarines
Multiple Ships
Ship Technology
Unmanned Maritime Systems
• Aircraft Carrier• Amphibious Landing• Logistics/Sealift• Mine Warfare Vessel• Other Vessels• Patrol/Missile Boats• Surface Combatants• Multiple Vessels
Weapons
Maritime
Ground Vehicle
Manportable
Other Systems
Ground Systems*
Airborne
• Multiple Ships• Submarines• Surface Vessels
• Multiple Vehicles• Wheeled & Tracked Combat
Vehicles
• Enterprise Fixed• Strategic Weapons• Tactical/Mobile• Theater Deployable
• Fixed Wing Aircraft• Multiple Aircraft• Rotorcraft
• Multiple Systems
Platform Type Taxonomy
*Unlike Ground Vehicles, Ground Systems are immobile systems or fixed systems
PRIVATE & CONFIDENTIAL | AVASCENT | 18
SECTOR OVERVIEW: C4I
C4I EW/IW Platforms Sensors Weapons
Combat Systems
Airborne CombatSystems
Ship CombatSystems
Ground CombatSystems
Integrated C4ISystems
IntelligenceSystems
Tactical Systems
Strategic Systems
Communications
Line of Sight (LOS)
Beyond Line ofSight (BLOS)
Space Payloads
IntegratedDeployable Comms
C4I Networks
Fixed C4IInfrastructure
Commodity ITResources (C4I)
Security/Encryption
C4I IA
Other C4I
Flight Control &Cockpit Avionics
Other VehicleElectronics
Other C4I Systems
C4I S&T
Perimeter Security
Other ShipElectronics
Unallocated C4I
N/A
Command & Control (C2)
C2 Systems
IFF Systems
Combat ID
Positioning &Navigation Systems
Air TrafficControl Systems
Ground ControlSystems
Weather Systems
Logistics
Training Systems
Fire Control Systems
PRIVATE & CONFIDENTIAL | AVASCENT | 19
C4I
Networks
• Systems that form the network infrastructure of the DoD Enterprise
• Systems in this segment may be closely related to other systems found under Communications, but the emphasis in Network infrastructure is on fixed systems geared towards enterprise-wide uses rather than mission uses
C4I Sector
Communications
• Systems used to transmit, receive and disseminate voice, video and data
• Systems in this segment may be closely related to other systems found under Network Infrastructure, but the emphasis in Communications is on deployable and/or mobile systems geared toward warfighting and combat support activities
Other C4I
• Includes all other programs that do not directly fit into a separate category of analysis
Intelligence Systems
• Systems used to display, organize, manipulate and disseminate intelligence information
• Intelligence Systems may exist at either tactical or strategic levels
• Includes systems geared toward tasking, processing, exploitation, dissemination functions
Command & Control (C2)
• Systems used to display, organize, and manipulate information for purposes of decision support and execution
Combat Systems
• Integrated C4I systems on platforms (e.g. AWACS) or larger weapon systems (e.g. Aegis)
Sector Segment Segment Definition
SEGMENT DEFINITIONS: C4I
PRIVATE & CONFIDENTIAL | AVASCENT | 20
RF-Based EWSystems
ECM Systems
Radar WarningReceivers (RWR)
ESM Systems
EA & JammingSystems
Optical-Based EWSystems
Laser WarningReceiver
EO/IR Jammer
Missile WarningReceivers
Integrated EO/IREW System
Information Warfare
InformationOperations
Other EW/IW
Airborne HFI
EW S&T
IW S&T
Unallocated EW/IW
EW Expendables
Chaff
Flares
CountermeasureDispenser
Decoys & SmartExpendables
C4I EW/IW Platforms Sensors Weapons N/A
SECTOR OVERVIEW: ELECTRONIC WARFARE / INFORMATION WARFARE (EW/IW)
PRIVATE & CONFIDENTIAL | AVASCENT | 21
Other EW/IW
• Includes all other EW/IW funding that does not fit into the other segments
• Includes Airborne Hostile Fire Indicator, and EW/IW S&T
EW/IW
Information Warfare
• Systems used to create information-related effects, including for psychological operations, civil affairs, disinformation, and other purposes
RF-Based EW Systems
• Systems that detect and in some cases counter RF-based systems or threats
• Includes Radar Warning Receivers, ECM, ESM, and Jamming systems
Optical-Based EW Systems
• Systems used to detect and in some cases counter EO/IR based systems
• Includes Laser Warning Receiver, Missile Warning Receiver, EO/IR Jammer
EW Expendables
• Expendables including, chaffs, flares, countermeasure dispenser, decoys and smart expendables
Sector Segment Segment Definition
SEGMENT DEFINITIONS: EW/IW
PRIVATE & CONFIDENTIAL | AVASCENT | 22
Power & Propulsion
Integration ArmorBasic
ConstructionPlatform Services
Other Platform
Turbofan &Turbojet Engines
Turboprop &Turboshaft Engines
Gas/Diesel Engines
Vehicle Transmissions
Platform Integration
Power &Propulsion S&T
Nuclear Power
Rocket Motors
Electric &Hybrid Electric
Auxiliary Power Unit
Tactical MobilePower Generation
ManportablePower
Other Propulsion
Reactive Armor
Passive Armor
Airframe
Active ProtectionSystems
Body Armor
Armor S&T
Administration &Management
Engineering SupportServices
Installation &Fielding
Training
Initial Spares
Training Systems& Simulators
Ejection Seats
CBRNE Equipment
Other SupportEquipment
Other Platform S&T
Other PlatformElectronics
UnallocatedPlatforms
Vehicle Frame
Hull
Satellite Bus
Space LaunchAssembly
Construction &Material S&T
C4I EW/IW Platforms Sensors Weapons N/A
SECTOR OVERVIEW: PLATFORMS*
*The Platform segmentation outlined in this section serves the purpose of breaking out non-electronic platform related value
PRIVATE & CONFIDENTIAL | AVASCENT | 23
PlatformsSector
Platform Services
• Captures the value of services that are typically acquired in parallel with the platform itself
Power & Propulsion
• Components that provide platform mobility or generate power to sustain on-board electronics. This category includes engines, transmission and other drivetrain components as well as power generators and auxiliary power units
Integration
• Represents the value, usually awarded to the prime contractor, of overall system architecture and design development
Basic Construction
• Captures the value of structural, non-electronic, non-propulsion elements of the airframe, hull, or vehicle chassis of a platform
Armor
• Materials or active systems that minimize the destructive effect of a kinetic impact• This category includes platform-based armor (both passive and reactive) as well as
body armor and non-EW active protection systems
Other Platform
• Captures electronic, or other contractor-addressable, equipment that does not fit into any other Platform segment
Sector Segment Segment Definition
SEGMENT DEFINITIONS: PLATFORMS
PRIVATE & CONFIDENTIAL | AVASCENT | 24
Optical Systems
Radar Systems Sonar SystemsSIGINT
SystemsPortable Unmanned
SystemsOther Sensors
Night Vision
Laser Surveillance& Targeting
EO/IR Surveillance& Targeting
Optical SatellitePayload
Ground Detection& Targeting
Airborne Fire Control
Counter-Battery
Air & MissileDefense RadarsAirborne Early
Warning
Navigation
Air TrafficControl Radars
Space Surveillance
Meteorology
Mine/IED Detection
Airborne SonarSystems
Ship/Sub SonarSystems
SIGINT Systems
Optical S&T
Sonobuoys
Sonar S&T
UnattendedGround Sensors
Portable UAS
Small UGVs
MaritimeSurveillance
Non-Acoustic ASW
CBRNE Detection
Other Mine/IEDDetection
Multi-SensorSystems
Other AcousticSensors
Other Sensor S&T
Unallocated Sensors
Radar S&T
Integrated EO/Laser/IR Systems
C4I EW/IW Platforms Sensors Weapons N/A
SECTOR OVERVIEW: SENSORS
PRIVATE & CONFIDENTIAL | AVASCENT | 25
Other Sensors
• Includes a variety of systems that do not clearly fit within any of the other sub-segments• CBRNE Detection• Multi-Sensor Systems and sensor integration/fusion efforts• S&T on sensor technology that cannot be attributed to specific phenomenologies
SensorsSector
PortableUnmanned
Systems
• Small, man-portable platforms equipped with sensors that have the sole mission of surveillance and reconnaissance
Optical Systems
• Electro-optical cameras used for surveillance and reconnaissance, navigation, night vision enhancement, targeting and fire control, and vehicle self-protection
• Laser systems used for fire control and target acquisition
RadarSystems
• Radar systems of nearly any function or mission
• Radar altimeters may be encompassed within C2-Naviation Systems
SIGINTSystems
• Systems used for the detection, identification, and exploitation of RF signals for intelligence purposes
SonarSystems
• Acoustic systems for navigation, communication, or detection of objects beneath the surface of the water
• Includes both active and passive sonar systems
Sector Segment Segment Definition
SEGMENT DEFINITIONS: SENSORS
PRIVATE & CONFIDENTIAL | AVASCENT | 26
MissilesGuided
WeaponsDirected Energy
Gun Systems AmmunitionOther Weapons
Investment
Air-to-Ground
Air-to-Air
Anti-Ship
Air & MissileDefense Interceptors
Air-to-GroundPrecision Munitions
Precision Artillery& Mortar
Guided WeaponS&T
DE S&T
Anti-Radiation
Strategic Weapons
Land AttackTactical Missiles
Close CombatTactical Missiles
BMD SE&I
Missile S&T
Lethal
Non-Lethal
Airborne GunSystems
Artillery/TankGun Systems
Other VehicleWeapon Systems
Naval GunSystems
Large Caliber
Small Caliber(.50cal and below)
Ammunition S&T
Small Arms
Torpedoes &Equipment
Non-Lethal Weapons(Non-Directed Energy)
Unguided Bombs
EOD & Countermine/ IED Equipment
Targets
Weapon SupportEquipment
Mines
Gun Systems S&T
Unallocated Weapons
Vehicle ActiveProtection Systems
Other Weapon S&T
C4I EW/IW Platforms Sensors Weapons N/A
SECTOR OVERVIEW: WEAPONS
PRIVATE & CONFIDENTIAL | AVASCENT | 27
WeaponsSector
Ammunition• Ammunition for both small (less than 12.5mm / .50cal) and large-caliber
(20mm+) weapons. Includes ammunition for mortars and artillery, but excludes smart ammunition and/or guided munitions (e.g. EXCALIBUR)
Guided Weapons• Includes precision weapons that do not have organic propulsion• Precision guided bombs and precision artillery projectiles
Gun Systems• Large gun systems which are integrally tied to a platform
Directed Energy• Includes both lethal and non-lethal directed energy systems
Other Weapons Investment
• A catch-all category to house specific sub-segments that do not adhere to dynamics relevant to other Weapons market segments
Missiles• Self -propelled guided weapons, fired from multiple platforms, against a variety
of targets
Sector Segment Segment Definition
SEGMENT DEFINITIONS: WEAPONS
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