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24 Mar 11. The French army is transforming itself to become more integrated and interoperable with its allies, including with other European countries and the United States. This major shift is having a notable impact on the French land defence market. Although military spending is one of the keystones of the current Government’s economic recovery strategy, the recent reduction in the defence budget presents significant challenges for market participants. New analysis from Frost & Sullivan (http://www.aerospace.frost.com), Revenue Opportunities and Stakeholder Mapping in the French Land Defence Market, estimates the total French land defence market to be €13.10bn over the period 2009 – 2019. The market is likely to remain flat until 2015, following which modernisation programmes are poised to stoke market growth. In this research, Frost & Sullivan’s expert analysts thoroughly examine the following segments: soldier modernisation, land vehicles, unmanned ground vehicles, land radars and land training and simulation.
“The trend of military downsizing has been noticeable across all the domains of the French defence force,” notes Frost & Sullivan Research Analyst Mahendran Arjunraja. “As a conscious measure to avoid the drawbacks of downsizing, the armed forces are being equipped with advanced equipment.”
Increasing involvement in high-intensity operations, coupled with lessons learnt from recent conflicts, have pushed France to opt for advanced and more efficient military equipment. “Upcoming modernisation programmes in the land defence domain are set to signficantly boost market prospects,” remarks Arjunraja. “It is estimated that the French land defence market earned revenues of €973m in 2009 and is estimated to reach €1.48bn in 2019.”
Foreign competitors, who are trying to penetrate the market to cater to the army’s urgent operational requirements, will challenge domestic defence companies. On another front, there is the challenge of the French economy being likely to recover completely from the downturn only after the short term. The Government still faces a crisis, which is compelling it to curtail the country’s defence budget. The current economic scenario has forced the Government to cut down on its defence spending. The impact of this budget reduction is being felt at all levels across the value chain. The upcoming land defence programmes in France are of significant value and hence, the competition to leverage these opportunities is expected to be intense. The French defence industry remains secluded and it is difficult for foreign compa

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