Europe's Focus on Unmanned Network Centric Solutions to Boost the Unmanned Ground Vehicles Market, Says Frost & Sullivan

LONDON, August 4, 2010 - The European unmanned ground vehicles (UGV) market is growing slowly, but
steadily, depicting a relatively undisturbed trend for the year 2011 and
beyond. The United States has progressed in terms of the network enabled
capability of their defence resources, spurring the Departments of Defence
(DoDs) of various European countries to focus on unmanned network centric
solutions.

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Currently, soldier force modernisation is on the agenda of several
European countries, to retain their technological edge over developing
nations. The gap between U.S. and European defence technology is an
additional instigating factor. UGV is becoming an integral part of network
centric warfare.

New analysis from Frost & Sullivan (www.aerospace.frost.com),
Unmanned Ground Vehicles Market Assessment - Europe, finds that the market
earned revenues of $302.5 million in 2009 and estimates this to reach $311.2
million by 2016.

"Network enabled capabilities are gradually gaining momentum within the
Ministries of Defence (MODs)," says Frost & Sullivan Research Analyst Shyam
Srinivasan. "The ability of remotely patrolling a group of vehicles and
strategising battlefield formations has evoked an interest to graduate to
unmanned artillery in the future."

The European UGV industry has remained niche. The future lies in opening
up opportunities for smaller participants to penetrate the market. Another
potential is in the maintenance and repair of such specialised machinery in
the period from now to 2016.

However, reduced defence budget allocation is one of the primary
restraints to the UGV market. Furthermore, lean expenditure on new technology
is to support the production of traditional weapons for the Afghan war.

"The unit cost of the equipment is also a restraint to procurement in
numbers," explains Srinivasan. "For example, a small unmanned ground vehicle
(SUGV) with electro-optics/infrared (EO/IR) sensors would cost about $20,000
and the cost of explosive ordnance disposal (EOD) machinery can go up to
$300,000."

The industry should focus on the commercial and civil market to increase
revenue. The lower unit cost can be attained by using less expensive
materials and technologies. Progress towards expendable equipment will result
in manufacturing affordable equipment.

"Civil security and border patrol to tackle improvised explosive devices
(IEDs) are some of the potential areas to focus on for greater revenue in the
long-term," concludes Srinivasan.

If you are interested in more information on this study, please e-mail
Monika Kwiecinska, Corporate Communications, at monika.kwiecinska@frost.com,
with your full name, company name, title, telephone number, company e-mail
address, company website, city, state and country.

Unmanned Ground Vehicles Market Assessment - Europe is part of the
Defence Growth Partnership Services programme, which also includes research
in the following markets: European Land-Based C2 Markets, European Land Based
ISTAR Vehicle Electronics Market, and Network Centric Warfare: A European
Market Executive Analysis. All research services included in subscriptions
provide detailed market opportunities and industry trends that have been
evaluated following extensive interviews with market participants.

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        Unmanned Ground Vehicles Market Assessment - Europe
                                 M451

    Contact:
    Monika Kwiecinska
    Corporate Communications - Europe
    P: +48-22-390-4127
    F: +48-22-390-4160
    E: monika.kwiecinska@frost.com

www.frost.com

Monika Kwiecinska of Frost & Sullivan Corporate Communications - Europe, +48-22-390-4127, fax, +48-22-390-4160, monika.kwiecinska at frost.com