The technological superiority of the U.S. armed forces is challenged by new and evolving threats constantly being developed by potential adversaries, according to research firm Frost & Sullivan. To counteract these challenges, the country’s Department of Defense (DoD) is expected to spend an estimated US$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 at Frost & Sullivan, in a statement. “This wide variety of projects provides opportunities for a large number of commercial markets to collaborate with the DoD.”
Frost & Sullivan’s latest research, U.S. Defense Science and Technology Research Market, Forecast to 2024, delivers an overview of the science and technology research market catering to the U.S. armed forces and provides insights into the related growth opportunities available for market participants.
According to the report, the RDT&E sector is rife with market opportunities in an array of technological concepts, such as artificial intelligence, autonomous vehicles, robotics, cybersecurity, counter-drone technology and hypersonics.
“Most concepts being explored by the armed forces will have an impact in commercial market spaces as well,” said Hernandez. “Companies working with the DoD on RDT&E development programs will have an advantage toward the development of parallel commercial solutions.”