By Avascent Analytics team
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A quick look at the biggest stories of the week.
The German Bundeswehr has agreed to purchase 7 armored bridge-laying systems made by Krauss-Maffei Wegmann (KMW). The new bridge-layers will be made by modifying Leopard 2 tanks for a total cost of 88 million euros (approximately $96.6M USD). The purchase enables German military forces to handle terrain gaps more effectively, and the new systems offer improved armor, carrying capacity, and bridge-length. According to Avascent Analytics, the average yearly value of the German market for tracked vehicles – which includes armored bridge-layers – is $859.1 million, but it is shrinking at a rate of 3.5% from 2016-2021. Despite the negative growth rate, 24.3% of the market is still unawarded.
A top Turkish defense official has stated that Turkey will speak to all interested parties, including Russia and previous bidders, regarding its plans to acquire the country’s first long-range air and anti-missile defense system. Turkey originally selected a Chinese manufacturer in 2013, while the Russian bid at the time was disqualified for being too expensive. However, under pressure from NATO in November 2015, the Turkish government canceled the Chinese contract and leaned towards building a system indigenously. Since then Turkey has been negotiating with the Raytheon/Lockheed consortium, maker of the Patriot, and Eurosam, maker of the SAMP-T. Now, by inviting Russia to make a new bid, Turkey is making it a three-way race between the Russian manufacturer, Raytheon/Lockheed, and Eurosam. While the contract winner remains undecided, Turkey’s NATO allies will be alarmed over the compatibility of any potential Russian-made product with NATO missile defenses.
Singapore has agreed to purchase two new models of rotorcraft, the H225M medium-lift helicopter from Airbus and the CH-47F heavy-lift helicopter from Boeing. Details surrounding the CH-47 acquisition remain unknown, as the exact procurement value and total number of aircrafts purchased has not been released. However, the H225M deal is estimated at $1 billion for roughly 12 aircraft. These two purchases will replace Singapore’s aging mobility rotorcraft fleet. Avascent Analytics projects that the market for mobility rotorcraft in Singapore has an annual value of $68.5 million and is growing at a rate of 65.3% from 2016-2021. However, the confirmation of contracts with Airbus and Boeing could change market dynamics by decreasing open opportunities in the rotorcraft sector.
India approved the procurement of 83 Tejas Mk. 1-A light combat aircraft for the Indian Air Force for $7.5 billion (500.3B rupees) on November 7. In addition to the light combat aircraft, India’s Defense Acquisition Council also approved the purchase for 15 light combat helicopters, of which five will go to the Indian Army and ten will go to the IAF, and 598 UAVs; the cost of procurement for the light combat helicopters is $434 million (29.11B rupees) and $165 million (11B rupees) for the UAVs. The indigenously made light combat aircraft will replace the country’s aging MiG fighter jets (Mig-21, -27, -29). The first squadron consisting of 20 Mk. 1-A’s is expected to be completed by March 2018 by Hindustan Aeronautics Ltd., with the overall project to be completed by 2023 – although Indian procurement schedules are notoriously slower than expected. Avascent Analytics has identified the combat aircraft market in India growing at a rate of 5.4%; however only 18.7% of the market remains unaddressed as India looks to reduce the country’s dependence on imports and manufacture the combat aircraft in country.
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