NEW YORK, May 14 (UPI) -- The global market for C4I programs is predicted to see a nearly 47 percent drop in sales over the next decade due to defense budget cuts.
The projection comes in an analysis by market research and analysis firm Forecast International in which 222 leading Command, Control, Communications, Computers, and Intelligence programs were examined.
The study -- "The Market for C4I" – also reviewed 22 companies involved in the production of C4I systems.
"Upcoming defense budgets will be tight -- very tight -- as the world economy continues to struggle in the aftermath of the global recession," said Richard Sterk, senior electronics analyst at Forecast International, adding that "much government money has been diverted to other areas in order to keep a country's economy solvent.
"Spending on defense may seem like the last thing a country would do to stimulate its economy, but in reality, it is one of the first targets for spending. A nation's defense is as much a 'public works' as a new road. Money pumped into defense stimulates an economy by providing jobs to local populations ... and gives the military the tools it needs."
Forecast International said its research projects that the combined market value of the C4I programs will be about $50.75 billion over the next 10 years. When broken down, the study shows a decline, however, from $6.988 billion in 2013 to $3.711 billion in 2022.