NEWTOWN, Conn: A tight budget and other problems have prompted the U.S. Navy to drop plans to purchase the Harpoon III anti-ship missile. In commenting on the cancellation, Larry Dickerson, Senior Missile Analyst at Forecast International, said, “While it is a blow to the missile’s U.S. market share, it is not a fatal one.”
“Even with this decision, Boeing remains a top provider of anti-ship missiles,” Dickerson said. Although U.S. purchases will now drop, exports will take up some of the slack. “Boeing will make millions selling the Harpoon II, with some anticipated customers of the Harpoon III instead opting for this earlier version,” said Dickerson.
The market for anti-ship missiles is worth $7 billion through 2018 and will involve the production of nearly 12,000 weapons, according to Forecast International’s “The Market for Anti-Ship Missiles” analysis. MBDA, Europe’s missile megacorp, could make more money than Boeing – in the area of $724 million.
MBDA is offering further upgrades for its Exocet series to preserve its market share. In addition, MBDA is producing new versions of the Marte Mk 2 and OTOMAT missiles.
The anti-ship missile market is in transition, according to Dickerson. These missiles are slowly evolving, becoming more than just a weapon for use against ships.
“The number of targets these missiles can engage is growing, and they now include those on land,” Dickerson said. “Eventually, the anti-ship missile market will cease to be an independent entity, becoming submerged in a larger strike weapons market.”
Forecast International, Inc. is a leading provider of Market Intelligence and Analysis in the areas of aerospace, defense, power systems and military electronics. Based in Newtown, Conn., USA, Forecast International specializes in long-range industry forecasts and market assessments used by strategic planners, marketing professionals, military organizations, and governments worldwide.