Significant upgrades in the military avionics market in both the U.S. and Europe, rather than the procurement of wholly new airframes, will lead the industry through the next few years. That is the view of analysts San Antonio-based Frost and Sullivan, which this week published "World Military Avionics Markets."

The study finds that instead of buying new equipment, air forces in the countries under study will maintain aging fleets of aircraft and will invest most of their money in new avionics and electronic warfare refits.

The U.S. military avionics industry generated $2.3 billion revenue in 1999, and this is expected to grow to $2.7 billion by 2006, says Frost and Sullivan analyst Michel Merluzeau. The period to 2006 will be one of slow growth for military avionics, but the second half of the decade will be more promising-with the introduction of new combat aircraft and global air navigation systems and air traffic management driving avionics upgrades in other parts of the world.

By Bob Rodwell