ANNUAL REPORT 2009 - Saab

SAAB’S MARKET AND OFFERINGHOW WE MEET THE NEEDSOF OUR MARKETSSaab operates in five market segments with differentneeds. A summary of each market and how we meet itsneeds with our offering follows.MILITARY AERONAUTICSMilitary aeronautics combines speed, reach, effectiveness and flexibilityand represents a large share of the total defence market.Growth is driven by demand from nations with both small and largeair forces that want to replace older generations of fighter aircraftwith new ones that offer better performance, more flexible applicationand better overall economic efficiency.Military aeronautics is increasingly used in multinational operationsfor flights over long distances and covering long periods of time.This requires interoperability with systems that use open architecture.They also have to work with older systems and be capable of upgrade.Sensors, communications and precision weaponry are important. C4I(Command, Control, Computing, Communication and Intelligence)systems are designed to handle large volumes of information frommultiple sources and provide effective decision guidance.New types of military operations and new technology are alsodriving demand for training. A growing number of countries areprocuring support and service for materiel from the industrythrough multi-year, full-service commitments.Annual sales in the market segment for unmanned aerial vehiclesare expected to grow from USD 40 billion to over USD 50 billion inthe next ten years. UAVs currently generate sales of approximatelyUSD 4 billion per year.Saab’s offering comprises:• Fighter systems• Air C4I solutions• Countermeasures and electronic warfare• Unmanned aerial vehicles• Training solutions• Avionics solutions• Weapon systems• Sensors• Aftermarket services and solutionsNAVALThe naval market is characterised by growing demand for expeditionaryand coastal operations. At the same time, more than 90 percent of global trade is transported by sea, which makes the protectionof trade flows a priority in the civil market.With regard to navys’ and coast guards, the trend is towardbroader-based industrial commitments with higher demand forintegration and lifecycle solutions. There are a growing number ofinternational alliances that entail a large degree of technologicaldevelopment. At the same time, this makes the ability to act far fromtheir home base, e.g., in the case of advanced amphibious assaultships, increasingly important. Public-private partnerships are alsobecoming more common. Moreover, there is growing interest inlong-endurance ships with smaller crews, where sensors and combatmanagement are the highest priority.The market is dominated by the US, where defence spending isrising and major investments are being made in technological developmentand materiel. In Europe, on the other hand, appropriationsfor these purposes are shrinking. The Middle East and SoutheastAsia are becoming increasingly active in their investments.Saab considers the naval market to be relatively stable. The size ofthe market is estimated at USD 45–55 billion per year, of which theUS accounts for around one fourth.Saab’s offering comprises:• Sensors• Command and control systems• Weapon systems• Communication systems• Underwater security• Countermeasures and electronic warfare• Simulation and training• Infrastructure securitylandThe complexity of conflict zones, the multinational element and thegrowing need to operate in urban areas require new strategies, newtechnology, materiel and technology, but also high demand. In landbasedcombat, the trend is toward greater participation in multinationalforces outside a country’s own territory.saab ANNUAL REPORT 2009 23