Major companies shift to more UAV operations
Posted: 23 Jun 2009, 18:08
Aviation Week & Space Technology
June 22, 2009
Pg. 35
Market Machinations
Boeing creates unmanned aircraft division, joining rush to serve rapidly growing sector
By Graham Warwick and Robert Wall, Le Bourget
Sensing an irreversible shift toward unmanned aircraft, aerospace companies are reshaping their businesses. The most dramatic move is the creation of an unmanned airborne system division within Boeing Military Aircraft, but manufacturers across the industry are focusing resources on autonomous systems.
In a sector populated with smaller players, moves by major companies to grab more of the action will increase competition in an already price-sensitive market. “Competition in this market is only going to become more intense,” says Chris Chadwick, president of Boeing Military Aircraft.
Arguing there is no company with a dominant position in the fast-growing market, Chadwick says Boeing will move aggressively to establish itself as a major player within 3-5 years. “We believe the market is wide open.”
Headquartered in Seattle, the new division will include small unmanned aircraft system (UAS) manufacturer Insitu and take over the A160T and Unmanned Little Bird rotorcraft, solar-powered ultra-endurance SolarEagle and the U.S. Air Force’s next-generation hunter/killer UAS, MQ-X, which is expected to be awarded around 2015.
Boeing’s Phantom Works will continue to work on advanced UASs, including the Phantom Ray unmanned combat aircraft, which is slated to fly late next year. The new division will also work with Boeing Global Services & Support, which operates ScanEagle small UASs for military customers.
Putting the overall market value at $60-100 billion over 10 years, Boeing will initially target the intelligence, surveillance and reconnaissance (ISR) and logistics segments, with strike to follow later, says Chadwick.
Not all companies are taking the approach of gathering their unmanned resources in one place. Northrop Grumman feels its unmanned technology is now mature enough to be embedded within the business units addressing airborne, ground and naval markets.
Northrop Grumman is focusing on new variants of the high-altitude long-endurance Global Hawk, international sales of the vertical takeoff and landing Fire Scout and development of the Bat, a blended wing/body tactical UAV with 24-hr. endurance. A larger version of the Bat could be offered for MQ-X, says Gene Fraser, vice president and deputy for strike and surveillance systems.
Several companies see the opportunity to become a platform prime as a focus for their unmanned activities. With a product line ranging from sensor payloads to ground stations, Raytheon is now bidding for the U.S. Navy/Marine Corps small tactical UAS contract with the blended wing/body KillerBee. The company is also positioning itself to bid as prime on MQ-X, says Mark Bigham, Raytheon Intelligence & Information Systems business development director.
L-3 Communications, meanwhile, has established its Geneva Aerospace division as the lead for unmanned platforms while continuing as a “merchant supplier” of sensors and other systems to other UAV manufacturers, says Todd Gautier, vice president of business development for the sensors and simulation group. Platforms include the optionally piloted Mobius, a 24-hr.-endurance theater UAS based on the Berkut kitplane and now in the final stages of development.
Engine and equipment supplier Honeywell will continue to act as a traditional Tier 1 supplier on large UAVs like Global Hawk, but it sees the opportunity to be a prime in the small UAS market, says Bob Smith, vice president for advanced technology. This is because autonomy in a vehicle like the company’s ducted-fan T-Hawk micro-UAV requires tight integration of several systems, he says.
The market for mid-size, mid-range fixed-wing UAVs—a sector of interest to many companies—“is still sorting itself out,” says Smith. “It’s very fragmented and there is not a good understanding of the concept of operations.” Honeywell has yet to decide its approach to this market, expected to be one of the most competitive.
Watching this activity closely are the Israelis, who pose perhaps the greatest threat to U.S. companies targeting the UAS market. Joseph Ackerman, Elbit Systems CEO, shrugs off the potential competition from new entrants, especially in the tactical UAV market. Since the air vehicle only represents about 20% of the system cost, he argues an electronics company like Elbit is better positioned in the market.
So far the company has not gone into the hotly contested medium-altitude long-endurance (MALE) segment. Ackerman won’t rule out such a move, but has not seen the business case, particularly given the market’s more limited size and the number of players already in the field.
Yair Shamir, chairman of Israel Aerospace Industries (IAI), is also not overly concerned with new entrants, noting that most underestimate the challenge of building UAVs. “We lost money, we invested a lot and we got there because of a lot of sweat and blood,” he says, arguing the combat experience that systems such as Heron are gaining in Afghanistan is giving IAI an edge.
Others might be able to offer lower-cost air vehicles, Shamir says, but they will not be able to deliver the full system, including targeting capability. IAI’s UAV business is still largely based on selling air vehicles, although it is also seeing growth in its leased aircraft business.
European industry is not immune to the lure of the unmanned market, either. Austria’s Schiebel scored the coup of having the first UAV, its Camcopter S-100, to fly at the Paris air show. France’s industry is eyeing the MALE sector, but Sagem, which has developed the Sperwer Mk 2 tactical UAS, is looking to participate as an equipment supplier and has no plans to battle over the air vehicle itself, says Jean-Lin Fournereaux, chairman and CEO.
France’s Sagem has unveiled a new long-endurance UAV, dubbed Patroller, that it believes could meet the MALE requirement at a fraction of the cost. Based on a Stemme S15 powered glider, the vehicle can stay aloft for 30 hr. at 7,500 meters (24,600 ft.) carrying a 250-kg. (550-lb.) payload. Not yet offered for sale, Patroller is an example of the market-testing now going on as more manufacturers look for ways into the unmanned aircraft business.
With Michael A. Taverna at Le Bourget.
June 22, 2009
Pg. 35
Market Machinations
Boeing creates unmanned aircraft division, joining rush to serve rapidly growing sector
By Graham Warwick and Robert Wall, Le Bourget
Sensing an irreversible shift toward unmanned aircraft, aerospace companies are reshaping their businesses. The most dramatic move is the creation of an unmanned airborne system division within Boeing Military Aircraft, but manufacturers across the industry are focusing resources on autonomous systems.
In a sector populated with smaller players, moves by major companies to grab more of the action will increase competition in an already price-sensitive market. “Competition in this market is only going to become more intense,” says Chris Chadwick, president of Boeing Military Aircraft.
Arguing there is no company with a dominant position in the fast-growing market, Chadwick says Boeing will move aggressively to establish itself as a major player within 3-5 years. “We believe the market is wide open.”
Headquartered in Seattle, the new division will include small unmanned aircraft system (UAS) manufacturer Insitu and take over the A160T and Unmanned Little Bird rotorcraft, solar-powered ultra-endurance SolarEagle and the U.S. Air Force’s next-generation hunter/killer UAS, MQ-X, which is expected to be awarded around 2015.
Boeing’s Phantom Works will continue to work on advanced UASs, including the Phantom Ray unmanned combat aircraft, which is slated to fly late next year. The new division will also work with Boeing Global Services & Support, which operates ScanEagle small UASs for military customers.
Putting the overall market value at $60-100 billion over 10 years, Boeing will initially target the intelligence, surveillance and reconnaissance (ISR) and logistics segments, with strike to follow later, says Chadwick.
Not all companies are taking the approach of gathering their unmanned resources in one place. Northrop Grumman feels its unmanned technology is now mature enough to be embedded within the business units addressing airborne, ground and naval markets.
Northrop Grumman is focusing on new variants of the high-altitude long-endurance Global Hawk, international sales of the vertical takeoff and landing Fire Scout and development of the Bat, a blended wing/body tactical UAV with 24-hr. endurance. A larger version of the Bat could be offered for MQ-X, says Gene Fraser, vice president and deputy for strike and surveillance systems.
Several companies see the opportunity to become a platform prime as a focus for their unmanned activities. With a product line ranging from sensor payloads to ground stations, Raytheon is now bidding for the U.S. Navy/Marine Corps small tactical UAS contract with the blended wing/body KillerBee. The company is also positioning itself to bid as prime on MQ-X, says Mark Bigham, Raytheon Intelligence & Information Systems business development director.
L-3 Communications, meanwhile, has established its Geneva Aerospace division as the lead for unmanned platforms while continuing as a “merchant supplier” of sensors and other systems to other UAV manufacturers, says Todd Gautier, vice president of business development for the sensors and simulation group. Platforms include the optionally piloted Mobius, a 24-hr.-endurance theater UAS based on the Berkut kitplane and now in the final stages of development.
Engine and equipment supplier Honeywell will continue to act as a traditional Tier 1 supplier on large UAVs like Global Hawk, but it sees the opportunity to be a prime in the small UAS market, says Bob Smith, vice president for advanced technology. This is because autonomy in a vehicle like the company’s ducted-fan T-Hawk micro-UAV requires tight integration of several systems, he says.
The market for mid-size, mid-range fixed-wing UAVs—a sector of interest to many companies—“is still sorting itself out,” says Smith. “It’s very fragmented and there is not a good understanding of the concept of operations.” Honeywell has yet to decide its approach to this market, expected to be one of the most competitive.
Watching this activity closely are the Israelis, who pose perhaps the greatest threat to U.S. companies targeting the UAS market. Joseph Ackerman, Elbit Systems CEO, shrugs off the potential competition from new entrants, especially in the tactical UAV market. Since the air vehicle only represents about 20% of the system cost, he argues an electronics company like Elbit is better positioned in the market.
So far the company has not gone into the hotly contested medium-altitude long-endurance (MALE) segment. Ackerman won’t rule out such a move, but has not seen the business case, particularly given the market’s more limited size and the number of players already in the field.
Yair Shamir, chairman of Israel Aerospace Industries (IAI), is also not overly concerned with new entrants, noting that most underestimate the challenge of building UAVs. “We lost money, we invested a lot and we got there because of a lot of sweat and blood,” he says, arguing the combat experience that systems such as Heron are gaining in Afghanistan is giving IAI an edge.
Others might be able to offer lower-cost air vehicles, Shamir says, but they will not be able to deliver the full system, including targeting capability. IAI’s UAV business is still largely based on selling air vehicles, although it is also seeing growth in its leased aircraft business.
European industry is not immune to the lure of the unmanned market, either. Austria’s Schiebel scored the coup of having the first UAV, its Camcopter S-100, to fly at the Paris air show. France’s industry is eyeing the MALE sector, but Sagem, which has developed the Sperwer Mk 2 tactical UAS, is looking to participate as an equipment supplier and has no plans to battle over the air vehicle itself, says Jean-Lin Fournereaux, chairman and CEO.
France’s Sagem has unveiled a new long-endurance UAV, dubbed Patroller, that it believes could meet the MALE requirement at a fraction of the cost. Based on a Stemme S15 powered glider, the vehicle can stay aloft for 30 hr. at 7,500 meters (24,600 ft.) carrying a 250-kg. (550-lb.) payload. Not yet offered for sale, Patroller is an example of the market-testing now going on as more manufacturers look for ways into the unmanned aircraft business.
With Michael A. Taverna at Le Bourget.