Saab 2010 Annual Report Download - page 30

NAVAL CIVIL SECURITY CIVIL AERONAUTICS
The naval market is generally stable with growing
demand for expeditionary and coastal capabilities.
More than 90 per cent of global trade is trans-
ported by sea, which has made the protection of
trade flows a higher priority, including for naval
units. For navies and coast guards, the trend is
toward broader-based industrial commitments
with greater demand for integration and
lifecycle solutions. At the same time, the growing
number of international alliances makes the ability
to act far from home – e.g., with advanced am-
phibious assault ships – more important. Public-
private partnerships are also becoming more
common. Moreover, there is growing interest in
long-endurance ships with smaller crews, where
sensors and combat management are the highest
priority.
The total naval market is estimated at SEK 300–
370 billion per year.
An extensive naval build-up has begun in the
Middle East and Southeast Asia, where China’s
growing fleet is a driving force.
Investments to protect people, critical facilities
and large flows from terrorism and sabotage is on
the rise worldwide, which makes civil security one
of Saab’s most dynamic market segments. The
continued growth and increased complexity of
large cities is placing tougher demands on sus-
tainability, flow efficiency and interoperability.
Homeland security spending has skyrocketed in
the last decade, and is estimated at SEK 360
billion in 2011 in the US alone. This is in addition
to spending on surveillance and control as part of
municipal and corporate security budgets. Pro-
tection of critical infrastructure mainly involves
ports, airports and energy facilities. The market
currently generates about SEK 225 billion a year
and is anticipating annual growth of 10–11 per
cent per year, divided equally between protection
for borders, ports, energy systems and airports.
Growth is driven by new laws and the realisation
of how costly disruptions to society’s various
flows can be.
The civil aeronautics market is generating long-
term growth of about 5 per cent, although this
fluctuates greatly with the economy. Commercial
carriers have struggled through a very difficult pe-
riod, but are now in a recovery phase. This has
somewhat delayed orders for aircraft manufactur-
ers. The total market for new commercial aircraft
is estimated at SEK 600 billion a year. The industry
is capital-intensive with long development cycles
and has consolidated into oligopolistic structures.
The market consists of four segments: business
jets, regional aircraft, single aisle aircraft and wide
bodies/large aircraft. The market for large single
aisle and wide body aircraft is dominated by Boeing
of the US and Europe’s Airbus, although they are
now being challenged by new players from China
in particular. The major manufacturers are integra-
tors, i.e., they are responsible for specifying and
supplying the aircraft. The aircraft themselves are
developed and produced in large part by interna-
tional partners. The new aircraft models also
contain larger modules than before, with systems
content integrated into the structure.
Aircraft capacity utilisation is again on the rise,
and high fuel prices and new environmental
requirements are strengthening demand for fuel-
efficient models. Delivery volumes are increasing
significantly as new aircraft such as the B787 and
A350 are introduced on the market.
Saab’s offering includes sensors, command and
control, weapon and communication systems,
underwater and infrastructure security, counter-
measures and electronic warfare, and simulation
and training. We have a strong position in radar
and early warning, command, control and com-
munication systems (C4ISR), tactical weapons
and underwater systems.
Saab’s sales in the area amounted to MSEK
2,278 (2,181) in 2010.
Saab’s civil security offering is focused on moni-
toring and situational control as well as ensuring
efficient flows, with an emphasis on airports and
air travel, ports and shipping, and emergency re-
sponse planning. The offering is based on Saab’s
core competence as a systems integrator.
Though still small in size, its positions are good
in Sweden, Central Europe, South Africa and
Australia.
Saab’s invoicing in the area totalled MSEK 1,427
(1,718) in 2010.
Saab is a supplier to the world’s leading aircraft
manufacturers, including Boeing and Airbus,
mainly of durable, lightweight aerostructures,
avionics, operating systems, structure and sys-
tem integration, and support solutions. With a
track record of having built more than 4,000 air-
craft, Saab has experience with the entire devel-
opment cycle, from concept studies to certified
products.
Saab’s sales in the area amounted to MSEK
1,348 (1,374) in 2010.
SAAB ANNUAL REPORT 2010 27
SAAB’S MARKET SEGMENTS