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Targeting the MAG market

Vitec currently supplies the military, aerospace and government (MAG) market with a variety of equipment but our primary focus in future will be on the supply of microwave equipment. This currently consists of transmitters and receivers manufactured by Vitec that enable video signals to be sent wirelessly for up to 30 miles.

The market

The MAG market consists of products sold into the following main sectors:

 

• Law enforcement - where microwave equipment is sold to police forces and other similar agencies to enable them to receive and transmit video signals from, for example, helicopters to mobile command centres and ground patrols; and

 

• Military vehicles - where microwave equipment is used in both manned and unmanned applications to recognise and assess threats more effectively.

We estimate that the global MAG market for the microwave equipment currently manufactured by Vitec was worth some £500 million in 2009. We expect this sector to grow at 9% per annum for 2010-12.

The market drivers

Law enforcement

The ability of police forces to assess situations and thus act accordingly is enhanced by the use of video, for example during disasters or crowd control.

Another major driver of growth will be the supply of various US agencies with surveillance equipment over the next three years.

Military vehicles

The main growth drivers in this sector are:

• Increased use of unmanned vehicles, whether in the air, on the ground or in the water to minimise loss of human life when assessing potential threats; and

• Increased situational awareness for armed forces in manned vehicles (for example in convoys) where video enhances the ability to deploy troops more effectively.

Vitec market position

Whilst Vitec served the MAG market opportunistically through its supports and communications business units within the Videocom Division, it has increased its capabilities with the acquisition of the RF Extreme microwave businesses in 2007.

Although it is in its infancy in serving the MAG market with microwave equipment, we believe we have the competencies to succeed in the market, namely:

• Technological superiority – with the highest quality video with robust reception and compact design solution;

• Corporate track record – with significant traction gained from approximately $10 million of orders in the first year;

• Knowledge of the industry, its players and their needs – with the recruitment of a specific team with over 150 man years of experience in the MAG market; and

• Specialist development capability – with rapid custom prototyping built on an easily scalable technology platform.

Key strategies

In the law enforcement sector, our strategies are to:

• expand our initial contract wins to other police departments around the US; and

• supply to various agencies miniature versions of our microwave technology.

In the military vehicle sector, our strategies are to:

• enhance our range of microwave products aimed at this sector; and

• focus on certain projects, especially unmanned ground vehicles (robots).

Vitec brands for the MAG market

Microwave Systems

Nucomm

RF Central

"We are seeing significant growth in our micro and small unmanned ground systems business thanks to our teaming efforts with Vitec Group's RF Extreme"

Chris Vilter
Vice President, MacroUSA & Force Productions Group, Inc.

Law enforcement

Under the Nucomm and RF Central brands Vitec is leading the technology development in ever increasing video quality, robust and low-latency transmission and secure encryption demands in mission critical applications such as police surveillance.


 

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