San Jose, CA, July 17, 2002 -- Frost & Sullivan recently released its U.S. Department of Defense (DoD) Research and Development Markets (A104) report.

"The U.S. DOD Research and Development budget is forecast to grow at a compound annual growth rate of 5.9% between 2002 and 2007," says Research Analyst Jenny Benavidez. "The budget increase is due in part to the budget surpluses in recent years as well as a move to develop equipment and platforms more in line with the new force objectives -- a lighter, more integrated and interoperable force."

The report provides manufacturers, end-users, and other industry personnel with an overview of the U.S. Department of Defense budget projections in four market segments and ten defense categories. Highlights include: challenges, drivers, restraints, budget forecasts, and major market participants.

One of the market drivers addressed is the need to counter emerging threats through research and development advancements.

"An area of development that needs substantial funding in light of the war on terrorism is munitions, in particular those that are able to penetrate deeply buried caves and hardened bunkers," says Jenny Benavidez.