"Last year, the Chinese Type 98 program maintained its position as the
single largest new-production program," Forecast said. "Yet, with a total
value of $395.79 million — for 116 new-production tanks — the Type 98
program was worth only about 27.11 percent what the U.S. DoD spent on the M1
Abrams in 2008."
In its annual analysis, the Forecast International Weapons Group, based
in Newtown, Conn., asserted that the U.S.-origin Abrams and the
German-origin Leopard MBTs would set the standard for the market. The report
said the United States would spend most of its MBT budget in maintaining and
upgrading the MBT fleet.
"In the congested streets of Iraqi cities, the Abrams serves as a
significant force multiplier, fully up to meeting the challenges of an
asymmetric warfare environment," Forecast said.
In 2008, U.S. Defense Department contracted nearly $1.5 billion for the
maintenance, reset and upgrade of the M1A1 fleet. Forecast said this marked
more than 46 percent of the total value of all new-production main battle
tanks entering the international market in 2008 — nearly $3.17 billion.
In all, more than 6,500 MBTs, worth nearly $27 billion, were expected to
be produced through 2018. Forecast said modernization and retrofit would
remain a significant component of the international market.
"The expense associated with the modernization and retrofit of high-end
main battle tanks pales in comparison with the prospect of new tank
procurement," Forecast said. "Thus, FI expects new production of high-end
tanks to remain relatively low, accounting for 14.9 percent of all
production and 24.22 percent of the value of the market during the forecast
period."
