Northrop Grumman Corp.’s NOC unit, Northrop Grumman Systems Corp., recently clinched a modification contract involving Surface Electronic Warfare Improvement Program (“SEWIP”) Block 3. The award has been offered by the Naval Sea Systems Command, Washington, D.C.

Details of the Deal

Valued at $235.9 million, the contract is expected to be completed by December 2025. Per the terms of the deal, Northrop Grumman has the option to manufacture SEWIP Block 3 Hemisphere Systems.

A major portion of the work related to this deal will be executed in Baltimore, MD.

Importance of SEWIP Block 3

The rising threat of missile attacks has been fueling the demand for an effective electronic attack system that excels in defeating inbound threats.

In this context, it is imperative to mention that Northrop Grumman’s SEWIP enjoys significant demand for its features that protect surface ships from anti-ship missiles, providing early detection, signal analysis and threat warning. NOC’s SEWIP is an upgrade to the legacy AN/SLQ-32 system, and provides game-changing capability for non-kinetic electronic attack options to the U.S. fleet.

Such advantages of the electronic warfare system make it an attractive option for the military, thereby resulting in NOC winning orders for the same, like the latest one. These developments are likely to boost the company’s revenue-generation prospects from the SEWIP electronic warfare system.

Growth Prospects

Countries globally have been reinforcing their military resources due to intense geopolitical tensions and amplified terrorist threats. As a result, an effective electronic warfare system with anti-missile solution features is likely to witness a pent-up demand.

Per a report from the Markets and Markets firm, the global electronic warfare system market is projected to witness a CAGR of more than 4% during 2022-2027. Such growth prospects may benefit Northrop Grumman as its SEWIP Block 3 product already has an established position in the electronic warfare system market.

The abounding growth prospects should also benefit other defense majors who have forayed into the laser-based countermeasure system like Lockheed Martin LMT, L3Harris Technologies LHX and General Dynamics GD.

Lockheed Martin’s Advanced Off-Board Electronic Warfare (“AOEW”) program delivers persistent electronic surveillance and attack capability against naval threats like anti-ship missile (ASM). Its AOEW Active Mission Payload AN/ALQ-248 system is a self-contained electronic warfare pod hosted by the MH-60R or MH-60S Seahawk helicopter, which provides the Navy with advanced ASM detection and response capabilities.