Increasing Terrorist Activities to Propel Defense Technology Market
Technavio research analysts are forecasting positive growth for many segments of the defense technology market over the next four years.
Technavio research analysts are forecasting positive growth for many segments of the defense technology market over the next four years, as several markets (e.g., multirotor UAV, maritime security and military communication) will witness an increase in revenues. The global military communication market is predicted to reach a little over $30 billion in revenues by 2019, with increasing investments in ISR.
The global market for multirotor UAVs is expected to grow at a compound annual growth rate (CAGR) of over 21% from 2014-2019. Multirotor UAV has become an essential part of military, commercial, and law enforcement market. It consists of a remotely controlled device for aerial support application and is designed for vertical take-off and landing (VTOL). It supports industries such as mining, agriculture, aerial shooting, traffic monitoring, surveillance, and intelligence gathering. It gained popularity due to its long endurance capabilities in the air, cost-effectiveness, and ease of operation.
Aside from the multirotor UAV market, the second most sought after market for defense technology is the maritime security market, which is expected to grow at a CAGR of almost 8% from 2015-2019. Maritime security agencies protect the nation from illegal activities and threats, such as smuggling, drug trafficking, piracy at sea, human trafficking, and maritime terrorism. These agencies provide security to ports and marine traffic. Increases in maritime terrorist activities, such as the Mumbai attack in 2008 and the rise in piracy in the Gulf of Aden, has raised concerns about the need to secure ports and modernize weaponry and equipment utilized by maritime security agencies. The market has been segmented into three categories: intelligence, surveillance, and reconnaissance (ISR) systems; communication systems; and biometrics.
In a bid to strengthen the country’s ISR capabilities, Japan purchased an E-2D Advanced Hawkeye, which is an electronic warfare (EW) system, along with an unmanned aerial system in a deal that is estimated to be around $488 million. “Other countries will make similar purchases over the next four years,” said Arushi Thakur, aerospace and defense research expert. “Advanced defense systems integrated with multi-sensors, tactical glass cockpit, and radars are some key features in EW aircrafts that go a long way in enhancing missile defense capabilities. Vendors will look to leverage the demand for advanced systems by introducing many types of long-endurance UAVs into the market. These UAVs will be designed to capture high-resolution images of the geographical regions for military, humanitarian and environmental missions, even in harsh environments.”
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