Growth Military & Defense Budget to Aid Subsea Vehicles and Weaponry Market
The defense application dominated the market in 2017 and it is expected to do the same during the forecast period, with small-diameter missiles, underwater navigators, and unmanned aerial vehicles being the in-demand applications and the main beneficiaries of the high-end MEMS sensors in military applications. These defense revenues will increase as the government takes initiatives to establish a cutting-edge defense weapon platform by acquiring latest technologies, such as precision striking, defense electronics, and critical infrastructure protection. For instance, in 2016 the US increased its budget in military programs in the US, including F-35 fighter Jet, Ohio class submarine, KC-46 A aerial refueling tanker, Rafael fighter programs, etc., exhibiting the country’s focus on the defense sector. Further, the MEMS technology for high-end military and aerospace applications provides a high performance at low-costs with a small size, has further augmented the demand for inertial systems and the market is expected to have a strong potential growth during the forecast period.
United States to Hold the Largest Market Share in North America
North America held the highest share of the market in 2017. The primary demand for inertial systems in this region is observed in the maritime sector and the aircraft industry, mainly in the US. The United States allocates the maximum budget for the defense sector. In 2016, the United States defense spending was more than USD 611 billion, which represented 36% of the total world military expenditure of USD 1686 billion. However, over the last three years, as a result of the global political situation and the conflicts in Afghanistan and Iraq, the United States Department of Defense cut down their defense budget. Nonetheless, the decrease in military spending is expected to be offset by the steady investments into submarine programs in 2018. This has been buoyed by the government of United States that has initiated a bill authorizing a USD700 billion budget for the military, which also include investment for Connecticut’s submarine industrial base and attack submarines. The authorization of this bill is expected to create an investment of USD 8 billion for submarine programs. These factors are expected to bolster the market for subsea inertial systems in the United States.
Navigational Grade to Hold a Major Market Share
The demand for inertial navigational systems in the subsea is witnessing a steady growth rate across the globe, with the high availability of MEMS gyroscope, magnetometers, and accelerometers. Advancements in these components make INS cheaper and affordable, with the error margin being minimized significantly. There is a significant reduction in cost with the advancement of technology. These are used in small, unmanned subsea vehicle, guided missiles, personnel navigation, and submarines. The global market is extremely concentrated and only a few big companies are dominant in the market. However, there has been an increase in the number of new entrants, majorly due to technological advancements, which has brought down the costs of MEMS-based products.
- September 2017 - Northrop Grumman announced the acquisition of Orbital ATK for approximately USD 7.8 billion. This acquisition is aimed at strategically combining Northop and Orbital’s to enhance and complement the company’s capabilities in the defense sector.
- March 2017 - Teledyne Technologies acquired e2v Technologies PLC. e2v specializes in machine vision solutions, imaging sensors and arrays for space science, and astronomy, and also manufacturers components and subsystems that deliver high reliability radio frequency power generation for healthcare, industrial, and defense applications. This acquisition is aimed at complementing the company’s portfolio across various industry verticals.
The major players include - TELEDYNE TECHNOLOGIES INTERNATIONAL CORP, IXBLUE SAS, SONARDYNE INTERNATIONAL, KEARFOTT CORPORATION, HONEYWELL INTERNATIONAL INC., SBG SYSTEMS, SEAFLOOR SYSTEMS INC., NORTHROP GRUMMAN CORPORATION, SAFRAN GROUP, and VECTOR NAV., amongst others.
Reasons to Purchase this Report
- Current and future inertial systems market outlook in the developed and emerging markets
- Analyzing various perspectives of the market with the help of Porter’s five forces analysis
- Identifying the segments that are expected to dominate the market
- Identifying the regions that are expected to witness the fastest growth during the forecast period
- Identify the latest developments, market shares, and strategies employed by the major market players
- 3-months analyst support, along with the Market Estimate sheet (in Excel)
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Table of Contents
1.2 Executive Summary
2.2 Study Assumptions
2.3 Research Methodology
2.4 Research Phases
3.2 Industry Attractiveness - Porter's Five Forces Analysis
3.2.1 Bargaining Power of Suppliers
3.2.2 Bargaining Power of Buyers
3.2.3 Threat of New Entrants
3.2.4 Threat of Substitute Products
3.2.5 Competitive Rivalry
3.3 Value Chain Analysis
4.1.1 Increasing Investments in Subsea Vehicles and Weaponry
4.2 Market Restraints
4.2.1 Operational Complexity Coupled With High Maintenance Costs
6.2 By Type
6.2.1 Attitude Heading Reference System (AHRS)
6.2.2 Inertial Positioning and Orientation Systems
6.2.3 Inertial Measurement Units (IMU)
6.3 By Region
6.3.1 North America
126.96.36.199 United States
188.8.131.52 United Kingdom
184.108.40.206 Reat of Europe
220.127.116.11 Rest of Asia Pacific
6.3.4 Rest of the World
18.104.22.168 Latin America
22.214.171.124 Middle East & Africa
7.2 iXBlue SAS
7.3 Sonardyne International
7.4 Kearfott Corporation
7.5 Honeywell International Inc.
7.6 SBG Systems
7.7 Seafloor Systems Inc.
7.8 Northrop Grumman Corporation
7.9 Safran Group
7.10 Vector NAV
*List is not Exhaustive
A selection of companies mentioned in this report includes:
- Teledyne Technologies International Corp
- iXBlue SAS
- Sonardyne International
- Kearfott Corporation
- Honeywell International Inc.
- SBG Systems
- Seafloor Systems Inc.
- Northrop Grumman Corporation
- Safran Group
- Vector NAV