The electronic warfare market is anticipated to register a CAGR of above 4% during the forecast period, 2021 - 2030.
The demand for electronic warfare equipment is directly dependant on the ongoing procurement plans of the armed forces and is dependant on the sanctioned annual defense budget of the nations. The COVID-19 pandemic had a moderate impact on the market in focus due to disruption in the defense supply chain. The ongoing global economic slowdown is anticipated to result in a subsequent decline in defense spending on a short-term basis.
Nevertheless, the ongoing political conflicts and territorial disputes is expected to generate demand for sophisticated electronic warfare systems with superior capabilities during the forecast period.
The development of cognitive electronic warfare, which is the integration of advanced technologies, like artificial intelligence and neural networks with the electronic warfare systems, to achieve faster and efficient systems with minimal lag between threat identification and tracking is expected to open up new market opportunities for the electronic warfare market.
Key Market Trends
The Electronic Support Segment is Expected to Experience the Highest Growth During the Forecast Period
The electronic support segment is anticipated to have the highest growth during the forecast period. The need for advanced information gathering and communication systems on the battlefield is of high importance. Due to this reason, intelligence, surveillance and reconnaissance (ISR), intelligence, surveillance, target acquisition, and reconnaissance (ISTAR), signals intelligence (SIGINT) systems, and other such systems for recognition and targeting of threats are expected to register the highest demand, as they assist in attack or protect against the enemy attack. The use of military robots like unmanned aerial vehicles and unmanned sea vehicles, with the SIGINT and ISTAR systems, is increasing in recent times. In this regard, Airbus and Corporación de la Industria Aeronáutica Colombiana (CIAC) have entered in partnership in 2019 to develop a new generation drone under the Sistema RPAS Táctico de Altas Prestaciones (SiRTAP) program. The new drones would be based on the Atlante MALE UAV and are planned to be deployed for strategic and tactical missions as well as ISTAR missions. The new drone system is scheduled to enter service in 2023. The Colombian Air Force (FAC) plans to acquire 45 UAVs with about 12 UAVs planned to be manufactured in Colombia. Such robust development and deployment plans of the armed forces is the key driver for the growth of this segment.
The Asia-Pacific Region is Expected to Experience the Highest Growth During the Forecast Period
The Asia-Pacific region is anticipated to have the highest growth during the forecast period. The growth is suppported by the increase in defense spending. There is a large growth in military spending of few countries between 2011 and 2021, like Cambodia (168%), Indonesia (83%), China (76%), and Bangladesh (70%). There were also significant increases in countries, like Vietnam, the Philippines, Myanmar, Kyrgyzstan, Pakistan, Nepal, and India, during the same period. The countries are investing in the development of new electronic warfare systems to enhance their capabilities in the midst of their political and territorial issues. In this regard, Japan is bolstering its electromagnetic spectrum capabilities due to the threat of China and Russia armed forces. In March 2021, the Japan Self-Defense Forces launched an 80 member electronic warfare unit that can detect and analyze naval and airborne communications along with radar emissions of neighboring countries. The unit is also equipped with electronic attack capabilities that can disrupt enemy communications and radars. The government also announced its plan to induct five similar troop units by March 2022. In addition to this, the Japan Ministry of Defense is also developing a standoff electronic warfare aircraft with radar jaming capabilities. The development of such systems is expected to help the growth of the market in this region during the forecast period.
The electronic warfare market is highly fragmented due to the presence of many players who offer several products across various segments of the market. Some of the prominent players in the electronic warfare market are Lockheed Martin Corporation, Raytheon Technologies Corporation, BAE Systems plc, L3Harris Technologies, and Northrop Grumman Corporation. The international players have a higher market share compared to that of the regional players, due to significantly high investments in R&D, along with a high geographical presence. For instance, in March 2021, L3Harris Technologies was selected by Lockheed Martin and US Air Force to provide Viper Shield digital electronic warfare (EW) suite to F-16 Block 70/72 aircraft, which will maximize their survivability. The competition in the market is further expected to increase with the development of new products and by the consolidation of the market. The armed forces are collaborating with companies to develop advanced technologies in electronic warfare such as radio frequency-enabled cyber (cyber capabilities within electronic warfare systems). Investments in such technologies are anticipated to help the companies increase their share in the market in the coming years.
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support
This product will be delivered within 2 business days.
1.2 Scope of the Study
4.2 Market Drivers
4.3 Market Restraints
4.4 Porter's Five Forces Analysis
4.4.1 Bargaining Power of Buyers/Consumers
4.4.2 Bargaining Power of Suppliers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
5 MARKET SEGMENTATION (Market Size by Value - USD billion)
5.1.1 Electronic Attack
5.1.2 Electronic Protection
5.1.3 Electronic Support
5.3.1 North America
184.108.40.206 United States
220.127.116.11 United Kingdom
18.104.22.168 Rest of Europe
22.214.171.124 Rest of Asia-Pacific
5.3.4 Latin America
126.96.36.199 Rest of Latin America
5.3.5 Middle-East and Africa
188.8.131.52 Saudi Arabia
184.108.40.206 United Arab Emirates
220.127.116.11 Rest of Middle-East and Africa
6.2 Company Profiles
6.2.1 Lockheed Martin Corporation
6.2.2 L3Harris Technologies, Inc.
6.2.3 BAE Systems plc
6.2.4 ASELSAN AS
6.2.5 Northrop Grumman Corporation
6.2.6 Raytheon Technologies Corporation
6.2.7 Israel Aerospace Industries Ltd.
6.2.8 Thales Group
6.2.9 Saab AB
6.2.10 Leonardo S.p.A.
6.2.11 Elbit Systems Ltd.
6.2.12 Hensoldt Group
A selection of companies mentioned in this report includes:
- Lockheed Martin Corporation
- L3Harris Technologies, Inc.
- BAE Systems plc
- ASELSAN AS
- Northrop Grumman Corporation
- Raytheon Technologies Corporation
- Israel Aerospace Industries Ltd.
- Thales Group
- Saab AB
- Leonardo S.p.A.
- Elbit Systems Ltd.
- Hensoldt Group