Exploring the Soaring Opportunities in t...
Posted in Aerospace & Defence by Adolf on Mar 19,2022
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The Aerospace and Defense (A&D) industry is identified as a technologically advanced industry that not only manufactures specially engineered air and space crafts, but also provides products and services to meet the military operational requirements. The industry has truly inspired the world with their inventions and accomplishments, wherein the emerging machineries such as delivery drones, air cabs, space exploration programs and various types of warfare equipment have become an essential part in shaping the modern life.
The businesses in the Aerospace and Defense sector work hand-in-hand, as they can be contractors of both commercial and defense products. Many companies within this sector that manufacture airplanes, rockets, helicopters, gliders and satellites for commercial use also create missiles, military aircrafts, space systems and frameworks for understanding complex data in the defense line. Besides these state-of-the-art devices, they may also build the parts required for each.
Moreover, increased investments in space exploration missions, growing demand for geostationary satellite servicing, and on-orbit manufacturing and assembly, debris removal and technological advancements in autonomous systems are some of the key factors that are driving the growth of the Aerospace and Defense market. The development can also be attributed to the cumulative demand for space robotics solutions from commercial, government organizations, space agencies, defense organizations, and satellite operators as well as NewSpace companies.
What does the Aerospace Industry comprise of?
Considered as one of the largest industry in the world, the Aerospace sector is engaged in the research, designing, manufacturing and supplying products for commercial, defense and the overall aviation markets. With numerous distinct parts and intricate support systems required to operate and maintain the air vehicles, the aerospace industry has an extensive product line.
Customers range from individuals to commercial airlines, military and the government. Although when it comes to sales, the military aircrafts hold the largest share of the market, followed by spacecraft and civil aircrafts.
The need for Defense and the Defense Industry
Governments of various countries, such as the US, China, India, and Russia, are spending heavily on modernizing their military resources. Thus, a large number of weapon manufacturers are shifting their focus towards developing precision-guided munitions. Furthermore, increasing number of conflicts, and high defense spending are some of the major factors driving the market globally.
Also, it is worth noting that often the defense market is reasoned by the military spending of the country. Defense spending covers capital items, military personnel, government defense agencies and related expenditure on defense and peacekeeping.
What does the Aerospace & Defence market consist of?
The Aerospace and Defense market consists of the civilian or commercial aerospace market and the military aerospace and defense market. While the civilian aerospace market is comprised of the revenues accrued by manufacturers from all civilian aerospace procurement, the military aerospace and defense market is comprised of the sum of the revenues generated from the signed deals that remain under contract and the new contracts signed within a particular calendar year.
Furthermore, this market is segmented to include military aircraft, military vehicles, naval vessels, and systems & ordnance. The military aircraft segment is comprised of aircraft engines, aviation MRO, defense helicopters, and military avionics, rotocraft, satellites, UAVs and others. The military vehicles segment is comprised of armored vehicles and related MRO operations, unmanned ground vehicles, vehicle armor and others. The naval vessels segment is comprised of maritime and border security, naval engines, naval vessels and related MRO operations, submarines and related MRO operations and any other undersea warfare.
The systems & ordnance segment is comprised of ammunition, artillery, biometric systems, body armor, communications equipment, cybersecurity, electronic warfare, navigational systems, radars, It and computing systems, simulation systems, missiles and missile defense systems, all ordnance and guns, soldier modernization, communications, vetronics and others.
The length of the pandemic and restrictions introduced by various countries are still difficult to predict. Many governments had introduced the national lockdowns and temporarily banned sales of products that are deemed "non-essential". The global aerospace & defense market had total revenues of US$1,023.2 billion in 2020, representing a compound annual rate of change (CARC) of -4% between 2016 and 2020. Also, the civil aerospace segment was the markets’ most lucrative in 2020, with total revenues of US$395.7 billion, equivalent to 38.7% of the market's overall value.
The key leaders of the global aerospace & defense market include Boeing, Airbus, United Technology, Lockheed Martin, Northrop Grumman, GE Aviation, Raytheon, Rolls-Royce, Leonardo and Safran.
As we discuss various business strategies followed by the key players of the Aerospace and Defence market, the market research reports we offer at Bharatbook are highly concentrated focusing on procurement and expansion of inventive products, high value solution and services to our clients. We help upgrade their needs with our insights.
So let us look at some of the products and services created by the global Aerospace & Defense market
a) Rockets and missiles –A missile plays an important role majorly for land, air, and marine platforms. The missile segment has been further sub-segmented further segmented into cruise missiles and ballistic missiles.
The global Rockets and Missiles market size is projected to grow from US$ 58.3 billion in 2021 to US$ 73.8 billion by 2026, at a CAGR of 4.8% from 2021 to 2026. The market is expected to witness growth due to consistent increase in defense budget across the globe and the need for advanced Rockets and Missiles to counter the modern combat around the country’s border.
b) Satellites –The satellite antenna market is projected to grow from US$ 4.1 billion in 2021 to US$ 10.5 billion by 2026, at a CAGR of 20.6%. Satellite antenna equipment is an integral part of the communication in commercial and defense industries. The deployment of low earth orbit (LEO) satellites and constellations of satellites for communication applications has increased their demand across the globe. Other factors driving the market growth include growing demand for the growing fleet of autonomous and connected vehicles used for various applications in the military and commercial sectors, which require customized satellite antennas.
Industry experts believe that the pandemic has not affected the demand for satellite antenna equipment in commercial, Government and defense sector. Moreover, the market is projected to grow further due to the increasing need for high-definition intelligence, surveillance and reconnaissance (ISR) videos, and increasing number of connected commercial aircraft, rising adoption of unmanned aerial vehicle (UAVs) and emerging number of private aviation companies worldwide supporting market growth.
c) Autonomous aerial delivery drones –The Incorporation of advanced sense and avoid systems in aerial delivery drones, expansion of ecommerce, and increased use of low-cost and light payload drones by startups for product delivery have led to the growth of autonomous last mile aerial deliveries worldwide.
Due to congestion, product delivery to far-flung and remote locations, invalid or incorrect address details, hard to locate destinations, clubbed with the issue of severe labor shortage often result in increased product delivery costs. Automatic delivery could be transformational for the retail industry, decreasing delivery costs by 80% to 90% compared to a human being doing it.
The market for delivery drones in the aerial segment is projected to grow due to the increasing need for autonomous delivery solutions in food and retail sectors and growing need of contact-less healthcare supply deliveries using autonomous aerial drones owing to COVID-19 pandemic. Furthermore, advancement in technology and increase in venture funding for the development of next-level delivery vehicles has enhanced the Autonomous Last Mile Delivery Market growth.
d) Unmanned Underwater Vehicles (UUVs)–Unmanned Underwater Vehicles (UUVs) are part of the unmanned maritime systems (UMS) market. Although such systems have been in use for decades, global security, technological developments and new concepts of operations have been driving the market’s expansion. UUVs have been an integral part of many naval forces’ operations.
Most recently, several major naval forces have been developing or experimenting with Extra-Large UUVs and how these could benefit them in actual combat scenarios. Those systems can assume a wide range of tasks, such as ISR, homeland security, ASW and oceanography, while also being considered as weapons’ platforms.
e) Airport security – Airport security refers to the techniques and methods used in an attempt to protect passengers, staff and planes which use the airports from accidental/malicious harm, crime, and other threats.
The Airport Security Market and Technology analyses and predicts the evolution of Airport Security technologies, markets, and expenditures in the Aviation Industry. It also examines Airport Security markets geographically, focusing on the top 95% of global markets, in the United States, Europe, and Asia.
f) Edge computing –Edge computing is revolutionizing information technology and its military applications by bringing computation and data storage closer to the source where data is generated. That process reduces latency and increases the speed at which data are processed closer to the end-user, allowing near real-time decision-making. With that capacity available, a military force can increase its momentum of operations, thus overwhelming its opponents.
g) Surveillance Radars – Surveillance radars are used in both the commercial and defence sectors to enhance perimeter security coverage which are capable of working on ground, sea, air and space platforms. Also, surveillance radars are an essential component of the defence sector used in border control operations. Factors such as increasing investments in defense sector, military modernization and demand for border surveillance and advancement for air defense sector have led the adoption of surveillance radars across the forecast period.
For instance, as per the Indian government budget 2021, the government of India will spend $130 Billion on military modernization. In 2019, The US government has proposed a spending bill worth US$ 100 million to finance the construction of border surveillance systems on its northern border, such as fixed towers, remote video surveillance systems, and mobile surveillance systems.
Also, with increasing investments in advance surveillance, increasing terrorism, and military threats, the adoption & demand for surveillance radars is likely to increase the market growth during the forecast period.
