Market Research Report
Target Acquisition Systems Market - Growth, Trends, and Forecast (2020 - 2025)
|Published by||Mordor Intelligence LLP||Product code||925398|
|Published||Content info||120 Pages
Delivery time: 2-3 business days
|Target Acquisition Systems Market - Growth, Trends, and Forecast (2020 - 2025)|
|Published: February 1, 2020||Content info: 120 Pages||
The target acquisition systems market is anticipated to grow at a CAGR of more than 5.5% during the forecast period.
Enhanced Global Defense Spending for Modernization of the Global Defense Forces
The emergence of sophisticated combat platforms featuring advanced weapons with target tracking capabilities has resulted in the integration of modern targeting systems that combine the capabilities of different subsystems to assist in target identification, acquisition, and engagement. The uncertainties in territorial rights between many countries, like the Saudi-Iran cold war in the Middle-East, are among the major causes disturbing the geopolitical climate. The most common reaction of governments is to increase military spending, in order to improve the security situation in their respective countries. Military powerhouses, such as the United States, the United Kingdom, China, and India, have been focused on augmenting their military firepower and defensive capabilities. For instance, the US Department of Defense (DoD) FY20 budget request grew by 5% YoY and amounted to USD 718 billion, out of which USD 57.7 billion was allocated for the air force, USD 34.7 billion was reserved for the navy, and USD 14.6 billion was directed to the land forces. Similarly, the Chinese defense budget witnessed a 7.5% YoY growth to account for USD 175.4 billion. The colossal budgets have provisions for the procurement of several new aircraft, ships, and vehicles, many of which feature advanced weapons integrated with assisted or automatic target acquisition systems to effectively detect, track, target, and neutralize threats.
Initiation of Several Procurement and Modernization Programs in South East Asia
On account of the profound changes in the international strategic landscape, the configuration of the international security system has been undermined by the growing hegemonism, unilateralism, and power politics that has fueled several ongoing regional conflicts. In 2018, the Asia-Pacific region accounted for around 24% of the global military expenditure. The defense spending was directly influenced by the ongoing geopolitical rift in the region and was majorly driven by the race for achieving technological superiority over other countries. The strengthening of the strategic military alliances between the United States and several Asia-Pacific sovereign nations and subsequent reinforcement of military deployment and intervention has resulted in a complex scenario, urging rapid modernization of defense capabilities of regional countries, such as China, to safeguard their vested interests. Several procurement initiatives have been undertaken recently by countries to gain a tactical edge on the battlefield. On this note, in February 2018, Aselsan was contracted by the Malaysian Maritime Enforcement Agency (MMEA) for manufacture and integration of 30mm SMASH remote-controlled weapon system, high accuracy stabilized gimbal (HASG), and pintle-mounted 12.7mm machine gun onboard new offshore patrol vessels. The SMASH configurations incorporate advanced features as remote operation, built-in electro-optic sensor system and/or separate electro-optic fire control system for autonomous operation, day and night operation, stabilized turret, automatic target tracking (detect, track and fire on the move) and ballistic computation. Similarly, in April 2019, JSC Rosoboronexport, a part of Rostec State Corporation, was awarded a contract by the Ministry of Defence of the Republic of Indonesia, for the armored personnel carrier (APC) and infantry fighting vehicle (IFV) variants of the BMP-3F. The BMP-3F features a two-plane stabilized remote-controlled combat module with a 12.7 mm machine gun, equipped with a tele-thermal imaging sight with a laser rangefinder. The dispersal of such contracts is envisioned to drive the business prospects of the market players.
The prominent players in the target acquisition systems market are Aselsan A.S., Elbit Systems Ltd., Leonardo S.p.A., Raytheon Company, Safran SA, and the Thales Group, amongst others. The defense manufacturing industry is highly competitive and with the evolving global battlefield environment, the companies must align their product portfolio to the evolving requirements of end-users. The market is also significantly influenced by the dispersion of up-gradation contracts to enhance the capabilities of the current fleet of active military assets. In order to gain long-term contracts and enhance the market share, players are investing significantly in the R&D of sophisticated product offerings. Furthermore, continuous R&D has been fostering the technological advancements in platforms and associated products and solutions of the active players in the target acquisition systems market.