The Signals Intelligence Market is expected to register a CAGR of approximately 5% during the forecast period (2021 - 2026). The increasing demand for situational awareness, public safety, and security initiatives are expected to drive the growth of Signals Intelligence.
- Also, the increasing number of terrorist attacks across the globe is further proliferating the spending on the defense budget by different governments. The global defense spending in 2019 increased by approximately 4% as compared to 2018, whereas the spending in the United States increased by approximately 6.6%, and China's spending also increased by 6.6% as compared to 2018.(As per Stockholm International Peace Research Institute (SIPRI) estimates).
- The companies are conducting significant research activities to provide innovative solutions in the market. The companies are taking initiatives to integrate technology into their existing solutions to gain maximum market traction.
- For instance, in November 2019, U.S. military researcher, the U.S. Defense Advanced Research Projects Agency (DARPA), is seeking to advance signal-processing technologies that enhance the operating bandwidth of real-time RF and microwave signal detection and recognition capabilities for future generations of signals intelligence (SIGINT). Also, in October 2019, L-3 Communications was awarded a contract of USD 48.9 million for Advanced Exploitation of Electronic Intelligence Signals software/hardware.
Key Market Trends
Demand for Cyber Intelligence Expected to Grow Significantly
- The aerospace and defense industry is gracefully embracing the technological advancements like IoT, AI, ML, and Industry 4.0, amongst other technologies, which are digitizing the operations of the defense industry significantly. The defense sector is venturing into analytics and adoption of cloud services, which will likely help them to enhance productivity drastically.
- The increasing digitization of this industry is likely to create new avenues for cybercriminal activities, and the risk can be high as compared to any other sector. The compromise of existing cyber defense strategies within a country has the potential to lead to substantial monetary and resource loss, gradually.
- The increasing instances of data breaches in the defense industry are expected to further stimulate the adoption of cyber intelligence solutions in the industry. For instance, in December 2019, ST Logistics, a privately owned vendor of the Singapore Armed Forces and the Ministry of Defense, reported cases of a data leak. Hence, companies are increasingly seeking to innovate on providing cyber intelligence solutions for the industry.
- For instance, in October 2019, the US Army was seeking proposals for prototypes and experiments on the signals intelligence, electronic warfare, and cyber platform. The Terrestrial Layer System is expected to include the Tactical Signals Intelligence Vehicle (TSIG). The US Army is using the platform to experiment with technologies that would allow for sensing, signals intelligence, electronic warfare, and RF-enabled cyber attacks.
North America is Expected to Dominate the Market
- The North America region is the highest spending region for its military and defense activities across the world and is mainly driven by the expenditure from the United States. In 2019, the country spent over USD 686 billion on its defense budget. Whereas, Canada made spending of over USD 22 billion in the same year. In the fiscal year 2019, the president of the United States has signed a National Defense Authorization Act bill that increases funding for military and defense.
- Rising incidences of terrorist attacks in recent years have compelled the government of the region to implement robust physical security strategies. Hence, the companies in the country are actively focused on their product innovation strategies to offer enhanced security solutions catering to the defense industry.
- General Atomics Aeronautical Systems, Inc. and L3 Technologies, Inc. collaborated to jointly fund the development and flight test of a full-band Signals Intelligence (SIGINT) ISR capability for use on a Predator B Remotely Piloted Aircraft System (RPAS). The solution was successfully flight tested GA-ASI MQ-9 operating from GA test facilities in Arizona, in May 2019. The solution is expected to be capable of providing significant mission expansion for MQ-9 operations against modern threats in new operating domains.
The competitive landscape of the Signals Intelligence (SIGINT) Market is moderately fragmented owing to the presence of several global market players, such as BAE Systems, National Instruments Corporation, General Dynamics, Lockheed Martin, Northrop Grumman, and many more. The substantial increase in government spending towards military and defense, and provision of government funding to the market players, are certain factors helping the market players innovate and improvise their offerings, which in turn expands their market share and global presence.
- April 2020 - Abaco Systems partnered with DeepSig to demonstrate DeepSig's OmniSIG software, which is deployable on Abaco's 3U VPX ecosystem, that uses artificial intelligence (AI) inferencing for signal identification and classification in electronic warfare and signals intelligence applications.
- July 2019 - BAE Systems Electronic Systems was awarded a contract of USD 4.7 million in funding from the Defense Advanced Research Projects Agency (DARPA) to integrate machine learning (ML) technology, a subset of artificial intelligence (AI), into platforms that decipher radio-frequency (RF) signals.
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