The defense industry has experienced a plunged demand for military equipment during the pandemic. Moreover, the diminished production rate of tier three and tier four suppliers has slowed down the availability of electronic warfare, thus delaying the delivery of equipment. The ministry of defense will cover payments only for existing contracts that are already under execution, thus eliminating the need for new procurement. However, the U.S. Department of Defense (DoD) will continue to buy products, issue contracts, and accelerate payments to help small and large businesses amid the global pandemic.
The global electronic warfare industry is expected to reach USD 33.52 billion by 2028, exhibiting a CAGR of 5.24% during the forecast period. The ever-increasing technological advancements and rising adoption of cyber-EW worldwide will contribute positively to the industry ’s growth during the forecast period. Cyber electronic warfare helps in refining the offensive and defensive purposes. It is capable of covering a wide range of cyberspace and the electromagnetic environment.
Electronic Support Segment to Lead Owing to Rising Demand for ISR from Defense Sector
Based on equipment, the industry is classified into jammers, antennas, radar warning receiver, directed energy weapons, anti-radiation missiles, countermeasure dispenser system (CMDS), directional infrared countermeasures (DIRCM), self-protection suite, and others.
Based on platform, the EW industry is segmented into air-based, sea-based, and land-based. The air-based segment is further divided into combat aircraft, airborne early warning & control (AEW&C) aircraft, and UAV.
Geographically, the industry is classified into North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa.
Integration of UAVs & Electronic Warfare Systems to Spur Growth
Over the past few years, the usage of unmanned aerial vehicles (UAVs) in the military forces across the globe has surged. It occurred because of the monitoring, imagery mapping, and surveillance of combat operations. The integration of surveillance data and imagery with EW can provide more information about situational awareness. It is a major factor that is set to contribute to the industry growth in the coming years. Several prominent companies and ruling bodies are investing huge sums in the exploitation of this relationship between the electronic warfare and the UAVs. However, EE systems are very expensive. Hence, the developing countries prefer conventional systems. It may hinder the industry growth.
Presence of Numerous Industry Giants to Favor Growth in Europe
Geographically, North America held a prominent position in 2020. This growth is attributable to the rising terrorism, as well as political and territorial disputes occurring in this region. In addition to that, the U.S. Department of Defense (DoD) is set to invest approximately USD 25.8 billion in the research, development, test, and evaluation (RDT&E) in the coming years. Also, it is planning to spend around USD 27.8 billion to procure electronic warfare systems. It would also propel the industry growth in this region.
Europe, on the other hand, is set to remain in the second position stoked by the presence of major companies, such as Saab AB, BAE Systems, and Thales Group in this region. Also, the rising investments in the development and procurement of electronic type of warfare systems would augment growth. Asia Pacific would exhibit rapid growth backed by the need to enhance the warfighting capabilities of the defense forces in the developing countries, such as India and China.