Airborne ISR Market Trend & Forecast | 2023-2028

Market Insights

The airborne ISR market is estimated to grow from USD 10.45 billion in 2022 and is likely to grow at a CAGR of 4.9% during 2023-2028 to reach USD 13.96 billion by 2028.

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What is airborne ISR?

Airborne ISR is a term that stands for Intelligence, Surveillance, and Reconnaissance. It refers to a set of capabilities and operations carried out by airborne platforms, such as aircraft or unmanned aerial vehicles (UAVs), to acquire intelligence about a given area or target.

The primary goal of airborne ISR is to gather data and intelligence to aid in situational awareness, decision-making, and mission planning. It entails using multiple sensors and systems onboard the aircraft to acquire information in various ways, including optical observation, radar detection, electronic signal interception, and communications monitoring.

Market Dynamics

The airborne ISR market is driven by a host of factors, some of which are noted below:

• Due to the increasing significance of airborne ISR services, the market is developing.
• The growing demand for unmanned aerial vehicles( UAVs) is a major motorist for the market.
• In the defense sector, manned ISR airplanes are no longer popular.
• Unmanned aerial vehicles are also the current trend in the market.
• Machines, autopilots, ISR platforms, and detectors/sensors are all included in the UAVs.
• UAVs have become necessary tools for ISR operations, and they're in high demand worldwide because they offer low-cost options to countries seeking aerial means for ISR and other tasks.
•  Surveillance and imagery data delivery is made easier by installing aerial ISR systems on unmanned platforms. 
• Unmanned systems integrated with communication antennae help with a variety of vital operations

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The market is expanding swiftly worldwide, projected to continue during the forecast period.

Several investments/guidelines in the industry have been directed in recent years, which would boost the overall market. Some of them are:

• The Government of India has recently enhanced the FDI limit in Defence Sector up to 74% through the Automatic Route for market players looking for new defense industrial licenses and up to 100% by government Route.
• Due to rapid changes globally, the Australian Government is investing a historic $270 billion in Defence spending through the 2020 Defence Strategic Update and Force Structure Plans. This is an extraordinary amount of investment.
• Singapore has recently announced a 2022 defense budget of SGD$16.36 billion (USD$ 12.16 billion), a nominal increase of SGD$ 1 billion or 6.5% over the allocation in 2021.

Segment Analysis

Solution Trends

The market is divided into systems, services, and software. The systems are expected to remain the largest market for airborne ISR in the forecast period. Due to the increasing demand for military spending in various emerging countries. Systems are further subdivided into Targeting and Surveillance Systems, Communication Systems, Reconnaissance and Intelligence Systems, and others.

• Targeting and Surveillance Systems are segmented into Electro-optical infrared (EO/IR), full motion video (FMV), Imagery sensors (multispectral, hyperspectral imaging), Radars, Spectrum systems, LiDAR, and Others.
• Communication Systems are further segmented as Wireless communication devices that help transmit information to command-and-control centers, Datalinks, SATCOM, and Antenna.
• Surveillance and Intelligence Systems are segmented into Signals intelligence (SIGINT) and Reconnaissance, and intelligence systems primarily collect imagery intelligence, signals intelligence, and measurement and signature intelligence. Signals intelligence (SIGINT) is segmented further into Electronic intelligence and Communications intelligence.

Services are segmented further into Managed Service/ISR as a service and Support Service. Moreover, support service keeps ISR systems in optimum condition and ready for missions, Maintenance, Simulation & Training, and Technical support.

Software is segmented into Mission Control Software, SIGINT Software Suite, and Threat Detection Software.

PlatformTrends

The market is bifurcated into Military Aircraft, Military Helicopters, and Unmanned Systems. Military Aircraft is further segmented into Fighter Aircraft, Transport Aircraft, Trainer Aircraft, and Special Mission Aircraft. Unmanned Systems are segmented into Small UAVs, Tactical UAVs, Strategic UAVs, Special Purpose UAVs, and Aerostats. 

The military aircraft segment occupied a significant amount of share in 2022 & is expected to grow at the highest CAGR during the forecast period. Fighter aircraft use various ISR systems like radars to navigate, acquire targets, and engage them, and Transport aircraft are being fitted with modern ISR systems to enhance situational awareness.

Application Trend

The market is segmented as search and rescue operations, border and maritime patrol, target acquisition and tracking, critical infrastructure protection, tactical support, and others. The search and rescue operations segment had the largest market share in 2022 & is likely to grow at a robust CAGR during the forecast period.

End-User Trend

The market is segmented into defense and Homeland Security. The defense segment is further segmented into the Department of Défense, Intelligence Organizations, and Others. The Defense segment accounts for the highest share of the market in 2022 & is estimated to remain dominant during the forecast period.

Regional Insight

North America is likely to maintain its supremacy in the market throughout the forecast period.  Rapid modernization and technological advancements in various sectors have resulted in a high rate of Airborne ISR systems.

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Moreover, rising demand for UAVs for airborne ISR applications, Growing procurement of airborne ISR systems due to growing global and regional instability, Increasing need for missile detection systems, and Increasing preference for modern warfare techniques are some of the major factors for market growth. 

Concurrently, Asia Pacific is expected to witness the fastest growth in the market during the forecast period.  This Asia Pacific region's growth can be attributed to the increasing investments by China, India, and Japan in the defense industry. Globally, China’s defense budget stands second after the US.

Segmentation

This report studies the market covering a period of 12 years of trend and forecast. The report provides detailed insights into the market dynamics to enable informed business decision-making and growth strategy formulation based on the opportunities present in the market.

The market is segmented into the following categories:

By Solution

• Systems
• Software
• Services

By Platform

• Military Aircraft
• Military Helicopters
• Unmanned Systems

By Application

• Search and rescue operations
• Border and maritime patrol
• Target acquisition and tracking
• Critical infrastructure protection
• Tactical support
• Others

By End User

• Défense
• Homeland Security

By Region

• North America
• Europe
• Asia-Pacific
• Rest of the World

Key Players

The following are the major players in the airborne ISR market:

• Thales (France)
• Boeing (US)
• UTC Aerospace Systems (US)
• BAE Systems (UK)
• Northrop Grumman (US)
• General Dynamics (US)
• Elbit Systems Ltd (Israel)
• FLIR Systems Inc (US)
• Raytheon (US)
• Honeywell International (US)
• Lockheed Martin (US)

There is stiff competition in the market. The growth of the companies is directly dependent on industry conditions and government support. These companies differentiate their Airborne ISR based on their quality and penetration in the target and emerging markets. Also, some major mergers and acquisitions in the industry recently have significantly influenced the competitive dynamics. For example:

In June 2022, The US Navy granted Northrop Grumman two contracts to upgrade MQ-4C Triton high-altitude, long-endurance unmanned aerial vehicles with a multi-intelligence collection capability

In March 2021, the US Navy ordered an additional MQ-4C Triton high-altitude, long-endurance unmanned aerial vehicle.

In April 2021, the Israeli Air Force (IAF) announced its new Oron intelligence-gathering aircraft. The Oron is a Gulfstream G550 business jet capable of missions installed in the system over the next two years. This process will be managed by Israel Aerospace Industries (IAI) in collaboration with the Ministry of Defense’s Directorate of Defense Research and Development (DDR&D).

Target Audience

The target audience of the market includes-

• Distributors
• Suppliers
• Manufacturers
• Logistics organizations
• Government bodies

COVID-19 Impact Analysis

The COVID- 19 has swept the world, with numerous sectors trying to stay afloat. As it is a new situation, all governments and businesses involved with ISR react differently. Product launches are pushing forward, though some are not; some are delayed; some tests continue, some companies run, and others have closed. The spread of the COVID- 19 has resulted in disruptions in the supply chain and logistics.

According to the National Association of Manufacturers( NAM), in March 2020, more than 75% of manufacturers expected the COVID-19  pandemic to have a fiscal impact on their businesses. Some key market players in many regions have closed their facilities. The manufacturing sector, which employs around 12.5 million workers in the US, was also impacted by the COVID-19 pandemic.

Research Methodology

This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools.

More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles have been leveraged to gather the data.

We conducted more than 10 detailed primary interviews with the market players across the value chain in all four regions and with industry experts to obtain both qualitative and quantitative insights.

Report Features

This report provides market intelligence in the most comprehensive way. The report structure has been kept such that it offers maximum business value. It provides critical insights into the market dynamics and will enable strategic decision-making for the existing market players as well as those willing to enter the market.

What Deliverables Will You Get in this Report?

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Company Profiling

• Detailed profiling of additional market players (up to three players)
• SWOT analysis of key players (up to three players)

Competitive Benchmarking

Benchmarking of key players on the following parameters: Product portfolio, geographical reach, regional presence, and strategic alliances

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