Soldier Modernization Market Growth Analysis

Market Insights

The Soldier Modernization Market was estimated at US$ 13.8 billion in 2021 and is expected to grow at a CAGR of 3.4% during 2022-2028 to reach US$ 17.5 billion in 2028.

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What is soldier modernization?

Soldier modernization is the process in which the upgradation of various army weapons, advanced systems, and safety measures are taken to protect the lives of soldiers by overcoming potential threats on the battlefield. Some of the top priority protections include long-range precision fires, air and missile defence, combat gear, and soldier lethality army network, among many others. The increasing concern for protecting and safeguarding soldiers has led to an increase in the global soldier modernization market. Modern warfare is facing numerous difficulties in complex combat scenarios, including asymmetric conflicts, urban warfare, and peacekeeping operations. Primarily due to this, the soldiers are facing several threats including attacks from rocket-propelled grenades, IEDs, and arms fire. This has in turn inclined the trends towards the usage of lighter systems and portable electronics.

Market Dynamics

Over the past few years, the government has started taking initiatives in increasing the amount of army, military, navy, and air force spending owing to factors such as increasing terrorism and rising border conflicts which are thereby increasing the global soldier modernization market. The continuously increasing demand for the upgradation of systems for missions and operations due to the increasing conflicts and civil wars among the nations is also contributing to the market growth. Various companies are investing in the research and development department for better advancement of soldier systems. However, the COVID-19 pandemic has affected the growth of the sector in several manners. Most of the government decisions and processes have been slowed down. Furthermore, there has been disruption in the supply chain across the world due to the lockdown in various countries. This has in turn resulted in the delayed delivery of the manufactured products. The transportation of the equipment to the military departments has even been halted. This has in turn led to a massive economic loss. However, the upcoming programs and investments in the sector are growing to propel the market in the coming years.

With the ongoing battles, the soldiers are required to cater to at least some functional requirements, namely, survivability, sustainment, lethality, command and control, and mobility. The investment is being made to increase the protection of soldiers and have a tactical advantage by decreasing the number of troop causalities. The United States Army is planning to implement enhanced protection systems for the soldiers working under the Integrated Head Protection System (IHPS). In 2021, Avon Protection procured a control worth USD 87.6 million for developing and delivering IHPS directly to the US Army for nearly two years. The implementation of IHPS is an integral part of the Soldier Protection System (SPS) program which further includes the Torso and Extremity Protection (TEP) and Vital Torso Protection (VTP). The program aims to provide advanced and protective armed equipment to the soldiers.

Several investments in the army, navy, and air force industry have been directed at soldier modernization in recent years, which would boost the overall market. Some of them are:

• In May 2022, a contract has been signed between Iraq's Ministry of Defence with France and the United States to acquire advanced weapons and strengthen their artillery systems.
• In November 2019, the US Army Intelligence and Security Command (INSCOM) signed a contract with BAE Systems for 100 million to acquire some functional support, technical support, and maintenance for the 16th Military Intelligence Brigade (MIB).

Segments Analysis

By Type

The market is bifurcated into weaponry and ammunition, communication, C5ISR, protection, mobility, lethality, and others. Among these, the weaponry and ammunition segment is expected to continue dominating the market with the largest market share in 2021 owing to the increasing demand of modernizing legacy systems and increasing awareness among the military industries for increasing the manufacturing of smart military equipment such as sensors and wearables. Apart from this, the C5ISR segment will register the fastest growth in the coming years due to the increased use of C5ISR in military operations.

By Platform Type

The market is segmented as, airborne, naval, and land. The airborne segment will have the highest CAGR in 2021, with the increasing investment in various countries such as India and China for modernizing aircraft. The UK Royal Navy is increasing the demand for revolutionizing naval ships and increasing the production of these ships which will thereby increase the naval segment of the global soldier modernization market.

Regional Analysis

In terms of regions, North America is likely to maintain its supremacy in the global soldier modernization market throughout the forecast period. Furthermore, the Asia-Pacific region is expected to register the highest CAGR in the coming years. Some of the highest defence spenders are countries such as India, South Korea, Japan, and China. China has been actively working on manufacturing and technological advancement in order to bring innovation and application of soldier modernization programs. Recently, China has come up with a new invention of a military-use exoskeleton suit which is being charged up and could be used to lift ammunition. On the contrary, the Indian government has started taking initiatives in various procurement programs in the last few years in order to strengthen the abilities of frontline military personnel. Such developments will further propel the Asia-Pacific region to register the fastest growth during the forecast period. The Middle East and Africa region is anticipated to grow at a steady rate. Several factors including the rise in the defence budget in the region are contributing to the growth of soldier modernization.

Key Players

There is stiff competition in the global soldier modernization market. The market is highly fragmented with the presence of prominent companies in the global modernization market. Various companies have entered into long-term partnerships with other companies of armed forces for the upgradation of weapons and systems to protect the soldiers. The companies are also coming up with new soldier modernization plans and are further increasing the spending on the research and development department.

• In December 2021, the XTRAIM weapon sight was launched by Thales which provides day and night visual capabilities. The weapon can be equipped with shoulder-fired assault rifles (HK416) and light machine guns (Minimi).

The overall competitive landscape has been affected due to these key developments. The following are the major players in the soldier modernization market:

• Remington Arms Company, LLC
• BAE Systems plc
• Elbit Systems Ltd.
• Leonardo S.p.A.
• Thales Group
• L3Harris Technologies Inc.
• Teledyne Technologies Incorporated

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 15 detailed primary interviews with the market players across the value chain in all four regions and 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.

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