08 September 2020
Visiongain has published a new report on Maritime Reconnaissance and Surveillance Technology Market Report : Forecasts by Component (Hardware (Radar, AIS Receiver, Sensors, Camera, Sonobuoys/Sonar, Others), Software, Services (Integration and Implementation, Manage Services/Maintenance, Training and Consulting)), by Platform (Airborne (Unmanned Aerial Vehicle, Maritime Patrol Aircraft (MPA), Aerostat), Surface Ships, Under Water Vehicle (Submarine, Underwater Drones)), by Region (North America, Europe, Asia Pacific, Rest of the World). PLUS COVID-19 Recovery Scenarios and Profiles of Leading Maritime Reconnaissance and Surveillance Technology Companies.
Global Maritime Reconnaissance and Surveillance Technology Market was valued at US$ xx billion in 2019 and is projected to reach a market value of US$ xx billion by 2030. The adoption of Maritime Reconnaissance and Surveillance Technology is expected to increase significantly due to the increasing maritime conflicts among the countries, piracy and terrorism, and the presence of high-value commercial assets in oceans. Moreover, increased security concerns and a rise in international trade through sea are further anticipated to fuel the market growth. Also, the increasing adoption of Unmanned Aerial Vehicles (UAVs), advanced patrol boats, and Maritime Patrol Aircraft (MPAs) to enhance maritime security by various countries, is expected to boost the market growth of maritime reconnaissance and surveillance solutions, which are installed in these platforms. However, a decrease in military spending due to economic slowdown followed by the COVID-19 pandemic, restriction on the sale of sophisticated equipment and technologies to limited partner nations are some of the major restraining factors of this market.
COVID-19 Impact on Maritime Reconnaissance and Surveillance Technology Market
The COVID-19 pandemic has forced governments to increase their spending on public health and the country’s healthcare infrastructure. Also, the emphasis had to be given on supporting the economy by pumping in funds and thereby creating liquidity to generate demand. This has shifted its priority away from defence expenditure. Rapidly decreasing GDP due to lockdowns and the unpreventable decline in tax receipts to the country’s treasuries have encouraged the governments to look at large military budgets as an easy source of cash to help pay for the pandemic recovery measures. Some of the Asian countries such as India and Thailand were the first to announce the reduction in defence expenditure due to the COVID-19 crisis. India has retained 15-20% funds of the full year’s budget, earmarked for its Defence Ministry in the first quarter. Thailand’s overall' reduction is about 7.8% from its overall defence budget as its economy shrinks by 5.3% in 2020. The South Korean government plans to cut around $245 million from the country’s 2020 defence budget as its economy is anticipated to shrink by around 1.2% for 2020. The U.S defence budgets are also likely to decline over the next couple of years. This significant reduction in the defence spending around the world is having an adverse impact on the maritime reconnaissance and surveillance technology market.
Increasing maritime conflict among the countries
The increasing maritime conflicts among the countries such as the U.S., China, Iran, and Japan among others are strongly driving the demand for the maritime reconnaissance and surveillance technology market. These countries are investing heavily in the procurement and development of advanced surveillance equipment, boosting the demand for surveillance and reconnaissance technologies. Surveillance activities are also ramped up using maritime patrol aircraft, ships, underwater vehicles such as submarines, underwater drones, etc. China has adopted artificial island-building in the Spratly Islands and the Paracel Islands regions, which has met with a wide international condemnation among the U.S and other countries such as France and the United Kingdom.
Maritime piracy and terrorism
Maritime piracy is one of the biggest threats plaguing international maritime navigation and trade. Some areas such as the Gulf of Aden and the Indian Ocean are considered as the high-risk areas in terms of piracy. To counter such illegal activities, the International Maritime Organization (IMO) has started focusing on implementing strategies for the enhancement of maritime surveillance in these areas. IMO, through the years has adopted and developed several antipiracy measures, which in turn have contributed towards the growth of the reconnaissance and surveillance technologies market.
Also, sea-borne terrorism has immerged as a major security threat in littoral-Asia. In November 2008 attack on Mumbai, India, 10 Pakistan based terrorists invaded the city from the sea, killing 166 people and injuring over 300. This attack had shocked the entire world as many foreign nationals were also targeted along with the Indians. Since then, the surveillance and reconnaissance activities have been beefed up in the coastal areas to prevent another attack from the sea.
Discovery of new oil and gas reserves in the ocean
In the year 2018, the oil and gas exploration rose by 20 percent globally. During this year, there were one of the largest oil discoveries on the coast of Guyana on the Stabroek block by ExxonMobil. The Gulf of Mexico remains productive with its two oil discoveries namely Ballymore and Dover on Appomattox. Similarly, there were many more such big discoveries made in the year 2018.
On July 16, 2016, a joint operation by India and the U.S, discovered a major natural gas reserve in the Indian Ocean. In 2019, China National Petroleum Corporation (CNPC) had discovered new petroleum and gas reserves in northwest China.
As the discovery of oil and gas reserves increases, the countries would start investing heavily in the procurement and development of advanced surveillance equipment, creating further demand for surveillance and reconnaissance technologies.
The top three players in the Maritime Reconnaissance and Surveillance Technology Market are Boeing, Raytheon, and Thales. In May 2020, The Boeing Company secured U.S navy contracts for Cruise Missile Systems with a combined value of $3.1 billion. The contracts were for Harpoon and Standoff Land Attack Missile Expanded Response or SLAM-ER weapon systems in support of Foreign Military Sales or FMS. Also, in March 2020, The Boeing Company received an order for six Boeing P-8 maritime patrol and reconnaissance jets from South Korea in the latest US navy production order. Further, in October 2019, Raytheon Technologies Corporation delivered its first laser counter system to the US air force. Moreover, in May 2020, SF airlines selected Thales and ACSS as the exclusive Avionics suppliers to retrofit its Fleet with ADS-B out-complaint airborne equipment. ADS-B (Automatic Dependent Surveillance-Broadcast) technology is aiming at rapidly improving air traffic efficiency and capacity. In February 2020, the Federal Aviation Administration selected Thales secondary radar technology for the Mode S Beacon replacement system contract under which the company supplies up to 142 secondary surveillance radars to support Air Traffic Control management.
Companies profiled in the report include Boeing, Kongsberg Gruppen, Raytheon Technologies, Indra Sistemas, Rheinmetall Air Defence, SAAB, Thales SA, Terma, and Elbit Systems.
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