Overview of the global cluster munitions market
Technavio’s market research analysts predict the global cluster munitions market to grow at a CAGR of around 2% between 2016 and 2020. Factors such as the increased risk of extremism, the emergence of countries with nuclear capabilities, and unconventional military threats have increased the use of cluster munitions globally. These munitions have the potential to destroy the supplies and military infrastructure of rebel combatants to neutralize their strength. A major advantage of cluster munitions is that they can be used over regions, which are densely populated with extremists and radicals. As these cluster munitions can be launched from a fighter aircraft and have an effect over a larger area than ICBMs or the SLBMs, these cluster bombs are cost-effective to use within the defense industry.
As per the industry experts at Technavio, one of the latest trends gaining traction in the market is the growing prominence of Alternative Warhead Program (AWP). Recently, Orbital ATK has signed a contract with the US Army for the development and provision of Guided Multiple Launch Rocket System (GMLRS) Alternative Warhead to replace the regulated cluster bombs. These alternative warheads are an advanced version of cluster munitions which aims at the complete elimination of unexploded ordnances. These advanced guided weapons have no long-term threat as cluster munitions and do not restrict the movement of soldiers.
Competitive landscape and key vendors
Characterized by the extreme competition, vendors in the global cluster munitions market compete on the
Overview of the global multiple integrated laser engagement system (MILES) market
According to Technavio’s market research analysis, the global multiple integrated laser engagement system (MILES) market is anticipated to grow at a CAGR of around 8% during the forecast period. By 2020, live training or tactical engagement simulation (TES) systems will be the most used training type in defense systems. As the use of realistic weapons in training can prove fatal and life-threatening, there is application of artificial and close-to-reality equipment for the soldiers to experience the realistic battlefield atmosphere. The weapons are substituted with lasers and laser detectors for live ammunition, which enables realistic force-on-force training. Such devices also help analyze the performance of the soldiers. The use of MILES in live trainings enhances the comprehensive training skills, improves situational awareness and joint decision-making processes in a shorter timeframe. Such training systems are very similar to the laser detectors, which reduces the expenditure on external training.
At present, soldiers are being trained using a laser-based technology for combat operations. However, the latest technological advancements in MILES include more sophisticated combat systems which provide instant data on soldier performance. Constant R&D has led to the development of
Overview of the global advanced combat helmet (ACH) market
Technavio’s market research analyst predicts the global advanced combat helmet (ACH) market to grow at a CAGR of almost 4% by 2020. Increased warfare, armed conflicts, cross-border tensions, and conflicts between countries are propelling the demand for ballistic protection equipment such as ACH and lightweight advanced combat helmets (LW-ACH). The market is also witnessing an increased demand for protective fabric in these ballistic helmets, which can be used against cut wounds. Growing concerns about the combatant's protection have compelled several manufacturers to focus on the development of breathable and fireproof army helmets that can protect the wearer from slash-type attacks. These army helmets are also compatible with the current night vision goggles (NVG), communications packages, nuclear, biological, and chemical (NBC) defense equipment, and body armor.
The manufacturers are shifting toward the usage of advanced, strong, and lightweight materials such as aramid fibers, titanium, aluminum, ceramic, and polymer to reduce weight and increase the strength of the armor system. Such light-weight materials enhance mobility and flexibility of ACH and provide effective protection. At present, the UN and NATO peacekeeping troops are using ceramic-plated armor vehicles to protect themselves against mines, direct fire, artillery, and mortar shrapnel.
Competitive landscape and key vendors
This market is highly competitive, and the vendors compete on the basis of cost, product quality, reliability, and aftersales service to gain traction. To sustain themselves in the market, vendors are offering cost-effective and high-quality lightweight material helmets to the end users. Mergers and acquisitions coupled with increased collaboration with alliance
Overview of the global short-range air-defence (SHORAD) missile system market
Technavio’s market research analyst predicts the global short-range air-defence (SHORAD) missile system market to grow at a CAGR of more than 3% by 2020. In the recent years, there has been huge surge in the number of armed conflicts globally. Such disputes and hostilities across borders and between countries, along with the rapid development of missiles have prompted nations to focus on their defensive strategies, which has led to the increase in demand for short-range air defense missile systems. SHORAD missile systems are advanced missiles that are capable of long-distance operations and can travel around to hit targets. One of the latest developments in this market is the growing use of command, control, communications, computers, intelligence, surveillance, and reconnaissance (C4ISR). The growing applications of electro optic systems in surveillance operations has augmented the demand for C4ISR electro optic systems in air defense missile systems. These systems are effective in tracking stealth aircraft and low-observable missiles. The C4ISR provides intelligence to short-range missiles that have ultra-high frequency (UHF) surveillance radar capable of targeting from a long-range detection to a near-range detection.
Owing to the high-risk factor associated with the traditional radar systems, the manufacturers in the market are developing high-tech radar technologies to meet the future military requirements. Such radars are sited near the hostile territory and as the missile launches, they acquire it in the ascent phase of flight. These advanced radar systems track and identify the potential threat, and pass this critical information to the decision makers in the command and control battle management network
Overview of the global multiple launch rocket systems (MLRS) market
Technavio’s market research analyst predicts the global multiple launch rocket systems (MLRS) market to grow moderately at a CAGR of more than 3% between 2016 and 2020. With the constantly changing warfare strategies coupled with the rising security threats especially at the borders, most of the countries across the globe are highly focusing on the procurement of MLRS. MLRS is not only cost-effective compared with other artillery systems but also has features such as high precision and accuracy in striking targets, incurs low collateral damage in urban areas, and requires low maintenance. MLRS has wide implementation by armies of the US, the UK, Greece, Germany, Norway, Denmark, Netherlands, France, Italy, and Turkey. These nations constantly look for innovations and modifications by altering their tactical parameter such as operational range to improve their defense and strike capabilities. The growing need to increase the maximum range of fire, accuracy, and target range with various warheads is driving the demand for modernization in the MLRS market. Governments of countries across the world have initiated several modernization programs to improve these tactical parameters, resulting in positive growth of the market during the forecast period.
One of the latest trends that this market is witnessing is the growing focus towards the development of long-range MLRS. At present, several prime defense contractors are aiming to manufacture long-range MLRS for effective and improved guidance that enables rockets to strike targets up to a distance of 120 miles. For instance, the Indian Army is developing a new long-range MLRS, which is expected to have newly-designed
Overview of the global smoke grenade market
Technavio’s market research analyst predicts the global smoke grenade market to grow moderately over the predicted period, posting a growth rate of around 7%. One of the primary factors contributing to the growth of this market is the increasing utilization of smoke grenades in riot controls in many countries across the globe. The low-cost and easy availability of these grenades is one of the primary incentives for the law enforcement agencies to procure and use them in various countermeasure operations. Smoke grenades are less lethal and are capable of providing superior tactical advantages over conventional lethal weapons in riot control operations. Also, these are quite effective in combating the effects of laser-based weapons. The smokescreen created by smoke grenades can efficiently deter the threats of existing laser-based weapons.
According to this market study, one of the latest trends gaining traction in this market is the emergence of handheld multi shot grenade launchers. The use of non-lethal or less-lethal smoke grenade launchers has become quite essential in the recent years. Technological advancements in the market have led to the development of new generation non-lethal handheld grenade launchers for military and police forces. Several companies in the market are making investments in technologies that develop effective and lightweight grenade launch systems that can be used for both firepower and non-lethal applications. Owing to the growing concerns over safety measures, vendors in the market are using eco-friendly agents in the manufacture of smoke grenades to reduce the risk of toxic contamination.
Competitive landscape and key vendors
To sustain themselves in the market
The defense industry is involved in the research and development, design, and production of military materials, equipment, and facilities. The industry can be divided into two major segments: defense contractors and the arms industry.
Defense contractors are the organizations that provide products and services to military departments and governments. The arms industry produces guns, ammunition, military aircraft, and associated products.
Ongoing budget cuts and funding constraints are expected to be a major challenge for the defense industry over the next couple of years. Several major defense programs have been cancelled and new platforms lack funding support from customers.
Global revenues in the defense sector will likely continue to decrease in 2015 at an estimated rate of 1.3%. This will be offset by greater defense spending in the United Arab Emirates, India, Russia, Japan, and South Korea, as these countries work to equip their militaries with modern defense platforms and technologies.
The world’s biggest defense contractors include BAE Systems, Boeing Defense, General Dynamics, Lockheed Martin, Northrop Grumman, and Raytheon.