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The global electronic warfare market size was USD 22.50 billion in 2020. The global impact of COVID-19 has been unprecedented and staggering, with electronic warfare witnessing a negative demand shock across all regions amid the pandemic. Based on our analysis, the market will exhibit a decline of 15.09% in 2020. The market is projected to grow from USD 23.45 billion in 2021 to USD 33.52 billion by 2028 at a CAGR of 5.24% in the 2021-2028 period. The sudden rise in CAGR is attributable to this market’s demand and growth returning to pre-pandemic levels once the pandemic is over.
Electronic warfare (EW) is a military operation that uses the electromagnetic spectrum to sense and communicate with the radio, radar, or infrared signals and block enemy attacks. At present, the militaries are dependent on the electromagnetic spectrum to communicate and conduct their operations. The constantly developing electronic support measure (ESM) technology has led to the integration of advanced technologies for several military applications. Technological developments in the electromagnetic spectrum are anticipated to propel market growth. The global EW market is expected to grow rapidly during the forecast period, and this growth can be attributed to factors such as technological advancements in the electromagnetic spectrum, rising geopolitical conflicts and terrorist activities, and rising usage of UAVs for military purposes.
COVID-19 Outbreak to Negatively Impact the Electronic Warfare Market Growth Owing to Reduction in Defense Budgets and Supply Chain Disruptions
The covid-19 pandemic has led to the devastating economic condition of various emerging countries such as India and developed countries such as the U.S. and others. Several governments have limited their defense spending and diverted it towards healthcare facilities of the nation. According to our study, the ministry of defense will cover payments only for existing contracts that are already under execution, leaving no scope for new procurement.
Moreover, the defense industry continues to operate despite the global crisis. The U.S. Department of Defense (DoD) continues to buy products, issue contracts, and accelerate payments to help small and large businesses. However, the production rate of tier three and tier four suppliers has slowed down as the workforce has been substantially reduced due to COVID-19, which has delayed the delivery of purchased equipment. The reduced operations have led to delay in programs, which is negatively impacting the market growth.
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Embracing Cyber Electronic Warfare Technology is a Prominent Trend
The military operations are dependent upon electronic and cyber warfare, information operations, and signals intelligence. These are set to dominate the characteristics of the electromagnetic spectrum. The emerging trend in the market is combining the capabilities of electronic & cyber warfare, information operations, & signal intelligence for both offensive and defensive purposes. The new conception of cyber-EW can cover a broad range of the electromagnetic environment and cyberspace. Electronic and cyber warfare convergence seamlessly enables the warfighters to gain a strong defense and attack capacity. Due to the political conflicts and wars among the rival countries, it has become important to study the electronic and cyber threats to build an effective offense and defense. The rising adoption of cyber systems is expected to create a shift in warfighting methods. Moreover, the path of technological advancement in the field is boundless. Hence, the new generations of the equipment will be developed rapidly.
Increasing Conflicts and Disputes Among Countries to Fuel Growth
It has been observed that a rise in the cross-border conflicts in Asia Pacific has increased owing to the close boundaries of countries, due to which border attacks have increased in the India-Pakistan border and India-China border. Moreover, the rising war threats from North Korea have led all the countries across the globe to strengthen their defense system. EW's adoption has become necessary for these countries to strengthen and modernize their defense and attack capabilities.
However, the deployment and up-gradation of this technology are costly, which has led the countries to increase their defense budget, which is expected to fuel the market's growth. The increasing defense budget, especially for research & development (R&D) and procurement of the systems, has been observed in several countries.
The market is expected to grow promptly during the forecast period. This growth is due to the increasing demand for electronic warfare from various countries, owing to the high international border tension.
Rising Adoption of Electronic Warfare in UAV Platforms to Boost Growth
The use of unmanned aerial vehicles (UAVs) in the military has increased over the past few years for surveillance, imagery mapping, and monitoring combat operations. However, integrating EW information with imagery or surveillance data can provide more data about situational awareness, which is one of the key factors for the growth of the market. For instance, a radar warning receiver is used in the UAV to provide advanced threat warnings. Thus, most of the countries and prominent industry players are investing to exploit this synergistic relationship between the UAVs and EW, which is driving the growth of the market.
The market is expected to grow during the forecast period due to an increase in the usage of electronic warfare technology in the UAV platforms, which can be attributed to the technological enhancement in defense systems.
High Budget Involved in Deployment of EW Systems to Hinder Growth
Electronic warfare makes the process of modern warfare more user-friendly and effective. However, the cost of such a system is huge, owing to the complexity of the design and development of the system. Most of the developing countries prefer conventional warfare systems rather than EW systems due to their high cost, which is further expected to hamper the growth of the market. The development, integration of systems across the platforms, and maintenance of these systems are very expensive, and hence, the market growth is anticipated to be affected.
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Electronic Support Segment to Grow at Higher CAGR Owing to Their Increasing Demand
Based on domain, the market is divided into electronic attack, electronic protection, and electronic support.
The electronic support segment is expected to grow at a higher CAGR during the forecast period, owing to the rising demand for intelligence, surveillance, and reconnaissance equipment & techniques by the global defense sector.
The electronic protection and electronic attack segments are also expected to show significant growth throughout the forecast period due to the rising terrorist activities and political tension in Asia Pacific.
Jammers & Radar Warning Receiver Segments to Grow Rapidly Backed by their Rising Procurement
Based on equipment, the market is classified into jammers, antennas, radar warning receivers, directed energy weapons, anti-radiation missiles, countermeasure dispenser system (CMDS), directional infrared countermeasures (DIRCM), self-protection suite, and others.
The jammers and radar warning receivers are equipped with electronic support, electronic attack, and electronic protection systems. A rise in the procurement of EW systems for the naval, military base, and airborne ISR operations are expected to drive these segments' growth.
Rising Defense Budget Expected to Create Demand for EW
Based on platform, the EW market 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. The sea-based segment is further divided into ships and submarines. The air-based platform is anticipated to be the fastest-growing segment during the forecast period due to the increasing procurement of combat aircraft and UAVs by various countries' defense sectors.
The land-based segment is predicted to grow owing to the rising military spending on enhancing the defense capabilities at the borders to combat terrorist attacks.
North America Electronic Warfare Market Size, 2020 (USD Billion)
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North America EW market is projected to be the largest region in 2020 owing to the high investments by the U.S. Department of Defense (DoD) in the expansion of EW systems. The U.S. DoD is expected to invest USD 25.8 billion in research, development, test, and evaluation (RDT&E) and USD 27.8 billion in procurement throughout the defense program. Moreover, the market in the region is anticipated to grow due to factors such as territorial disputes, political disputes, and increased terrorism.
Followed by North America, Europe is expected to be the second-largest region due to a rise in investments in EW systems' procurement and development. Additionally, some of the key market players such as Thales Group, BAE Systems, and Saab AB in the region are anticipated to fuel the growth of the market.
Asia-Pacific is predicted to be the fastest-growing region during the forecast period due to the rapid growth in investments in countries such as China and India to develop technologically advanced systems and enhance their warfighting capabilities.
China is focusing on the modernization of its forces and building powerful air bases and naval fleets.
China increased its defense budget by 6.6% to USD 179 billion in 2020, which is anticipated to aid the market growth.
Recently, the emerging conflicts between China and the U.S. have led the countries to strengthen their defense.
Northrop Grumman Corporation Is a Leader in Providing EW Solutions & Plans to Reinforce its Position
Northrop Grumman Corporation is focused on developing advanced technologies in the air, at sea, and on land to control the electromagnetic spectrum and develops disruptive technologies to outdo the enemy threats. Moreover, a strong relationship with the U.S. Government strengthens the company’s position in the market.
Other key players such as Lockheed Martin Corporation, Thales Group, and others implement strategies such as agreement, mergers, partnerships, and others to maintain their leading position in the EW market.
An Infographic Representation of Electronic Warfare Market
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The global electronic warfare market report provides a detailed analysis of the market and focuses on key aspects such as leading defense companies, EW product types, and leading defense applications. Moreover, the report offers insights into the market trends and highlights key industry developments. In addition to the factors mentioned above, the EW market report encompasses several direct and indirect factors that have contributed to the growth of the market over recent years.
Value (USD billion)
Fortune Business Insights says that the global market size was USD 22.50 billion in 2020 and is projected to reach USD 33.52 billion by 2028.
Registering a CAGR of 5.24%, the market will exhibit steady growth in the forecast period (2021-2028).
The electronic support segment is expected to be the leading segment in this market during the forecast period.
Northrop Grumman Corporation is the leading player in the global market.
North America dominated the market in terms of share in 2020.
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