INDUSTRY REPORT
U . S . Navy sheet-metal operations .
On 21 June 2023 , the U . S . Department of Defence showcased more than 80 technologies critical to national defence during a demonstration event at the Pentagon
services . The air-based defence equipment MRO services market was the largest segment segmented by type , accounting for 25.2 % of the total in 2021 .
“ The air-based defence equipment MRO services market is expected to be the fastest growing segment in the defence equipment maintenance , repair and overhauling services market segmented by type , at a CAGR of 7.5 % during 2021-2026 ,” explained the analyst .
The defence support and auxiliary equipment market is further segmented by type into military radars , military satellites and other defence support and auxiliary equipment . The military satellites market was the largest segment of the defence support and auxiliary equipment market segmented by type , accounting for 29.3 % of the total in 2021 .
“ The military radar market is expected to be the fastest growing segment in the defence support and auxiliary equipment market segmented by type , at a CAGR of 8.2 % during 2021-2026 ,” added the analyst .
The defence market is also segmented by operation into autonomous defence equipment and manual . According to The Business Research Company , the manual market was the largest segment of the defence market segmented by operation , accounting for 89.3 % of the total in 2021 . “ However , going forward , we expect the autonomous defence equipment market to be the fastest growing segment in the defence market segmented by operation , at a CAGR of 8.0 % during 2021-2026 ,” outlined the analyst .
The defence market can also be segmented by platform into airborne , land and naval . The airborne market was the largest segment of the
M109A7 tank ( image : BAE Systems ).
THAAD weapon system ( image : Lockheed Martin ). defence market segmented by platform , accounting for 52.3 % of the total in 2021 . The Business Research Company expects the airborne market to be the fastest growing segment in the defence market segmented by platform , at a CAGR of 8.1 % during 2021-2026 .
Trends , opportunities and strategies
“ Asia Pacific was the largest region in the defence market , accounting for 33.6 % of the total in 2021 . It was followed by North America , Western Europe and then the other regions . The fastest growing regions in the defence market will be North and South America where growth will be at CAGRs of 8.9 % and 8.0 %, respectively . These will be followed by Asia Pacific and Africa where the markets are expected to grow at CAGRs of 7.9 % and 7.7 %, respectively ,” continued the analyst .
“ Market trend-based strategies for the defence market include the adoption of unmanned combat vehicles ; innovative new military avionics upgrade programmes ; augmented and virtual reality ; edge computing in defence ; the use of 3D printing technology ; strategic mergers and acquisitions ; the use of artificial intelligence ( AI ) in defence equipment ( drones , helicopters and others ); design upgrades and modularity for military-style weapons ; and day / night decamouflage technology for light weapons ,” it added .
Player-adopted strategies in the defence market include a focus on enhancing business by forming long-term contracts to provide services for critical missions ; strategic investments in aligned businesses for future growth and an expansion of product portfolios by developing new products and investing in modern warfare and missile technologies .
The U . S . Defence Department has prioritised five areas important to national defence where supply lines are challenged . Those include castings and forgings ; missiles and munitions ; energy storage and batteries ; strategic and critical materials ; and microelectronics .
24 | ismr . net | ISMR July / August 2023