In a recently published report, TechNavio analysts indicate that the Global Electronic Warfare Market is expected to grow between 2013 and 2018.
While growth is slow, with a CAGR of just 4.11 percent over the projected period, increased tensions and armed conflicts and the related rise in defence budgets will encourage steady growth.
Any military action that involves the use of electromagnetic and directed energy to attack or control the electromagnetic spectrum of opponents constitutes electronic warfare. This can be broadly classified into three segments:
- Electronic support
- Electronic counter
- Electronic counter-counter measures
Electronic support measures detect, analyze, and identify the targets. Electronic counter measures can counter attacks from opponents, while electronic counter-counter measures aid armies in countering the opponents’ counter measures.
EW activities can be anything from intrusion and jamming, to electronic reconnaissance and intelligence to spectrum management. It is used to disrupt enemy electro-optical, infrared and radio frequencies to hamper communications, or allow unimpeded ally access to the EM spectrum.
Armed Conflicts on the Rise
It’s nearly impossible not to be aware of the increasing number of armed conflicts unfolding globally. The defence budgets of China and Russia alone are expected to exceed the overall defence budget of the European Union over the forecast period, with electronic warfare systems accounting for a significant share of said budgets.
An increased threat of terrorism, countries developing nuclear capabilities, and unconventional military threats have led to an increase in the demand for defense products. Electronic warfare systems help restrict the opponent’s use of the electromagnetic spectrum, thereby impeding their movements.
While a rise in cross-border tensions is the obvious reason for an increase in the demand for electronic warfare systems, TechNavio analysts have looked at various other factors behind market growth.
Increased Investments in R&D
Globally, defense departments of various countries are investing heavily in R&D. In an attempt to improve the technology, vendors are developing systems that can help augment the endurance and efficiency of current weapons in unfavorable conditions.
Similarly, there is an increase in the demand for electronic warfare systems that require low maintenance. As more advanced systems become available, the demand for them increases further, thus driving market growth.
Increase in Civil Wars
It’s not just cross-border tensions that are driving up demand for electronic warfare. An increase in the number of civil wars in the world is another factor driving the growth of the market.
Market Consolidation
The Global Electronic Warfare Market is highly fragmented with the presence of many established manufacturers and a significant number of small and medium-sized enterprises. Established companies are trying to acquire small electronic warfare system providers to increase their market share and geographical presence. Some key vendors in the Electronic Warfare Market are:
- BAE Systems plc
- L-3 Communications Holdings Inc.
- Raytheon Co.
- Saab AB
- Teledyne Defence Ltd.
