Man-portable Military Electronics Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The man-portable military electronics market is expected to register a CAGR of over 4.5% during the forecast period (2022-2027).

The outbreak of COVID-19 and the subsequent shutdowns have affected the defense manufacturing sector in several countries. The negative impacts of the pandemic are clearly visible in the global defense supply chains, as several programs rely upon a unique global network of part suppliers. Though governments and defense companies have been trying their best to avoid disruptions by allowing industrial production to work, the increasing scale of the pandemic may affect the industry.

Growing territorial surveillance and increasing military spending by nations across the world have been enabling the respective armies to procure advanced man-portable military electronic systems for enhancing their land-based warfare capabilities. These trends are expected to help the market during the forecast period.

The emphasis on the modernization of soldiers has been growing in various countries. As a part of enhancing the soldier systems, the countries are collaborating with defense manufacturers to develop exoskeleton technologies. In addition to exoskeleton technologies, the armed forces are also testing military textiles that are embedded with advanced flexible integrated circuits and sensors for the transfer of data with command centers. Such advancements in micro-electronics technology are anticipated to provide growth opportunities for the market in the years to come.

Key Market Trends

Communication Segment has Largest Share in the 2021

The communication segment currently dominates the market and is expected to continue its dominance over the market during the forecast period. The growth of the segment is due to the robust growth in investments towards the modernization of communication systems with the replacement of aging combat net radios with new and advanced software-defined radios (SDRs) that offer significant technological improvements and maximize the operational effectiveness of the armed forces. Due to their advantages, many armed forces like the US Armed Forces, the Finnish Defense Forces (FDF), Estonian Defence Forces (EDF), and the Austrian Armed Forces, among others, have inducted the SDR technologies for dismounted military personnel. The US Army began the deployment of ORION radio systems of Ultra Electronics as a part of an indefinite award/indefinite-quantity (IDIQ) contract worth USD 497 million provided to the company in 2019. The contract was provided under the TRILOS Radio Program of the US Army. The company has delivered over 500 ORION radio systems since the program's inception. Such procurements programs to enhance the data transfer technologies between infantry personnel and command and centers and other platforms are anticipated to accelerate the growth of the market during the forecast period.

Asia-Pacific Expected to Register the Highest Growth During the Forecast Period

By region, the growth of the Asia-Pacific market is anticipated to be higher during the forecast period. The robust growth in military spending of the countries like China, India, and Japan, among others, due to the ongoing geopolitical tensions and border tensions, has led to rapid investments in procurement and modernization of man-portable equipment that will enhance situational awareness and combat capabilities of the military personnel. The local companies in the region are investing in the integration of advanced electronic sensors into the body armored and clothing that can monitor and regulate the temperatures, monitor the health of the soldiers, and increase the threat detection capabilities. The Indian Institute of Technology and the Defense Research and Development Organization (DRDO) have partnered for the development of a smart and relatively cheaper jacket for soldiers with integrated interconnects, antennas, sensors, and chips. It is being developed at IIT-D’s Joint Advanced Technology Centre (JATC), set up by DRDO. The jacket will be developed in three phases. Features like signal processing chips, chemical sensors, and communication chips will help the soldiers in mobility, threat detection, and communication. Sich investments are anticipated to boost the growth of the market in the coming years.

Competitive Landscape

The market for man-portable military electronics is highly fragmented, with a few manufacturers accounting for a significant share of the market. Some of the prominent players in the man-portable military electronics market are General Dynamics Corporation, Thales Group, Collins Aerospace (Raytheon Technologies Corporation), L3Harris Technologies, Inc., and ASELSAN AS. In addition to international players, there are several local players in the market that cater to the requirements of local armed forces. For instance, in September 2021, Theon Sensors was awarded a contract by the UK Ministry of Defence (MoD) to deliver Thermis CS thermal imaging systems under Sniper In-Line Low Light System (SILLS) - Long Wave InfraRed (LWIR) Thermal Sight “Weapon Sight 2” program. Under the contract, the company will deliver 500 units of Thermis CS imaging systems, and the delivery of the imaging systems is expected to be completed by the end of 2022. Furthermore, the local companies are partnering with international players to expand their portfolio with new electronic equipment. Such partnerships, as well as investments towards the development of new miniature electronics, are anticipated to support the companies increase their market share in the market.

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