Identification Friend or Foe Systems Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The identification friend or foe systems market is anticipated to witness a CAGR of more than 6% during the forecast period.

Key Highlights

• As security threats escalate, the countries are compelled to safeguard their territories from potential adversaries at any cost, due to which, the emphasis has increased on enhancing their defense capabilities. The growing instances of asymmetric warfare and the emphasis on developing advanced warfare systems are the main drivers for the market.
• The market is expected to grow, primarily due to the increasing defense expenditures that facilitate both procurement and R&D in newer technologies. However, this growth is subjective to several associative factors, such as allocation of funds, which can be adversely affected due to the projected onset of an economic turndown and various technical factors that may eventually lead to the program delays and cancellations.

Key Market Trends

Network Centric Warfare Techniques Driving the Development of Multi-mode IFF Systems

• Besides compressing the time dimension, the information age makes distance less relevant, leading to a significant decrease in the cycle time of information gathering, analysis, and decision making. Network-centric warfare was devised by the US military during the 1990s and required the thorough integration of sensors, communication networks, command centers, and associated platforms to achieve complete situational awareness and perfect synchronization between sensors and responders in a fast-paced mobile environment.
• Although gathering information enhances intelligence, it must aid in understanding and decision making. The focus of NCW is the assimilation of minimum information that needs to be exchanged, effective ways to capture that information and best portray it into actionable intelligence. Through its BlueGate family solutions, Thales proposes a wide range of IFF products that are fully compliant with the latest standards, such as Mode 5 Stanag 4193 ed 3 and mode S Amendment 85, and addresses all IFF needs, including air defense systems.
• The Centre for Airborne Systems (CABS) has also released an indigenous version of IFF systems for the Indian Armed Forces. The release of such systems with advanced features may subsequently drive the adoption of IFF systems globally, thereby, driving the market in focus during the forecast period.

North America to Dominate the Market During the Forecast Period

• The United States and Canada are currently focusing on upgrading its existing military fleet and their corresponding capabilities. The US’ FY2020 defense budget prioritizes the modernization of military systems to compete with China and Russia globally while emphasizing day-to-day operations for ongoing conflicts, crisis response, and allied engagement.
• As per the 2020 defense budget provisions, the defense contractors are anticipated to pursue the production of existing IFF systems while conducting extensive R&D for future systems. By June 2020, the US National Security Agency, Joint Chiefs of Staff, and NATO are required to replace the existing Mode 4 IFF systems with Mode 5 systems.
• Mode 5 IFF systems upgrade the signaling waveforms and allow pilots to interrogate friendly aircraft's IFF systems at longer ranges using a secure, encrypted code. Raytheon plans to implement Mode 5 standards on its aircraft offerings. It’s AN/APX-114 IFF interrogator was selected to be integrated onboard the Boeing F-15 modernization program of the US Air Force.

Competitive Landscape

The identification friend or foe systems market is moderately consolidated with major players, such as Raytheon Technologies Corporation, Leonardo SpA, BAE Systems PLC, Indra Sistemas SA, General Dynamics Corporation, and Thales Group, occupying a significant share of the market. The growing demand for IFF systems is fostering R&D for advanced IFF components. Meanwhile, companies are trying to expand their geographical presence in both mature and emerging markets.

• For instance, as part of the ongoing modernization of NATO’s IFF systems, in 2019, HENSOLDT was awarded a contract to equip the German Air Force’s Tornado combat aircraft fleet with its Mode 5-capable LTR 400 transponders.
• Similarly, in May 2020, Leonardo SpA was awarded a contract to provide its IFF Mode 5 M426 LPI Interrogator and SIT2010 Crypto Applique products onboard its platforms operated by the Japan Ground Self Defence Forces (JGSDF).

Additional Benefits:

• The market estimate (ME) sheet in Excel format
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