Market Snapshot
| Study Period: | 2018-2027 |
| Base Year: | 2021 |
| Fastest Growing Market: | North America |
| Largest Market: | North America |
| CAGR: | >7 % |
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Market Overview
The aerostat systems market is estimated to register a CAGR of more than 7% during the forecast period (2022 - 2027).
Despite the huge impact of the COVID-19 pandemic on the global economy, the growth in global conflicts has led to an increase in military expenditure by various countries. As per the Stockholm International Peace Research Institute (SIPRI), the global military expenditure exceeded over USD 2.1 trillion as of 2021. The growth in military spending is expected to drive the investments in the aerostat systems by the military end-users.
Factors like growing terrorism, increasing territorial tensions, and border infiltrations around the world are propelling the militaries to enhance their battlefield data-sharing capabilities. Though UAVs are becoming popular for ISR missions, UAVs cannot offer continuous wide-area surveillance for several days continuously. This has resulted in several countries adopting aerostats as an alternative. Aerostat systems can operate 24/7 for weeks or even months at a time, offering persistent surveillance.
Other than military applications, aerostats are becoming popular for environmental research and commercial applications, like internet connectivity. Aerostats are now being used to expand LTE networks and 5G technology in remote areas at a significantly low cost and energy.
However, the aerostat systems market faces certain challenges and limitations with respect to operational altitude and survivability in adverse weather conditions. These limitations are expected to challenge the growth of the market during the forecast period.
Scope of the Report
Aerostats are lighter than air aircraft that gain lift using buoyant gas. Aerostats can be free-flying or tethered. The aerostat systems market is segmented by application into military and law enforcement and commercial and research. The report also offers the market sizes and forecasts for the aerostat systems market across the major regions in the world. For each segment, the market sizes and forecasts are represented by value (USD million).
| Application | |
| Military and Law Enforcement | |
| Commercial and Research |
| Geography | |
| North America | |
| Europe | |
| Asia-Pacific | |
| Rest of the World |
Key Market Trends
Military and Law Enforcement Segment Held the Largest Market Share in 2021
The military and law enforcement segment accounted for a major share of the market in 2021. This is primarily due to increased demand for aerostat systems to support intelligence, surveillance, and reconnaissance missions and enhance network communications capabilities in land and sea platforms. Ground-based and shipboard aerostats are effective and affordable systems that offer continuous, wide-area surveillance and timely provision of target information. They can be used for applications including early intrusion alert, illegal immigration monitoring, anti-terrorism, fishing activity surveillance, and smuggling deterrence. Several military and law enforcement end users are considering acquiring various monitoring options in the coming years. Aerostat systems are expected to be one of the viable options for procurement due to their advantage to obtain highly accurate and real-time surveillance data at a remarkably low total cost of ownership. Also, the ease of integrating advanced ISR payloads, such as electro-optical/infrared cameras, radar, and communications relays, is expected to support their procurement plans. In March 2022, the Israeli defense ministry’s missile defense organization (IMDO) delivered the Tal Shamaim High Availability Aerostat System (HAAS) that will boost the Israeli Air Force’s missile defense capabilities.The aerostat is one of the world’s largest aerostats and is designed to carry an improved sensing system, to provide detection and early warning of cruise missiles and advanced threats aimed towards Israel. Such deployments are expected to bolster the prospects of the military and law enforcement segment in the years to come.
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North America is Expected to Dominate the Market During the Forecast Period
North America was the largest and the most dominant market for aerostat systems and is expected to lead the market further during the forecast period. The United States is the largest market for aerostat systems in the world. The country is currently focusing on using these aerostats along the borders for surveillance and is also investing in the development and procurement of these surveillance systems. For instance, in June 2022, the U.S. Customs and Border Protection’s (CBP) Program Management Office Directorate (PMOD) installed a 22-Meter Persistent Ground Surveillance System Aerostat in Nogales, Arizona. The aerostat is located approximately one mile north of the International Boundary with Mexico. It will be operational and manned by Border Patrol Agents 24 hours a day, seven days a week, to provide continuous aerial surveillance of the border. Such deployments will drive the market in the country during the forecast period. On the other hand, the recent decision by the US Customs and Border Protection to end the seven-year-old surveillance blimp program due to the high costs is expected to hinder the market growth in the country. In the commercial and the research segment, many aerostat manufacturers in the United States are collaborating with telecommunication service providers to provide enhanced telecommunication network quality to users. The company Altaeros is using aerostats, called the aerial cell tower SuperTowers ST200 to provide enhanced 4G LTE networks in the United States. Aerostat systems are also finding application in urban drone tracking operations to provide protection to high-value assets. Thus the growth in novel applications of the aerostats are expected to propel the growth of the aerostat market in North America during the forecast period.
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Competitive Landscape
The aerostat systems market is moderately consolidated, as few major players occupy a major share in the market. Some of the prominent players in the market are Lockheed Martin Corporation, TCOM LP, Raven Industries, Israel Aerospace Industries Limited, and RT LTA Systems Ltd, among others. Aerostat systems have an immense potential for commercial application, especially in the communication category. Hence, the partnerships of aerostat manufacturers with various commercial operators are expected to increase their sales and enhance their geographical footprint in the world. On the other hand, aerostat systems manufacturers are enhancing the capabilities of their existing aerostats with the integration of advanced sensors. Technologies like unmanned aerostats are expected to define the future of the aerostats industry, and players are expected to incorporate such technologies in their future products. This is also anticipated to help the companies acquire contracts from new customers and further increase their share in the market.
Recent Developments
In May 2022, Spire Global received a five-year, multimillion-dollar award to provide weather forecasts for TCOM, an intelligence, surveillance, and reconnaissance (ISR) firm based in the United States. The subcontract will provide weather forecasts in ten sites where TCOM operates aerostats.
In November 2021, The Israeli Ministry of Defense (MoD) announced that the Israel Missile Defense Organization (IMDO) is testing an aerostat with a new radar capable of detecting long-range threats. The High Availability Aerostat System (HAAS) was manufactured by the US company TCOM and the radar has been developed with the US Missile Defense Agency, and Elta, a subsidiary of Israel Aerospace Industries as the prime contractor.
Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 Industry Attractiveness - Porter's Five Forces Analysis
4.4.1 Threat of New Entrants
4.4.2 Bargaining Power of Buyers/Consumers
4.4.3 Bargaining Power of Suppliers
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION (Market Size and Forecasts by Value - USD billion, 2022 - 2027)
5.1 Application
5.1.1 Military and Law Enforcement
5.1.2 Commercial and Research
5.2 Geography
5.2.1 North America
5.2.2 Europe
5.2.3 Asia-Pacific
5.2.4 Rest of the World
6. COMPETITIVE LANDSCAPE
6.1 Vendor Market Share
6.2 Company Profiles
6.2.1 TCOM LP
6.2.2 Raven Aerostar
6.2.3 Lockheed
6.2.4 Worldwide Aeros Corp.
6.2.5 Israel Aerospace Industries Limited
6.2.6 Allsopp Helikites Limited
6.2.7 ILC Dover LP
6.2.8 RosAeroSystems
6.2.9 Lindstrand Technologies Limited
6.2.10 Airborne Industries
6.2.11 RT LTA Systems Ltd
6.2.12 Otonom Technology
6.2.13 Rheinmetall AG
6.2.14 Altaeros
6.2.15 CNIM
6.2.16 Skydoc Systems Inc.
6.2.17 Carolina Unmanned Vehicles Inc.
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
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Frequently Asked Questions
What is the study period of this market?
The Aerostat Systems Market market is studied from 2018 - 2027.
What is the growth rate of Aerostat Systems Market?
The Aerostat Systems Market is growing at a CAGR of >7% over the next 5 years.
Which region has highest growth rate in Aerostat Systems Market?
North America is growing at the highest CAGR over 2021- 2026.
Which region has largest share in Aerostat Systems Market?
North America holds highest share in 2021.
Who are the key players in Aerostat Systems Market?
Lockheed Martin Corporation, Raven Industries Inc., Israel Aerospace Industries Limited, TCOM, L.P., RT LTA Systems Ltd. are the major companies operating in Aerostat Systems Market.
