Market Trends of Electronic Warfare Industry
Sea Segment Will Showcase Remarkable Growth During the Forecast Period
The growth in military expenditure globally has led to various defense personnel worldwide retrofitting naval vessels with new-generation electromagnetic solutions which will help the naval forces gain a competitive edge during modern warfare situations. According to the data provided by the Stockholm International Peace Research Institute (SIPRI), in 2022, the US defense expenditure (USD 877 billion) accounted for nearly 40% of the global total (USD 2.2 trillion).
On the other hand, there has been significant growth in electronic warfare programs for naval warships to increase their defense capabilities against anti-ship missiles. For instance, in November 2023, Babcock in collaboration with Elbit Systems UK announced that a new electromagnetic warfare system, under joint development was approved for installation onboard the warships of the UK Royal Navy. The new and improved Maritime Electronic Warfare Program (MEWP) will provide an enhanced defensive capability against anti-ship missiles and once operational, will help to improve the detection and identification of radar signals over greater ranges leading to faster decision-making process, enhancing situational awareness, and improving the overall ship protection.
Asia-Pacific to Dominate the Market During the Forecast Period
Notable growth in terms of military spending by various countries within the region has led to an increase in the demand for advanced electronic warfare systems. Moreover, defense personnel in several countries within the region, in recent years, have increased their focus towards the acquisition of next-generation warfare solutions as well as undergoing advanced electronic warfare training to improve military proficiencies. For instance, in September 2022, BAE Systems plc was awarded a USD 76 million contract to provide an electronic warfare training capability to the air force of an undisclosed country in the Asia-Pacific over two years. Moreover, under the contract, Elbit Systems Ltd. will help to supply the Air Force of the undisclosed Asia-Pacific country with cutting-edge solutions enabling aircrews to conduct airborne training in a real-life, multi-threat EW arena.
Various countries within the region are now stepping up to improve their defense fleet with advanced aircraft that have been integrated with electronic warfare capabilities. For instance, in April 2023, South Korea announced the approval of major acquisition programs that would enable the country to develop a new electronic warfare aircraft under a contract worth USD 1.41 billion. The project which is anticipated to be carried out from 2024 to 2032 will lead to the new aircraft being upgraded with cutting-edge technologies to be used for jamming and disrupting adversarial air defenses as well as command and communications systems.
