Market Trends of Sonobuoy Industry
The Defense Segment Will Showcase Highest Growth During the Forecast Period
- During the forecast period, the defense segment is expected to experience remarkable growth due to increasing defense expenditures and the growing procurement of advanced sonobuoys by naval forces. This growth is primarily driven by rising spending on enhancing naval capabilities, particularly in response to growing unrest among neighboring countries, the ongoing war between Russia and Ukraine, and disputes between China and Taiwan. Sonobuoys are particularly useful in detecting enemy submarines by listening to the sound of their propellers, providing real-time information to the naval forces. As a result, the increasing procurement of advanced sonobuoys by naval forces, along with investments in improving naval infrastructure, is expected to drive the growth of this segment.
- For instance, in September 2022, the United States Naval Air Systems Command awarded a contract worth USD 182 million to Ultra Maritime and Sparton to manufacture and deliver 126,000 sonobuoys for submarine-hunting missions. The contract includes the production of 100,000 AN/SSQ-53, 10,000 AN/SSQ-62 sonobuoys, and 16,000 AN/SSQ-101. These sonobuoys will be used for testing, training, and supporting combat operations and integrated into maritime patrol aircraft such as the MH-60S SeaHawk helicopter and P-8A Poseidon. The project is expected to be completed by 2025. These developments are likely to increase the demand for sonobuoys in the coming years, further propelling the growth of the defense segment.
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North America Dominated the Market During the Forecast Period
- North America is expected to continue dominating the market with the largest share during the forecast period. This growth is mainly attributed to the significant defense expenditure by the United States Department of Defense (DoD) and the increasing procurement of sonobuoys by the United States Navy. In 2021, the United States was the world's largest defense spender, allocating a budget of USD 801 billion for defense.
- Moreover, in 2022, the United States DoD assigned USD 211 billion to the Navy, while the United States Navy invested USD 44.7 billion in enhancing aviation, ship, and combat support readiness activities. Therefore, the increased expenditure on enhancing military capabilities and the procurement of advanced naval systems will drive market growth across the region.
- For instance, in April 2022, the Naval Air Systems Command at Patuxent River Naval Air Station in Maryland announced that Lockheed Martin Corporation and ERAPSCO in Columbia City, Indiana, would share a contract worth USD 222 million to manufacture 18,000 AN/SSQ-125A multi-static sonobuoys for the United States Navy's airborne anti-submarine warfare (ASW) operations. Furthermore, in October 2022, the Naval Air Systems Command at Patuxent River selected Ultra Sonobuoy Systems as a qualified industry partner to provide next-generation sonobuoys to the United States Navy.
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