Airborne ISR Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 18.93 Billion |
| Market Size (2029) | USD 23.76 Billion |
| CAGR (2024 - 2029) | 4.64 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Airborne ISR Market Analysis
The Airborne ISR Market size is estimated at USD 18.93 billion in 2024, and is expected to reach USD 23.76 billion by 2029, growing at a CAGR of 4.64% during the forecast period (2024-2029).
The global demand for advanced airborne intelligence, surveillance, and reconnaissance (ISR) systems has surged, both in the military and civilian industries. This trend highlights a worldwide shift toward prioritizing real-time, actionable intelligence in defense and security strategies.
Rising military expenditures across several nations drive the innovation and acquisition of new ISR systems. These systems, crucial for manned and unmanned airborne platforms, are witnessing heightened demand as countries face escalating threats. Consequently, there is a universal push to enhance situational awareness and ISR capabilities. Furthermore, a focus on miniaturization and accuracy improvements, alongside their proven reliability and cost-effectiveness, is making these systems ubiquitous in military arsenals.
As the market sees an influx of providers, competition intensifies. This heightened competition and the market's profitability are attracting new entrants armed with cutting-edge technologies. Collaborations and partnerships are emerging as a strategic avenue, facilitating technology exchanges and fostering mutual growth. Notably, many state-owned enterprises are ramping up efforts to bolster their own airborne ISR capabilities, further amplifying the competitive landscape.
Airborne ISR Market Trends
The Unmanned Segment to Experience Highest Growth During the Forecast Period
Global demand for unmanned aerial vehicles (UAVs) in ISR missions has surged, driven by their cost-effectiveness. Major players like the United States, Russia, and China have reshaped their military strategies, emphasizing the visual capabilities of UAVs. These UAVs excel in modern warfare, particularly pre-emptive strikes and targeted surveillance.
Nations, especially those favoring asymmetric warfare, increasingly deploy UAVs as crucial intelligence-gathering tools. This trend has led to a significant uptick in R&D investments by both nations and defense contractors to enhance their aerial ISR capabilities. Notably, in November 2023, Spain inked a milestone deal with Airbus, acquiring 27 SIRTAP tactical unmanned aerial systems (UAS) for approximately USD 543 million, significantly boosting its airborne ISR capabilities. With the rising adoption of electronic warfare and an uptick in defense spending, the demand for advanced ISR equipment on UAVs is set to escalate, further fueling the growth of the unmanned segment in the airborne ISR market.
North America is Projected to Dominate the Market During the Forecast Period
North America is poised to lead the market, with the United States witnessing a surge in demand for airborne ISR. This uptick can be attributed to a confluence of factors, including escalating global conflicts, rising geopolitical tensions, terrorism, and the advancing capabilities of potential US adversaries. Bolstering its defense, the US government has made substantial investments in cutting-edge technological platforms. Notably, in 2023, the US military's defense spending reached USD 916 billion, a 2.3% increase from 2022.
The heightened focus on electronic warfare is a direct response to mounting threats from nations like Russia and China. Leveraging its augmented military budget, the US Department of Defense (DoD) is actively bolstering and modernizing the nation's regional defense forces. In a significant move, SNC clinched a lucrative, multi-year deal valued at USD 554 million in November 2023. This contract involves supplying A-ISR jets, pivotal for the army's ATHENA-S initiative, which centers on high-altitude signals intelligence.
Furthermore, in August 2023, the US Army contracted prime player MAG Aerospace, in collaboration with L3Harris Technologies, to deliver two upgraded intelligence, surveillance, and reconnaissance (ISR) aircraft. These aircraft are earmarked to fortify the army's ATHENA-R program, focusing on theater-level, high-altitude expeditionary next airborne ISR-radar operations. These strategic moves are expected to propel the region's market growth in the coming years.
Airborne ISR Industry Overview
The airborne ISR market is fragmented and characterized by many players, each developing platforms and subsystems for various armed forces. Key players in the market include Northrop Grumman Corporation, The Boeing Company, Elbit Systems Ltd, Lockheed Martin Corporation, and RTX Corporation.
Additionally, numerous local entities collaborate with these major players on regional projects, focusing on designing and integrating specialized subsystems tailored to the needs of local defense forces. Vendor competition centers on in-house manufacturing capabilities, global reach, product range, R&D investments, and client portfolios. To thrive in this competitive landscape, vendors must deliver cutting-edge systems to airborne ISR integrators. Many defense OEMs incorporate third-party EO/IR (electro-optical/infrared) equipment on their platforms, aiming to reduce R&D expenses associated with integrating these systems across different platforms.
Airborne ISR Market Leaders
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Northrop Grumman Corporation
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The Boeing Company
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Lockheed Martin Corporation
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RTX Corporation
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Elbit Systems Ltd.
*Disclaimer: Major Players sorted in no particular order
Airborne ISR Market News
- May 2024: General Atomics Aeronautical Systems Inc. inked a USD 94 million cost-plus-fixed-fee contract. This contract is exclusively dedicated to the research, development, testing, and evaluation of autonomy and artificial intelligence (AI) for the company's Smart Sensor ISR prototype.
- April 2024: The US Army awarded Leidos a substantial USD 631.2 million contract. This 10-year agreement is tailored to assist the army in managing tactical aerial intelligence, surveillance, and reconnaissance sensors and integrated systems throughout their life cycle.
Airborne ISR Market Report - 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 Porter's Five Forces Analysis
4.4.1 Bargaining Power of Buyers/Consumers
4.4.2 Bargaining Power of Suppliers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 Type
5.1.1 Manned
5.1.2 Unmanned
5.2 Application
5.2.1 Maritime Patrol
5.2.2 Airborne Ground Surveillance (AGS)
5.2.3 Airborne Early Warnings (AEW)
5.2.4 Signals Intelligence (SIGINT)
5.3 Geography
5.3.1 North America
5.3.1.1 United States
5.3.1.2 Canada
5.3.2 Europe
5.3.2.1 United Kingdom
5.3.2.2 France
5.3.2.3 Germany
5.3.2.4 Russia
5.3.2.5 Rest of Europe
5.3.3 Asia-Pacific
5.3.3.1 China
5.3.3.2 India
5.3.3.3 Japan
5.3.3.4 South Korea
5.3.3.5 Rest of Asia-Pacific
5.3.4 Latin America
5.3.4.1 Brazil
5.3.4.2 Rest of Latin America
5.3.5 Middle East and Africa
5.3.5.1 Saudi Arabia
5.3.5.2 United Arab Emirates
5.3.5.3 Rest of Middle East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Vendor Market Share
6.2 Company Profiles
6.2.1 Lockheed Martin Corporation
6.2.2 L3Harris Technologies Inc.
6.2.3 BAE Systems PLC
6.2.4 RTX Corporation
6.2.5 Northrop Grumman Corporation
6.2.6 The Boeing Company
6.2.7 Saab AB
6.2.8 Airbus SE
6.2.9 General Dynamics Corporation
6.2.10 Elbit Systems Ltd
6.2.11 Teledyne FLIR LLC
6.2.12 Textron Inc.
6.2.13 Leonardo SpA
6.2.14 Safran SA
6.2.15 Israel Aerospace Industries (IAI) Ltd
6.3 Other Companies
6.3.1 AeroVironment Inc.
6.3.2 General Atomics
6.3.3 BlueBird Aero Systems
6.3.4 Aeronautics Group
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Airborne ISR Industry Segmentation
Intelligence, surveillance, and reconnaissance (ISR) is an integrated intelligence and operations function defined as the coordinated acquisition, processing, and provision of accurate, relevant, and timely information and intelligence to support the defense force's decision-making process.
The airborne ISR market is segmented by type, application, and geography. By type, the market is segmented into manned and unmanned. By application, the market is divided into maritime patrol, airborne ground surveillance (AGS), airborne early warnings (AEW), and signals intelligence (SIGINT). Also, the report covers the market sizes and forecasts for the military aircraft avionics market in major countries across different regions. For each segment, the market sizes and forecasts are provided in terms of value (USD).
| Type | |
| Manned | |
| Unmanned |
| Application | |
| Maritime Patrol | |
| Airborne Ground Surveillance (AGS) | |
| Airborne Early Warnings (AEW) | |
| Signals Intelligence (SIGINT) |
| Geography | |||||||
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Airborne ISR Market Research FAQs
How big is the Airborne ISR Market?
The Airborne ISR Market size is expected to reach USD 18.93 billion in 2024 and grow at a CAGR of 4.64% to reach USD 23.76 billion by 2029.
What is the current Airborne ISR Market size?
In 2024, the Airborne ISR Market size is expected to reach USD 18.93 billion.
Who are the key players in Airborne ISR Market?
Northrop Grumman Corporation, The Boeing Company, Lockheed Martin Corporation, RTX Corporation and Elbit Systems Ltd. are the major companies operating in the Airborne ISR Market.
Which is the fastest growing region in Airborne ISR Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Airborne ISR Market?
In 2024, the North America accounts for the largest market share in Airborne ISR Market.
What years does this Airborne ISR Market cover, and what was the market size in 2023?
In 2023, the Airborne ISR Market size was estimated at USD 18.05 billion. The report covers the Airborne ISR Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Airborne ISR Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Airborne ISR Industry Report
Statistics for the 2024 Airborne ISR market share, size and revenue growth rate, created by Mordor Intelligenceā¢ Industry Reports. Airborne ISR analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
Airborne ISR Market Report Snapshots
