Market Trends of Europe Intelligence Surveillance And Reconnaissance Industry
Air Segment to Dominate Market Share During the Forecast Period
- The aerial platforms provide extensive ISR capabilities. This is the first additional capability required by a combat decision-maker to make informed decisions during a crisis or contingency situation. The crewed (reconnaissance aircraft and airborne early warning aircraft) and crewless aerial ISR systems are used to synchronize the planning and operation of the components of this ISR enterprise, including analysis and production capabilities, to enable current and future operations.
- Several countries are robustly investing in upgrading their airborne capabilities through new procurement or modernization of their existing fleet. For instance, in March 2022, Germany decided to purchase up to 35 Lockheed Martin F-35 stealth jets and replace its aging Tornado fleet. Germany is planning to gradually retire the Tornado fleet between 2025 and 2030. The F-35 is a stealthy, supersonic multirole fighter jet with advanced technology equipped with the latest systems developed by Lockheed Martin Aeronautics Company.
- In January 2022, the Spanish Ministry of Defense (MoD) signed a USD 39.8 million contract with Indra to integrate its latest electronic warfare (EW) systems onto the Spanish Army's Boeing CH-47F Chinook transport helicopters. According to Indra, the helicopters will be integrated with the company's InShield directional infrared countermeasures (DIRCM) system, InWarner sensor, and ALR-400FD radar alerter.
- The procurement of new aircraft and the modernization of indigenous systems are expected to generate more demand for the latest ISR systems over the forecast period, driving the growth of the ISR market in Europe.
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Russia is Anticipated to Witness Highest Growth During the Forecast Period
- Russia's military expenditure increased by 9.2% in 2022 to USD 86.4 billion, equivalent to 4.1% of Russia's GDP. Russia has advanced significantly in EW and ISR platforms over the past decade, continuing to challenge NATO’s defense in the Baltic States and NATO’s entire Eastern Flank. Russia’s growing interest in EW is part of a wider effort to adopt and strengthen its network-centric capability, focusing on C4ISR integration.
- In recent years, Russian authorities have conducted trials on the new spy aircraft, dubbed the All-Seeing Eye. The aircraft is a Beriev A-100 retrofitted with 20 tons of unique surveillance equipment. The AEW&C aircraft is built on the latest version of the Ilyushin Il-76 military transport aircraft. The A-100 sports an active electronically scanned array radar (AESA) in its rotating radome. These aircraft are expected to replace the existing A50 aircraft in the Air Force fleet.
- The United Aircraft Corporation is currently fulfilling the contract with the Russian Defense Ministry to upgrade the anti-submarine warfare Il-38 aircraft operated by Russian naval aviation. The Ilyushin Company is extending the lifecycle of the remaining aircraft and equipping them with modern onboard capabilities. The latest Novella complex is mounted on a modernized Il-38 to increase the searching efficiency and detection of submarines. The upgrade and deliveries of all the aircraft are expected to be completed by 2025. The UAC is also working on the design of the new-generation maritime patrol aircraft expected to replace the Il-38 in the future.
- Russia’s plans to upgrade its defense technology are expected to drive the demand for advanced ISR systems over the forecast period.
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