Market Trends of Military Navigation Systems Industry
The Air Segment is Projected to Retain Market Share Dominance
The armed forces around the world are significantly investing in the procurement of new aircraft and UAVs. Most of the aircraft use GNSS (GPS) and TACAN positioning and navigation systems. The majority of the revenue of the segment is through the modernization of the aging fleet of aircraft with new and accurate positions and navigation systems.
For instance, in June 2023, Airbus Helicopters awarded a contract to Safran Electronics & Defense for the SkyNaute navigation system for the aircraft to be deployed by French and Spanish armed forces. SkyNaute is an ultra-compact hybrid inertial navigation system based on Safran's patented Crystal HRG (hemispherical resonator gyro) technology. It offers an extremely lightweight and compact design, combining high integrity and precision even in environments where satellite navigation signals are absent or jammed. Similar initiatives from various armed forces are anticipated to propel the growth of the segment during the forecast period.
Furthermore, the development of new navigational aids for the aircraft is anticipated to open new market opportunities for the companies. Similarly, in May 2023, the US Air Force awarded a USD 750 million contract to Lockheed Martin Corporation to build JASSM-ER GPS-guided missiles with infrared seeker technology for launch from B-2 bombers. The JASSM-ER is a 2,250-pound cruise missile that uses precision routing and guidance in adverse weather, day or night. It uses an infrared seeker in addition to the anti-jam GPS to find a specific aim point on the target.
Asia-Pacific is Projected to Generate the Highest Demand During the Forecast Period
The steady growth of military spending in countries such as China, India, and South Korea, among others, is majorly driving the procurement and modernization plans of military equipment. China includes regional tensions with Japan, South Korea, and Taiwan. These conflicts led China and its neighboring countries to invest in military modernization programs. The majority of the Asia-Pacific countries are modernizing their military platforms. The countries are procuring new aircraft to increase their air strength and strengthen their sea ISR capabilities by procuring new ships.
Currently, along with manned capabilities, the countries are also involved in developing and upgrading their unmanned capabilities. For instance, in September 2022, Russia and China signed contracts for the deployment of Russia's GLONASS stations in China and China's BeiDou system stations in Russia. Russia's GLONASS stations will be in Changchun, Urumqi, and Shanghai, and the Chinese ones will be in Obninsk, Irkutsk, and Petropavlovsk-Kamchatsky. BeiDou and GLONASS, which are alternatives to the US Global Positioning System (GPS), will improve the performance of their systems. It provides precision, navigation, and timing (PNT) services for both military and civilian purposes.
Similarly, in July 2023, Elbit Systems won a 5-year USD 114 million contract to supply two long-range patrol aircraft (LRPA) to an unnamed Asian-Pacific nation. The LRPA aircraft will be integrated with a comprehensive mission suite, including a mission management system, electro-optics, radar, signals intelligence (SIGINT), and communication.
