Market Highlights

The global military sensors market was valued at US$ 9.4 billion in 2021 and is projected to increase at a compound annual growth rate (CAGR) of 5.9% from 2022 to 2028, reaching US$ ~13.1 billion.

Military Sensors Market CAGR

2022-2028

CAGR OF

5.9%

Military Sensors Market

The long-term market drivers for military sensors remain strong, and the industry was starting to show signs of recovery from the big market price reset before the pandemic. As the COVID-19 pandemic ravages the world, several industries are fighting for survival. Governments and companies involved in the sensor industry are reacting to the new situation in different ways. Some companies are still open while others have closed; some product launches are moving forward while others are not; some testing is being delayed while others are not.

The military sensors market is growing rapidly as a result of more defensive systems being purchased by militaries around the globe. The military sensors of a weapon, an aircraft, or an electronic equipment are subsystems that sense changes in their environment or scan it for information. After that, the data is transferred to yet another electronic device for processing and data analysis—typically a computer processor. Military sensors are used in missiles, combat, aircraft, and radars in a variety of systems for navigation, weapon control, active guiding, target tracking, and environmental awareness. Electro-optical sensors can also be used to detect smoke, dust, and fog.

The development in military modernization projects, the increase in demand for armored vehicles, and the growing use of unmanned aerial vehicles (UAVs) are the factors propelling the global military sensors market. Regulations controlling the development and transfer of weaponry systems or associated technologies may impede market expansion. On the other hand, new opportunities in the industry are presented by the development of the internet of things (IoT), artificial intelligence (AI), and micro-electrochemical systems (small mechanical and electronics integrated devices).

Military Sensors Market

By Platform

Space

Munition

Land

Naval

The Market will Grow

At the CAGR of:

5.9%

The Forecast Market

Size for 2028 in USD:

$13.1B

Manufacturers of military sensors have been impacted by the government's lockdown campaign to combat the spread of COVID-19 due to labor shortages. The supply chain disruption caused by COVID-19 is causing a shortage of components that military sensor manufacturers need to design and produce their products. Defence contractors that rely on an overseas workforce are currently facing operational challenges as a result of travel restrictions imposed by the government to handle the COVID-19 pandemic. Defense organizations must comply with the authorities' shutdown order by delaying ongoing programs and research and development.

The COVID-19 pandemic has caused supply chains and logistics in North America to become unstable. A National Association of Manufacturers (NAM) poll conducted in March 2020 revealed that almost 80% of manufacturers believed the pandemic would negatively affect their businesses financially. A few notable local companies have closed their doors and are thinking of letting go of their employees. The epidemic is also expected to have a detrimental effect on the US manufacturing sector, which employs about 13 million people. This is because many industrial jobs are onsite, which restricts the opportunity for remote work. Second, the demand for industrial goods has decreased both domestically and globally as the economy has slowed.

Recent years have seen a number of directives and investments in the sector that should expand the military sensors market as a whole. Among them are: • In order to reduce operating costs and enhance operability in difficult conditions, defense firms are focusing on unmanned vehicles. The US Defense Advanced Research Projects Agency (DARPA) has awarded Lockheed Martin a 12,300,000 USD contract to develop an autonomous underwater vehicle (UUV) with expanded range, long endurance, and cargo capability. Modern sensors are also used by unmanned vehicles (UVs) and drones, such as light detection and ranging (LiDAR), capacitive fuel level sensors, and ultrasonic fuel flow sensors. Therefore, the development of state-of-the-art sensors for unmanned vehicles and the growing demand for drones will drive the global military sensors market.

Market Segment Analysis

Significant technological advancements and the integration of sensors and electronics in military equipment are expected to propel the electronic warfare segment of the military sensors market during the forecast period, resulting in a shift toward multilayered defense systems. In addition to these factors, the electronic warfare industry has potential due to the increasing use of unmanned aerial vehicles (UAVs) and the need for ground surveillance and communication jamming. In March 2021, BAE Systems was awarded a USD 58 million contract to begin low-rate initial manufacturing of an electronic warfare system for F-15s. This system would protect pilots from advanced threats arriving over the electromagnetic spectrum. The contract covers a wide variety of work, including multispectral sensors, signal processing, microelectronics, countermeasures, and algorithms for geolocation, situational awareness, and self-defense.

Military Sensors Market

By Component

XX%

Software

Hardware

Cybersecurity Solutions

9.4

Total Market Size

USD (Billion), 2022

5.9%

CAGR

2022 - 2028

The military sensors market airborne segment is growing due to the defense industry's increasing use of these sensors. One of the things propelling the military sensors market for air-based systems is the increasing use of UAVs. Countries all across the world are buying UAVs to increase surveillance. Airborne military sensors will see considerable expansion in the market as more countries add fighter aircraft to their fleets or upgrade their present fighter fleets with state-of-the-art sensors. The need for airborne military sensors will be fueled by the world's geopolitical dynamics developing quickly, as well as by increased terrorist threats, developing nations' procurement programs, modernizations, and political unrest in certain areas.

Over the past ten years, the military sensors market has expanded rapidly in North America, and this trend is expected to continue as the region holds the top spot over the projection period. The growing requirement for lightweight and energy-efficient sensors, along with major businesses' substantial R&D investments for the development of innovative military power solutions, are some of the factors expected to push the expansion of the military sensors market in this area. The US is predicted to lead the growth of the North American military sensors market during the forecast period due to easy access to a multitude of cutting-edge technologies and large investments being made by US manufacturers for the development of better health monitoring and warfare sensors. Numerous advances have been made in the realm of military sensors in this area.

Military Sensors Market

By Region

The Market will Grow

At the CAGR of:

5.9%

The Forecast Market

Size for 2028 in USD:

$13.1B

Key Players

The market for military sensors is very competitive. The state of the sector and government assistance have a direct impact on the companies' growth. The quality and penetration of these firms' military sensors in target and growing markets set them apart. Additionally, a few recent large mergers and acquisitions in the sector have had a big impact on the competitive dynamics. 
As an illustration:
• A cost-plus-fixed-fee modification contract was awarded to Honeywell International for the integration of many sensors and sensing modalities with the Advanced Battle Management Systems (ABMS).
• The US Army paid USD 7.7 million to Honeywell International for Inertial Navigation Kits, which use motion and rotation sensors to continuously calculate the location, orientation, and velocity of a moving object through dead reckoning without the need for outside references.
• Raytheon developed the Pit Boss, an autonomous mission management sensor system, for the Blackjack satellite constellation of DARPA. It will network sensors to provide continuous global coverage for multiple purposes, including missile warning.

These mergers and acquisitions have had an impact on the competitive landscape as a whole. The leading companies in the military sensors market are as follows: Honeywell International Inc.; Lockheed Martin Corporation; Raytheon Company; Thales Group; TE Connectivity Ltd.; KONGSBERG GRUPPEN ASA; General Electric Company; BAE Systems plc; Ultra Electronics; Aerosonic LLC (Transdigm Group); Imperx Inc.; Microflown Avisa BV; Vectornav Technologies LLC; Voioa Imaging Technology Inc.

Military Sensors Market Scope: