The defense integrated antenna sector is projected to expand from US$ 1,257.41 million in 2022 to US$ 2,018.18 million by 2028, reflecting a compound annual growth rate (CAGR) of 8.2% during this period.
Military organizations worldwide are actively seeking advanced antenna technologies to improve their operational capabilities. A notable example is the US Navy, which is investigating phased array fed reflector antennas and active electronically steered antennas (AESA) to achieve superior wideband UHF and SHF transmission capabilities, along with high isotropic radiated power and enhanced over-temperature gain. These attributes are crucial for executing electronic attack missions, facilitating communications, and providing electronic support using a single antenna array.
Companies operating in the defense integrated antenna sector engage in a variety of activities, including the design, assembly, and manufacturing processes that transform raw materials into finished products, integrating components into comprehensive systems. Leading global manufacturers such as L3Harris Technologies Inc., Thales Group, and Honeywell International Inc. deliver high-quality defense integrated antennas and systems to end-users, who incorporate them into various applications, including communication and radar systems. The clientele for these products is diverse, encompassing military component manufacturers and SATCOM equipment producers.
Effects of the COVID-19 Pandemic on the Defense Integrated Antenna Sector
Reports indicate that the critical technological supply chain in Asia is currently facing a surge in COVID-19 cases, which could exacerbate the global shortage of military electronics production. Key economies such as China, Japan, and Taiwan, which are essential for electronics manufacturing, packaging, and component testing, are experiencing their highest case numbers since the pandemic began. This situation poses a significant risk to the global technology supply chain, particularly concerning antennas and next-generation electronic components. Furthermore, the ongoing semiconductor shortage, coupled with rising demand for defense electronics, has severely impacted the Asian electronics industry, leading to a decline in the global defense integrated antenna market in FY 2020 compared to 2019. However, by the latter half of 2021, companies began to adopt new operational strategies and supply chain adjustments to stabilize the situation, allowing market players to recover from pandemic-related losses.
In North America, Canada ranks as the second-largest market for defense integrated antennas. The Canadian military is making substantial investments in communication systems for military use, with the Department of National Defence and the Canadian Armed Forces (DND/CAF) seeking highly versatile, low-profile, and electromagnetic-invisible antennas for vehicle and soldier communications. To support this initiative, the Canadian Armed Forces have allocated funding to institutions like the University of British Columbia to develop low-profile, electromagnetic-invisible, agile, polymer-based (LEAP) gateway antennas. The presence of major defense contractors such as Bombardier, General Motors Defense, CAE Inc., Magellan Aerospace Corp., Northstar Aerospace Inc., and SNC-Lavalin Group in Canada is also facilitating the procurement of antenna systems, thereby boosting the operations of defense integrated antenna market participants.
Regarding growth in the defense integrated antenna market, the Asia Pacific region is anticipated to exhibit the highest CAGR during the forecast period. The market in this region is segmented by country, including Australia, China, India, Japan, South Korea, and the Rest of Asia Pacific. In 2022, India is expected to hold the second-largest market share in the Asia Pacific defense integrated antenna sector.
As reported by the Stockholm International Peace Research Institute (SIPRI), India ranked third in military spending in 2021, with an expenditure of US$ 76.6 billion. The Indian military is heavily investing in enhancing its military communication infrastructure and UAV-based applications, which necessitate components like defense integrated antennas, thus driving demand in the region. For instance, in January 2021, the Indian Army entered into a contract with ideaForge for the acquisition of a high-altitude variant of SWITCH1.0 unmanned aerial vehicles (UAVs) to bolster surveillance along the Line of Control (LOC). In March 2022, the Indian defense ministry issued a request for information from vendors for high-capacity radio relays (HCRR), with a procurement order of up to 800 units. These radio relays rely on robust antenna systems to maintain communication with military bases. The procurement of such systems and electronic warfare technologies is propelling the growth of defense integrated antenna market players in India. Additionally, India's ambitions to establish a strong aerospace and defense manufacturing base are expected to create significant opportunities for market participants in the future.
Key players in the global defense integrated antenna market include L3Harris Technologies Inc., Thales Group, Honeywell International Inc., General Dynamics Corporation, Rhode & Schwarz, Terma, Aselsan AS, Raytheon Technologies Corporation, Viasat, Inc., and Lockheed Martin Corporation, all of whom are profiled in this market analysis.
The assessment of the defense integrated antenna market size has been conducted through both primary and secondary research methods. Secondary research involved utilizing internal and external sources to gather qualitative and quantitative data related to the market. The research aimed to provide an overview and forecast of the defense integrated antenna market growth across all segments. Additionally, numerous primary interviews were conducted with industry participants and experts to validate the data and gain analytical insights. Participants included industry professionals such as VPs, business development managers, market intelligence managers, and national sales managers, as well as external consultants like valuation experts, research analysts, and key opinion leaders specializing in the defense integrated antenna market.