Over the past decade, with advancements in software and semiconductor technologies and Artificial Intelligence (AI) have had a disruptive effect on the defense sector, thus enhancing the capabilities of defense equipment at a significant pace.
The emergence of extremist organizations across the globe, such as ISIS, has led to an increased emphasis on the use of technology, in the fields of counter terrorism and defense activities. Through continued experiments and studies, automated vehicles have been identified to act as force multipliers. With continual advancements in AI, the same output is being realized using fewer equipment and warfighters. In addition, the replacement of human soldiers by unmanned AI-powered machines has been one of the driving factors for the increasing adoption of AI in modern warfare.
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Growth in Mass Destructive Weapons Driving the Growth of the Market
Mass destructive weapons are generally nuclear, radiological, biological, or chemical weapons that are harmful. Nuclear weapons play a vital role in international security environment. The growth in the testing of these weapons by countries like North Korea, is leading to an increase in the demand for mass destructive weapons. Technologically, the development of nuclear weapons is making these countries powerful enough to destroy the whole world. For instance, Hwasong-15, North Korea’s ballistic missile, could travel about 13,000 km, which will possibly destruct the whole world, expect for Antarctica and Latin America. The growing demand for mass destructive weapons is driving the growth of the market.
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Unmanned Aerial Vehicles Expected to Dominate the Market
Owing to the wide variety of operations they can perform in the current scenario, Unmanned Aerial Vehicles (UAV) have made significant strides since their inception. Engineers have been identified to harness the capability of UAV, to collect visual and thermal data over vast areas, at a much higher precision than before. With appropriate data analytics, this information is being used by the military for various purposes, which include security and control, aerial reconnaissance, access chemical, biological and nuclear conditions, and to strategize the required measures. In addition, with each passing year, UAVs have turned out to be more cost-effective than regular fighter planes, thus driving their adoption. Although drones might never replace human pilots, its benefits over conventional fighter planes are propelling their adoption in various countries, thus driving the market’s growth.
North America to Dominate the Market
The US military, under the Trump administration, is planning to integrate AI and machine learning into their military equipment. This integration of advanced technologies helps the military turn massive volumes of data into intelligence and insights, and enable the military to formulate strategies. The US military is planning to test a new system prototype by mid-2019, which includes underwater drones and unmanned army trucks. This trend of AI-powered automated vehicles is expected to continue, as the country is making steady attempts to pursue various forms of automation that reduce human-generated costs over time. In addition, the US military is also making concentrated attempts to strengthen its drone sector. The Department of Defense, has requested approximately USD 6.97 billion for the fiscal year 2018, for drone procurement, research and development, and system-specific construction. This is the highest requested budget over the past five years, and USD 3.3 billion more than previously predicted. The drone spending in PB18 is expected to be 21% greater than the enacted 2017 drone budget. The above-mentioned trends indicate the extent of emphasis the US military places on enhancing its UAV’s division, and the attempts it is making to integrate AI into modern warfare, thus driving the market’s growth in this region.
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Key Developments in the Market
- November 2017 – Boeing has entered a five-year contract with Aircraft Philipp Group of Germany. Aircraft Philipp will produce machine parts for the global fleet of the H-47 Chinook helicopters, thus becoming a part of Boeing’s significant supplier base in Germany
- October 2017 – FLIR systems was awarded a contract worth USD 74.7 million for land surveillance system, by the US Army.
- August 2017: The US Air Force awarded two separate contracts worth USD 718 million to Boeing and Northrop Grumman Systems, for the development of preliminary designs for the country’s next intercontinental ballistic missile (ICBM).
Major Players: THE BOEING COMPANY, LOCKHEED MARTIN CORPORATION, AIRBUS SAS, RAFAEL ADVANCED DEFENSE SYSTEMS LIMITED, GENERAL ATOMICS CORPORATION, FLIR SYSTEMS INC., SCIENCE APPLICATIONS INTERNATIONAL CORPORATION, ISRAEL AEROSPACE INDUSTRIES, GENERAL DYNAMICS CORPORATION, OCULUS SYSTEMS LTD., GENERAL DYNAMICS LAND SYSTEMS, AND CRESCENT UNMANNED SYSTEMS LLC, amongst others.
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The Boeing Company, Lockheed Martin Corporation, Airbus SAS, Rafael Advanced Defense Systems Limited, General Atomics Corporation, FLIR Systems Inc., Scienc Applications International Corporation, Israel Aerospace Industries, General Dynamics Corporation, Oculus Systems Ltd, General Dynamics Land Systems, Crescent Unmanned Systems LLC
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