Increase in Terrorist Activities Across the World to Propel the Defense Technology Market Through 2020, According to Technavio

The global market for Multirotor UAVs is expected to grow at a CAGR of over 21% over the period 2014-2019. Multirotor UAV has become an essential part of military, commercial, and law enforcement market. It consists of a remotely controlled device for aerial support application and designed for vertical take-off and landing (VTOL). It supports industries such as mining, agriculture, aerial shooting, traffic monitoring, surveillance, and intelligence gathering. It gained popularity due to its long endurance capabilities in the air, cost-effectiveness, and ease of operation.

Aside from the multirotor UAV market, the second most sought after market for defense technology is the maritime security market which is expected to grow at a CAGR of almost 8% between the period of 2015 to 2019. Maritime security agencies protect the nation from illegal activities and threats, such as smuggling, drug trafficking, piracy at sea, human trafficking, and maritime terrorism. These agencies provide security to ports and marine traffic. Increase in maritime terrorist activities, such as the Mumbai attack in 2008 and rise in piracy in the Gulf of Aden, has raised concerns about the need to secure ports, and modernize weaponry and equipment utilized by maritime security agencies. The market has been segmented into three categories which are intelligence, surveillance, and reconnaissance (ISR) systems, communication systems, and biometrics.

Technavio market research analysts predict the global military communication market to reach a little over USD 30 billion in revenues by 2019, with increasing investments in ISR. For instance, in a bid to strengthen the country’s ISR capabilities, Japan purchased an E-2D Advanced Hawkeye, which is an electronic warfare (EW) system, along with an unmanned aerial system in a deal that is estimated to be around USD 488 million.

Technavio analysts employ primary as well as secondary research techniques to ascertain the size and vendor landscape in a range of markets. Analysts obtain information using a combination of bottom-up and top-down approaches, besides using in-house market modeling tools and proprietary databases. They corroborate this data with the data obtained from various market participants and stakeholders across the value chain, including vendors, service providers, distributors, re-sellers, and end-users.