The Australian C4ISR market is anticipated to register a CAGR of over 4% during the forecast period.
- The increasing number of security attacks and global terrorism activities have led to increasing investments by the government in advanced surveillance technologies for military and law enforcement agencies.
- The procurement of unmanned air, land, and sea platforms for carrying out intelligence, surveillance, and reconnaissance missions may drive the growth of the market during the forecast period.
- Also, the modernization of the threat perception capabilities of the defense forces in Australia is anticipated to drive the demand for C4ISR systems in the country.
Key Market Trends
Australia Continues to Boost its Military Spending
Australia increased its defense spending in the past few years to support the nation’s need for enhanced regional and global security. It is anticipated that Australia’s defense spending may meet its target of 2% of GDP by 2021. In April 2019, the government announced its plans to allocate about USD 38.7 billion during 2019-2020. In 2018, the defense spending of Australia was USD 36.4 billion. According to Australia’s Ministry of Defense, over 2,300 defense personnel are deployed around the world, including operations in the Middle-East and Afghanistan. Australia is investing significantly in developing its surveillance capabilities to protect its land and sea borders. The government plans to invest more than USD 200 billion over the next decade in programs, such as the naval shipbuilding program, procurement of F-35 and P-8A Poseidon maritime surveillance aircraft, upgrade of EA-18G Growler electronic attack aircraft and E-7A Wedgetail battlespace management aircraft, and other programs related to the improvement of the country’s defense intelligence capabilities. The government also plans to invest in improving its cybersecurity to protect government networks from hostile cyberattacks. Thus, the C4ISR market in Australia is anticipated to experience rapid growth during the forecast period. However, the Australian economy was experiencing a slowdown even before the bushfire catastrophe and the outbreak of COVID-19. It is estimated that the economy of Australia may further experience a negative impact in the first three quarters of 2020, due to the impact of COVID-19 on tourism.
Australia Invests Billions of Dollars for Enhancing Maritime ISR Capabilities
Australia has the largest area of ocean jurisdiction, globally. The country faces smuggling of people, drugs, and weapons; illegal fishing; and search and rescue at sea, making it an ideal market for sophisticated aerial surveillance technology. In 2018, Australia’s government placed an order for six Northrop Grumman MQ-4C Triton unmanned aerial vehicles (UAVs) for USD 1 billion in a cooperative program with the US Navy. The government plans to use the new UAVs for maritime ISR missions, along with new P-8A Poseidon aircraft. The first Triton is expected to enter service in mid-2023, while the remaining are planned to be delivered before 2025. Australia is also currently taking deliveries of its 12 P-8A Poseidon aircraft, and the deliveries are expected to be completed by 2022. The P-8As will replace Australia’s AP-3C Orions for its naval support, maritime surveillance, search and rescue, and anti-submarine warfare roles. The growing influence of China on the waterways that are used by Australia for the transportation of goods with other Asian countries is expected to attract more investment from Australia in the coming years in maritime patrol and ISR missions. This is expected to propel the sea segment of the market during the forecast period.
The market is fragmented, with many players that provide a wide variety of products, like electro-optics, radars, and communication data links, for armed forces to perform ISR missions. Some of the prominent players in the market are L3Harris Technologies Inc., Elbit Systems Ltd, BAE Systems PLC, General Dynamics Corporation, and Lockheed Martin Corporation. Various companies are providing various C4 solutions to the country with reliable and secure wideband frequency bands. For instance, in February 2020, the Australian Department of Defense entered enterprise partnership with Saab AB to provide combat management systems across all the major surface ships of the Navy. Further, the country is currently investing in the development of next-generation satellite communication systems to improve the command and control of the armed forces. This may allow new players to enter the market and support the Australian forces with the construction of new satellites and ground stations.
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