The naval navigation and communication systems market is projected to register a CAGR of over 3% during the forecast period.
- The constant update and introduction of a series of resolutions and codes on the guidelines on navigation issues and performance standards for shipborne navigational and radiocommunications equipment, namely, the SOLAS, COLREG, and STCW, necessitated the development of new navigation and communication systems, to ensure the safety of naval assets in the seas.
- The ongoing R&D toward the development of advanced maritime technologies, such as stealth submarines and unmanned marine systems, is envisioned to inspire the potential investments in the development and induction of sophisticated navigation systems, to ensure vessel safety and high-performance communication systems that can ensure the swift, stealthy, and encrypted flow of telemetry data between the naval fleet and the control station.
Key Market Trends
The Communication Systems Segment Expected to Dominate the Market
The advent of network-centric warfare techniques revolutionized the scope of operations of naval vessels, rendering the integration of C4ISR capabilities into the fleet as a critical necessity to optimize the operational and strategic capabilities. Such systems incorporate command-and-control and sensor architecture to shape joint operations. These systems provide direct links to the naval Joint Force Commander from airborne reconnaissance platforms, to ensure a real-time battlefield assessment through ELINT, SIGINT, and high-resolution SAR/MTI technologies. The global navies are adopting an enterprise integration approach to naval C4ISR systems to facilitate the breakdown of restrictive system silos and enable real-time sharing and transmission of terabytes of data. This architecture is aimed at enhanceing the naval fleet’s capability to harness Big Data analytics for strengthening strategic coordination between the intelligence processing and warfighting units. For instance, the US Navy maintains a worldwide Maritime Command/Surveillance Tactical Support Center (TSC) network that functions as nodes for the Joint Maritime Command Information System (JMCIS).
The need to ensure the enhancement of naval operational capability encouraged the dissemination of several orders to military contractors for the induction of new communication systems in advanced naval vessels under construction, while also upgrading the capabilities of the integrated systems in last-generation naval vessels. In August 2018, the US Navy's Space and Naval Warfare (SPAWAR) Systems Center Pacific awarded several IDIQ contracts to smaller regional players, such as Riverside Engineering LLC, Coherent Technical Services Inc., Whitney, Bradley & Brown Inc., and Solute Inc., for providing positioning, navigation, and timing technologies for C4ISR applications. The contacts have a provision to extend the period of performance by August 2023. Such developments are envisioned to drive the communication systems segment of the market during the forecast period.
Asia-Pacific Expected to Witness Highest Growth During the Forecast Period
The strengthening of the strategic military alliances between the United States and several Asia-Pacific sovereign nations and subsequent reinforcement of military deployment and intervention resulted in a complex scenario, urging rapid modernization of defense capabilities of regional countries, such as China, to safeguard their vested interests. By the mid-2020s, China aims to induct the Type 093B SHANG-class guided-missile nuclear attack submarine. During the 2017-2018, China launched the first of its four RENHAI-class guided-missile cruisers. RENHAI is scheduled to be inducted into active service by 2019, and it can carry a large load out of anti-ship cruise missiles (ASCMs), SAMs, and anti-submarine weapons. The Indian Navy is scheduled to receive the third Scorpene submarine by the end of 2020 and the last of the initial six submarines by 2028. India also launched the Project 75i(P75i) to acquire six additional submarines. In January 2020, the Government of India announced the selection of the domestic and foreign shipbuilding firms for the construction of six diesel-electric submarines with air-independent propulsion technology, as part of an effort worth more than USD 7 billion. Australia also envisions boosting its submarine fleet with the induction of six Barracuda class submarines based on the Scorpene-class. In March 2016, the Naval Group was awarded an initial order for the Barracuda class submarines, under the SEA 1000 program. Several other programs are underway in the region, which is bolstering the growth prospects of the market during the forecast period.
The naval navigation and communication systems market is fragmented, with many global players present in the market. Some of the prominent players in the market are Northrop Grumman Corporation, FLIR Systems Inc., Safran SA, Honeywell International Inc., and Kongsberg Gruppen ASA. In order to gain long-term contracts and expand their global presence, players are investing significantly into continuous R&D, to foster the advancements of accuracy and efficiency of integrated navigation and communication systems onboard naval vessels. In February 2019, the Sprut-N1 new-generation precision navigation radio system was launched for the Russian Navy. The system determines the geographic location, speed, and altitude with the help of ground stations that transmit coded signals to warships and aircraft, rendering it formidable against jamming threats.
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