Market Trends of Aircraft Antenna Industry
Military Segment to Witness the Highest Growth During the Forecast Period
The increasing military spending of countries around the world fueled the plans for procurements of new generation aircraft and modernization of existing aircraft with advanced technology. For FY 2022, the US Department of Defense (DoD) requested a defense budget of USD 753 billion to make its military force a more lethal, agile, and innovative joint force. Under this budget, the DoD planned to invest in the development of future attack reconnaissance aircraft, future long-range assault aircraft, and sixth-generation combat aircraft within the Next Generation Air Dominance program. These programs are in their initial stages, due to which the aircraft antenna manufacturers can capture new contracts for such programs to increase their presence in the market.
For instance, in March 2023, the US Air Force Research Laboratory (AFRL) contracted with ThinKom Solutions, Inc. to deliver a modular and scalable phased-array antenna solution (ThinKom gateway array). Initially funded as a development contract, the offering takes advantage of ThinKom's patented Variable Inclination Continuous Transverse Stub (VICTS) architecture. Similarly, in June 2023, CesiumAstro won a US Air Force USD 3.6 million contract to develop a phased array antenna for remotely piloted drones. CesiumAstro will scale its SATCOM terminal to fit the size, weight, and power (SWaP) requirements of a Group 5 unmanned aerial system (UAS). The terminal will be integrated on a General Atomics MQ-9A capital asset to demo connectivity benefits with a commercial satellite network.
Asia-Pacific to Generate the Highest Demand During the Forecast Period
The Asia-Pacific region is achieving unprecedented long-term growth in commercial aviation, backed up by a large number of aircraft scheduled for future delivery to carriers in the region. This increasing air fleet is helping the airlines to increase the connectivity to/from/within the region to support a wide spectrum of industries, like tourism and trade. The new aircraft are fitted with advanced antenna systems as travelers are increasingly opting for better onboard connectivity services. Companies are bringing new IFC services to passengers to enhance their experience.
Moreover, the growth of military spending of countries in the region is supporting the development and procurement of new-generation advanced military aircraft. For instance, China's proposed FY2023 defense spending 2023 rose to USD 225 billion, which is 7.2% higher than the budget allocated for FY2022 and is the eighth consecutive year of increase in its military spending.
Similarly, India's proposed defense expenditure for FY 2023 is USD 72.6 billion, which is 13% up from the previous period's initial estimates and is aimed towards the acquisition of combat aircraft. These aircraft are fitted with advanced antennas to provide better data links between satellite aircraft, aircraft, and aircraft-ground stations. Due to the reasons above, the demand for aircraft antennas in the Asia-Pacific region is expected to register the highest CAGR during the forecast period.
