Market Trends of Intelligence Surveillance Reconnaissance Industry
This section covers the major market trends shaping the Intelligence Surveillance Reconnaissance Market according to our research experts:
Growth Led by the Air Segment of the Market
The air segment of the market, driven by the growing popularity of UAVs and communication systems, is expected to grow rapidly during the forecast period and control nearly one-third of the market. The space segment is anticipated to attract significant attention, and it is likely to be the most-explored segment of this market. As seen in some new projects, at present, the market is moving toward consolidation and integration of ISR systems across all platforms, which may result in high efficiency and performance. In the air segment, the demand for electronic support and countermeasures (ESM and ECM), airborne C3, and surveillance and maritime patrol aircraft is expected to increase steadily, owing to the surging need for total situational awareness, air superiority, and survivability. In June 2022, Raytheon Technologies and L3Harris partnered together to work on the second phase of the United States Army's High Accuracy Detection and Exploitation System (HADES), a multi-domain sensing system (MDSS), program. The second phase of the HADES program is improving aerial intelligence. Phase 1 of this program was awarded to Raytheon and L3Harris in June 2021, under which the companies are expected to demonstrate, develop, and build prototype electronic intelligence and communications intelligence (COMINT) sensors. The HADES program has been allocated USD 49.9 million for research and development in the fiscal year 2023.
The Market is Expected to Experience the Highest Growth in Asia-Pacific
Currently, North America holds a major share of the market, as the United States is one of the leading countries in terms of defense platforms and spending. The country also spends heavily in order to foster collaboration between its naval, airborne, space, and land forces. The United States Coast Guard's Command, Control, Communications, Computers, Intelligence, Surveillance, and Reconnaissance Systems Acquisition Program is a multi-year effort to design, develop, and integrate the equipment used on the Coast Guard's newest assets, including the national security cutter, offshore patrol cutter, long-range surveillance aircraft (HC-130J), and medium-range surveillance aircraft (HC-144A and C-27J). However, market dynamics are shifting toward Asia-Pacific. China and India are taking huge strides toward strengthening the capabilities of their armed forces, and they are among the top five countries, in terms of defense spending, in the world. Also, these countries have plans to enhance their unmanned aerial systems in the near future, which may propel the growth of the market in this region. In October 2022, during DefExpo 2022 in Gandhinagar, the Indian Army said that Indian defense systems would yield over INR 8 lakh crores in the next 7 years, with intelligence, surveillance, and reconnaissance expected to hold the major share. With the recent tensions between nations and missile tests done by North Korea in the region, countries like South Korea and Japan have also increased their surveillance capabilities. In December 2021, Korea Aerospace Industries (KAI) has been awarded a contract worth USD 675 million by the Defense Acquisition Program Administration of South Korea for developing and manufacturing four intelligence, surveillance, and reconnaissance (ISR) aircraft for the Republic of Korea Air Force (RoKAF).
