Market Trends of Military Actuators Industry
This section covers the major market trends shaping the Military Actuators Market according to our research experts:
The Land Segment is Anticipated to Witness Highest Growth During the Forecast Period
Countries worldwide have been increasing their defense spending every year and investing in improving their defense capabilities. Countries having tensions with neighboring nations have been spending more on various ground vehicles along with other military systems. In June 2022, the Defense Acquisition Program Administration (DAPA) of South Korea signed a deal with Hyundai Rotem to acquire an unspecified number of wheeled command post vehicles (CPVs). This deal is worth USD 44.7 million, and the CPVs will be delivered in 2023 to battalions and higher-level units in the Republic of Korea Army (RoKA) and the Republic of Korea Marine Corps (RoKMC). The demand for unmanned ground vehicles has also increased as countries procure them for different missions. With the increase in demand, new models of unmanned ground vehicles are being manufactured. In December 2022, Indian Army procured Tracked Hybrid Modular Infantry System (THeMIS) unmanned ground vehicle (UGV) made by Milrem Robotics from Estonia. In November 2022, Hanwha Aerospace successfully demonstrated the capabilities of Arion-SMET, the company's new multi-purpose unmanned ground vehicle (UGV). The demonstration took place at a United States Army Garisson in South Korea. Unmanned systems in the military have become more popular these days because of the benefits they provide. These unmanned systems demand will increase the actuators market growth. For instance, in January 2023, Leidos segment Dynetics awarded Curtiss-Wright a contract to support the United States Army's future missile capabilities. Curtiss-Wright will develop electromechanical actuators integrated into the first 16 Dynetics-built Enduring Shield ground-based launcher systems. With the increase in procurement and development of ground vehicles, the land segment of the market will witness more growth than the sea and air segments during the forecast period.
North America is Likely to Witness the Highest CAGR During the Forecast Period
North America is expected to witness the highest growth during the forecast period due to increasing investments in terms of defense capabilities through the procurement of advanced weapons, armored vehicles, fighter jets, and military equipment which creates the demand for linear and rotary military actuators.
The United States is the highest defense spender in the world, with a defense budget of USD 801 billion in 2021. The country is highly investing in enhancing its defense capabilities by procuring advanced weapons, armored vehicles, fighter jets, and military equipment that creates demand for linear and rotary military actuators. Rising procurement of advanced defense systems from the United States Department of Defense (DoD) drives the market's growth across the country. For instance, in February 2023, Leidos segment Dynetics signed a contract with Curtiss-Wright to support the United States Army's future missile defense capabilities. Under the contract, the company will develop electromechanical actuators that move and control a mechanism or system. The actuators will be integrated into the first 16 Dynetics-built Enduring Shield ground-based launcher systems produced for the United States Army. Similar developments in Canada, will also contribute to the growth of the market in North America. The Canadian government plans to purchase four new strategic tanker transport aircraft in 2023. The government has allocated up to USD 4 billion to purchase planes. The formal request for its proposal for the aircraft was issued in May 2022.
Thus, growing investment in improving defense capabilities and increasing adoption of advanced fighter jets and military weapons will likely drive the market growth in the coming years.
