Sonar Systems Technology Market Analysis

In-depth Analysis of Sonar Systems Technology Market Industry Landscape

Globally, there has been a notable surge in military expenditure over recent years. As per the Stockholm International Peace Research Institute (SIPRI), global military spending saw a 1.1% rise, reaching around USD 1.74 trillion from 2016 to 2017. Notably, countries like China, Saudi Arabia, and India experienced substantial escalations in military spending, with growth rates of 5.6%, 9.2%, and 5.5%, respectively. Remarkably, India advanced to the fifth position globally in defense spending, surpassing the UK. Despite a slight downturn in US defense spending, projections suggest a considerable increase in the next couple of years, with a specific focus on the modernization of conventional defense systems. Various nations worldwide are actively outlining plans to invest in advanced military technologies, emphasizing the expansion, modernization, and augmentation of their armed forces' operational capabilities.

Governments across the globe are actively modernizing their naval defense units by integrating submarines, surface-mine countermeasure unmanned underwater vehicles, and other tactical unmanned underwater vehicles. This escalating engagement in underwater warfare activities is stimulating the deployment of sonar systems. Notably, nations like the US, China, and India are significantly deploying sonar systems to effectively detect underwater threats. In a notable development, the US Navy sealed a substantial USD 1 billion contract with ERAPSCO, a joint venture between Sparton and Ultra Electronics, for the construction and delivery of 932,500 sonobuoys. These sonobuoys are compact buoy expendable sonar systems deployed from aircraft or ships, particularly used for anti-submarine warfare or underwater acoustic research. Similarly, in 2018, the Indian Navy entered into a contract with Atlas Elektronik to procure six low-frequency Active Towed Array Sonar (ACTAS) systems. These systems are designed for Kamorta-class corvettes, enabling the detection of enemy submarines.

Hence, the marked rise in military expenditure is anticipated to significantly fuel the demand for sonar systems and related technologies, especially concerning anti-submarine warfare capabilities.