The Sonar Systems Market is expected to grow from USD 1,680.59 million in 2021 to USD 2,497.01 million in 2026, witnessing a CAGR of 8.24% during the forecast period (2021-2026).
As per the latest data released by the United Nations Conference on Trade and Development (UNCTAD), the COVID-19 pandemic resulted in a 4.1% decline in maritime trade in 2020. Subsequent waves of outbreaks are envisioned to disrupt supply chains and restrict the operations of shipping networks and ports, leading to plummeting cargo volumes. The naval vessel industry, including its workforce, is a major concern as the industry hopes to keep public and private shipyards up and running to build new ships and maintain existing ones. Due to the epidemic across the globe, naval shipbuilding and associated component and subsystem manufacturers are facing concerns regarding the availability of raw material. Moreover, decreased exports of primary naval construction materials from major importing countries will also result in significant fluctuation in raw material prices, subsequently affecting the profit margins of the shipbuilders.
Since ships and other naval vessels are required to tread over a vast stretch, sonar systems are used to navigate or detect underwater obstacles to avoid shipwrecking. The increasing naval fleet of the armed forces due to the procurement of new ships and submarines and the upgrade programs for the existing naval vessels are driving the growth of the sonar systems market. However, concerns related to the impact of sonar systems on marine animals have emerged as a major restraint for the market.
Key Market Trends
Defense Application Segment to Dominate the Market
Sonar systems are extensively used in naval warfare as they are effective against mines and help in anti-submarine warfare. Most countries are modernizing their naval fleet to enhance their maritime capabilities. For instance, the geopolitical rift in the South China Sea has led both China and Japan to induct new naval vessels to safeguard their territories against a possible hostile invasion. On this note, in October 2020, Japan launched the first of its new class of diesel-electric submarines named Taigei. Also, in April 2021, China revealed its new Type-100 Class nuclear-powered submarine that can be armed with 48 Submarine Launched Ballistic Missiles (SLBMs). To capitulate on the increasing demand for anti-submarine capabilities and sonar systems, various companies are engaged in the manufacturing of sophisticated sonar systems, such as diver detection, towed, hull-mounted, dunking sonars, sonobuoys, and other sonar-based surveillance systems for the global naval forces. Additionally, unmanned underwater vehicles (UUVs) evolved into viable tools capable of revolutionizing and transforming anti-submarine warfare (ASW) through their advanced sensing capabilities. These systems feature active sonar systems that are highly beneficial for the collection of data to detect, characterize and track adversary/enemy submarines at long ranges. Moreover, several nations realized the potential security vulnerabilities exposed by operating foreign UUVs in their waters, encouraging them to develop low-frequency sonars to accurately detect the presence of UUVs with lower acoustic signature levels. Thus, the rapid growth in the global naval fleet is expected to create a parallel demand for new and advanced sonar systems, like 3D multibeam scanning sonars, whose potential for growth is much higher in the defense sector than in the commercial sector.
Asia-Pacific to Witness the Highest Growth During the Forecast Period
The geopolitical scenario in the region has made it a hotspot for unprecedented skirmishes and armed standoffs, especially between the countries in the South China Sea. This has encouraged several countries to procure new naval assets while also promoting the capability upgrade of existing vessels. For instance, the PLAN is undergoing a huge naval fleet expansion, which is projected to make China surpass Russia as the largest navy in the world in terms of frigates and submarines by 2020. China is also emphasizing increasing its anti-submarine warfare (ASW) capabilities from coastal defense to blue-water operations. Other countries are also increasing their investments into ASW equipment, like sonar systems, to enhance their situational awareness in the sea. For instance, in 2017, Japan became the first nation to conduct large-scale experimental mining of a dead hydrothermal vent off the coast of Okinawa, inside Japan's national waters, by dispatching a torpedo-shaped underwater drone equipped with special sonar to map it. Such developments in terms of, both, vessel building and the upgrade of the existing fleet are expected to generate demand for sonar systems during the forecast period.
The sonar systems market is highly fragmented, with a wide range of players providing various types of sonar systems, like single-beam sonar systems, multi-beam sonar systems, and full-circle scanning systems, for applications, like fishing, deep-sea exploration, shallow water detection, and enemy detection, while tracking and detecting attacking torpedoes and missiles. Companies, such as General Dynamics Corporation, Thyssenkrupp AG, Kongsberg Gruppen ASA, Aselsan AS, and Thales Group are some of the prominent players in the market studied. Local companies, supported by defense budgets and government funding, are also developing indigenous systems, to reduce dependency on foreign contractors and add mission-specific operational profiles for onboard sonar systems as per the requirement of the end-users. Product innovations by various global and regional companies increased the competition in the market, and smaller players are expected to strengthen their presence in the market through innovations during the forecast period.
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TABLE OF CONTENTS
- 1.1 Study Assumptions
- 1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
- 4.1 Market Overview
- 4.2 Market Drivers
- 4.3 Market Restraints
- 4.4 Porter's Five Forces Analysis
- 4.4.1 Threat of New Entrants
- 4.4.2 Bargaining Power of Buyers/Consumers
- 4.4.3 Bargaining Power of Suppliers
- 4.4.4 Threat of Substitute Products
- 4.4.5 Intensity of Competitive Rivalry
5 MARKET SEGMENTATION (Market Size by Value - USD million)
- 5.1 Application
- 5.1.1 Defense
- 5.1.2 Commercial
- 5.2 Geography
- 5.2.1 North America
- 22.214.171.124 United States
- 126.96.36.199 Canada
- 5.2.2 Europe
- 188.8.131.52 United Kingdom
- 184.108.40.206 France
- 220.127.116.11 Germany
- 18.104.22.168 Russia
- 22.214.171.124 Rest of Europe
- 5.2.3 Asia-Pacific
- 126.96.36.199 China
- 188.8.131.52 India
- 184.108.40.206 Japan
- 220.127.116.11 South Korea
- 18.104.22.168 Rest of Asia-Pacific
- 5.2.4 Latin America
- 22.214.171.124 Mexico
- 126.96.36.199 Brazil
- 188.8.131.52 Rest of Latin America
- 5.2.5 Middle-East and Africa
- 184.108.40.206 United Arab Emirates
- 220.127.116.11 Saudi Arabia
- 18.104.22.168 Egypt
- 22.214.171.124 Turkey
- 126.96.36.199 Rest of Middle-East and Africa
6 COMPETITIVE LANDSCAPE
- 6.1 Vendor Market Share
- 6.2 Company Profiles
- 6.2.1 Nautel
- 6.2.2 Mistral Solutions Pvt Ltd
- 6.2.3 Sonardyne International Ltd
- 6.2.4 Northrop Grumman Corporation
- 6.2.5 Thales Group
- 6.2.6 Ultra Electronics Holdings
- 6.2.7 ThyssenKrupp AG
- 6.2.8 Western Marine Electronics Inc.
- 6.2.9 GeoSpectrum Technologies Inc.
- 6.2.10 ASELSAN AS
- 6.2.11 Lockheed Martin Corporation
- 6.2.12 Kongsberg Gruppen ASA
- 6.2.13 Koc Group
- 6.2.14 SonarTech Underwater Systems LLC
- 6.2.15 Meteksan Defense Industry Inc.
- 6.2.16 General Dynamics Corporation
- 6.2.17 Raytheon Technologies Corporation
- 6.2.18 L3Harris Technologies, Inc.
- 6.2.19 Teledyne Technologies Incorporated
7 MARKET OPPORTUNITIES AND FUTURE TRENDS