The use of telemetry has increased vastly in military applications such as intercepted telemetry in guided missiles, armored vehicles, aircrafts, marine ships, UAVs. This factor is expected to augment the growth of the market during the forecast period.
The defense spending has increased owing to various security threats that are imposed externally as well as internally. Moreover, increasing terrorist attacks, increasing interest of nations towards world dominance and volatile relations between the nations are the factors that expected to contribute to the growth of the market.
The aerospace and defense R&D and production activities have grown rapidly in the recent times. The civil, commercial and military activities related organizations are developing and designing control systems for the aerospace sector, test launch control systems, communication systems, and satellite components. All these R&D activities have supported the growth of the aerospace industry and telemetry market and telemetry is an important part in the aerospace and defense industry. Furthermore, with growth in the aerospace R&D activities, there has been a growth in the telemetry usage and integration in aerospace application. Additionally, there has been growth in the R&D activities for telemetry parameters in UAVs. They contain various sensors and utilize the telemetry systems to transmit raw data from sensors and for processing other diagnostics data.
The global aerospace and defense telemetry market is estimated to surpass USD 17.5 Billion by 2027. The market is anticipated to record a CAGR of around 4.8% over the forecast period i.e. 2019-2027. The market is segmented by type, equipment & application. By type, the market is bifurcated into radio and satellite, out of which, the satellite segment is anticipated to have significant growth on account of increase in the use of smart weapons and unmanned aerial vehicles. Satellite telemetry is useful for commercial and military flight test missions. These systems help in monitoring the data that is collected from onboard instrumentation over an RF link. Moreover, missions such as the launch of 104 satellites in a single rocket by ISRO, is anticipated to boost the market growth during the forecast period.
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The market is further segmented by equipment into data acquisition unit, telemetry transmitters, flight terminator receivers and others, out of which, data acquisition unit segment is anticipated to have leading shares on account of reduction in the risk of data loss and flexibility & reliability in flight test applications. Moreover, these units are widely used in various applications.
On the basis of application, the market is segmented into aircraft, spacecraft, UAVs and others, out of which, aircraft segment is anticipated to have largest share owing to huge demand for telemetry in the segment.
Telemetry devices are anticipated to gain increased demand owing to an appreciation in the amount of data that is collected in defense and aerospace operations. The application of telemetry is wide and is even used in the field of navigation, communication, military intelligence, space science and is expected to propel the market growth.
The use of C-band telemetry, which is used in flight test ranges for fixed communication links and radars, is completely new and there are some challenges faced with flight operations in C-band. This factor is expected to hamper the growth of the market during the forecast period.
Our-in depth analysis of the global aerospace and defense telemetry market includes the following segments:
On the basis of regional analysis, the global aerospace and defense telemetry market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region.
North America region is anticipated to dominate the market share owing to high investments in the military and space sector. The growth in Middle East and Africa and Asia Pacific region is expected to be higher during the forecast period. Political problems between the Gulf countries have forced the countries to increase their defense expenditure for the modernization of equipment. Countries such as Saudi Arabia, UAE, Qatar, and Israel are restoring their military aviation as well as commercial sector. Moreover, the demand for unmanned aerial vehicles is high in the region. Emerging countries in the Asia Pacific region such as India and China have invested huge amounts for modernizing their armed forces. These activities will collectively have a positive impact on the growth of the market.
The global aerospace and defense telemetry market is further classified on the basis of region as follows:
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.