The rise in trans-national conflicts has led to rising defense expenditure in various emerging countries. Countries are investing in the advancement of missile systems, such as ballistic missiles, and cruise missiles, among others, which require INS systems for guidance. Moreover, system integration with commercial self-driving vehicles are expected to equally influence the overall growth of market during the forecast period. Factors such as growing passenger air traffic and rise of positioning system in commercial vehicles is expected to augment the demand for INS. With the use of MEMS, manufactures have industrialized cost-effective and more efficient solutions resulting in light, small, and low-cost navigation systems.
Inertial navigation system market is expected to witness strong growth on the back of technological advancements in navigation and positioning market along with the availability of robust and cheap components in developing the aerospace market. Global inertial navigation system market is expected to record a CAGR of 7% over the forecast period.
The market is segmented by product type (navigation, tactical, commercial and marine); by technology (MEMS, fiber optic gyro, ring laser gyro, mechanical, and vibrating gyro); by application (naval, airborne, land, and commercial). Based on technology, MEMS segment is anticipated to observe highest growth attributed to technological advancements that are resulting in its enhanced applicability for unmanned and small aircrafts. Increasing usage of satellite positioning for commercial application to boost the INS market growth. As stated in Boeing Market Outlook 2016, the world requires 41,039 new airplanes in next 15 years which happens to be approximately 3% increase from the current capacity and the value of the orders is calculated to be USD 6.1 trillion.
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INS system is relatively expensive technology as well as liable to vibration & thermal fluctuation which may cause errors in information data and can hinder the growth of this market. Operational complexity coupled with a decline in defense budgets in some of the major countries is expected to restrain the growth of this market.
Our-in depth analysis of the inertial navigation system includes the following segments:
On the basis of regional analysis, the global inertial navigation system market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region.
North America is anticipated to dominate the market share on account of growing air traffic and technological advancements coupled with favorable regulations by the Federal Aviation Administration (FAA). Leading missile and aircraft manufacturers, like Boeing (US), Lockheed Martin (US), Bombardier (Canada), Bell Helicopter (US), and Sikorsky Aircraft (US), among others, are based out of this region, and generates high demand for INS systems.
Asia Pacific is anticipated to grow at the fastest CAGR owing to launch of many programs related to INS systems. Countries such as China and India are expected to boost the growth on the back of rising defense budgets to develop homegrown technologies for naval vessels, warships, and defense aircrafts.
The inertial navigation system 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.