Europe Intelligence Surveillance And Reconnaissance - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)
The Europe Intelligence Surveillance And Reconnaissance Market size is estimated at USD 3.84 billion in 2024, and is expected to reach USD 4.74 billion by 2029, growing at a CAGR of 4.47% during the forecast period (2024-2029).
Key Highlights
The European intelligence, surveillance, and reconnaissance (ISR) market is expected to witness substantial growth due to significant investments made by countries in the region to strengthen their land and maritime borders, as well as to ensure the security of airspace. Rapid technological evolution in the ISR market is forcing countries to spend more on the procurement of the latest technologies. The inclusion of the latest technologies, like artificial intelligence and machine learning, in ISR is helping the military forces to a great extent.
The market is marred by the high costs associated with the development and deployment of cutting-edge ISR systems. The high cost poses a barrier for some entities, hindering the adoption and creating a challenge for the market players in providing state-of-the-art solutions to a broader user range.
An emerging trend of focusing on counter-drone technologies within the intelligence surveillance reconnaissance (ISR) industry responds to the proliferation of drones and potential security risks. With the increased utilization of unmanned aerial systems (UAS), there is a heightened need for effective detection, tracking, and mitigation solutions. ISR systems are being incorporated with advanced technologies, such as radar, sensors, and signal jamming, to identify and neutralize hostile drones. This helps safeguard critical infrastructure, public events, and military operations from potential threats posed by unauthorized UAS.
Europe Intelligence Surveillance & Reconnaissance Market Trends
Air Segment to Dominate Market Share During the Forecast Period
The aerial platforms provide extensive ISR capabilities. This is the first additional capability required by a combat decision-maker to make informed decisions during a crisis or contingency situation. The crewed (reconnaissance aircraft and airborne early warning aircraft) and crewless aerial ISR systems are used to synchronize the planning and operation of the components of this ISR enterprise, including analysis and production capabilities, to enable current and future operations.
Several countries are robustly investing in upgrading their airborne capabilities through new procurement or modernization of their existing fleet. For instance, in March 2022, Germany decided to purchase up to 35 Lockheed Martin F-35 stealth jets and replace its aging Tornado fleet. Germany is planning to gradually retire the Tornado fleet between 2025 and 2030. The F-35 is a stealthy, supersonic multirole fighter jet with advanced technology equipped with the latest systems developed by Lockheed Martin Aeronautics Company.
In January 2022, the Spanish Ministry of Defense (MoD) signed a USD 39.8 million contract with Indra to integrate its latest electronic warfare (EW) systems onto the Spanish Army's Boeing CH-47F Chinook transport helicopters. According to Indra, the helicopters will be integrated with the company's InShield directional infrared countermeasures (DIRCM) system, InWarner sensor, and ALR-400FD radar alerter.
The procurement of new aircraft and the modernization of indigenous systems are expected to generate more demand for the latest ISR systems over the forecast period, driving the growth of the ISR market in Europe.
Russia is Anticipated to Witness Highest Growth During the Forecast Period
Russia's military expenditure increased by 9.2% in 2022 to USD 86.4 billion, equivalent to 4.1% of Russia's GDP. Russia has advanced significantly in EW and ISR platforms over the past decade, continuing to challenge NATO’s defense in the Baltic States and NATO’s entire Eastern Flank. Russia’s growing interest in EW is part of a wider effort to adopt and strengthen its network-centric capability, focusing on C4ISR integration.
In recent years, Russian authorities have conducted trials on the new spy aircraft, dubbed the All-Seeing Eye. The aircraft is a Beriev A-100 retrofitted with 20 tons of unique surveillance equipment. The AEW&C aircraft is built on the latest version of the Ilyushin Il-76 military transport aircraft. The A-100 sports an active electronically scanned array radar (AESA) in its rotating radome. These aircraft are expected to replace the existing A50 aircraft in the Air Force fleet.
The United Aircraft Corporation is currently fulfilling the contract with the Russian Defense Ministry to upgrade the anti-submarine warfare Il-38 aircraft operated by Russian naval aviation. The Ilyushin Company is extending the lifecycle of the remaining aircraft and equipping them with modern onboard capabilities. The latest Novella complex is mounted on a modernized Il-38 to increase the searching efficiency and detection of submarines. The upgrade and deliveries of all the aircraft are expected to be completed by 2025. The UAC is also working on the design of the new-generation maritime patrol aircraft expected to replace the Il-38 in the future.
Russia’s plans to upgrade its defense technology are expected to drive the demand for advanced ISR systems over the forecast period.
Europe Intelligence Surveillance & Reconnaissance Industry Overview
The intelligence, surveillance, and reconnaissance market is semi-consolidated. L3Harris Technologies, Inc., Elbit Systems Ltd., BAE Systems plc, and General Dynamics Corporation are some of the major players leading in terms of market share.
The ISR market is expected to reach a mature position, wherein small regional players are expected to be either acquired or merged with the market giants to survive the competition.
For instance, in April 2022, The Swedish Defense Material Administration (FMV) signed a contract with Saab AB to provide a new Gripen launch system, with the contract valued at an estimated USD 40 million. The new order will see the development and integration of a new launch system for countermeasure pods and air-to-air missiles on the Gripen C/D and Gripen E jets.
Additional Benefits:
The market estimate (ME) sheet in Excel format
3 months of analyst support
Key Highlights
The European intelligence, surveillance, and reconnaissance (ISR) market is expected to witness substantial growth due to significant investments made by countries in the region to strengthen their land and maritime borders, as well as to ensure the security of airspace. Rapid technological evolution in the ISR market is forcing countries to spend more on the procurement of the latest technologies. The inclusion of the latest technologies, like artificial intelligence and machine learning, in ISR is helping the military forces to a great extent.
The market is marred by the high costs associated with the development and deployment of cutting-edge ISR systems. The high cost poses a barrier for some entities, hindering the adoption and creating a challenge for the market players in providing state-of-the-art solutions to a broader user range.
An emerging trend of focusing on counter-drone technologies within the intelligence surveillance reconnaissance (ISR) industry responds to the proliferation of drones and potential security risks. With the increased utilization of unmanned aerial systems (UAS), there is a heightened need for effective detection, tracking, and mitigation solutions. ISR systems are being incorporated with advanced technologies, such as radar, sensors, and signal jamming, to identify and neutralize hostile drones. This helps safeguard critical infrastructure, public events, and military operations from potential threats posed by unauthorized UAS.
Europe Intelligence Surveillance & Reconnaissance Market Trends
Air Segment to Dominate Market Share During the Forecast Period
The aerial platforms provide extensive ISR capabilities. This is the first additional capability required by a combat decision-maker to make informed decisions during a crisis or contingency situation. The crewed (reconnaissance aircraft and airborne early warning aircraft) and crewless aerial ISR systems are used to synchronize the planning and operation of the components of this ISR enterprise, including analysis and production capabilities, to enable current and future operations.
Several countries are robustly investing in upgrading their airborne capabilities through new procurement or modernization of their existing fleet. For instance, in March 2022, Germany decided to purchase up to 35 Lockheed Martin F-35 stealth jets and replace its aging Tornado fleet. Germany is planning to gradually retire the Tornado fleet between 2025 and 2030. The F-35 is a stealthy, supersonic multirole fighter jet with advanced technology equipped with the latest systems developed by Lockheed Martin Aeronautics Company.
In January 2022, the Spanish Ministry of Defense (MoD) signed a USD 39.8 million contract with Indra to integrate its latest electronic warfare (EW) systems onto the Spanish Army's Boeing CH-47F Chinook transport helicopters. According to Indra, the helicopters will be integrated with the company's InShield directional infrared countermeasures (DIRCM) system, InWarner sensor, and ALR-400FD radar alerter.
The procurement of new aircraft and the modernization of indigenous systems are expected to generate more demand for the latest ISR systems over the forecast period, driving the growth of the ISR market in Europe.
Russia is Anticipated to Witness Highest Growth During the Forecast Period
Russia's military expenditure increased by 9.2% in 2022 to USD 86.4 billion, equivalent to 4.1% of Russia's GDP. Russia has advanced significantly in EW and ISR platforms over the past decade, continuing to challenge NATO’s defense in the Baltic States and NATO’s entire Eastern Flank. Russia’s growing interest in EW is part of a wider effort to adopt and strengthen its network-centric capability, focusing on C4ISR integration.
In recent years, Russian authorities have conducted trials on the new spy aircraft, dubbed the All-Seeing Eye. The aircraft is a Beriev A-100 retrofitted with 20 tons of unique surveillance equipment. The AEW&C aircraft is built on the latest version of the Ilyushin Il-76 military transport aircraft. The A-100 sports an active electronically scanned array radar (AESA) in its rotating radome. These aircraft are expected to replace the existing A50 aircraft in the Air Force fleet.
The United Aircraft Corporation is currently fulfilling the contract with the Russian Defense Ministry to upgrade the anti-submarine warfare Il-38 aircraft operated by Russian naval aviation. The Ilyushin Company is extending the lifecycle of the remaining aircraft and equipping them with modern onboard capabilities. The latest Novella complex is mounted on a modernized Il-38 to increase the searching efficiency and detection of submarines. The upgrade and deliveries of all the aircraft are expected to be completed by 2025. The UAC is also working on the design of the new-generation maritime patrol aircraft expected to replace the Il-38 in the future.
Russia’s plans to upgrade its defense technology are expected to drive the demand for advanced ISR systems over the forecast period.
Europe Intelligence Surveillance & Reconnaissance Industry Overview
The intelligence, surveillance, and reconnaissance market is semi-consolidated. L3Harris Technologies, Inc., Elbit Systems Ltd., BAE Systems plc, and General Dynamics Corporation are some of the major players leading in terms of market share.
The ISR market is expected to reach a mature position, wherein small regional players are expected to be either acquired or merged with the market giants to survive the competition.
For instance, in April 2022, The Swedish Defense Material Administration (FMV) signed a contract with Saab AB to provide a new Gripen launch system, with the contract valued at an estimated USD 40 million. The new order will see the development and integration of a new launch system for countermeasure pods and air-to-air missiles on the Gripen C/D and Gripen E jets.
Additional Benefits:
The market estimate (ME) sheet in Excel format
3 months of analyst support
1 INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
4.1 Market Drivers
4.2 Market Restraints
4.3 Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5 MARKET SEGMENTATION
5.1 Platform
5.1.1 Land
5.1.2 Air
5.1.3 Sea
5.1.4 Space
6 GEOGRAPHY
6.1 United Kingdom
6.2 France
6.3 Germany
6.4 Italy
6.5 Russia
6.6 Rest of Europe
7 COMPETITIVE LANDSCAPE
7.1 Vendor Market Share
7.2 Company Profiles
7.2.1 L3Harris Technologies, Inc.
7.2.2 General Dynamics Corporation
7.2.3 The Boeing Company
7.2.4 Elbit Systems Ltd.
7.2.5 BAE Systems plc
7.2.6 THALES
7.2.7 Rheinmetall AG
7.2.8 CACI International Inc.
7.2.9 Northrop Grumman Corporation
7.2.10 Kratos Defense & Security Solutions Inc.
7.2.11 RTX Corporation
7.2.12 IAI
8 MARKET OPPORTUNITIES AND FUTURE TRENDS
1.1 Study Assumptions
1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
4.1 Market Drivers
4.2 Market Restraints
4.3 Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5 MARKET SEGMENTATION
5.1 Platform
5.1.1 Land
5.1.2 Air
5.1.3 Sea
5.1.4 Space
6 GEOGRAPHY
6.1 United Kingdom
6.2 France
6.3 Germany
6.4 Italy
6.5 Russia
6.6 Rest of Europe
7 COMPETITIVE LANDSCAPE
7.1 Vendor Market Share
7.2 Company Profiles
7.2.1 L3Harris Technologies, Inc.
7.2.2 General Dynamics Corporation
7.2.3 The Boeing Company
7.2.4 Elbit Systems Ltd.
7.2.5 BAE Systems plc
7.2.6 THALES
7.2.7 Rheinmetall AG
7.2.8 CACI International Inc.
7.2.9 Northrop Grumman Corporation
7.2.10 Kratos Defense & Security Solutions Inc.
7.2.11 RTX Corporation
7.2.12 IAI
8 MARKET OPPORTUNITIES AND FUTURE TRENDS
