Frost & Sullivan,
SINGAPORE: Strong economic growth, increasing military budgets and the urgency to modernize and replace old aircraft are driving the market for new aircraft and radar upgrades for better coverage in intelligence, surveillance and reconnaissance (ISR) missions. Airborne Early Warning (AEW) aircraft are receiving the highest priority, followed by maritime patrol aircraft, which are used to protect vital economic trade routes in the region.
New analysis from Frost & Sullivan, Asia Pacific Air ISR Radar Markets, finds that the market earned revenues of $381 million in 2007 and estimates this to reach $432 million in 2014.
Ongoing defense modernization programs are propelling the growth of the Asia Pacific air ISR radar markets. Modernization programs will drive armed forces to replace ageing technologies with modern airborne radar technology such as the active electronically scanned array (AESA), which provides superior coverage in comparison with the passive electronically scanned array (PESA) and the mechanically scanned array. AESA arrays move at almost the speed of light, giving users fast and accurate data in real time.
“Furthermore, an increasing number of countries in the Asia Pacific region are realizing the importance of Network-centric Warfare (NCW) and are shifting their military doctrines toward a networked-defense strategy,” notes Frost & Sullivan Research Analyst Chern Wai Cheong. “NCW is expected to drive the market demand for better radar detection technologies, and a better-networked environment between various government agencies to enhance the situational awareness of the battlefield.”
However, the expensive nature of these radar systems is restraining their adoption among the smaller countries, which are yet to make their procurement decisions. Large ISR platforms such as the AEW have high procurement costs, and only large developed countries have the requirement and funding to acquire them.
“Considering the high costs involved in researching and developing these technologies, Asia Pacific countries still depend on foreign companies to develop these radars,” says Cheong. “Moreover, most Asia Pacific countries only allocate a small proportion of their GDP toward defense and this trend is not likely to change much, with the exception of the more developed nations such as Japan, Singapore, South Korea, and Australia.”
Market participants should continually invest in R&D as airborne radars are highly technology driven due to the need for better reliability, higher processing speeds, and lower costs. Strategic alliances with local companies will also help improve local presence in the region and ensure better system interoperability.
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