Global Inertial Systems Market in Subsea Applications - Segmented By Component (Gyroscopes, Accelerometers, Magnetometers), Type (Attitude Heading Reference System, Inertial Positioning and Orientation Systems, Inertial Measurement Units), and Region - Growth, Trends, and Forecast (2018 - 2023)
The inertial systems market in subsea applications is expected to register a CAGR of 9.32% over the forecast period (2018 - 2023). The scope of the report covers various holistic solutions offered by the leading vendors of the market. The scope is limited to the end-user applications in subsea applications.
Growth Military & Defense Budget to Aid Subsea Vehicles and Weaponry Market
The defense application dominated the market in 2017 and it is expected to do the same during the forecast period, with small-diameter missiles, underwater navigators, and unmanned aerial vehicles being the in-demand applications and the main beneficiaries of the high-end MEMS sensors in military applications. These defense revenues will increase as the government takes initiatives to establish a cutting-edge defense weapon platform by acquiring latest technologies, such as precision striking, defense electronics, and critical infrastructure protection. For instance, in 2016 the US increased its budget in military programs in the US, including F-35 fighter Jet, Ohio class submarine, KC-46 A aerial refueling tanker, Rafael fighter programs, etc., exhibiting the country’s focus on the defense sector. Further, the MEMS technology for high-end military and aerospace applications provides a high performance at low-costs with a small size, has further augmented the demand for inertial systems and the market is expected to have a strong potential growth during the forecast period.
United States to Hold the Largest Market Share in North America
North America held the highest share of the market in 2017. The primary demand for inertial systems in this region is observed in the maritime sector and the aircraft industry, mainly in the US. The United States allocates the maximum budget for the defense sector. In 2016, the United States defense spending was more than USD 611 billion, which represented 36% of the total world military expenditure of USD 1686 billion. However, over the last three years, as a result of the global political situation and the conflicts in Afghanistan and Iraq, the United States Department of Defense cut down their defense budget. Nonetheless, the decrease in military spending is expected to be offset by the steady investments into submarine programs in 2018. This has been buoyed by the government of United States that has initiated a bill authorizing a USD700 billion budget for the military, which also include investment for Connecticut’s submarine industrial base and attack submarines. The authorization of this bill is expected to create an investment of USD 8 billion for submarine programs. These factors are expected to bolster the market for subsea inertial systems in the United States.
Navigational Grade to Hold a Major Market Share
The demand for inertial navigational systems in the subsea is witnessing a steady growth rate across the globe, with the high availability of MEMS gyroscope, magnetometers, and accelerometers. Advancements in these components make INS cheaper and affordable, with the error margin being minimized significantly. There is a significant reduction in cost with the advancement of technology. These are used in small, unmanned subsea vehicle, guided missiles, personnel navigation, and submarines. The global market is extremely concentrated and only a few big companies are dominant in the market. However, there has been an increase in the number of new entrants, majorly due to technological advancements, which has brought down the costs of MEMS-based products.