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The military power solutions market is expected to register a CAGR of over 2% during the forecast period.
- Growing military budget is fueling the growth of the market. Several countries have increased their budget spending towards military electronics which is expected to drive the growth of the military power solutions market during the forecast period.
- The increasing deployment of military units in far-away warzones is increasing the demand for various types of mobile military power solutions, thereby driving the growth of the market.
Key Market Trends
Growing Defense Budget Driving the Market
Several nations are now focusing on augmenting their military firepower and defensive capabilities, in the wake of the growing threats from other nations. The uncertainties in territorial rights and the nations’ growing quest for global dominance are among the major causes disturbing the geopolitical climates. The most common reaction of governments to counter the treats is to increase military spending, in order to improve the security situation in their respective countries. According to SIPRI, the global military expenditure reached USD 1917 billion in 2019, an increase of 3.6% from 2018, which is the largest annual growth in spending since 2010. The United States, China, India, Russia, and Saudi Arabia were the five largest spenders in 2019. The growth in defense budgets will support the nations to enhance their combat capabilities and help them execute their defense strategies as planned. The growth in defense budgets has allowed the militaries to spend more on acquiring newer generation military electronics, equipment, and vehicles, thereby driving the market for power solutions for all these systems. Thus, the growth in defense budget is helping the growth of the market during the forecast period.
North America Held the Largest Market Share in 2019
In segmentation by geography, North America held the largest share in the market as of 2019. The main reason for the higher revenue share of the region is the high demand for the military power solutions from the US. Deployment of US troops in various regions of the world, due to the US engaging in various global conflicts, is one of the major factors driving the growth of revenues from the region. These military camps and command units use various portable military equipment, which requires compact and transportable power solutions to supply continuous or emergency power as required. The US is currently focusing on developing and inducing compact, mobile nuclear reactors into the military, as part of a two-step plan towards achieving nuclear power for the country’s military forces, both at home and abroad. In March 2020, the Pentagon awarded development contracts to BWX Technologies, Inc., for USD 13.5 million; Westinghouse Government Services for USD 11.9 million; and X-energy, LLC, for USD 14.3 million, to begin a two-year engineering design competition for a small nuclear microreactor that is intended to be deployed with forces outside the United States. Such developments are envisioned to bolster the market prospects for the region during the forecast period.
Enersys, Cummins Inc., Saft, Arotech Corporation, and EaglePicher Technologies are some of the prominent players in the market. The manufacturers of the military power solutions are continually looking for ways to develop power solutions keeping in mind the rules and regulations set by the various defense authorities across the world. Players are focusing on developing innovative and sophisticated portable energy solutions with high power density, for addressing the ever-growing complex and demanding power requirements for various military applications, which will help them gain new contracts from the militaries and expand their market share during the forecast period.
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