ID: MRFR/A&D/5306-HCR | December 2022 | Region: Global | 140 pages
Impact of COVID-19 on Global Smoke Grenade Market
The COVID-19 impact on the global smoke grenade market is evolving every minute. The industry has witnessed an immediate and clear impact of the pandemic. Pre-COVID-19, there was a boom owing to the rising global incidents of riots and the growing use of smoke grenades for screening. However, due to amid the COVID-19 pandemic, manufacturing activities have come to a halt, and public gatherings are prohibited. Such factors are likely to restrict the growth of the global smoke grenade market.
Impact on the Global Smoke Grenade Market
According to Market Research Future, the global smoke grenade market is expected to reach USD 854.2 million by 2023, growing at a 6.33% CAGR during the forecast period from 2018 to 2023 owing to the rising global incidents of riots and increasing use of smoke grenades for screening. However, the ongoing coronavirus pandemic has impacted the market. As the manufacturing facilities are closed, public gatherings are prohibited various small manufacturers of smoke grenades are expected to face losses.
However, the growing use of smoke grenades for signaling and the emergence of portable and automatic smoke grenade launchers are expected to provide an opportunity for the growth of the global market.
The US is also a hub to major smoke grenade manufacturers such as Safariland, LLC, Combined Systems, Inc., NonLethal Technologies, Inc., and Sport Smoke LLC. These companies are actively involved in developing advanced smoke grenades. However, during the rising cases of COVID-19 in the country, the companies have had to face disruptions such as slow supply chain movement, unavailability of labor, and other factors causing a slowdown in production. Furthermore, due to the ongoing pandemic, the companies are facing delays in deliveries. As the demand for online shopping is increasing, the companies are taking a long time to deliver goods due to the unavailability of labor and disruptions such as slow supply chain movement. Hence, such factors are also expected to hamper the growth of the market in the country. However, in recent years, the increasing military expenditure by the US Department of Defense (DoD) on developing tactical equipment, resulting in a significant surge in the market demand.
Moreover, the current military operations in the Middle East will also result in the US, focusing on developing new tactical equipment, which will fuel the market growth in the region. As per the Stockholm International Peace Research Institute (SIPRI), the US military expenditure increased by 5.3% from 2018 to 2019 and reached USD 732 billion in 2019. Hence, such factors are expected to provide an opportunity for market growth in the country.
In Italy, the rising cases of COVID-19 have impacted the economy of the country and the smoke grenade market. There are approximately 8,570 deaths in the country due to COVID-19 as of May 2020. The presence of key companies such as Rheinmetall AG and Diehl Stiftung & Co. KG is expected to drive the market growth in the country. Rheinmetall AG’s sales in the 1st quarter of 2020 increased by 1.1% as compared to the first quarter in 2019. Moreover, the company’s defense business segment increased by 11% as compared to the 2019 1st quarter. Additionally, Rheinmetall AG is also helping against the COVID-19 pandemic fight by producing disinfectants and providing respiratory protection masks to the federal authorities. Therefore, such factors are expected to positively drive the market growth in the country during the forecast period.
In China, since the outbreak of COVID-19 in the country, various manufacturing activities have come to a standstill. This has negatively impacted to market in the country. In China, there are approximately 82,926 confirmed COVID-19 cases as of May 2020. However, the country’s ongoing conflicts with neighboring countries such as India and South Korea and its fight in Hong Kong are expected to drive the market growth in the country. Moreover, the rising defense expenditure of the country is also expected to drive the market growth in the country. According to SIPRI, China’s military expenditure increased by 5.1% from 2018 to 2019 and reached USD 261 billion in 2019. Hence, such factors are expected to drive market growth in the country during the forecast period.
The ongoing COVID-19 pandemic has impacted the Indian market as well. India has approximately 74,281 confirmed COVID-19 as of May 2020, and with the lockdown in the country, the smoke grenade helicopter market is expected to witness restricted growth. However, there have been a high number of conflicts about the India-Pakistan border, India-China border, and the Himalayas, thus driving the market growth in the country. Additionally, the country’s rising military expenditure is also expected to provide an opportunity for the growth of the market in India. According to SIPRI, India’s military expenditure increased by 6.8% from 2018 to 2019 and reached USD 71.1 billion. Hence, the rising territorial conflicts in the country and increasing military expenditure are expected to drive the market growth in the country.
The Road Ahead
As the defense industry is not adversely affected at this point, owing to increasing military expenditure and rising procurement activities. However, during the long run, due to extended lockdowns, closing of manufacturing facilities, and disruptions in the supply chain, the industry might witness a slack period.
Role of Market Research Future
As a market research and consulting company, Market Research Future has been continuously monitoring and tracking the COVID-19 pandemic and its impact on various markets within the aerospace & defense industry. All our research studies have been updated to accommodate the impact of COVID-19 in the respective market to provide our customers with comprehensive market data along with present and future trends with macro and micro-level impact factors.