Impact of COVID-19 on the Global Sonobuoy Market
As industries such as oil & gas have been badly affected due to COVID-19, the demand for sonobuoys has reduced. However, as the defense industry is mildly impacted due to the pandemic, the demand for sonobuoy in this industry has not been impacted as compared to commercial industries. Furthermore, as sonobuoys are largely used to identify moving objects in the water, such as submarines, and, in some cases, it is used as a surface radio transmitter. Thus, it is primarily used in the defense sector. Thus, the impact of COVID-19 in the sonobuoy industry is expected to be moderate during the forecast period.
Pre-COVID-19 Impact on the Sonobuoy Market
According to Market Research Future, the global sonobuoy market was estimated to reach USD 722.2 million by 2025 owing to factors such as growing demand for submarines and a rise in industrial applications of sonobuoy, which were expected to impact the sonobuoy market positively. Furthermore, the rise in demand for unmanned underwater vehicles was expected to drive market growth. High military expenditure in several regions, including Asia-Pacific, also was expected to propel the market growth during the forecast period. The sonobuoy market was expected to witness a Compound Annual Growth Rate (CAGR) of 6.62% by 2026.
Post COVID-19 Impact on the Sonobuoy Market
The COVID-19 pandemic has had a mild impact on the defense industry. Key functions such as production/manufacturing facilities and supply chains have been impacted due to the pandemic. A similar trend is expected to be witnessed in companies manufacturing sonobuoy and related supply chain of components. Moreover, as commercial industries have been negatively impacted due to the pandemic, a subsequent fall in demand for sonobuoy systems is expected to be witnessed during the forecast period. However, the fall in demand would be for a short period and the market is expected to witness a U-shaped recovery within 12-14 months. The market recovery is expected to be supported by the defense industry as has been mildly impacted due to the pandemic.
COVID-19 Impact on the Sonobuoy Market in Key Regions
North America: North America includes the US and Canada. Major companies in the sonobuoy market such as Sparton, General Dynamics Corporation, and Lockheed Martin Corporation have a presence in North America. However, as the companies are affected due to the COVID-19 pandemic, the sonobuoy market in this region has witnessed a lowering in demand.
Europe: In Europe, the market growth is significantly driven by the UK, Germany, France, and Italy. The UK and Italy have been highly affected due to the pandemic, which has restrained the market growth for sonobuoy. However, the market is expected to rebound due to the use of sonobuoy in the defense industries across the European region.
Asia-Pacific: Asia-Pacific includes countries such as China, India, Japan, Australia, Singapore, and Australia. The defense industry in countries in this region, including India, is expected to drive the demand for sonobuoy systems. The Indian Naval Indigenisation Plan (INIP) 2015–2030, which is focused on naval modernization is expected to encourage market growth. The impact of COVID-19 will have a negligible impact on the defense sector, which will have a negligible impact on market growth.
The Road Ahead
Apart from commercial industries, sonobuoy market growth is expected to be supported by the defense sector. However, a moderate impact is expected in the manufacturing and supply chain of the sonobuoy market. Future scenario is expected to witness the lifting of lockdown, which would enable companies to begin operations that would enable market recovery. However, as the pandemic continues, the defense industry is expected to drive the sonobuoy market.
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 and 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.
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*Note: The above mentioned datapoints will be provided on best effort basis