Global Cluster Munitions Market 2016-2020

Overview of the global cluster munitions market

Technavio’s market research analysts predict the global cluster munitions market to grow at a CAGR of around 2% between 2016 and 2020. Factors such as the increased risk of extremism, the emergence of countries with nuclear capabilities, and unconventional military threats have increased the use of cluster munitions globally. These munitions have the potential to destroy the supplies and military infrastructure of rebel combatants to neutralize their strength. A major advantage of cluster munitions is that they can be used over regions, which are densely populated with extremists and radicals. As these cluster munitions can be launched from a fighter aircraft and have an effect over a larger area than ICBMs or the SLBMs, these cluster bombs are cost-effective to use within the defense industry.

As per the industry experts at Technavio, one of the latest trends gaining traction in the market is the growing prominence of Alternative Warhead Program (AWP). Recently, Orbital ATK has signed a contract with the US Army for the development and provision of Guided Multiple Launch Rocket System (GMLRS) Alternative Warhead to replace the regulated cluster bombs. These alternative warheads are an advanced version of cluster munitions which aims at the complete elimination of unexploded ordnances. These advanced guided weapons have no long-term threat as cluster munitions and do not restrict the movement of soldiers.

Competitive landscape and key vendors

Characterized by the extreme competition, vendors in the global cluster munitions market compete on the basis of cost, reliability, product quality, and aftermarket service. The market is dominated by six major vendors who have a competitive edge over other players in terms of availability, quality, price, and technology.  The growth opportunities for the market players largely depend on the market conditions, government support, and industry development. To sustain themselves in the market, vendors need to extend their geographic reach, besides providing cost-effective and high-quality cluster munitions equipped with latest technologies. The market is expected to witness several mergers and acquisitions and increased collaboration among vendors across the globe during the forecast period.

Leading vendors in the market are -

• Textron Systems
• IMI Systems
• L-3 Fuzing and Ordnance Systems
• Lockheed Martin
• NORINCO
• Orbital ATK

Other prominent vendors in the cluster munitions market include Aeroteh and China Aerospace Science and Technology Corporation.

Segmentation by type and analysis of the cluster munitions market

• Anti-tank
• Anti-personnel

Technavio forecasts that the anti-tank cluster munitions segment will continue to dominate the market throughout the forecast period. Anti-tank cluster munitions have extensive usage in destroying surface-to-air missile (SAM) sites, where armored tanks and vehicles are usually deployed, which pose a considerable threat to combat aircraft during a conflict. These sites can be neutralized by a few bomber aircraft equipped with cluster bombs. The use of cluster munitions is growing significantly as it is cost-efficient and widely effective and can destroy SAM sites from high altitudes with a high level of precision.

Geographical segmentation and analysis of the cluster munitions market

• Americas
• APAC
• EMEA

In terms of geography, the Americas dominated the global market for cluster munitions and occupied the largest share in the market during 2015. The US Army employs cluster munitions as their application minimizes the number of aircraft and artillery systems needed to support military operations. As per the US Department of Defense (DoD), the removal of these guided weapons will lead to higher investments in the purchase of ammunitions, logistical resources, and new weapons. Also, with the elimination of these weapons, the soldiers would lose their coverage, and key infrastructures will be more vulnerable to attack. The US Army and Air Force extensively used cluster munitions during the Iraq and Afghanistan wars to combat the extremist groups.

 Key questions answered in the report include

• What will the market size and the growth rate be in 2020?
• What are the key factors driving the global cluster munitions market?
• What are the key market trends impacting the growth of the global cluster munitions market?
• What are the challenges to market growth?
• Who are the key vendors in the global cluster munitions market?
• What are the market opportunities and threats faced by the vendors in the global cluster munitions market?
• Trending factors influencing the market shares of the Americas, APAC, and EMEA.
• What are the key outcomes of the five forces analysis of the global cluster munitions market?

Technavio also offers customization on reports based on specific client requirement.

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• Global Defense Drones Market 2016-2020