Global Defence Equipment Packaging Market: Overview
The global defence industry has undergone significant transformation in the past few decades. The dynamic nature of the defence industry can be determined from the fact that defence electronics become obsolete in a matter of years. Defence electronics comprises all the sophisticated systems integrated with tactical equipment. It is anticipated that the advent of modern technology, coupled with rapid progress of R&D teams across the globe, will ensure a largely positive outlook for growth of the global Defence Equipment Packaging market, over the forecast period. Defence equipment being highly delicate and sophisticated, requires efficient packaging solutions, which can handle stresses and impact of hard environments. Many countries, such as India, and China, have been increasing their defence budgets by leaps and bounds, in the past decade. In a period of ten years, during the period 2006-2016, the Indian defence budget increased by US$ 18 Bn. India has continued to be the top importer of defence equipment in the past couple of years. Therefore, manufacturers of defence electronics are expected to eye the lucrative Asia Pacific region, as China, Pakistan and India continue to be involved in a tight arms race, thereby providing lucrative opportunities for the growth of the global Defence Equipment Packaging market.
Global Defence Equipment Packaging Market: Dynamics
The global Defence Equipment Packaging market is expected to witness strong growth in 2017. Although the global defence electronic market growth has been suppressed in the past couple of years, the industry has continued to grow consistently. Across the globe, governments have been equipping their armed forces with advanced defence weapon platforms integrated with modern electronic warfare systems, which includes next-generation technologies, such as software for precision/surgical strike capabilities, cyber security and warfare, and intelligent gathering by means of drones. This is attributed to a heightened state of alarm due to the rise of rogue terrorist organizations in the Middle East, and other similar organizations scattered across the globe. Amidst the turmoil, the world has witnessed high defence equipment procurement by several countries in the wake of threats to national security. Therefore, this arms race and the need to stay prepared to counter any threats, is expected to bolster growth of the global defence electronics market, which in turn, will positively impact growth of the global Defence Equipment Packaging market. In light of the threats, governments have been looking to adopt advanced packaging technologies. Despite the positive market outlook, there are certain factors, which might hamper growth of the global Defence Equipment Packaging market. Another key factor is cost. In some cases, the package itself costs more than the Integrated Circuit. Inflation in defence equipment might hamper growth in defence electronics procurement, during the forecast period, thereby affecting the global Defence Equipment Packaging market. Also, although the U.S. leads the globe in terms of defence budget allocation, it has been witnessing a gradual drop in budget, in the past few years.
Global Defence Equipment Packaging Market: Segmentation
The global Defence Equipment Packaging market is segmented as follows –
On the basis of product type, the global Defence Equipment Packaging market has been segmented as –
- Primary Packaging
- Secondary Packaging
On the basis of material, the global Defence Equipment Packaging market has been segmented as –
Global Defence Equipment Packaging Market: Regional Outlook
On the basis of geography, the global Defence Equipment Packaging market has been divided into the following seven regions –
- North America
- Latin America
- Western Europe
- Eastern Europe
- Asia Pacific excluding Japan (APeJ)
- Middle East & Africa (MEA)
The North America region is expected to lead the global Defence Equipment Packaging market, well beyond the forecast period. This is attributed to the significant defence budget allocated by the U.S. government. The Asia Pacific region however, will enjoy maximum market attractiveness, over the forecast period, as countries such as China, India, and Pakistan continue to procure new defence electronics, over the forecast period. The Middle East, especially GCC countries, is also expected to provide ample opportunities for growth of the global Defence Equipment Packaging market. Latin America is projected to witness healthy growth, while, the Eastern Europe region might witness slackened growth, over the forecast period.
Global Defence Equipment Packaging Market: Key Players
Few of the key players operating in the global Defence Equipment Packaging market are – FCA, LLC, Quality Foam Packaging, Inc., Adhesive Materials Group., and Hardigg Industries, Inc., among others.