SIGNIT is also known as Signal Intelligence is the process applied for information gathering through the process of signal interception. The technology is divided into two key segments based on the type of information gathered. i.e. COMINT and ELINT. COMINT is also known as communication intelligence is used to carry signals between people during a conversation. The signal is generally in the form of electromagnetic/acoustic waves. ELINT is also known as electronic intelligence is used to carry signals which are not directly used in communication.
Very often, messages are relayed using encryptions during military operations due to the high sensitivity associated with the conveyed content. Therefore, SIGINT makes use of crypto analysis to decipher coded messages. Studies like traffic analysis are also used to integrate information. This method helps decode the patterns in communication which can be used to understand the message relayed. Traffic analysis can also help unveil the identity of the message recipients. The use of this technology is highly detrimental in terms of high-sensitivity military tasks and operations. This technology can also be integrated into military combatants to decode the adversary’s strategy. This in turn allows the troops to be better prepared during combat.
The Global Signal Intelligence Market attained a market value of roughly USD 12.54 Billion in the year 2020. The total market is anticipated to grow with a CAGR of 4% between the forecast period 2020-2030. The market is segmented into 3 key verticals, i.e. by Type, By Region, and By Platform. The type segment is further categorized into COMINT and ELINT. The Platform segment encompasses the various types of combatants used across the land, air, and naval means. While the regional segmentation provides a competitive mapping across North America, Europe, APAC, the Middle East, and the RoW.
On studying the overall market trends, the growth in the defense budget and modernization programs is expected to be one of the key drivers for this vertical. As of 2019, the defense budget for the US was recorded to attain a value of USD 686.1 Billion. As of 2020, the military budget for the US is anticipated to grow with a value of 3.74%. The budget allocation is expected to experience a plummet in the year 2020 owing to the pandemic. The widespread economic downturn and the reduced per capita income are anticipated to reduce the GDP contribution of the defense vertical. This in turn is expected to lead to large budget cuts in the year 2020.
Contrarily a key market restraint is a cost associated with the development of SIGINT systems. The technology is highly niche because of which high-end product development and testing procedures are employed to ensure maximum efficiency in terms of product delivery. Moreover, the introduction of highly skilled products like SIGINT instates the requirement for labor that is well versed with the functionality of this technology. Therefore, capital costs in terms of training and development are also to be incurred on the inclusion of this technology.
The after-effects of the pandemic and its subsequent negative impact on the defense budget are expected to hinder product adoption due to budget limitations. Markets like Saudi Arabia, the UK, France, and Germany are expected to witness devastating effects in terms of budget cuts due to the pandemic.
Technological advancement is another factor that is anticipated to drive the market growth for the SIGINT Vertical. The use of electronic warfare in battle management systems is expected to be one of the radical trends within the global markets. The use of this technology is expected to aid the lethality of military platforms. The integration of technologies like SIGINT with electronic warfare is hereafter expected to bolster both communication and strategic warfare. The integration of this technology would allow soldiers to communicate across platforms to develop tactical strategies which would hereby improve the efficiency of battle management systems and battle formations.
The growth in the proliferation of network-based warfare is also one of the key drivers for the SIGINT market. However, the use of this technology also offers certain disadvantages like information breaches and security threats associated with the same. The signals can also be distorted via the use of jamming devices which could potentially result in the transfer of incoherent signals.
In a nutshell, the growth in market penetration of data-based warfare is expected to be one of the key drivers for SIGINT. The use of network-centric warfare and other tactical measures which are reliant on electromagnetic waves is anticipated to boost the requirement for technologies like SIGINT. Other factors like rapidly increasing cross-border tensions and brewing insurgency in regions like Afghanistan are also expected to drive the growth within this market. Indo-China border tensions are also anticipated to be a key driver for the SIGINT vertical. The rapidly increasing border security associated with both countries is hereafter expected to drive the opportunity for this market within APAC.