Search, Detection, Navigation & Guidance System Manufacturing
Companies in this industry make products such as aircraft instruments, flight recorders, navigational instruments, and radar and sonar systems. Major companies include FLIR and divisions of defense contractors such as Boeing, General Dynamics, Northrop Grumman, and Raytheon Technologies (all based in the US), as well as Airbus Group (the Netherlands), BAE Systems (the UK), Bharat Electronics (India), China Aerospace Times Electronics (China), Furuno Electric (Japan), and Thales (France).
Top countries for the manufacture of search, detection, navigation, and guidance systems include China, Canada, Mexico, and France. Global aerospace and defense revenue, a key demand driver for search, detection, navigation, and guidance systems, had a revenue of about $700 billion in 2021, according to PricewaterhouseCoopers. According to Deloitte, although travel demand is slow, the global aerospace and defense industry is expected to recover as countries have not significantly reduced their defense budgets.
The US search, detection, and navigation equipment manufacturing industry includes about 550 companies with combined annual revenue of about $50 billion. Production of GPS equipment is covered in the Wireless Telecommunications Equipment Manufacturing industry profile.
Competitive Landscape
Demand depends on discretionary consumer income, general economic conditions, and federal budgets for defense and homeland security. Large companies have advantages in purchasing power, manufacturing volume, and distribution efficiencies. Small companies compete by offering specialized products and providing subcontracting services to larger system integrators. The US industry is highly concentrated: the largest eight companies account for about 75% of revenue; the largest 50 account for about 95%.
Imports of US market for search, detection, and navigation equipment come mainly from mainly from Mexico, China, Canada, and France. Exports account for about 10% of the industry's US production. Most search, detection, navigation, and guidance products can be sold to NATO countries, but some products require permission from the US government for sale to certain foreign countries. Foreign markets deemed inappropriate for US exports may be served by manufacturers in Canada, Mexico, Japan, United Arab Emirates, and Saudi Arabia are the leading markets for US exports of search, detection, and navigation equipment.
Products, Operations & Technology
Major products include search, detection, navigation, and guidance systems, which account for more than 50% of the industry revenue. Other products include:
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Glossary of Acronyms