The US military has recently been in investing in revamping existing sonar systems
Los Angeles, California (PRWEB) November 15, 2011
In the five years to 2016, Sonar Device Manufacturing industry revenue is forecast to increase to $1.2 billion, including a 2.5% jump in 2012, according to IBISWorld, the nation’s largest publisher of industry research. During this period, growth will be driven by an increase in scientific research and development (R&D) funding as businesses expand budgets after decreasing spending in 2008 and 2009, replacement demand from military customers and rising demand from ship builders and fisheries. For this reason, industry research firm IBISWorld has added a report on the Sonar Device Manufacturing industry to its growing Scientific Systems & Devices report collection.
The Sonar Device Manufacturing is a relic of the past that is navigating its way through a changing world. Despite the development of new and competing technology, sonar technology has an entrenched presence in the military, along with shipping, fishing, research and a number of other niche markets. In the five years to 2011, revenue is expected to decline at an average annual rate of 0.8% to $1.1 billion, including an estimated decrease of 0.5% in 2011.
The largest market for the Sonar Device industry is the military, and demand for sonar products is largely determined by federal funding for defense. The major defense companies (Raytheon, Northrop Grumman and Lockheed Martin) manufacture the vast majority of sonar products for the military. According to IBISWorld, over the five years to 2011, federal defense funding will grow. According to IBISWorld analyst, Nima Samadi, this was largely driven by the US's military conflicts in Iraq and Afghanistan. “The US military has recently been in investing in revamping existing sonar systems,” says Samadi.
Sonar devices and technology are also used for scientific research and development (R&D) purposes. The Scientific Research and Development industry (IBISWorld report 54171) experienced a 4.5% drop in funding in each 2010 and 2011 as nervous companies significantly cut R&D budgets. Despite these successive losses, IBISWorld estimates total Scientific Research and Development industry revenue has increased at an average annual rate of 2.2% to reach $85.2 billion in the 5 years since 2006. A common scientific research application of sonar is biomass estimation, which uses sonar to detect fish, and other marine and aquatic life, and estimate their individual sizes or total biomass. These echoes provide information on fish size, location, abundance and behavior, and the information is used to determine the health of marine communities.
Commercial fisheries and fishing vessels also use sonar to help locate fish. The consolidation of the fishing fleets is driving increased demands for sophisticated fish finding electronics such as sensors, sounders and sonar. Today, commercial fishing vessels rely almost completely on acoustic sonar and sounders to detect fish.
According to IBISWorld analyst, Nima Samadi, in the five years to 2016, Sonar Device industry revenue is forecast to increase at an average annual rate of 2.3% to $1.2 billion, including a 2.5% jump in 2012. During this period, demand will be driven by an increase in scientific R&D funding, as businesses expand budgets after decreasing spending in 2008 and 2009, replacement demand from military customers, and rising demand from ship builders and fisheries.
For more information, download the full report from IBISWorld on the Sonar Device Industry
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