Aerostat Market Strategies, Top Players, Growth Opportunities, Analysis and Forecast by 2031

The aerostat market size is projected to reach US$ 16.70 billion by 2031 from US$ 8.45 billion in 2023. The market is expected to register a CAGR of 8.9% during 2023–2031. Increasing demand of cargo airship for heavy payload is likely to remain a key trend in the market.

Aerostat Market Analysis

The aerostat market is experiencing a steep demand in terms of procurement among various military forces and commercial sector. Attributing to the enormous demand for technologically advanced aerostat, governments across the world are pressurizing firms to innovate and develop robust technology to cater to the demand of end users. The manufacturers and military forces rely heavily on the brand value of the aerostat component manufacturers, and owing to this, majority of the contracts are awarded to the established and industry-recognized aerostat manufacturers, thereby creating minimum space for new manufacturers to enter the market. However, start-ups in various countries are providing aerostat to maintain the position in the market. Due to this fact, there is moderate threat to new entrants in the aerostat market.

Aerostat Market Overview

The aerostat industry consists of well-established and industry-recognized players. The rivalry among the industry participants is moderate and is expected to grow high during the forecast period due to entry of new players. The demand for technologically advanced aerostat is growing as the government is constantly investing substantial time and capital. This factor also increases the degree of competition among the market players.

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Aerostat Market: Strategic Insights

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Aerostat Market Drivers and Opportunities

Increasing Focus on Using Economical Solutions for Surveillance

The increased focus by military departments of several countries toward using cost-effective solutions for surveillance is boosting the growth of the aerostat market. North America is highly engaged in deploying cost-effective surveillance due to a rise in terrorism. The region is one of the largest military spenders across the world and has invested a significant amount in aerostat for the purpose of surveillance and border security. The surveillance helps defense expand the radar picture for missile defense. When it comes to surveillance, the cost of collecting intelligence from the air is high. Whether agencies are using UAVs or manned flights, the aircraft are costly to operate and come with other limitations, such as an aircraft cannot hover for long durations; fuel has to be refilled; and it needs maintenance and human pilots. Hence, several military forces have turned their focus toward the use of aerostat, which gains its lift with the use of buoyant gas.

Adoption of Aerostat to Protect Military Forces from Missile Defense

In the world of modern warfare, missile defense play a crucial role in defeating enemies. The continuous growth in cruise and ballistic missile warfare, has led the defense forces to opt for advanced solutions to deter the threat, as using manned aircraft incur high cost. The modern aerostats are equipped with technologically advanced sensors and radars which are capable of sensing and recognizing the incoming threat and relay the information to the action center. The Joint Land Attack Cruise Missile Defense Elevated Netted Sensor System (JLENS), a blimp-borne radar system manufactured by Raytheon Company, a defense contractor company based in the US. The JLENS have the capability to hover 24/7 up to 10,000 ft for a duration of 30 days. The system is equipped with long range radars, which facilitate the end-users in protecting respective territories from any missile based threats. Thus, the benefits offered the aerostats are increasing the interest among the defense forces, which is creating a lucrative business space for the vendors offering their products to the defense forces, hence, showcasing growth in the market size.

Aerostat Market Report Segmentation Analysis

Key segments that contributed to the derivation of the aerostat market analysis are product type, payload, and application.

• Based on product type, the aerostat market is segmented into airships, balloons, hybrid aerostat, and HAPS. The balloons segment held a larger market share in 2023.
• Based on payload, the aerostat market is segmented into surveillance radar, navigation system, communication relays, and others. The surveillance radar segment held a larger market share in 2023.
• Based on application, the aerostat market is segmented into military and commercial. The military segment held a larger market share in 2023.

Aerostat Market Share Analysis by Geography

The geographic scope of the aerostat market report is mainly divided into five regions: North America, Europe, Asia Pacific, Middle East & Africa, and South America.

North America has dominated the market in 2023 followed by Europe and Asia Pacific regions. Further, Asia Pacific is likely to witness highest CAGR in the coming years. The US accounted for the largest market share in North America aerostat market. The US is an economically advanced country and alone absorbs the significant share of the total spending in the aerostat market due to high technological spending. The growth in the aerostat market in the US is primarily driven by factors such as increasing digitization, investment by the military forces, and homeland security to implement aerostat. Companies in the US are focused on offering aerostat; for instance, ILC Dover, a US-based company, has designed aerostats for several ISR applications. The company has manufactured aerostats to carry surveillance radars up to 15,000 feet height whereas tethered to the ground by a single tether. The company’s aerostats have helium volumes from 56,000 to 595,000 cubic feet and range in length from 109 to 240 feet; its aerostat is used by the military forces to examine several surveillance payloads.

Aerostat Market Regional Insights

The regional trends and factors influencing the Aerostat Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses Aerostat Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.

Aerostat Market Report Scope

Aerostat Market Players Density: Understanding Its Impact on Business Dynamics

The Aerostat Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.

Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.

Major Companies operating in the Aerostat Market are:

1. Aero
2. Allsopp Helikites Ltd.
3. ILC Dover
4. Israel Aerospace Industries Ltd.
5. Lindstrand Technologies Inc.

Disclaimer: The companies listed above are not ranked in any particular order.

Aerostat Market News and Recent Developments

The aerostat market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. A few of the developments in the aerostat market are listed below:

• QinetiQ US, has received a U.S. Department of Homeland Security (DHS) Customs and Border Protection (CBP) Air and Marine (AMO) Tethered Aerostat Radar System (TARS) Operations & Maintenance (O&M) IV contract, comprising one base with four option years, valued at US$ 170 Million. (Source: QinetiQ, Press Release, Nov 2023)
• Raven Industries, Inc. (the Company; NASDAQ:RAVN) announced today that Defense Innovation Unit (DIU) has awarded a contract to Aerostar Technical Solutions, Inc. (Raven Aerostar) to provide robust high-altitude capabilities for the U.S. Department of Defense. (Source: Aerostar Technical Solutions Inc, Press Release, Nov 2021)

Aerostat Market Report Coverage and Deliverables

The “Aerostat Market Size and Forecast (2021–2031)” report provides a detailed analysis of the market covering below areas:

• Aerostat market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
• Aerostat market trends as well as market dynamics such as drivers, restraints, and key opportunities
• Detailed porter’s five forces analysis
• Aerostat market analysis covering key market trends, global and regional framework, major players, regulations, and recent market developments
• Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments for the aerostat market
• Detailed company profiles