The global military IoT market comprises many global and regional players adopting strategies such as mergers & acquisitions and expansions to improve their positions in the market. High competition and integrated solutions by industry participants are the key factors that are expected to impact market growth. Vendors compete based on cost, product quality, and reliability. It is vital for these players to offer cost-effective and high-quality products to succeed in the competitive market environment.
The growth of market vendors depends on market conditions, government regulations, and industry development. Thus, they focus on improving their products and expanding their regional presence. Harris Corporation (US), Collins Aerospace (US), Thales Group (France), General Dynamics Corporation (US), Leonardo S.p.A (Italy), Northrop Grumman Corporation (US), and Elbit Systems (Israel), are the leading players, accounting for 76.08% of the market share in 2018.
BAE Systems Plc (UK), Raytheon Company (US), Rolta India Limited (India), Saab AB (Sweden), Lockheed Martin Corporation (US), Atos (France), and Cobham Plc (UK) are some of the other key players operating in the global military IoT market.
The leading players, as mentioned above, are dominating the market due to their extensive product offering, industry experience, and vast geographic reach. These players may strengthen their presence worldwide through expansions and acquisitions during the forecast period. Players with access to better technologies can develop unique and innovative products and services, which could render the competitors’ offerings obsolete. The competitive environment in the market is likely to intensify further due to the increasing number of expansions.
Threat of New Entrants
The threat of new entrants denotes the impact of players trying to enter the market. The global military IoT market is expected to showcase significant growth. The initial investments required for the technology used to manufacture IoT-based systems and the research and development expenditure are moderate. Therefore, the threat of new entrants to the existing industry participants is projected to be moderate during the forecast period.
Bargaining Power of Suppliers
The bargaining power of suppliers refers to the degree of influence that input providers exert over the market dynamics. Suppliers in the global military IoT market provide sub-systems and components. The switching costs are moderate as manufacturers tend to enter into long-term associations with suppliers to ensure an uninterrupted supply of required materials. Product differentiation is also low and there are several suppliers in the market. Therefore, the bargaining power of suppliers is expected to range between low and moderate.
Bargaining Power of Buyers
The bargaining power of buyers in the global military IoT market is expected to be moderate. Buyers can be broadly categorized as the defense forces of various countries. There are numerous buyers in the global military IoT market, who are highly reliant only on successful and established IoT-based systems manufacturers. Furthermore, brand recognition has a high impact on buyers’ choices. The switching costs for buyers are moderate due to less variation in the costs of IoT-based systems manufactured by key players.
Threat of Substitutes
The threat of substitutes refers to the effect of substitute systems on the concerned market. Presently, there are no substitutes available for IoT-based systems for the military although the high cost of these systems may lead to the introduction of substitutes in the future. Thus, the threat of substitutes is projected to be low.
Rivalry
There is intense competition among the existing players in the market, with companies investing heavily in the research and development of IoT-based systems to meet the various requirements of the end users. Every company in the market is focused on offering the best quality systems that provide accurate information, virtual reconnaissance, dynamic situational awareness, flexible communications, and other features at competitive prices. Hence, the intensity of rivalry in the market is expected to be high.
