The Global Counter IED Market 2012–2022

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The global counter IED market is expected to be worth US$6.4 billion in 2012, which will decrease to US$3.6 billion by 2022, representing a CAGR of -5.59% during the forecast period. The demand for counter IED equipment is anticipated to be driven by internal and external security threats, territorial disputes, modernization initiatives, technological innovations, and a substantial demand for counter IED systems for coalition forces in Afghanistan. Cumulatively, the global market is expected to value US$46.7 billion during the forecast period. The market is expected to be dominated by North America, followed by Europe and Asia-Pacific. Despite the significant levels of spending in Europe, the region’s share of the global market is projected to decrease during the forecast period due to the withdrawal of troops from Afghanistan and public pressure to cut down on defense spending.

In terms of categories, counter IED vehicles is expected to account for the highest proportion of spending in the global counter IED market, followed by electronic countermeasures and detection systems. Counter IED training and Unmanned Systems account for the fourth and fifth largest segments respectively. The demand for counter IED vehicles is anticipated to be higher than other categories because of the need for troops across the world to have high mobility without compromising on survivability. Electronic Countermeasures are expected to witness significant demand due to the growing threat of asymmetrical warfare and significant technological advances in the field. Many of the segments are driven by the need to provide enhanced survivability to military and security forces while dealing with an enemy who is adept at using IEDs as a primary artillery weapon.

Figure 1: Global Counter IED Market (US$ Billion), 2012–2022

Source: SDI analysis          © SDI

The global economic slowdown has reduced the defense budgets of most leading spenders worldwide, including the US, France, Germany, and the UK. These countries have cut back spending in various defense sectors such as space, aircraft, and vehicles. The UK has already cut down on countermeasure spending by cancelling a number of contracts related to the procurement of flares and decoys. The US is expected to follow suit by reducing expenditure on a number of sectors, including counter IED vehicles, for which production is expected to halt by the end of 2012. In the near future, the withdrawal of troops from Afghanistan is expected to lead to further austerity measures as there will no longer be a pressing requirement for counter IED equipment. As such, the US and the UK are both expected to reduce spending on counter IED systems procurement but are expected to continue with various research and development programs in the search for superior technology.

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