Chemical, biological, radiological, nuclear, and explosives (CBRNE) weapons, also known as weapons of mass destruction (WMD), have been employed by the non-state and state actors throughout history. Both unintentional (accidental leaks in chemical and nuclear plants and biological disease outbreak) and intentional (acts of terrorism) CBRNE incidents result in a significant loss to humans and the environment. With the easy availability of CBRNE materials in the open market, the weaponization and dissemination of CBRNE weapons became quite simple. Nations have dedicated significant resources and attention to reduce the proliferation of CBRNE weapons and prepare for the after-effects of a CBRNE incident.
The increasing procurement of CBRNE defense equipment by the government and commercial industries is the major driver for the CBRNE defense systems market. Moreover, shifting geopolitical environments also made governments procure CBRNE defense equipment in order to tackle a possible CBRNE event. However, countries such as the U.S. are planning to decrease the chemical and biological defense investment. Developed economies such as the U.S., the U.K., France, and Germany have reached market saturation, which challenges the CBRNE defense system market.
The weapon of mass destruction (WMD) uses chemical, biological, radiological, nuclear, and explosive materials to significantly harm people and human-made structures. The CBRNE weapons were used throughout the 20th century. Following are some of the instances where CBRNE weapons were used as a munition. During World War I, the chemical weapon (mustard gas) was used by various countries to significantly harm the enemy troops. In the 1930s and 1940s, Japan conducted various experiments with biological agents to attack China. At the end of the World War II, the U.S. dropped nuclear bombs on Japan. In 1988, Iraq used chemical weapons against its population. In 1995, the chemical weapon, Sarin, was dispersed in the Tokyo subway system by the religious act Aum Shinrikyo. These were a few major cases of the usage of CBRNE weapons in the military and civilian ecosystem.
The CBRNE defense system market is expected to reach $20,225.1 million by the end of 2025. The key players in the CBRNE defense system market include Argon Electronics Ltd., Bruker Corporation, FLIR Systems, Inc., Rapiscan Systems, Smiths Group, MSA Safety, Inc., and Chemring Group PLC, among others.
Industry Attractiveness: Porter’s Five Forces Analysis:
Porter’s Five Forces analysis has been developed to determine the competitive intensity and attractiveness of the industry. Each of the five forces is analyzed against some of the key criteria influencing the impact of that force. The overall impact of all the five forces is medium to high due to a large number of players existing in the global CBRNE defense system market. Each of the criteria is assigned a risk rating depending upon its impact on the force (high, medium, and low). CBRNE defense is gaining popularity among defense companies and original equipment manufacturers (OEMs). In porter’s five forces model, CBRNE defense equipment providers are considered suppliers, whereas military forces, homeland security, civil and commercial are considered buyers. The bargaining power of suppliers and buyers, threat of substitutes, threat of new entrants, and intensity of rivalry within the industry shape its competitive structure.
COVID-19 Impact on CBRNE Defense Systems Market
The COVID-19 outbreak significantly impacted the global economies. The governments were forced to pause all the operations that involved traveling and mass gatherings to control the effect of COVID-19. The restriction has blocked the flow of the supply chain in most industries, including the defense industry. However, the impact of COVID-19 on the defense industry is comparatively low compared to other industries due to significant pre-approved funding.
Due to the governments’ restrictions, the commercial market has stopped the production and supply of the equipment. However, the demand for biological protective equipment experienced a significant rise due to the COVID-19 impact. To control the COVID-19 infection, governments employed additional biological testing centers and procured a significant number of biological protective equipment. In countries such as India, China, Brazil, and the U.S., due to an exponential increase in COVID-19 cases, the governments required advanced biological protective equipment, which increased the sales of the biological equipment suppliers. Hence, the COVID-19 impact fueled the commercial and civilian CBRNE defense market. However, the military CBRNE defense market experienced a negative impact due to the possible defense budget cuts in a few countries, such as India, Japan, and South Korea.
North America Region Analysis:
The U.S., being one of the most technologically advanced countries, is a center of focus for major personal protective equipment, decontamination systems, and detection and monitoring system manufacturers. At present, the U.S. dominates the North America CBRNE defense system market. There is a presence of several CBRNE defense equipment manufacturing companies and service providers in the country, which leads to the availability of low-cost CBRNE defense equipment for civil and commercial, homeland security, and defense players. The U.S. Department of Defense (DoD) is one of the largest consumers of the advanced CBRNE defense equipment to ensure the elimination of CBRNE threats to the nation. The U.S. government announces tenders frequently to upgrade their current CBRNE response arsenal. For instance, in July 2019, the State of New York announced a blanket procurement of hazardous incident response equipment (HIRE) dependent on the Department of Homeland Security Authorized Equipment List (DHS AEL). The agreement includes equipment such as PPE, explosive device mitigation and remediation equipment, simulators such as portable meteorological devices (IT equipment), CBRNE operational and search and rescue equipment (UAVs), detection equipment, and decontamination equipment, among others.
Key Questions Answered by This Report:
What are the major drivers, challenges, and opportunities behind the demand for the global CBRNE defense system market during the forecast period, 2020-2025? How has COVID-19 affected the growth of the global CBRNE defense system market? Who are the key players in the global CBRNE defense system market, and what is the competitive benchmarking? What are the new strategies being adopted by the existing market players to make a mark in the industry? How is each segment of the global CBRNE defense system market expected to grow during the forecast period, and what is the revenue anticipated to be generated by each of the segments by the end of 2025? What are the trends in the global CBRNE defense system market across different regions? What was the revenue generated in 2019, and what are the estimates for 2025? Which region is expected to contribute the most to the global CBRNE defense system market during the forecast period?
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