Global High Altitude Platforms Market to Exhibit 8.7% CAGR during 2013-2023

High altitude platforms, better known as HAPs, refer to systems equipped with various payloads that are used for various applications including communication, environmental monitoring, surveillance, and navigation. At altitudes over 50,000 feet, these systems assist the payload to stay afloat for long periods. HAPs are mostly stationed in the stratosphere layer. The global HAPs market is estimated to expand at a CAGR of 8.7% during the period between 2015 and 2023. The overall market was worth US$2.3 bn in 2013 and is projected to stand at a valuation of US$4.8 bn by 2023.

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Growing Demand for Wireless Communication Services to Propel Growth of Global HAPs Market

Compared to satellite systems, HAPs are cost-effective, require less operating and maintenance expenditure, and are compatible with the existing infrastructure. The rapidly increasing demand for wireless communication services across the world has also augmented the growth of the global HAPs market. The defence and government sectors in various nations are spending heavily on HAPs. However, the global HAPs market is expected to be negatively affected by the high costs of UAV aircraft and lower flight hours. Operational issues related to airships and aerostat systems will also challenge the growth of the market in the coming years.

UAV Aircraft Systems to Lead Global HAPs Market

In terms of payload, the global HAPs market has been segmented into surveillance, communication, navigation, and EO/IR systems. In terms of revenue, the communication segment dominated the market in 2014 with a 38% share. Communication systems are integral for HAPs and hence the segment is expected to continue to lead the market with upcoming HAP-based wireless communication projects. The communication segment is anticipated to expand at a CAGR of 10.0% during the period from 2015 to 2023.

On the basis of application, the global HAPs market has been broadly categorized into government and defence, commercial, and others. In terms of revenue, the government and defence segment hold more than 70% of the market. Owing to high spending on HAP-based surveillance systems, the segment is expected to dominate the market in the near future.

According to platform type, the global HAPs market has been divided into UAV aircraft, airships, and tethered aerostat systems. UAV aircraft systems held over 71% of the market in 2014. These systems are the costliest HAPs and offer the largest coverage areas. Despite their high costs, UAV aircraft systems have registered strong demand and are expected to shape the growth of the market in the coming years.

North America Emerges as Leader in Global HAPs Market

The global HAPs market has been segmented into five key regions: Asia Pacific, Europe, North America, Latin America, and the Middle East and Africa. In 2014, North America accounted for 31% of the overall market. Increased adoption of UAV aircraft and rising expenditure on other lighter-than-air (LTA) systems are the major reasons behind the growth of this regional market.

Key Players in Global HAPs Market

Some of the key players in the global HAPs market are Lockheed Martin Corporation, TCOM L.P., Raytheon Company, Lindstrand Technologies Ltd., Aerostar International Inc. (Raven Industries, Inc.), ILC Dover LP., AeroVironment Inc., Worldwide Aeros Corporation, Israel Aviation Industries Ltd., and Rafael Advanced Defense Systems Ltd.

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