C5ISR Market Size, Share, and Industry Analysis, By Type (Land, Naval, Airborne, and Space), By Application (Electronic Warfare, Surveillance and Reconnaissance, Intelligence, and Command and Control), By Solution (Product and Services), and Regional Forecast, 2024-2032

The global C5ISR market size was valued at USD 131.3 million in 2023. The market is projected to grow from USD 135.3 million in 2024 to USD 169.6 million by 2032, exhibiting a CAGR of 2.9%  during the forecast period. North America dominated the C5ISR market with a market share of 31.07% in 2023.

The coronavirus outbreak has affected the C5ISR business across the world. Key players in the market are focusing on research & development to introduce advanced technologies. Surging contracts, partnerships, and agreements between key companies and defense forces of different countries to improve their C5ISR capabilities would drive market growth.

C5ISR stands for command, control, communications, computers, combat, intelligence, surveillance, and reconnaissance. It plays an important role in combat missions and military operations, providing real-time information to military forces to take the required decisions on the battlefield. Moreover, increasing border security threats, increasing political conflicts, and migration issues have forced governments across the globe to focus on extensive defense modernization programs.

The growing demand for space-based systems and artificial intelligence (AI) in C5ISR systems for military operations is expected to create opportunities for market growth. In June 2020, Intelsat General Communications, for instance, launched a new mobile broadband service for defense forces that requires connectivity in remote areas

C5ISR Market Trends

Introduction of Advanced Battlefield Management Systems (ABMS) is a Vital Trend

The battlefield management system is a highly portable tactical control and command information system. It is integrated with highly reliable decision-making tools, weapon platforms, systems, and technologically advanced sensors. They comprise hand-held or wearable information systems for individual commanders or soldiers and vehicle-mounted information systems for land-based operations. The growing integration of cloud computing and edge computing technologies to store, process, and data transmit with reduction in latency and improving responsiveness of the system is expected to propel the market growth. 

BMS includes different subsystems, such as networking system database server and infrastructure-less communication, application server, computing platforms, relational database management system, and GPS embedded systems. In June 2020, Raytheon Technologies Corporation signed a contract worth USD 350 million with the U.S. Air Force to develop an advanced battle management system (ABMS).

C5ISR Market Growth Factors

Rising Demand for Situational Awareness in Military Operations Will Aid Growth

During combat missions, situational awareness is the ability of decision-makers to process, identify, and analyze critical systems of information about the battlefield operation. Advanced technologies provide air, ground, and maritime solutions with advanced capabilities to ensure access to the real-time database. Secure network routers, high-bandwidth sensor processing, and video management systems play a vital role in decision-making in any battlefield operation.

Major countries across the world are targeting toward rapid enhancement in threat awareness and early threat detection systems to be well prepared during crisis. These systems assist in displaying, handling, storing, and providing crucial mission, flight, and sensor information, which improves the effectiveness of the complete decision-making process in military operations. Thus, C5ISR systems help generate real-time data, which allows optimizing the efficiency of soldiers during any operation.

Surging Adoption of Software Defined Radio (SDR) in Communication Systems to Propel the C5ISR Market Growth

Commercial wireless network standards are continuously changing, from 2G/3G to 4G, and now the adoption of 5G-equipped systems. Due to these transitions, wireless network operators face various issues during the network migration from one generation to the next due to many users. Every time new standards and norms are introduced in the market, military personnel should upgrade the conventional system.

However, the integration of Software Defined Radio (SDR) chips in the C5ISR army equipment can fix this migration problem, as only software upgrades will be enough to migrate to the new network. In February 2021, the Indian Ministry of Defense (MoD) signed a contract worth Rs 1,000 crores with Bharat Electronics Limited (BEL) for the procurement of Software Defined Radio Tactical (SDR-Tac). It is a four-channel multi-mode, multi-band, ship-borne SDR system. It will serve ship-to-shore, ship-to-air, and ship-to-ship voice and data communication for network-centric operations.

RESTRAINING FACTORS

High Cost Associated with Design and Development of ISR Systems and Components to Hamper Market Growth

C5ISR systems simplify the process of modern-day warfare. High costs are involved in the design, development, and installation of these systems. It may hinder the growth of the market. It requires the combination of various command and control systems, air defense systems, ISR systems, and other systems. The development, launch, and maintenance of these systems are costly. Therefore, both the time and cost required for the development and deployment of these systems prove to hinder the market's growth across the globe.

C5ISR Market Segmentation Analysis

By Type Analysis

Increasing Demand for Unmanned Aerial Vehicles (UAVs) and Next Generation Aircraft to Drive the Airborne Segment

Based on type, this market is segmented into land, naval, airborne, and space.

The airborne segment is estimated to grow at the fastest CAGR during 2024-2032. The high demand for border surveillance by unmanned aerial vehicles and next-generation aircraft would boost the segment's growth. The naval segment held the second highest share in 2023, owing to the increasing investment in naval modernization programs by countries such as China, the U.S., and India. In February 2020, BAE Systems signed a contract worth USD 104.7 million with the U.S. Navy for command, communication, and control systems both ashore and afloat.

By Application Analysis

Increasing Adoption of Modern Warfare Systems to Spur the Command and Control Segment

Based on application, the market is classified into intelligence, surveillance and reconnaissance, electronic warfare, and command and control. Among these, the command and control segment will showcase the highest growth during the forecast period. The growth is attributed to the increasing demand for Internet of Things (IoT)-based systems and modern military warfare across the globe. The electronic warfare segment is anticipated to show significant growth due to rising political conflicts and disputes, especially among Asian countries.

By Solution Analysis

Rising Demand for Customization in C5ISR Services to Propel the Services Segment

Based on the solution, this market is divided into products and services. The product segment held the highest C5ISR market share in 2023. The growth is attributed to the rising integration of electronics in military equipment and the development of advanced products. Increasing defense spending and allocation of funds for procurement of modern warfare technology drives the segment growth. The services segment will showcase remarkable growth during 2024-2032. This growth is accredited to the increasing demand for customization of the systems and internet of things (IoT)-based services in military operations.

REGIONAL INSIGHTS

The market is segmented into North America, Europe, Asia-Pacific, the Middle East & Africa, and Latin America.

North America dominated the market in 2023. It stood at USD 40.8 million in 2023. The dominance of this region is due to the increasing expenditure by the United States for modernizing its land, naval, and airborne systems. Key players, such as General Dynamics Corporation, Northrop Grumman Corporation, Lockheed Martin Corporation, and L3Harris Technologies Inc., would drive market growth across the region.

Europe will showcase significant growth of this market during the forecast period due to the increasing investment in upgrading conventional surveillance systems and command and control systems used by defense forces. The surging defense expenditure by countries such as Germany, France, Russia, and others would also propel the market growth rate

Asia-Pacific is expected to witness the highest growth owing to a significant rise in military spending in countries such as China, India, South Korea, and others. The increasing political conflicts, cross-border issues, and rising terrorism across the Asia Pacific would drive market growth. In June 2020, a clash between the Indian and Chinese soldiers at Galwan Valley would increase political tensions between the two countries.

Furthermore, the Middle East and Africa market is projected to show significant growth due to the rising warfare situations among different developing countries. In 2019, conflicts between Saudi Arabia and Yemen led to more than 7,500 civilians in ballistic attacks. Furthermore, in 2020, there were conflicts between Armenia and Azerbaijan militaries, Israel and Palestine, and others, which led to instability and insecurity across the region. Thus, increasing cross-border issues and rising terrorist activities in Middle Eastern countries would drive market growth. Latin America will showcase moderate growth due to the increasing defense spending by Brazil and Argentina.

List of Key Companies in C5ISR Market

Key Players Are Focusing on Development of Advanced Solutions for Defense Forces

The market's competitive landscape depicts the domination of selected players, such as BAE Systems, Thales Group, Northrop Grumman Corporation, Lockheed Martin Corporation, and others. A diversified product portfolio of advanced solutions and the increased investment in R&D and strategic acquisition are the prominent factors responsible for the dominance of these companies.

In April 2021, the U.S. Army selected Booz Allen Hamilton to develop a Rainmaker solution for the Joint All Domain Command & Control (JADC2) concept. It will enable data sharing across all the U.S. military domains that include land, air, sea, space, and cyberspace.

LIST OF KEY COMPANIES PROFILED:

• BAE Systems (The U.K)


• CACI International Inc. (The U.S.)


• Collins Aerospace (The U.S.)


• Elbit Systems Ltd. (Israel)


• General Dynamics Corporation (The U.S.)


• L3Harris Technologies Inc. (The U.S.)


• Lockheed Martin Corporation (The U.S.)


• Northrop Grumman Corporation (The U.S.)


• SAAB AB (Sweden)


• Thales Group (France)

KEY INDUSTRY DEVELOPMENTS:

• April  2024 – Liedos recently announced that the company was awarded with a military contract worth USD 267 million from the U.S. Military where the company will be offering its C5ISR and COT systems with technology enabled services, modernization of combat weaponries, and logistics support along with few other things.


• February 2024 – C5ISR Center announced that the company recently finished modernizing the U.S. Army’s countermine mission support and tech equipment at Sandhills Project. The main goal of modernizing the tech was to increase emphasis on solider survivability.


• August 2022 – QinetiQ announced that the company received a military contract worth USD 45 million which the company will work towards developing new tech to support the army’s C5ISR capabilities along with integration of sensors and advanced system integration softwares.

REPORT COVERAGE

The global market research report provides a detailed analysis of the industry. It focuses on key aspects such as leading companies, different types, solutions, competitive landscape, communication applications, and ISR systems. Besides this, the report offers insights into the C5ISR market trends and highlights key industry developments. In addition to the aforementioned factors, it encompasses several factors that have contributed to the growth of the developed market over recent years.

Report Scope & Segmentation