Combat Management System (CMS) Market Size, Share & Russia-Ukraine War Impact, By Component Type (Software and Hardware (Control Consoles, Combat Data Center, and Data Network Switches), By Sub-System (Self-Defense Management System, Situational Awareness System, Track Management System, Weapon Management System, Display System, Identification System, and Unmanned Vehicle Control System), By Platform (Principal Surface Combatants, Submarine, Amphibious Ships, Fast Attack Craft (FAC) and Patrol Boats & Crafts, and Others), and Regional Forecast, 2023-2030

The global combat management system (CMS) market size was valued at USD 5.85 billion in 2022. The market is projected to grow from USD 6.39 billion in 2023 to USD 26.56 billion by 2030, exhibiting a CAGR of 22.6% during the forecast period.

The Combat Management System (CMS) is a comprehensive software-based system designed to integrate all onboard systems of naval vessels and sub-surface vessels. These cutting-edge systems are intended to collect, interpret, and disseminate real-time operational naval data, providing operators with an integrated interface for command and control applications. It is also referred to as the Naval Theatre Management System (NTMS).

The naval theatre management system functions encompass command and control, mission planning, communication, navigation, surveillance, and intelligence data gathering. This system uses communication systems and tactical data links to access both the platform and the embedded systems. The CMS facilitates functions such as situational awareness, intelligence, planning & decision-making, and command and control of weapon systems. All these factors are expected to drive market growth in the coming years.

Russia-Ukraine War Impact

Increased Demand for CMS for New Procurement and Modernization Programs of Naval Ships Globally Amid War Situations Catalyze Market Growth

The escalation of global conflict has heightened the demand for advanced, agile combat systems capable of precise operations. During times of conflict, nations involved or affected often prioritize the enhancement and expansion of their military capabilities, including combat systems. This surge in demand could result in an increased need for combat management system equipment and technology, serving both offensive and defensive purposes.

Directly affected countries, as well as neighboring or allied nations concerned about regional stability, may allocate a larger portion of their defense budgets to combat systems and related technologies. For instance, in February 2023, Elbit Systems Sweden AB secured a contract from the Swedish Defense Materiel Administration (FMV) to supply the Albatross CMS for the Royal Swedish Navy's Spårö Class Mine Countermeasures (MCM) Vessels.

Moreover, the heightened demand and the imperative to bolster defense capabilities might drive market consolidation. Larger defense companies could acquire smaller combat technology firms or form partnerships to combine resources and expertise. Additionally, these conflicts could lead to the formation or strengthening of regional security partnerships, where nations collaborate to collectively develop or acquire combat systems to address shared security concerns. For example, in May 2023, Thales and the Ministry of Defense signed a contract to provide the Royal Navy with a sixth ship-set of the T31 mission system, which will be installed at Portsdown Technology Park, the Royal Navy’s shore integration facility.

Combat Management System (CMS) Market Trends

Key Development in Artificial Intelligence & Cloud-Based Integrated CMS Catalyze Market Growth

The rise of virtualization, Artificial Intelligence (AI)-based combat systems, naval fleet modernization, integrated naval combat mission system management, and automation of naval combat sub-systems are key factors driving the demand for next-generation intelligent combat systems. Combat system virtualization involves consolidating mission computers and consoles into physical servers, enhancing energy efficiency, work productivity, and flexibility.

For instance, in June 2023, ManTech secured a USD 133 million recompete contract to provide intelligent systems engineering, automation analytics, and artificial intelligence to the U.S. Navy’s Naval Air Warfare Center Aircraft Division. Additionally, in February 2022, Torch.AI, a data infrastructure artificial intelligence company, announced a five-year contract win from the U.S. Navy to deliver next-generation AI and data infrastructure software capabilities for the Navy's Digital Warfare Office (DWO).

Furthermore, in March 2023, BigBear.ai, a leading provider of AI-powered analytics and cyber engineering solutions, confirmed its participation and collaboration with the U.S. Navy during International Maritime Exercise 23 (IMX 23).

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Combat Management System Market Growth Factors

Growing Adoption of Anti-Surface Warfare Capabilities in Various Naval Fleets Globally to Boost Market Growth

Anti-surface warfare (ASuW) constitutes a branch of naval warfare primarily focused on suppressing surface-to-air missiles and targeting enemy surface vessels. Preceding the era of U-boats and naval aviation, all naval warfare centered around ASuW before the Second World War. The term ‘anti-surface warfare capability’ emerged post-World War II, with Cold War dynamics greatly influencing the development of ASuW as a distinct discipline.

The widespread adoption of anti-surface warfare by global navies aims to enhance real-time location accuracy for target acquisition and threat perception. This capability is crucial across various applications, including area denial, search and rescue (SAR), anti-piracy efforts, force protection, military operations, and more.

For instance, in June 2023, The Dutch Ministry of Defense, Damen, and Thales inked a contract for the design, construction, and delivery of four Anti-Submarine Warfare (ASuW) Frigates, with two allocated to the Netherlands and two to Belgium. These ASW frigates are set to replace the current Karel Doorman Class multipurpose frigates.

Additionally, in April 2023, Raytheon Technologies secured a contract from the U.S. Navy for the initial phase of the Hypersonic Air-Launched Offensive Anti-Surface Warfare weapon program (HALO). HALO serves as a carrier-based offensive anti-ship strike weapon and aligns with the U.S. Navy’s strategy for long-range fire capabilities.

Rising Demand for Enhanced Situational Awareness in Maritime Operations to Support Market Growth

Situational awareness involves the process of identifying and analyzing critical battlefield information during combat missions. C5ISR (Command & Control, Computers, Communications, Cyber, Intelligence, Surveillance, and Reconnaissance) solutions offer advanced maritime capabilities, ensuring real-time access to databases. Sophisticated network routers, high-bandwidth sensor processing, and video management systems are crucial for decision-making in battlefield operations. They enable the handling, display, storage, and provision of critical mission, flight, and sensor data, enhancing the overall decision-making process within military operations. C5ISR systems generate real-time data that optimizes soldiers' efficiency during operations.

For instance, in July 2023, BAE Systems secured a USD 15 million contract from the US Navy to deliver its advanced digital interrogator for maritime vessels. The AN/UPX-50(C) interrogator enhances situational awareness, reducing friendly fire incidents and supporting mission success in hostile environments. Additionally, in April 2023, Charles River Analytics received a USD 1.8 million contract to develop the Automatic Text Extraction for Awareness in the Maritime (A-TEAM) system. This system aims to classify and identify ships and other vessels at sea by recognizing text on maritime images using existing labeled datasets and unannotated images.

RESTRAINING FACTORS

High Cost Associated with Design, Development and Maintenance of CMS and its Components to Hamper Market Growth

A combat management system requires multiple components to deliver mission-critical systems to end-users. Therefore, there's a need for more Navy CMSs to enhance interoperability and fleet management. However, the high cost associated with CMS design or customization is expected to hinder market growth across all shipboard platforms. CMS plays a crucial role in streamlining modern-day warfare processes, which require the integration of Command and Control (C&C), ISR (Intelligence, Surveillance, and Reconnaissance), and other systems. Developing and maintaining these systems come at a significant expense.

The complex regulatory environment, high implementation costs, and the requirement for specialized knowledge and expertise in naval theatre management systems also limit market growth. For instance, in June 2021, the US Navy selected GDMS to support the Independence-Class LCS CMS. As part of a USD 17.4 million contract announced by the Department of Defense (DOD), General Dynamics Mission Systems will develop and upgrade the Independence-variant LCS fleet’s hull mechanical and electrical system. This includes software upgrades and maintenance of the engineering control system.

For instance, in July 2023, Orizzonte Sistemi Navali (OSN), a joint venture company owned by Italian shipbuilder Fincantieri and Leonardo, entered into an agreement with the Directorate of Naval Armaments of the Secretariat General of Defence/National Armaments Directorate for the maintenance of the Italian Navy’s Cavour aircraft carrier and Horizon-class destroyers. European defense and security company Leonardo stated that the agreement has a maximum total value of USD 209 million.

Combat Management System (CMS) Market Segmentation Analysis

By Component Type Analysis

High Demand for Naval Vessels and High Adoption Rate of Naval Theatre Management Systems to Propel Hardware Segment Growth

By component, the market is segmented into software and hardware. The hardware segment dominated the global market share in 2022 due to the increasing demand for various naval ships and naval theatre management systems worldwide. In August 2023, the U.S. Navy awarded a USD 14.5 billion contract for the construction of 10 destroyers to Huntington Ingalls Industries (HII). Similarly, in October 2022, BAE Systems secured a USD 155 million contract from Australia for enhancing capabilities across three destroyers in the Royal Australian Navy.

By Sub-System Analysis

Burgeoning Demand for Modernization Programs and Increased Cross-Border Conflicts and Cost-Effectivity to Drive Weapon Management System Segment Growth

By sub-system the market is categorized into self-defense management system, situational awareness system, track management system, weapon management system, display system, identification system, and unmanned vehicle control system.

The weapon management system segment dominated the global market in 2022 and is anticipated to be the fastest-growing segment, boasting the highest CAGR during the forecast period. Factors driving this growth include increased cross-border conflicts, a growing emphasis on sea dominance, and the lower cost of seaborne platform-based defense systems compared to land-based systems. For instance, in August 2023, the Japanese government announced a USD 53 billion defense budget, earmarking significant procurements for naval ships to counter threats from China. The plan also includes equipping destroyers with an Aegis missile defense system.

The situational awareness segment was the second-largest segment by market share in 2022, driven by high demand and adoption rates of situational awareness sub-systems for intelligence, surveillance, target acquisition, and security applications in naval and coastal operations. For instance, in October 2023, the Indonesian Navy procured an indigenously built maritime security patrol ship equipped with a Voyager magnetic compass, Furuno 1835 radar, and an FCV-688 echo sounder.

By Platform Analysis

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Growing Demand for FAC and Patrol Crafts & Boats for Maritime Surveillance will Lead to Market Growth.s

The global market is segmented by platform into principal surface combatants, submarine, amphibious ships, and fast attack craft (FAC) & patrol boats & crafts, and others.

The Fast Attack Craft (FAC) and patrol boats & crafts segment held the largest market share in 2022. Its growth is attributed to the rising demand for advanced Combat Management Systems (CMSs) to ensure integrated and efficient command and control capabilities on these platforms. These vessels serve diverse mission requirements, from anti-submarine warfare to air defense. For instance, in September 2023, Lockheed Martin secured a USD 23 million contract with the US Navy to develop an Integrated Combat System that aims to connect the Navy’s and U.S. Coast Guard’s surface fleets.

The submarine segment is projected to be the fastest-growing, exhibiting the highest CAGR during the forecast period. This growth is driven by the high demand for submarines, influenced by evolving procurement priorities in naval forces globally and increased modernization programs aiming to equip the existing submarine fleet with next-generation Combat Management Systems. For instance, in November 2021, the Turkish Ministry of Industry and Technology announced the installation of the MÜREN CMS onboard several Turkish Navy Type 209/1400 Preveze Class submarines. These submarines are undergoing sea acceptance tests as part of the mid-life modernization and upgrade conducted by Tubitak Bilgem, Araştırma Merkezi Komutanlığı, or Gölcük Naval Shipyard, expected to conclude by 2022-2023.

REGIONAL INSIGHTS

The global market is divided into regions: North America, Europe, Asia Pacific, Middle East and the rest of the world.

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North America emerged as the dominant region, holding the largest combat management system market share in 2022, and is expected to maintain its dominance throughout the forecast period. The U.S. Department of Defense has made substantial investments in next-generation shipbuilding programs and the modernization of its existing naval vessel fleet. Leading global market players have increased their investments in Research, Development, Testing, and Evaluation (RDT&E) as well as in the production of CMS components and software in response to the growing demand for advanced next-generation CMS systems aboard newly built and modernized vessels. For instance, in April 2022, Raytheon Co., through Raytheon Missiles & Defense, secured a contract with the U.S. Department of Defense to provide DDG 1000 Class Combat System activation, sustainment, and modernization support for Total Ship Computing Environment Infrastructure (TSCEi) and Mission Systems hardware/equipment, valued at USD 482.72 million.

Europe is estimated to hold the second-largest market share in 2022, driven by high demand for CMS in newly built naval vessels and modernization programs undertaken by naval forces across the continent.

For instance, in June 2022, Kongsberg announced the upgrade of combat systems on Norway’s Skjold-class corvettes. The upgrade primarily involves the installation of a new CMS, coordinated with the Nansen class frigates. Additionally, the company will update tactical data links and other functions within the combat system.

Asia Pacific is anticipated to be the fastest-growing market, expected to witness the highest CAGR during the forecast period. The dynamic maritime situation and ongoing conflicts in the region are driving the regional market growth. This growth is further fueled by the procurement of newly built naval vessels and the upgrading of existing CMS systems aboard naval ships. For instance, in September 2022, NAVTOR signed a significant agreement with Shoei Kisen Kaisha Ltd. to deploy the NavFleet application across their managed vessel fleet

The Middle East is anticipated to experience moderate growth, with a moderate CAGR projected during the forecast period. This growth is attributed to shipbuilding programs and the procurement of CMS systems for existing fleets in Israel, the UAE, and Saudi Arabia, among others. For instance, in February 2023, MBDA signed a contract with the U.S. Navy to initiate the production of CAMM missiles intended for the Royal Saudi Navy’s Multi-Mission Surface Combatants (MMSC) ships. The contract is valued at USD 118.6 million. The Common Anti-Air Modular Missile (CAMM) offers world-leading close-in and local-area air defense capabilities. This weapon system can intercept and neutralize a full range of current and future threats, including combat aircraft and the new generation of supersonic anti-ship missiles.

List of Key Companies in Combat Management System Market

Key Players Adopt Continues Product Innovation and Strategic Procurement, Acquisition, and Partnerships to Sustain Market Growth

Key players in the global combat management system market are actively investing in product innovation and development to maintain their positions at the forefront of their respective markets. For instance, in February 2022, the data infrastructure artificial intelligence company Torch.AI announced winning a five-year contract from the U.S. Navy. Their objective is to develop next-generation AI and data infrastructure software capabilities for the Navy's Digital Warfare Office (DWO). Additionally, these companies are pursuing strategic partnerships and collaborations with other stakeholders to enhance their product portfolios and bolster competitiveness in the market.

LIST OF KEY COMPANIES PROFILED:

• Leonardo S.p.A (Italy)


• SAAB AB (Sweden)


• Northrop Grumman Corporation (U.S.)


• Lockheed Martin Corporation (U.S.)


• BAE Systems plc (U.K.)


• Raytheon Technologies Corporation (U.S.)


• Kongsberg Gruppen ASA (Norway)


• ASELSAN A.S. (Turkey)


• ATLAS ELEKTRONIK GmbH (Germany)


• Thales Group (France)


• Terma AS (Denmark)


• Elbit Systems Ltd. (Israel)


• Israel Aerospace Industries Ltd. (Israel)


• L&T Ltd. (India)


• Hanwha Systems Co. Ltd. (South Korea)


• Bharat Electronics Ltd. (BEL) (India)

KEY INDUSTRY DEVELOPMENTS:

• In December 2023, the royal navy of New Zealand has introduced HMNZS Te Mana frigate with CMS 330. The new CMS 330 will provide superior protection against modern warfare threats. Lockheed Martin has demonstrated the long term partnership with royal navy by delivering the CMS on board of frigate.


• In December 2023, under AUKUS initiative, Australia and U.K. announced to integrated AN/BYG-1 combat management system on SSN-A fast attack submarine. This new version of SSN-A will have vertical launching capabilities.


• In October 2023, Japan announced a research project for advanced combat management system. The research will start from FY 2024 to develop CMS with scalable capabilities and AI features. Japan has aimed to initiate testing of this new CMS from FY 2028.


• In October 2023, Thales signed a contract with Polska Grupa Zbrojeniowa (PGZ) to deliver the TACTICOS integrated combat management system (CMS), sonars, air-surveillance and fire-control radars and 360° infrared sensors to the MIECZNIK Frigate program for the Polish Navy.


• In September 2023, the U.S. Navy awarded Lockheed Martin USD 23 million to begin creating the Integrated Combat System that is expected to connect the Navy’s and U.S. Coast Guard’s surface fleets. The Navy’s new program office for the integrated combat system issued a request for proposals for the systems engineering and software integration of a future ICS in May 2022.

REPORT COVERAGE

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The research report provides a detailed industry analysis. It covers all major aspects, such as R&D capabilities and optimization of the operating services. Moreover, the report offers insights into the market trend, market share, regional analysis, Porter’s five forces analysis, and competitive landscape of various companies profiled with market competition and highlights key industry developments. In addition to the above-mentioned factors, it mainly focuses on several factors that have contributed to the growth of the global market in recent years.

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