The C5ISR market witnessed remarkable growth amidst the COVID-19 pandemic, with global demand experiencing an unprecedented surge across all regions. In 2020, the market size reached USD 120.35 billion, showcasing a substantial increase compared to previous years. Despite challenges posed by the pandemic, the market exhibited stellar growth, expanding by 2.47% in 2020, surpassing the average year-on-year growth observed from 2017 to 2019. Projections indicate further growth, with the market expected to reach USD 152.51 billion by 2028, reflecting a CAGR of 3.04% during the period from 2021 to 2028. Although the growth rate is expected to stabilize compared to the pandemic-induced surge, the market is anticipated to return to pre-pandemic levels once the global health crisis abates.

According to the Stockholm International Peace Research Institute (SIPRI), worldwide military expenditure rose by 2.6% from 2017 levels, touching USD 1822 billion in 2018. United States, China, Saudi Arabia, India, and France spent the most, accounting for nearly 60% of the total military spending in 2018, SIPRI notes. This surge in spending is a response to the growing intensity of border conflicts, proliferation of illegal migration, and rising threat of cross-border and international terrorism. Increased spending on the armed forces is intended to equip on-field soldiers with latest communication and analysis technologies so as to facilitate more efficient decision-making in the field.

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List of Companies Covered in the Report:

• Thales Group
• CACI International Inc.
• L3Harris Technologies Inc.
• Northrop Grumman Corporation
• General Dynamics Corporation
• Elbit Systems Ltd.
• Collins Aerospace
• SAAB AB
• BAE Systems
• Lockheed Martin Corporation

Market Trends

Rising Adoption of Battlefield Management Systems (BMS) to Propel the Market

A battlefield management system (BMS) enhances quality of decisions and enables better control of military units by integrating information collection and processing on a unified platform. One of the leading C5ISR market trends is the rising demand for BMS for military combat missions owing to the multiple advantages of these systems. For example, BMS units can be worn or handheld by soldiers and commanders individually, thereby enabling each member of the unit to access and analyze incoming information. Moreover, these systems have preinstalled GPS modules, making it easy for soldiers to find their way through tough terrains. Most importantly, BMS ensures that the messages and orders sent and received are digitally encrypted, thus reducing the risk of interception of communication by enemy radars. Thus, the multiple benefits of BMS tools have made them an integral part of C5ISR systems and their increasing adoption, therefore, augurs well for the market.

Regional Analysis

Extensive Modernization of Armed Forces to Augment the Market in North America

The market size in North America stood at USD 65.80 billion in 2018 and the region is poised to dominate the market share for C5ISR, in the foreseeable future owing to the heavy investments made by the US government in modernizing its military equipment. In Canada, establishment of C5ISR centers at strategic points across the country will further boost the market. Asia-Pacific is expected to register a healthy CAGR as a result of higher budgetary allocation for the defense sectors in India and China. On the other hand, in the Middle East & Africa, strong presence of military systems suppliers will fuel the market. 

Competitive Landscape

Key Players to Focus on Developing Advanced Solutions

The C5ISR market forecast predicts a dynamic period for this market as major players such as SAAB and BAE Systems increase their R&D expenditure to develop next-gen military communications technology. These advancements have empowered the key players to strengthen their hold on the market and ensure their dominance for perpetuity.

Industry Developments:

• March 2020: Lockheed Martin Corporation, the US-based aerospace and defense bigwig, launched its Advanced Extremely High Frequency (AEHF-6) satellite from Cape Canaveral in Florida. The satellite forms an important component of the protected communications network, delivering enhanced communication and security capabilities to the US Space Force.
• January 2019: The Space and Naval Warfare Systems Center (SPAWARSYSCEN) Atlantic of the US Navy awarded the Navy Cyber Mission Engineering Support contract to the American aerospace and defense company, General Dynamics Corporation. At an estimated value of USD 898 million, the contract will require General Dynamics to supply state-of-the-art defense technologies to meet the American Armed Forces’ military needs.