5G in Defense Market by Platform (Land, Naval, Airborne), Solution (Communication Network,Chipset, Core Network), End User, Network Type, Installation and Region- Global Forecast to 2028
[248 Pages Report] The 5G in Defense Market size is estimated to be USD 0.9 Billion in 2023 to USD 2.3 billion by 2028, at a CAGR of 19.9% from 2023 to 2028. The 5G in defense market is a rapidly growing market, and it is expected to continue to grow in the coming years. The potential of 5G technology to transform the defense sector is significant, primarily through the provision of enhanced, reliable communication and augmented data processing capacities. 5G and AI's synergistic growth could lead to a new era of capabilities for the defense sector. This emerging technology, characterized by its incredibly fast transmission speeds and ability to handle vast amounts of data, will usher in a multitude of critical IoT applications. These applications will involve capturing and processing data almost instantaneously.
5G in Defense Market Forecast to 2028
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5G In defense Market Dynamics:
Drivers: 5G in elevation of growing Situational Awareness drives the market
First responders and public safety officials in the field act as both contributors and recipients of heightened situational awareness. These ground forces can offer valuable data inputs—through sensors they employ, body-mounted cameras, and direct observations of the circumstances. Access to both on-site information and off-site data helps optimize decision-making. The capacity for public safety agencies to share actionable intelligence not only allows for superior personnel management but also facilitates coordination with each other, command units, or other agencies. Public safety operations stand to gain from the high speeds and minimal latency that 5G can deliver, technologies such as augmented reality (AR), virtual reality (VR), drone-acquired data, real-time situational intelligence, and more form the basis of these advantages.
With high-speed data transmission, 5G allows real-time or near-real-time collection, processing, and distribution of data. This could include data from various sources such as drones, satellites, sensors, and other surveillance systems, which can be quickly processed and distributed to provide a comprehensive picture of the operational environment.
Situational awareness relies on appropriate data capture solutions, including wearables, cameras, sensors, and drones, along with mechanisms to analyze and prioritize the data for quicker and better decision-making.
Restraints: High investments in early phases
The substantial costs involved in the development and deployment of 5G networks pose a significant challenge. The technology necessitates new hardware for both the network infrastructure and the end-user devices intending to utilize it. In addition to the physical infrastructure, ensuring robust network security is also imperative, especially in the defense sector where sensitive data is at stake. These security measures also require substantial investments, thus further amplifying the cost barrier in the path of 5G adoption. 5G technology necessitates a considerable upgrade from existing telecommunications infrastructure. This includes the need for new base stations, antenna systems, and data centers. The higher frequency bands used in 5G also mean that more antennas are needed to cover the same area as previous generations of network technology. Accessing the radio spectrum needed for 5G can be costly. Governments typically auction off these rights, which can lead to high prices. For example, in 2019, the German government raised approximately $7.6 billion through a 5G spectrum auction. Compared to the current network, 5G will require 8-10 times more base stations, resulting in high capital investments by defense forces. During deployment, the total cost of base stations and new hardware adds up to the overall cost.
Opportunities: Increased defense budgets for R&D and technological advancements
Elevated defense budgets globally offer a significant opportunity for the advancement of 5G in the defense sector. This financial growth allows for more capital to be allocated towards technological upgrades, including 5G implementation. Countries with significant defense budgets, such as the U.S., China, Russia, and India, are likely to invest in 5G to maintain their technological edge in military operations.
Autonomous vehicles, drones, and robots are critical components of the military sector. These are autonomous gadgets that use telecommunication technology such as the 5G network to give real-time services to military agencies in risky, inconvenient, and impossible regions of operation, such as remote monitoring for enemy soldiers. Various governments throughout the world have concentrated on the development of unmanned systems for use in public and national security purposes. Several governments, both developed and developing, have invested billions of dollars in autonomous military projects, including the US, Russia, China, the European Union, India, and others.
In 2022, the world saw a substantial rise in military spending, as total global military expenditure increased by 3.7% in real terms, hitting a record high of $2240 billion. Europe experienced its sharpest annual increase in military spending in over three decades. Most of the global military expenditure was dominated by the United States, China, and Russia, collectively accounting for 56% of the worldwide total
Challenges: Complexity of Spectrum Management for 5G Deployment in Defense
Given the increasing demand for spectrum, there's growing interest in dynamic spectrum sharing, where the same frequencies can be used by different services at different times or in different locations. However, implementing spectrum sharing can be technologically complex and requires sophisticated management systems to avoid interference.
Another issue is potential interference between different uses of the spectrum. For instance, there's been concern about potential interference between 5G services in the 24 GHz band and weather satellites that operate in nearby frequencies. Such interference could potentially degrade the accuracy of weather forecasts. Mitigating this risk requires careful planning and coordination between different spectrum users and regulatory bodies.
The radio frequency spectrum, which includes both sub-6 GHz and millimeter-wave (mmWave) bands, is a limited resource governed by international and national regulatory bodies. In many countries, these bodies allocate different parts of the spectrum to different types of services, such as television broadcasting, mobile networks, satellite communications, and radar systems. Balancing the needs of these different services can be challenging, particularly as demand for spectrum increases. 5G networks use higher frequency bands in the mmWave range (24 GHz and above) to provide very high data rates. However, these frequencies have shorter range and are more susceptible to interference and signal degradation due to physical obstructions or atmospheric conditions. To overcome these challenges, 5G networks use technologies such as beamforming and massive MIMO (multiple-input, multiple-output) to improve signal strength and quality.
In the defense sector, effective spectrum management is particularly critical given the need for reliable and secure communications in a variety of challenging environments.
5g In Defense Market Ecosystem
Ericsson (Sweden), Huawei (China), Nokia Networks (Finland), Samsung (South Korea), NEC (Japan), Thales Group (France), L3Harris Technologies, Inc. (US), Raytheon Technologies (US), Ligado Networks (US), and Wind River Systems, Inc. (US). are some of the leading companies in the 5G in Defense market.
Based on platform, the airborne segment is projected to grow at the highest CAGR in the 5G in defense market during the forecast period
Airborne 5G integration in the defense market has the potential to significantly enhance capabilities and transform military aerial operations. 5G can greatly enhance UAV and drone operations. High-speed data transmission allows for real-time video and sensor data streaming, crucial for surveillance, reconnaissance, and combat operations. The ultra-low latency of 5G can also support better remote control of UAVs in environments where every millisecond counts. 5G can ensure seamless data integration between airborne assets and ground or naval forces, creating a unified combat picture and improving joint operations' efficiency. 5G can facilitate communication between multiple drones, enabling swarm drone operations. Such drone swarms can collaboratively undertake tasks, be it for surveillance, electronic warfare, or even offensive operations.
Based on Solution, the core network segment is highest market share the 5G in defense during the forecast period
There is a growing demand for faster connectivity, high-speed data transfer, and highly responsive networks. Core network architectures are currently undergoing transformative changes, thanks to the introduction of concepts like Software-Defined-Networking (SDN) for improved control and Network Function Virtualization (NFV) for streamlined services, among others. These innovations are pivotal for the next-generation applications in 5G and location-centric IoT/wireless sensor network services. The rapid increase of IoT devices in Edge networks propels the expansion of a universally connected internet ecosystem. In the spectrum from Cloud to IoT devices, processing information at the Edge necessitates the creation of robust security measures within the framework of fog computing..
Based on Network Type, the EMBB segment has highest market share in the 5G in defense market during the forecast period
5G's enhanced mobile broadband (eMBB) stands as the pioneering category, introducing the general populace to 5G's advantages. Even in challenging environments, 5G eMBB ensures top-tier internet connectivity. It promises mobile broadband speeds in the gigabit range and greater data bandwidth. When 5G eMBB is integrated with mMTC and URLLC, it fortifies wireless networks to fulfill their essential needs. Incorporating eMBB, URLLC, and mMTC within 5G can significantly bolster large-scale IoT and critical ventures, with sectors like healthcare, defense, and industry standing to benefit immensely.
5G eMBB enables the following:
- Robust indoor connections across numerous devices in areas with high population density.
- A uniform user experience ensured by extensive network coverage.
- Instantaneous communication and connection, even when mobile broadband services are utilized from vehicles in motion.
Asia Pacific is expected to account for the highest CAGR in the forecasted period .
5G technology in the Asia-Pacific region are experiencing significant growth due to countries such as China, South Korea, and Japan which have advanced considerably in rolling out 5G networks, leading to a surge in demand for 5G technologica solutions. The widespread establishment of 5G networks in these and other countries in the area has propelled the expansion of the 5G testing market. In the Asia Pacific region, several sectors such as manufacturing, healthcare, automotive, and smart cities are embracing 5G technology to revolutionize their processes. To ensure the performance, security, and dependability of their 5G-integrated applications and services, these sectors necessitate faster adaption of technology. This need for sector-specific solutions has spurred the expansion of the 5G market in the Asia Pacific. The worldwide growth has been further facilitated by positive economic scenarios and strategic partnerships.
5G in Defense Market by Region
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Key Market Players
The 5G in defense companies is dominated by a few globally established players such as Ericsson (Sweden), Huawei (China), Nokia Networks (Finland), Samsung (South Korea), NEC (Japan), Thales Group (France), L3Harris Technologies, Inc. (US), Raytheon Technologies (US), Ligado Networks (US), and Wind River Systems, Inc. (US)., are some of the leading companies in the 5G in Defense market. These companies have well-equipped manufacturing facilities and strong distribution networks across North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.
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Report Metric |
Details |
Estimated Value | USD 0.9 billion in 2023 |
Projected Value | USD 2.3 billion by 2028 |
Growth Rate | CAGR of 19.9% |
Market Size Available for Years |
2020–2028 |
Base Year Considered |
2022 |
Forecast Period |
2023–2028 |
Forecast Units |
Value (USD billion) |
Segments Covered |
By Platform, By Solution, By End User, By Network Type, By Operational Frequency, By Installation. |
Geographies Covered |
North America, Europe, Asia Pacific, Latin America, Middle East & Africa |
Companies Covered |
Ericsson (Sweden), Huawei (China), Nokia Networks (Finland), Samsung Electronics Co Ltd.(South Korea), NEC (Japan), Thales Group (France), L3Harris Technologies, Inc. (US), Raytheon Technologies (US), Ligado Networks (US), and Wind River Systems, Inc. (US). (25 countries) |
5G in Defense Market Highlights
This research report categorizes 5G in defense based on By Platform, By Solution, By End User, By Network Type, By Operational Frequency, By Installation & Region.
Segment |
Subsegment |
By Solution |
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By Platform |
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By End User |
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By Network Type |
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By Operational Frequency |
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By Installation |
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By Region |
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Recent Developments
- In February 2023 , Nokia announced that it has been selected by MTN South Africa (MTN SA) for the first time ever as one of its 5G Radio Access Network (RAN) equipment providers..
- In February 2023, The US Navy collaborates with Qualcomm to explore 5G and artificial intelligence technologies. This is a research collaboration agreement to explore s 5G, artificial intelligence, and cloud computing.
- In May 2022, BT and Ericsson announced today a multi-million-pound partnership to deliver commercial 5G private networks for the UK market. This marks the first such agreement in the nation. BT and Ericsson have entered into a multi-year agreement, allowing BT to offer next-generation mobile network technology products to entities in sectors including manufacturing, defense, education, retail, healthcare, transport, and logistics.
- In July 2022, Nokia announced an expansion of its collaboration with Hill Air Force Base and the National Spectrum Consortium. The objective of this partnership is to ensure harmonious coexistence between incumbent radar systems and 5G networks within a shared spectrum. This is achieved by real-time adjustments to the 5G system's behavior whenever the incumbent radar is active.
Key Questions Addressed by the Report:
What is the current size of the 5G In defense market?
The 5G In defense Market is estimated to be USD 0.9 Billion in 2023 to USD 2.3 by 2028, at a CAGR of 19.9% during the forecast period.
What are the key sustainability strategies adopted by leading players operating in the military 5G In defenses market?
Response: Key players have adopted various organic and inorganic strategies to strengthen their position in the 5G in defense. Ericsson (Sweden), Huawei (China), Nokia Networks (Finland), Samsung Electronics Co Ltd. (South Korea), NEC (Japan), Thales Group (France), L3Harris Technologies, Inc. (US), Raytheon Technologies (US), Ligado Networks (US), and Wind River Systems, Inc. (US). are some of the leading companies in the 5G in defense market.
What new emerging technologies and use cases disrupt the 5G in defense market?
Response: Some of the major emerging technologies and use cases disrupting the market include the developing proprietary 5G technologies tailored for defense applications, Offering pilot programs or demonstrations and investing in research and development to create cutting-edge 5G technologies and applications.
Who are the key players and innovators in the ecosystem of the 5G in defense market?
Response: . Ericsson (Sweden), Huawei (China), Nokia Networks (Finland), Samsung Electronics Co Ltd. (South Korea), NEC (Japan).
Which region is expected to hold the highest market share in the 5G In defense market?
Response: In 2023, Asia Pacific held the greatest market share for 5G In defense , and during the forecast period, Japan is anticipated to grow at the highest CAGR.
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The research study conducted on the 5G in Defense Market involved extensive use of secondary sources, including directories, databases of articles, journals on 5G technology, company newsletters, and information portals such as Hoover’s, Bloomberg, and Factiva to identify and collect information useful for this extensive, technical, market-oriented, and commercial study of the 5G in defense market. Primary sources are several industry experts from the core and related industries, alliances, organizations, Original Equipment Manufacturers (OEMs), vendors, suppliers, and technology developers. These sources relate to all segments of the value chain of the 5G in defense market.
In-depth interviews were conducted with various primary respondents, including key industry participants, subject-matter experts, C-level executives of key market players, and industry consultants, among others, to obtain and verify critical qualitative and quantitative information and to assess future prospects of the market.
Secondary Research
In the secondary research process, various secondary sources were referred to identify and collect information for this study on the 5G in defense market. Secondary sources included annual reports, press releases, and investor presentations of companies; white papers and certified publications; articles from recognized authors; manufacturer's associations; directories; and databases. Secondary research was mainly used to obtain key information about the supply chain of the 5G industry, the monetary chain of the market, the total pool of key players, market classification and segmentation according to the industry trends to the bottom-most level, regional markets, and key developments from both market- and technology-oriented perspectives.
Primary Research
Extensive primary research was conducted to obtain qualitative and quantitative information for this report on the 5G in defense market. Several primary interviews were conducted with the market experts from both demand- and supply-side across major regions, namely, North America, Europe, Asia Pacific, the Middle East, Latin America, and Africa. Primary sources from the supply-side included industry experts such as business development managers, sales heads, technology and innovation directors, and related key executives from various key companies and organizations operating in the 5G in defense market.
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Market Size Estimation
Both the top-down and bottom-up approaches were used to estimate and validate the size of the 5G in defense market. The following figure represents the overall market size estimation process employed for this study on the market.
The research methodology used to estimate the market size included the following details:
- Secondary research identified key players in the 5G in defense market, and their market share was determined through primary and secondary research. This included a study of annual and financial reports of top market players and extensive interviews of leaders such as Chief Executive Officers (CEOs), directors, and marketing executives of leading companies operating in the market.
- All percentage shares, splits, and breakdowns were determined using secondary sources and verified through primary sources.
- All possible parameters that affect the markets covered in this research study were accounted for, viewed in extensive detail, verified through primary research, and analyzed to obtain the final quantitative and qualitative data on the 5G in defense market.
- This data was consolidated, enhanced with detailed inputs, analyzed by MarketsandMarkets, and presented in this report.
Market size estimation methodology: Bottom-up Approach
Market size estimation methodology: Top-down Approach
In the top-down approach, the overall size of the 5G in defense market was used to estimate the size of individual markets (mentioned in the market segmentation) through percentage splits obtained from secondary and primary research. The size of the most appropriate, immediate parent market was used to implement the top-down approach to calculate the sizes of specific market segments. The approach was also implemented to validate the revenues obtained for various market segments.
Market share was estimated for each company to verify the revenue share used earlier in the bottom-up approach. With the data triangulation procedure and data validation through primary, this study determined and confirmed the overall size of the parent market and each market segment. The following figure shows the overall market size estimation process employed for this study.
Data Triangulation
After arriving at the overall market size from the market size estimation process, the total market has been split into several segments and subsegments. To complete the overall market engineering process and arrive at the exact statistics for market segments and subsegments, the data triangulation procedure has been implemented, wherever applicable. The data has been triangulated by studying various factors and trends from both the demand and supply sides. Along with this, the market size has been validated using both top-down and bottom-up approaches.
Market Definition
5G represents the fifth generation of mobile networks. Offering speeds up to 100 times quicker than its predecessor, 4G, 5G is unlocking unprecedented possibilities for individuals and enterprises. This enhanced connectivity, combined with reduced latency and expanded bandwidth, is propelling societal progress, revolutionizing sectors, and significantly improving daily interactions. Once considered visions of the future, services like e-health, interconnected vehicular and traffic systems, and sophisticated mobile cloud gaming are now a reality.
The 5G technology will pave the way for countless essential IoT applications, enabling nearly instantaneous data capture and response. Coupled with immersive platforms such as virtual and augmented reality, 5G is set to revolutionize how we communicate and engage with the world around us.
Within the defense realm, these enhanced capabilities will usher in fresh opportunities for operational units to collaborate within a rich digital environment, ensuring protection in almost real-time. This potential is magnified when 5G is synergized with other groundbreaking innovations like defense-centric cloud solutions and artificial intelligence. The increased speed and bandwidth of 5G will enable quicker transmission of large data files, critical for real-time intelligence, surveillance, and reconnaissance.
Key Stakeholders
- Senior Management
- End User
- Finance/Procurement Department
- R&D Department
- Ministry of Defense
- Regulatory Bodies
- R&D Companies
- Providers of 5G in Defense Markets systems & hardware
- Commercial
- Space Organization
- Armed Forces
- Cybersecurity companies
- Space Organization
- Satellite Operators
Report Objectives
- To define, describe, and forecast the size of the 5G in Defense Market based on type, platform, application, system, point of sale, and region from 2023 to 2028.
- To forecast the size of various segments of the market with respect to major regions, namely, North America, Europe, Asia Pacific, and the Rest of the World (RoW), which comprises the Middle East & Africa, Latin America
- To identify and analyze key drivers, restraints, opportunities, and challenges influencing the growth of the 5G in Defense Market across the globe.
- To strategically analyze micromarkets with respect to individual growth trends, prospects, and their contribution to the 5G in Defense Market.
- To analyze opportunities for stakeholders in the market by identifying key market trends
- To analyze competitive developments such as contracts, acquisitions and expansions, agreements, joint ventures and partnerships, new product launches, and Research & Development (R&D) activities in the 5G in Defense Market.
- To provide a detailed competitive landscape of the -market, in addition to an analysis of business and corporate strategies adopted by leading market players.
- To strategically profile key market players and comprehensively analyze their core competencies2.
1. Micro markets refer to further segments and subsegments of the 5G in defense market included in the report.
2. Core competencies of the companies were captured in terms of their key developments and strategies adopted by them to sustain their position in the market.
Available customizations
Along with the market data, MarketsandMarkets offers customizations as per the specific needs of companies. The following customization options are available for the report:
Product Analysis
- Product matrix, which gives a detailed comparison of the product portfolio of each company.
Regional Analysis
- Further breakdown of the market segments at country-level
Company Information
- Detailed analysis and profiling of additional market players (up to 5)
Growth opportunities and latent adjacency in 5G in Defense Market