C4ISR Market

[307 Pages Report] The C4ISR Market is projected to grow from USD 113.4 billion in 2022 to USD 154.0 billion by 2028, at a CAGR of 5.2%. Over the world, the C4ISR market is expanding significantly, and during the forecast period, a similar trend is anticipated. The extensive use of small, efficient, and advanced C4ISR systems has raised demand for them all around the world. On the other side, concerns like escalating terrorism, hostile threats, and rising territorial disputes globally are pushing military to improve their ability to share data on the battlefield. Throughout the projected period, the C4ISR industry growth is anticipated to increase due to the rising need for asymmetric warfare and new technologies like network-centric battle management and unmanned vehicles. To improve the effectiveness and situational awareness of military troops, there is an increasing emphasis on increasing expenditures in integrating cutting-edge technology like machine learning and artificial intelligence into C4ISR solutions. In the upcoming years, this is also anticipated to fuel market expansion.

C4ISR Market Forecast to 2028

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C4ISR Market Dynamics

Driver: Need for enhanced integrated situational awareness to support decision making

In any mission, decision-making and directing of forces that command and control require the support of effective computer and communication systems for situational awareness. Situational awareness (SA) refers to the ability of decision-makers to identify, process, and analyze critical information from various sources. Thus, it plays a key role in air, naval, and military operations. Advanced ISR technologies integrated with C4 capabilities provide air, ground, and maritime solutions with real-time SA information for strategic decision-making. High-bandwidth sensor processing, video management systems, secure network routers, and switches play a crucial role in effective decision-making in a mission.

The US government is currently planning to invest in the development of small satellite constellations into the low Earth orbit (LEO) to obtain enhanced space-based SA capabilities. These investments are targeted at overcoming the shortcomings of traditional large satellites and airborne sensors that cannot provide continuous surveillance. On this note, in January 2023, Raytheon Intelligence & Space (RI&S), a business unit of Raytheon Technologies Corporation (US), was awarded a prime contract to develop a prototype Missile Track Custody (MTC) system for the US Space Force. MTC is the US Space Force's first medium earth orbit missile tracking system.

Several other manufacturers are also upgrading their product offerings and conducting R&D to develop new technologies to address the evolving needs of their clientele. For instance, in August 2021, Lockheed Martin Corporation (US) invented the Wide Angle ESA Fed Reflector (WAEFR) antenna, a hybrid of a phased array electronically steerable antenna (ESA) and a parabolic dish that increases coverage area by 190% compared to traditional phased array antennas at a much lower cost. Such developments are anticipated to drive the adoption of C4ISR systems by armed forces across the globe, thereby boosting the growth of the market in focus during the forecast period.

Restraints: High development and maintenance costs of C4 systems

C4 is essential in modern warfare; however, the high R&D and implementation cost of these systems must be borne by the defense arms of countries. C4 means the integration of various air defense, communication, computer, command, and control systems and intelligence, surveillance, and reconnaissance systems on a functional multidomain platform. These systems are expensive to develop, install, and maintain. Therefore, the cost and time required to develop and implement these systems are important factors that limit the development of these systems.

Opportunities: Increasing need for interoperability between military devices/technologies

The legacy devices traditionally used by defense forces were typically incompatible with one another and required significant effort for the assimilation and management of data for analysis. This resulted in the advent of control systems designed to effectively perform the task. New generation control systems are integrated into a single system that increases the situational awareness of defense forces. Data from all sensors combine to provide an overall picture of any situation. In military systems, data fusion from air defense radar systems and electro-optical, acoustic, and infrared systems increases surveillance capabilities and provides mission planning capabilities. For example, the global command and control system (GCCS) provides information-sharing capabilities for US armed forces. This enables armed forces to undertake data analysis and leverage mission planning capabilities.

The large volume of data generated has also necessitated the development of a centralized battle management system that can assist users of AI capabilities for effective decision-making considering the influence and impact of several parameters, both macro and micro, within a short span. Hence, companies are developing advanced battle management systems that can assimilate data from multiple devices and platforms. For instance, in December 2022, RI&S (US) was selected to develop a common tactical edge network (CTEN) in support of the US Air Force's Advanced Battle Management System. RI&S is one of nine companies selected to demonstrate portions of the network. CTEN would provide edge networking to help operators enable distributable battle management command and control in highly contested environments to support joint all-domain command and control (JADC2).

Challenges: Inability of existing electronic warfare systems to address diverse threats

The utilization of the electromagnetic spectrum is expanding, which makes it feasible for various electronic equipment to operate at different frequencies, making it challenging to identify some. The electronic warfare domain is therefore crucial for defensive forces. The military of different nations use tactical indicators to identify danger categories, transmission frequencies, signal characteristics, detection signals, and other relevant data. They also concentrate on gathering threat intelligence through frequency hopping detection. Threats can be detected by interrupting, searching, identifying, and locating hostile electromagnetic radiation sources, which will make it easier to deploy security troops. Existing EW systems must be technically improved nevertheless in order to implement these functions properly. In contemporary EW Systems, the threat of asymmetric warfare is a real issue. The difficulties experienced by standard EW systems on the battlefield have also been made worse by the availability of many delivery vehicles for stealth weapons, such as airplanes and frigates.

C4isr Market Ecosystem

Prominent companies in this market include well-established, financially stable manufacturers of C4ISR systems and platforms. These companies have been operating in the market for several years and possess a diversified product portfolio, state-of-the-art technologies, and strong global sales and marketing networks. Prominent companies in this market include Northrop Grumman Corporation (US), BAE Systems plc (UK), Lockheed Martin Corporation (US), Raytheon Technologies Corporation (US), and General Dynamics Corporation (US).

Based on Solution, hardware segment is estimated to account for the largest market share of the C4ISR market

Based on solution, the hardware market is estimated to account for the largest market share. The demand for wired communication devices for underwater and subsurface military applications, the need for 5G networks for faster wireless data transfer, the need for sensors in next-generation airborne intelligence, surveillance, and reconnaissance systems, the demand for tactical navigation systems for unmanned platforms, the demand for potable, rugged devices for dismounted soldiers, as well as the growing need for intelligence gathering, will all contribute to the market growth.

Based on application, The intelligence, surveillance, and reconnaissance segment are anticipated to dominate the market

Based on application, the market is segmented into the intelligence, surveillance and reconnaissance, communications, command and control, computers and electronic warfare. ISR offers situational awareness and access to mission-critical data without blocking tactical communication networks. High-volume data obtained from surveillance and reconnaissance platforms are analyzed and shared with operational groups. In June 2021, Northrop Grumman Corporation (US) received a newly expanded role as a system integrator for C5ISR and control systems on the US Coast Guard Offshore Patrol Cutter (OPC) by Eastern Shipbuilding Group (ESG), the prime contractor for the OPC program.

Naval segment of the C4ISR market by platform is projected to witness the highest CAGR during the forecast period.

Based on platform, the naval segment estimated to account for the highest growth rate. With an increase in the number of sensors on ships and advancements in radar technology, naval C4ISR systems have been upgraded with data analytics solutions such as artificial intelligence and cloud computing. Companies such as Northrop Grumman Corporation (US), Raytheon Technologies Corporation (US), THALES (France), Lockheed Martin Corporation (US), and BAE Systems plc (UK) are involved in the development and production of advanced signal processing and naval warfare systems. These systems include various types of shipboard radars, track management systems, communication systems, and electronic warfare systems to counter sea-based threats. Thus, Enhanced systems for tactical information management and improved efficiency to drive the market growth.

Defense and space segment of the C4ISR market by end user is projected to witness the highest market share of the C4ISR market.

The Defense and space segment Is to hold the highest market share. This can be linked to improvements in C4ISR capabilities for improved combat situational awareness. The C4ISR improves the capability of armed forces across the world. By situational awareness, understanding of the enemy and environment, and reducing the lag between sensing and reacting, advanced C4ISR capabilities give an advantage. Thus the department of defense worldwide are adopting the C4ISR Systems to enhance their capabilities.

New Installations segment of the C4ISR market by installations is projected to dominate the market.

The growing emphasis on the deployment of advanced C4ISR capabilities across commercial and military sectors is driving the growth of the market for new installations. Militaries across the world are focusing on integrating newer generation platforms, including airborne, naval, and land vehicles and equipment, which, in turn, is driving the need for state-of-the-art C4ISR technologies to enhance interoperability and situational awareness in modern warfare.

The North American market is projected to contribute the largest share for the C4ISR market.

North America is expected to lead the C4ISR market in 2022. The US is the largest market for C4ISR in North America.  Due to the United States' significant investment in military systems, the North American market is predicted to be considerable. Comparing defense budgets amongst nations reveals that between 30 and 40% of all military gear purchased globally is purchased by the United States. Cyber warfare has changed the military battlefield, necessitating significant expenditures from both civilian and military institutions in data processing and secure communication infrastructure. As a result, a key component of the U.S. military's war strategy is the development of creative C4ISR solutions. For the United States government, developing new and enhanced land, air, and sea platforms with cutting-edge situational awareness and communication technologies is a major priority.

C4ISR Market by Region

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Top C4ISR Companies - Key Market Players

The C4ISR companies are dominated by a few globally established players such as Northrop Grumman (US), Lockheed Martin Corporation (US), BAE Systems (UK), Raytheon Technologies Corporation (US) and General Dynamics Corporation (US), among others, are the key manufacturers that secured C4ISR contracts in the last few years. Major focus was given to the contracts and new product development due to the changing requirements of commercial, homeland security and defense & space users across the world.

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Scope of the Report

C4ISR Market Highlights

The study categorizes the C4ISR market based on Application, End User, Installation, Platform, Solution and Region.

Recent Developments

• In June 2021, Northrop Grumman Corporation received a contract to install more life-saving Large Aircraft Infrared Countermeasure (LAIRCM) systems on the US and international fixed-wing and rotary-wing aircraft under a USD 146 million order from the US Air Force.
• In June 2021, Raytheon Intelligence & Space (RI&S) signed a contract to offer logistics and repair services for all US Marine Corps (USMC) ground equipment.
• In March 2021, Raytheon Technologies signed a contract worth USD 178 Million to support the US Air Force intel-sharing system transition, the service’s primary intelligence-sharing system.
• In February 2021, The French defense procurement agency (DGA) awarded Thales and Airbus a contract for the new joint tactical signals intelligence (SIGINT) system to upgrade the French forces' critical signal monitoring, direction finding, and spectrum analysis capabilities.

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