|Fastest Growing Market:||Asia Pacific|
|Largest Market:||North America|
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The C4ISR market is estimated to reach about USD 65 billion by 2026, registering a CAGR of close to 3.75% during the forecast period (2021-2026).
Though the global GDP shrank by more than 4% in 2020 due to the economic impacts of the COVID-19 pandemic, the global military spending increased by 2.6% to reach USD 1981 billion in 2020, according to the Stockholm International Peace Research Institute (SIPRI). However, defense spending might come down in the near future, due to the global economic turndown that is triggered by the pandemic. This is expected to challenge the growth of the C4ISR market during the forecast period.
On the other hand, the factors, like growing terrorism, threats from adversaries, and increasing global territorial tensions around the world, are propelling the militaries to enhance their battlefield data-sharing capabilities. The growing demand for asymmetric warfare, along with increasing demand for advanced technologies, like network-centric battle management and unmanned vehicles, is expected to accelerate the growth of the market during the forecast period.
There is a growing emphasis on increasing investments toward integrating advanced technologies like machine learning and artificial intelligence into C4ISR solutions to enhance the efficiency and situational awareness of military personnel. This is also expected to propel market growth in the coming years.
Scope of the Report
C4ISR (command, control, communications, computer, intelligence, surveillance, and reconnaissance) refers to systems, procedures, and techniques that are used to collect and disseminate battlefield information. The C4ISR market is segmented by platform (air, land, sea, and space), purpose (command, control, communications, computer (C4), intelligence, surveillance, and reconnaissance (ISR), and electronic warfare (EW)), and geography (North America, Europe, Asia-Pacific, Latin America, and Middle-East and Africa). For each segment, the market sizes and forecasts are done based on value (USD billion).
|Command, Control, Communications, and Computer (C4)|
|Intelligence, Surveillance, and Reconnaissance (ISR)|
|Electronic Warfare (EW)|
Key Market Trends
Increasing Investments to Enhance the Space-based C4ISR Capabilities
With the emergence of several space-based systems that can replace the traditional C4ISR architecture, several countries are allocating certain expenditures into such programs in the defense spending plans. Space-based C4ISR capabilities have become important for the global armed forces, as they offer a technological edge over adversaries. The advent of small satellites that offer the same performance as compared to the traditional satellites while contributing to cost savings is driving the investments into the space-based C4ISR systems. 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 situational awareness capabilities. These investments are targeted to overcome the shortcomings of traditional large satellite and airborne sensors that cannot provide continuous surveillance. In January 2021, SpaceX’s rideshare carried small satellite technology demonstrations and payloads belonging to the US military. The Pentagon’s Space Development Agency is especially interested in lightweight laser communications terminals for the fleet of LEO satellites it plans to deploy over the next few years. Also, the advent of high-altitude pseudo satellites (HAPS), which incorporates the best aspects of terrestrial and satellite-based communication systems, bridged the gap between drones and satellites in terms of coverage and cost. In February 2021, India’s Hindustan Aeronautics Limited (HAL) announced that it is developing a futuristic high altitude pseudo satellite with a local start-up company to enhance the C4ISR capabilities of the Indian armed forces. Such developments are expected to augment the prospects of the Space-based C4ISR segment during the forecast period.
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North America Held the Largest Market Share in 2020
North America has the highest market share among all the regions in 2020 due to the huge emphasis of the US armed forces toward enhancing their C4ISR capabilities. The United States is the largest military spender in the world. In 2020, the military expenditure of the country grew by 4.4% to reach USD 778 billion, accounting for 39% of the total military expenditure in 2020, according to SIPRI. The US armed forces plan to enhance their C4ISR capabilities to obtain a decisive advantage over their adversaries amidst the ongoing race for technological superiority. Hence, the country is investing huge amounts into the development of advanced C4ISR solutions, which has become one of the key priorities of the warfare strategy of the United States. In July 2019, the US DoD redirected USD 282 million towards the ongoing ISR programs to close the current technological gaps in the sector. The funds are routed to a variety of programs, including artificial intelligence and developing bilateral networks to share ISR data with strategic partners. The US government is also focusing on the expansion and modernization of the existing fleet land, air, and sea platforms with advanced communication and situational awareness systems. For instance, in December 2020, the US Air Force released a draft solicitation for a potential USD 499 million programs to develop, test, demonstrate, integrate, and deliver prototypes in the areas of C4ISR using Agile procurement methods. Similarly, Canada also has plans to invest significantly in the procurement of battlespace situational awareness tools, navigation systems, and portable communications systems, among others, in the coming years. Such modernization plans to enhance the capabilities of the armed forces in the region are expected to propel the growth of the market during the forecast period.
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The C4ISR market is fragmented, with many international and regional players supporting the armed forces around the world. Some of the prominent players in the C4ISR market are Northrop Grumman Corporation, Raytheon Technologies Corporation, L3Harris Technologies Inc, Thales Group, and General Dynamics Corporation. The companies are formulating new strategies to expand their presence in various regions and capture new contracts from the armed forces. The players in the market are actively participating in forming JVs and partnerships with the local manufacturers to expand their presence in other regions. In addition to such plans, investments into R&D for the development of C4ISR systems that are integrated with technologies like AI and quantum networking are also anticipated to help the companies attract new customers and increase their share in the market in the coming years.
In October 2021, the US Army Sentinel A4 Program Office provided an accelerated contract award to Lockheed Martin to begin production for five additional radar systems developed specifically to detect and identify cruise missiles, unmanned aerial systems, rotary wing and fixed wing aircraft, and rocket, artillery, and mortar threats. Army soldiers will use these radars to evaluate the operations of the new Sentinel A4s, which are expected to be delivered by the end of 2022.
In May 2021, Saab secured a contract worth USD 48 million to upgrade radar warning equipment on the Tornado multi-Role combat aircraft operated by the German Air Force. Saab will provide the German firm with modern digital components that will enhance processing power and extend the life of the Tornado’s radar warning equipment. The deliveries are expected to start in 2021 and run through 2025.
In January 2021, Elbit Systems Ltd announced that it was awarded a USD 24 million contract from the Dutch Ministry of Defence to supply the Royal Netherlands Army with new vehicular tactical computers.
In December 2020, Raytheon Technologies Corporation announced that it was awarded a USD 70 million contract to provide protected high-data-rate communication sustainment services to the US Navy submarines.
In September 2019, the US Navy announced that it had awarded USD 968.1 million contracts to eight companies for work on its worldwide C4ISR platforms. The contract covers the installation of all shore-based C4ISR platforms worldwide.
Table of Contents
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 Porter's Five Forces Analysis
4.4.1 Threat of New Entrants
4.4.2 Bargaining Power of Buyers/Consumers
4.4.3 Bargaining Power of Suppliers
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.2.1 Command, Control, Communications, and Computer (C4)
5.2.2 Intelligence, Surveillance, and Reconnaissance (ISR)
5.2.3 Electronic Warfare (EW)
5.3.1 North America
188.8.131.52 United States
184.108.40.206 United Kingdom
220.127.116.11 Rest of Europe
18.104.22.168 South Korea
22.214.171.124 Rest of Asia-Pacific
5.3.4 Latin America
126.96.36.199 Rest of Latin America
5.3.5 Middle-East and Africa
188.8.131.52 United Arab Emirates
184.108.40.206 Saudi Arabia
220.127.116.11 Rest of Middle-East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Vendor Market Share
6.2 Company Profiles
6.2.1 Lockheed Martin Corporation
6.2.2 Northrop Grumman Corporation
6.2.3 Elbit Systems Ltd
6.2.4 BAE Systems PLC
6.2.5 Saab AB
6.2.6 Thales Group
6.2.7 Raytheon Technologies Corporation
6.2.8 L3Harris Technologies Inc
6.2.9 CACI INTERNATIONAL INC.
6.2.10 General Dynamics Corporation
6.2.11 Honeywell International Inc.
6.2.12 The Boeing Company
6.2.14 Israel Aerospace Industries Ltd
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
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Frequently Asked Questions
What is the study period of this market?
The C4ISR Market market is studied from 2018 - 2026.
What is the growth rate of C4ISR Market?
The C4ISR Market is growing at a CAGR of 3.75% over the next 5 years.
What is C4ISR Market size in 2026?
The C4ISR Market is valued at 65 Billion USD in 2026.
Which region has highest growth rate in C4ISR Market?
Asia Pacific is growing at the highest CAGR over 2021- 2026.
Which region has largest share in C4ISR Market?
North America holds highest share in 2020.
Who are the key players in C4ISR Market?
General Dynamics Corporation, Raytheon Technologies Corporation, Thales Group, Northrop Grumman Corporation, L3Harris Technologies Inc. are the major companies operating in C4ISR Market.