Market Trends of NATO C4ISR Industry
This section covers the major market trends shaping the NATO C4ISR Market according to our research experts:
Air Segment To Exhibit a Significant Growth Rate During The Forecast Period
Majority of the NATO countries like the United States, Poland, the United Kingdom and Turkey among others are significantly increasing their defense spending toward the development of air superiority of their respective air forces. These plans include the procurement of advanced aircraft as well as C4ISR equipment with threat detection, tracking and attacking capabilities. Currently, the Netherlands exploring the options to replace ageing Dornier 228 aircraft with modern maritime patrol aircraft under the Netherlands Coastguard Air Reconnaissance Capacity Tender. Similarly, in June 2020, Airbus was selected to integrate and install Captor-E, the modern electronically scanned array radar onboard Eurofighter aircraft currently in service of German and Spanish armed forces. The contract is scheduled to be completed by 2023. Such robust plans to modernise the existing fleet with advanced equipment to enhance their ISR and target detection capabilities are expected to drive the growth of the segment during the forecast.
United States Holds Major Share in 2019
United States has the largest military expenditure in the world with annual military spending of USD 732 billion in 2019. Development programs such as AEGIS system, Littoral Combat Ship, Joint Surveillance Target Attack Radar System of the Navy and Air Force are expected to propel the demand for C4ISR systems in the United States. According to a government of the United States, there is a significant gap between modern threats and the technology of C4SIR equipment currently in service. Therefore, the government announced a plan to focus investments into modification, revamp and upgradation of C4ISR systems to address the threats such as electronic warfare, cyberattacks, and missile strikes among others. In December 2019, the Marine Corps approved the initial procurement of the TOCNET-G4 Intercom System (G4 ICS) for the family of Light Armored Vehicles (LAVs), which will enhance the efficiency of communication systems and situational awareness of the vehicles on the battlefield. The country is also in plans to develop advanced C4ISR solutions integrated with artificial intelligence and machine learning technologies. In 2019, the US DoD launched its artificial intelligence strategy, which focuses on integration and adoption of AI capabilities across Army, Navy, Marine Corps and Air Force. Such investments are anticipated to accelerate the growth of the market.
