Market Trends of Network Centric Warfare Industry
This section covers the major market trends shaping the Network Centric Warfare Market according to our research experts:
The Intelligence, Surveillance, and Reconnaissance (ISR) is Projected to Show Remarkable Growth During the Forecast Period
The ISR segment will showcase significant growth during the forecast period owing to the rising defense expenditure and growing use of network-centric solutions. The rising defense budget, increasing spending on the development of advanced network solutions, and introduction of next-generation technologies for enhanced decision-making are driving the growth of the market.
Global defense agencies recognize that real-time information is vital to mission effectiveness in combat operations. An intelligent network provides the foundation to integrate military intelligence, surveillance, weapon and IT systems, reconnaissance, and command and control operations. In 2022, the United States Department of Defense (DoD) allocated USD 24.1 billion for the Military Intelligence Program. The United States DoD focused on enhancing ISR capabilities by modernizing platforms, advanced sensors, cyber protection, and tying all the data into a meshed network. The United States DoD allocated USD 8.3 billion to the global Integrated ISR portfolio in FY 2023 budget request. Thus, increasing expenditure on improving military capabilities and the adoption of advanced technologies for real-time data in combat operations is anticipated to drive the growth of the market during the forecast period.
North America Is Anticipated to Dominate the Market During the Forecast Period
North America held the largest market share in 2022 and is expected to continue its domination during the forecast period. The growth is due to the highest defense expenditure from the United States. Increasing expenditure on the adoption of network-centric solutions and growing procurement of AI-enabled devices for defense operations from the United States Department of Defense drive the growth of the market across the region.
The United States Department of Defense (DoD) invested USD 874 million in artificial intelligence (AI)-related technologies in 2022. The United States DoD also focuses on improving efficiencies in command and control, computing, and logistics. In the United States 2023 defense budget request, the DoD requested USD 919 million for the nuclear command, control, and communication (NC3) program. Also, the DoD requested USD 11.2 billion for cyberspace activities that include advanced cybersecurity, cyber research and development, and cyber operations.
For instance, in January 2022, the United States Army signed two contracts with General Dynamics Mission Systems for the Tactical Network-On-the-Move communication systems and other equipment. The first contract was worth USD 74.99 million for support services, and the second included engineering and technical support to integrate On the Move technology worth USD 20.34 million. Thus, growing spending from the United States government for enhancing defense capabilities drives the growth of the market.
