In 2020, the worldwide C5ISR market reached a size of USD 120.35 billion. The global repercussions of the unprecedented COVID-19 pandemic led to a notable surge in demand for C5ISR systems across all regions. Our analysis indicates a remarkable growth rate of 2.47% in 2020, contrasting with the average year-on-year growth observed from 2017 to 2019. Projections suggest that the market will advance from USD 123.63 billion in 2021 to USD 152.51 billion by 2028, representing a CAGR of 3.04% during the 2021-2028 period. The temporary decline in CAGR can be attributed to the unique circumstances influencing market demand, with expectations of a return to pre-pandemic levels once the global health crisis subsides.
Report Source: https://www.fortunebusinessinsights.com/c5isr-market-102102
Naval Segment Earned 42.66% Share in 2020: Fortune Business Insights™
By type, the market is segregated into space, airborne, naval, and land. Out of these, the naval segment generated 42.66% in terms of the C5ISR market share in 2020. Several countries, such as the U.S., India, and China are investing huge sums in naval modernization programs. It is set to drive this segment’s growth.
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Drivers & Restraints-
Increasing Need to Access Real-time Database Will Favor Growth
The high demand for situational awareness to analyze, identify, and process critical systems for gaining information about battlefield operations are set to propel the C5ISR market growth. This cutting-edge technology helps in offering maritime, ground, and air solutions and ensures access to the real-time database. The decision-making process in a battlefield operation requires video management, high-bandwidth sensors, and secured network routers. At the same time, these systems help in generating vital sensor, flight, and mission information for refining the effectiveness of the decision-making process. However, C5ISR systems are very expensive because of their inclusion of various unique components. It may hamper growth.
Presence of Northrop Grumman and General Dynamics to Help North America Dominate
Geographically, North America procured USD 50.86 billion in 2020 in terms of revenue. It is anticipated to remain at the forefront in the near future because of the presence of multiple reputed C5ISR providers, such as Lockheed Martin Corporation, General Dynamics Corporation, L3Harris Technologies Inc., and Northrop Grumman Corporation. On the other hand, Europe is set to show significant growth on account of the higher defense expenditure by Russia, France, and Germany. In Asia Pacific, South Korea, India, and China are likely to be the major contributors to growth backed by the rising military spending by them.
Key Players Focus on Bagging New Contracts to Strengthen Their Positions
The market contains a large number of prominent manufacturers that are striving persistently to win new contracts from government bodies. This strategy is helping them to strengthen their positions in the global market. Below are the two vital industry developments:
- February 2020: BAE Systems received a four-year contract from the U.S. Navy worth USD 42.5 million. It would enable the company to deliver shore-based landing systems integration (LSI) support services for instrument and instrument carrier landing systems.
- February 2020: Leonardo DRS, Inc. received a contract for providing a suite of electronic products worth USD 808 million. These products will be used to link C5ISR equipment with combat vehicles. It would help federal agencies in satisfying interconnection requirements.