Market Trends of Battlefield Management Systems Industry
The Army is Expected to Witness the Highest Growth During the Forecast Period
The changing scenario of warfare worldwide has led to various countries increasing their defense budgets to acquire new and advanced battlefield management systems to improve their military proficiency. A Stockholm International Peace Research Institute (SIPRI) report stated that in 2023, the global defense expenditure amounted to USD 2.44 trillion.
In July 2023, the US Army awarded a contract to Systematic A/S for using its SitaWare software suite to improve the security and performance of its tactical communications network and battle management systems as part of the LAND 200 Phase 3 Battlefield Command Systems initiative. Also, in August 2023, the UK Ministry of Defence (MoD) awarded BAE Systems PLC a GBP 89 million (around USD 113 million) contract to enhance front-line connectivity for military personnel, linking small reconnaissance drones, combat vehicles, fighter jets, aircraft carriers, and military commands. The five-year contract entails designing, developing, and deploying a tactical wide-area network called Trinity. Thus, increasing investments from defense forces to enhance defense capabilities and increase the procurement of advanced defense systems will drive market growth in the coming years.
Asia-Pacific is Expected to Witness Significant Growth During the Forecast Period
Asia-Pacific has been a hotspot for border conflicts, which has led to significant regional countries realigning their military strategies and organizational structures to counter such disputes. This has led to substantial growth in demand for advanced battlefield management systems within the region. For instance, in December 2023, the Indian Army announced the development of military-grade 5G and 6G telecom apps. This project will help to address the country's future warfare requirements.
An increased use of advanced technologies, like artificial intelligence, in next-gen systems is witnessing significant growth. This move is poised to enhance the cybersecurity, situational awareness, decision-making, automation, and adaptability of a country. Thus, growth in acquiring new battlefield management systems and the growing need to integrate advanced technologies within the existing systems will drive market growth in the region.
