Market Trends of C5ISR Industry
This section covers the major market trends shaping the C5ISR Market according to our research experts:
Naval C5ISR Is Expected To Witness Growth During The Forecast Period
The Naval C5ISR segment is expected to witness growth during the forecast period. The growth of territorial conflicts and border issues has increased the risk for maritime assets of militaries, which has led to increasing emphasis on surveillance, threat detection, and target identification at sea. Ensuring combat readiness of existing naval systems, several modernization programs are currently underway to upgrade the capabilities of the regional naval forces. Various governments worldwide, currently, are engaged in investing in the procurement of frigates, corvettes, offshore patrol vessels (OPVs), and other vessels for patrolling applications. Moreover, naval forces around the world are integrating technologically advanced command and control systems onboard the naval vessel for enhanced combat efficiency, situational awareness, and effective planning and decision-making in critical missions. Various nations across the globe are also enhancing the sensors and equipment onboard naval vessels to enhance the surveillance capabilities and situational awareness of military personnel. For instance, in January 2022, BAE Systems Plc announced that they have received a contract from the United States Department of Defense. The contract which is valued at USD 137 million is in support of the C5ISR systems of the United States Naval Forces. Under the contract, BAE Systems Plc will offer post-fielding support and sustainment, in service and engineering to the United States Navy. Moreover, the contract will also include a provision to train military personnel on the C5ISR systems. The US Navy has been looking for persistent multispectral 360-degree electro-optical systems for its naval vessels. Many systems are being tested onboard US ships working in cooperation with the usual RADAR and surveillance systems. Once the testing phase is done and the systems come into use, the demand is expected to be more for these nascent technologies. Thus, such developments will lead to growth in Naval C5ISR during the forecast period.
Asia Pacific Is Expected To Be The Largest Market For C5ISR Systems
Asia Pacific is the largest market for C5ISR systems. An increase in military spending coupled with increasing investments in C5ISR technologies in the defense sector as well as growing defense modernization programs is the major factor that has contributed to the Asia Pacific region being the largest market for C5ISR globally. According to reports and data presented by SIPRI (Stockholm International Peace Research Institute), as of 2021, global military spending within the Asia Pacific region increased to USD 2 trillion. The main growth in military spending in the Asia Pacific region came from China and India. Military expenditure in China accounted for USD 293 billion while India's military spending accounted for USD 76.6 billion. There has been a rise in terms of C5ISR systems in the Asia Pacific region in the region owing to various investments being made by countries towards C5ISR systems. Moreover, the war between Russia and Ukraine and recognition of the effectiveness of situational awareness, actionable data, and rapid decision-making in modern warfare operations has led to a rise in terms of procurement as well as the development of advanced C5ISR systems in Asian countries such as India, China, Japan as well as South Korea and this shall lead to the Asia Pacific region witnessing growth during the forecast period.
