Market Trends of Command And Control Systems Industry
Land Based Platform Will Showcase Remarkable Growth During the Forecast Period
The land-based command and control systems segment is estimated to hold the largest market share during the forecast period due to its high usage on the battlefield. The increasing number of military modernization programs and procurement of advanced defense systems by the defense forces drive the market growth. The growing military operations worldwide due to various geopolitical issues and the growth of terrorist and hostile activities increased the demand for building fixed-base control centers and land-based command headquarters.
The land-based C2 systems act as a communication bridge between troops and ground station personnel on the battlefield. For instance, in October 2023, Elbit Systems Ltd. subsidiary Elbit Systems Sweden AB was awarded a contract of USD 170 million to participate as an integration partner in the Swedish Army digitalization program LSS Mark. As the integration partner, Elbit Systems Sweden will integrate, install, maintain, and upgrade command and control systems on a variety of platforms, from command posts and vehicles to dismounted systems.
Thus, growing investment in the procurement of advanced command and control systems and an increase in annual defense budget allocation to infrastructure development of various countries drive the growth of the market land-based segment.
Asia-Pacific is Estimated to Show Remarkable Growth During the Forecast Period
Asia-Pacific will experience significant growth during the forecast period. The growth is attributed to growing defense expenditure and rising military modernization programs by countries like China, India, South Korea, and others. Increasing tensions between India and China over the line of control (LOC), rising cross-border conflicts, and growing terrorist activities across the region led to increased spending on the defense sector by Asian countries.
In addition, countries such as India, China, Japan, and Australia participate in several airborne, land, space, and naval modernization programs. For instance, in August 2022, Lockheed Martin Australia partnered with the Royal Australian Air Force (RAAF) and Defence Science and Technology Group (DSTG) to explore systems. It is to leverage artificial intelligence to support rapid decision-making at tactical levels of command and control across various domains.
Similarly, in Japan, in January 2024, Northrop Grumman Corporation and Mitsubishi Electric Corporation signed an agreement to collaborate on integrated air and missile defense capabilities for Japan’s ground-based systems. The companies will combine their respective technologies to develop a networking solution to integrate Japan’s air and missile defense capabilities. It is to share target information across various defense systems. It will increase Japan's defense capability by improving situational awareness, increased interoperability, and effective resource management.