In many cases, the demand for the land-based systems will be replacement-based, as countries will be seeking to replace their old outdated systems, mostly from the Soviet era. This replacement trend will be prominent in countries like Japan, South Korea, and Eastern European nations, where a spike in defense budgets is evident. The market is expected to register considerable growth, driven by higher military spending in Asia-Pacific. Military vehicle electronics act as a communication bridge between troops and ground station personnel. A much greater emphasis has been put on the vehicle-mounted C4ISR, communication, and networking systems. These efforts fit nicely into the kind of technologies and products offered by the military embedded computing industry.
Source: Mordor Intelligence Analysis
Budget Cuts and Military Downsizing
In 2018, North America had the highest share of the market; however, military budget cuts in the United States are likely to impact the market immensely by 2019. The Budget Control Act, passed by the United States Congress in 2011, aims to cut USD 487 billion from the overall military spending in the next 10 years, with an additional sequestration of USD 495 billion by the government because of short-term fiscal concerns. Amidst a challenging budgetary environment, the United States military sector is faced with the challenge of reducing costs while procuring, maintaining, and enhancing the military communications and man portable electronic warfare systems.
In addition, military downsizing is a restrained and defensive strategy being employed by the United States and countries in Europe. This limits the development, maintenance, upgradation, and procurement of man portable military electronic technologies, which is a major concern in the market.
For example, in 2015, China had planned to lay-off 300,000 army personnel from the 2.3 million military strength, due to the economic slowdown in the country. Similarly, between 2010 and 2020, the United Kingdom is expected to reduce the size of its military troops from 178,000 to 147,000, with an immediate reduction of 4,480 personnel by 2015. In 2015, the United States Army had planned to reduce more than 40,000 troops over the next two years, thus reducing the number of active troops from 490,000 to 450,000. In addition to the troop reductions, 17,000 army civilian employees would be laid-off during the same period.
Increased C4ISR Spending in Developing Market
The military is evolving at a faster rate, propelled by developments in industry and by the cutting-edge capabilities emerging from Pentagon research organizations like the Defense Advanced Research Projects Agency.
APAC is expected to grow significantly as compared to the other regions. It consists of countries with high military expenditure, such as India and China. With geopolitical tensions in the South China Sea, and border issues in multiple countries, procurement of C4ISR is expected to increase across the region. China, South Korea, Japan, and Indonesia are the key growth countries in this region. Forced modernization efforts across the Asia-Pacific region are also expected to increase the procurement of C4ISR systems. Since most of the nations are using old Soviet era systems, the modernization of systems is also expected to increase the procurement of C4ISR.
Key Developments in the Market:
- March 2018: Elbit Systems is awarded a USD 65 million contract to supply a comprehensive ISR solution to an Asian-Pacific country.
- April 2017: Australia selects Raytheon for a USD 1.5 billion ground-based air defense system.
Major Players include - Elbit Systems Ltd, BAE Systems PLC, and SAAB AB, among others.
Reasons to Purchase the Report
- Study on the adoption of land-based C4ISR in developing regions and its effects on the global C4ISR industry
- Analyzing various perspectives of the market with the help of Porter’s five forces analysis
- Study on the type of players expected to dominate the market during the forecast period
- Study on the region expected to witness fastest growth during the forecast period
- Identify the latest developments, market shares, and strategies employed by the major market players
- 3 month analyst support, along with the Market Estimate sheet (in Excel)
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1.1 Study Deliverables
1.2 General Study Assumptions
2. Research Methodology
2.2 Analysis Methodology
2.3 Study Assumptions
3. Executive Summary
4. Market Overview and Technology Trends
4.1 Current Market Scenario
4.2 Technology Trends
4.3 Porter's Five Force Analysis
4.3.1 Threat of New Entrants
4.3.2 Threat of Substitutes
4.3.3 Bargaining Power of Suppliers
4.3.4 Bargaining Power of Buyers
4.3.5 Intensity of Competitive Rivalry
5. Market Dynamics
6. Global Land-based C4ISR Market Segmentation, by Type
6.1 Command & Control
6.5 Electronic Warfare
7. Global Land-based C4ISR Market Segmentation, by Geography
7.1 North America
7.1.1 United States
7.2.2 United Kingdom
7.4 South America
7.5 Middle East & Africa
7.5.1 Saudi Arabia
7.5.2 South Africa
8. Competitive Landscape
8.2 Market Share Analysis
9. Company Profiles
9.1 Elbit Corporation
9.2 Harris Corporation
9.3 Thales Group
9.4 ThalesRaytheon Systems
9.6 CACI International Inc.
9.7 BAE Systems Plc
9.8 Sabre Systems
9.9 Lockheed Martin
9.10 Northrop Grumman Corporation
9.11 Kratos Defense and Security Solutions