C4ISR systems have become mandatory to create an overall comprehensive scenario of the environment during war times and emergencies for conducting both military and civilian command and control functions. This technology has enhanced the efficiency of modern crisis management operations; it also has enabled the connection of different nationalities, thereby enabling interoperability and efficient use of military resources. The increasing defense budget of some of the most prominent nations such as India, China, and the U.S. drives the growth of the globalC4ISR market.
The global C4ISR market can be segmented on the basis of platform and application. Based on application, the market can be segmented into intelligence surveillance and reconnaissance, communication, command and control, computers, electronic warfare. The intelligence surveillance and reconnaissance segment is estimated to account for a prominent share in the global C4ISR market with an anticipated CAGR of 5.04% during the forecast, 2019–2026. Growth in the number of airborne missions, coupled with the adoption of drones for surveillance, is a major trend driving market growth, globally. Strong investments in unmanned systems for efficient data collection have also favored the growth of the ISR segment. In March 2018, the Italian Ministry of Defense announced its decision to purchase 20 surveillance drones with a total investment of about USD 951 million.
The electronic warfare segment is anticipated to register the fastest growth with a CAGR of 4.93% during the forecast period. In December 2016, Pentagon announced its new electronic warfare strategy primarily to protect infrastructure and utilize the electromagnetic spectrum to attack enemies. Additionally, a major part of this initiative is to integrate electronic warfare technologies with existing army, navy and airforce weapons. Some of the noteworthy product developments in this strategy are the Navy’s next-generation jammer, army vehicle-mounted electronic warfare and others.
Based on platform, the market can be segmented into land, air, naval and space. The air-based platforms segment is estimated to register the fastest growth rate with a CAGR of 4.83% during the forecast period. Growing usage of unmanned aerial vehicles for efficient surveillance during conflicts and wars has also been driving market growth.
The global C4ISR market has been analyzed across North America, Europe, Asia Pacific, and LAMEA. The Europe C4ISR market is expected to grow at a CAGR of 4.82% during the forecast period, 2019–2026. In the past few years, owing to the economic recession, European governments have reduced their defense budgets; however, improvement in the economic situation in terms of GDP has seen recovery in defense budgets, which in turn is expected to positively affect the C4ISR market.
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Electronic warfare is pegged to be the fastest growing segment with an anticipated CAGR of 4.88% during the forecast period in Europe. Electronic warfare primarily operates to degrade, neutralize or destroy enemy equipment and also can include jamming or spoofing of the electromagnetic spectrum. Governments across Europe have adopted various policies to incorporate electronic warfare in the defense sector, which presents significant opportunities for both local and foreign companies operating in the market. For instance, in June 2018, Elbit System announced that it was awarded a USD 17-million contract by a European country for the supply of a range of advanced ground-based electronic warfare and signal intelligence systems.
Developing countries across Asia Pacific such as China, India, Japan, South Korea, and others have increased their military spending over the past decade, primarily driven by rising GDP and regional security dynamic. China is the largest military spender in Asia Pacific, followed by India, Japan, and others. The Asia Pacific C4ISR market is estimated to grow at a CAGR of 5.03% during the forecast period. Cross border issues among various countries in Asia Pacific have also resulted in an upsurge in the demand for electronic-based weapons and systems, which fuels market growth.
Ambitious modernization policies adopted by countries such as India, Japan, China, and others have also assisted in the development and purchase of modern high-tech weapons. For instance, India purchases most of its military equipment from Russia and is currently the largest importer of weapon systems. However, the Indian government has encouraged foreign direct investment in the defense sector, thereby supporting high-tech production in the country.
Some of the major companies in the market are Raytheon Company, Rockwell Collins, Inc, BAE Systems plc, Northrop Grumman Corporation, General Dynamics Corporation, L3 Technologies, Thales Group, Harris Corporation, Rheinmetall AG, and Saab AB.