Global Statistics Representing C4ISR Market Scenario
Presently, the defense sector has been witnessing an increase in the adoption of information and communication technology, which has laid the idea of integrating modern weapon systems with these technologies to improve operational capabilities and cost efficiency. C4ISR stands for Command, Control, Communication, Computers, Intelligence, Surveillance, and Reconnaissance. The primary function of C4ISR systems is to provide with real-time situational awareness in all fields of defense and authority. These systems resolve the overheads in war fields by integrating weapon systems with modern electronics and hardware systems.
The increasing defense budget worldwide to produce and purchase high-tech defense systems, owing to growing cross-border tension among nations is one of the key factors expected to drive the C4ISR market growth during the forecast period, 2019–2026. For instance, in March 2018, the Chinese government announced the decision to increase its defense budget by 8.1%. A significant part of the allocated budget is expected to be spent on upgrading equipment, supporting military reforms and training.
During severe military operations, surrounding zones are fractured, owing to high noise levels and ambiguity, which can result in the failure of tactical objectives. Numerous military projects have channelized efforts to design or integrate digital systems to overcome these challenges and allow military personnel to assist in decision making in unknown environments. In October 2017, Lockheed Martin received a project worth about USD 337 million to supply Apache modernized helicopters with pilot night vision sensor (M‑TADS / PNVS) systems to the U.S., the U.K, and Saudi Arabia.
Growing investments in designing advanced weapons and communication systems by North Atlantic Treaty Organization (NATO) are expected to cater lucrative growth opportunities during the forecast period, 2019–2026. In March 2017, NATO announced its decision to spend about USD 3.3 billion specifically for strengthening its defense systems due to growing geopolitical threats.
The global C4ISR market was valued at USD 97 Billion in 2017 and is expected to grow at a CAGR of 4.80% from 2019 to 2026.
The global C4ISR market can be primarily segmented by platform and application. Based on platform, the market can be segmented into land, air, water, and space. Based on application, the market can be segmented into Intelligence Surveillance and Reconnaissance, Communication, Command and Control, Computers, and Electronic Warfare.
North America is estimated to hold a sizable market share, owing to colossal investments in defense systems by the U.S. The defense budget analysis of various countries depicts that the U.S. accounts for about a 30-40% share in the global defense systems and equipment. The changing military environment, owing to the rise of cyber-warfare, has compelled government agencies and defense groups to invest in effective management systems that can assist in processing data and securely share it. In August 2017, the U.S. Army awarded a five-year contract to Rockwell Collins for the provision of aviation-based command and control products to government agencies and organizations during the next five years. The total budget allocated for this project is pegged at about USD 37.4 billion.
Growing focus on improving military capabilities and increasing defense expenditure, owing to regional threats such as the Islamic State and others is projected to fuel market growth in the LAMEA region. Saudi Arabia is expected to hold the largest share in defense spending with an anticipated CAGR of 3% during the forecast period, 2019–2026.
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.
C4ISR Market Segmentation
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In August 2016, the Virginia-based military intelligence company, Mission Essential, announced the acquisition of Information Management Technology Corporation. The acquisition was completed with a goal to strengthen communication-based technologies within the defense department. The companies will work together on tactical and targeting data, intelligence information and threat warnings.