C5ISR market to grow at 3.3 percent over next five years, says Allied Market Research
According to a new report published by Allied Market Research titled C5ISR Market by Application, Type, Geography – Global Opportunity Analysis and Industry Forecast, 2014 – 2022 is expected to reach $131,733 million by 2022, growing at a CAGR of 3.3% from 2016 to 2022. The airborne-based C5ISR systems segment is expected to witness the highest growth rate, while North America is projected to lead the market during the forecast period.
The command, control, communications, computers, combat, intelligence, surveillance, and reconnaissance (C5ISR) market is expected to grow steadily despite the sinking defense budget among western nations. Also, the demand for networked communications, national command and control (C2), sensor upgrades, space capability, intelligence, and electronic warfare systems would increase among the emerging and developing countries. The crucial area of focus is directed towards missile defense, unmanned platforms, and software-defined radios. It uses technologies such as C2 systems, SDRs, and satellites. It also helps the decision maker make the key decision in a precise and effective manner.
Territorial conflicts in Asia-Pacific and Middle East & Africa pose a major challenge in today’s environment. The cause for such conflicts includes a mix of political and economic interests, normative reasons, and struggle over scarce natural resources. In the past, it was observed that territorial conflicts were the leading cause of war, especially if two countries disagreed over specific parts of territory. Therefore, the countries have secured their borders with effective technologies through air, water, and land. This increase in security concerns fuels the demand for C5ISR systems worldwide.
In terms of application, surveillance and reconnaissance accounted for the maximum revenue share during the forecast period. In addition, intelligence segment is expected to grow at the fastest rate. Also, by the type of platforms, naval-based C5ISR segment held the largest market share in terms of value, whereas airborne-based segment is expected to grow at the highest CAGR in the next six years.
North America accounted for majority of the global market share in 2015, and is expected to maintain its dominance during the forecast period.
C5ISR Market Key Findings
- In 2015, surveillance and reconnaissance segment dominated the overall C5ISR market in terms of revenue, and is projected to grow at a CAGR of 2.5%
- North America generated the highest revenue among all regions in 2015
- Asia-Pacific is the fastest growing region with India, China, and Japan leading the C5ISR market
- U.S. and China accounted for the majority of the share, in terms of revenue, responsible for nearly 50% of the total market.
Lockheed Martin Corporation, Northrop Grumman Corporation, Raytheon Company, SAAB Group, and Thales Group are the leading players in the global C5ISR market. They have adopted various strategies, such as contracts & agreements, new product launches, expansion, and partnerships to sustain in the market.
Source: Allied Market Research