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The 5G in defense market size is forecast to increase by USD 4 billion, at a CAGR of 46.1% between 2023 and 2028. The market in defense is experiencing significant growth, driven by the emergence of the Internet of Things (IoT) and the increasing research and development in the deployment of 5G networks. The integration of IoT devices in defense applications is revolutionizing military operations by enabling real-time data transfer and analysis, enhancing situational awareness, and improving communication between troops. Additionally, the high cost associated with the installation and maintenance of 5G networks is a challenge that must be addressed to make it a viable option for defense organizations. Despite this, the benefits of 5G, such as increased bandwidth, lower latency, and higher reliability, make it an attractive solution for defense applications, particularly in areas like autonomous vehicles, drones, and command and control systems. The market is expected to grow at a rapid pace as defense organizations invest in the latest technology to enhance their capabilities and maintain a technological edge over potential adversaries.
5G technology is revolutionizing the defense industry by enabling high-speed data transmission, real-time data processing, and advanced network functions for various applications. The integration of 5G in defense systems is enhancing situational awareness, improving public safety, and facilitating efficient military operations. IoT applications in defense are benefiting from 5G's ultra-low latency and high bandwidth capabilities, enabling autonomous vehicles, drones, and ISR systems to transmit data in real-time. Network infrastructure based on 5G is essential for command and control systems, logistics operations, and military equipment, ensuring secure and efficient communication. Military aircraft and Unmanned Aerial Vehicle (UAV) operations are also leveraging 5G's advanced features, such as beamforming and smart cell communication, for improved tactical reconnaissance and surveillance. Network functions virtualization and software-defined networking are crucial for securing military networks against cyberattacks and ensuring the reliability of autonomous systems. 5G is also transforming the defense industry by enabling new applications such as automated process technology in military bases, supply chain management, and unmanned aerial vehicles. The integration of 5G in defense is a game-changer, providing military forces with the advanced technology needed to maintain a strategic edge in today's complex and dynamic operational environment.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion " for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The small cell segment is estimated to witness significant growth during the forecast period. 5G technology is revolutionizing the defense sector with its advanced capabilities in data processing, enabling real-time analysis for IoT applications in situational awareness, public safety, and military operations. Network infrastructure is being upgraded with high-speed data transmission, network functions virtualization, beamforming, and MIMO antennas for enhanced mobile broadband and military spending. Autonomous vehicles and drones are integrated into defense systems for tactical reconnaissance and logistics operations. Spectrum management and security protocols ensure secure communication for command and control, military equipment, and ISR systems. Virtual networking architecture and edge computing facilitate interoperability and real-time data sharing for emergency response, video surveillance, and digital inclusivity.
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The small cell segment was the largest and was valued at USD 188.70 million in 2018. High capital investments and hardware upgrades are essential for implementing 5G in defense, addressing connectivity issues and enabling precision agriculture, disaster management, and smart cell communication. However, challenges remain, including cyberattacks, autonomous systems, and supply chain management. Software-defined networking and military spending on cybersecurity are crucial to mitigating risks and ensuring the success of 5G in defense applications. Overall, 5G's potential for real-time data and enhanced capabilities offers significant benefits for defense applications, from situational awareness to interoperability and digital transformation.
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North America is estimated to contribute 44% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The global defense market is witnessing significant growth in the adoption of 5G technology due to its capabilities in data processing, enabling advanced IoT applications for situational awareness in public safety and military operations. High-speed data transmission through 5G networks is revolutionizing network infrastructure for autonomous vehicles and drones, enhancing real-time data sharing and interoperability. Network functions virtualization, beamforming, MIMO antennas, and spectrum management are key 5G features that ensure secure and reliable communication for defense applications. Military spending on 5G technology is increasing due to its potential in enhancing command and control, logistics operations, and ISR systems.
Additionally, the virtual networking architecture and edge computing offer improved connectivity for military equipment, reducing latency and enabling real-time data sharing. However, challenges such as cyberattacks, autonomous systems, and real-time data security require security protocols and hardware upgrades. 5G technology is also transforming sectors like disaster management, precision agriculture, and digital inclusivity by providing high-speed connectivity for real-time data sharing and tactical reconnaissance. The implementation of 5G in defense markets requires high capital investments and software-defined networking for seamless integration with existing systems. The future of defense communications lies in the seamless integration of 5G technology with digital transformation initiatives, ensuring digital inclusivity and addressing connectivity issues.
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Emergence of IoT is notably driving the market growth. The defense industry is at the forefront of adopting next-generation technologies, including 5G, to revolutionize networking and communication systems. Network Function Virtualization (NFV) and the Internet of Things (IoT) are key technologies driving this transformation. Defense organizations are assessing IT products and services for their compatibility with IoT analytics ecosystems, providing insights into advanced, connected technologies. The rollout of 5G technology development is gaining momentum, with telecommunications companies in the US and globally deploying infrastructure. Defense applications of 5G include autonomous vehicles, support for deployed combatants, smart bases, warehouses, and logistics, as well as cloud services.
Further, use cases for 5G in the defense sector also extend to airborne applications such as Unmanned Aerial Vehicles (UAVs), Surveillance Drones, Military Aircraft, and UAV Operations. The implementation of 5G Open RAN, Ultra-low Latency, and Remote Control technologies enables a Unified Combat Picture for Joint Operations and Swarm Drone Operations. Communication Infrastructure, Core Network Technology, Small Cells, Macro Cells, Radio Access Networks, Fog Computing, and Mobile Edge Computing are essential components of this advanced network. The market plays a crucial role in validating the performance and reliability of this technology in the tactical battlefield. Thus, such factors are driving the growth of the market during the forecast period.
Growing research and development in the deployment of 5G networks is the key trend in the market. The defence sector is witnessing significant advancements in communication technology with the integration of 5G technology. Network Function Virtualization (NFV) and the Internet of Things (IoT) are key components of 5G technology development, enabling low-latency communication for various applications. Viasat Inc, a leading communications company, is collaborating with the US Department of Defense (DoD) to explore the use of 5G for Expeditionary Advanced Base Operations (EABO) communications. This research focuses on enhancing network capabilities, command and control (C2), and advanced processing through digital twins and software-defined networking (SDN). Ligado Networks was awarded a contract by the DoD through the Information Warfare Research Project (IWRP) to study the implementation of 5G for EABO communications.
This includes investigating the use of 5G for airborne applications such as Unmanned Aerial Vehicles (UAVs) and surveillance drones, as well as automated process technology for military aircraft. The 5G Open RAN and ultra-low latency capabilities are expected to revolutionize remote control of swarm drone operations, providing a unified combat picture for joint operations. The communication infrastructure of the future will consist of a combination of small cells, macro cells, and radio access networks, along with fog computing and mobile edge computing for land, naval, and air applications. Thus, such trends will shape the growth of the market during the forecast period.
The high cost associated with installation is the major challenge that affects the growth of the market. The market is experiencing significant growth, driven by the integration of Network Function Virtualization (NFV) and the Internet of Things (IoT) in various defense applications. The development of 5G technology offers numerous advantages, including low-latency communication, which is essential for airborne applications such as Unmanned Aerial Vehicles (UAVs) and Military Aircraft. The use of 5G technology in UAV operations, including Surveillance Drones, enables real-time data processing and ultra-low latency for remote control, contributing to a unified combat picture for joint operations. The 5G Open RAN and Fog Computing/Mobile Edge Computing technologies are crucial for tactical battlefield applications, providing the necessary communication infrastructure for swarm drone operations and real-time data processing.
Moreover, the integration of 5G technology in defense is also expected to enhance automated process technology in land and naval applications. However, the high cost of small cell network installation and the lack of security for remotely located outdoor power systems may pose a challenge to market growth. Despite this, the potential benefits of 5G technology in defense applications are significant, and ongoing 5G testing in defense is expected to drive market growth during the forecast period. Hence, the above factors will impede the growth of the market during the forecast period.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
AT and T Inc. - The company offers 5G solutions in defense market which enables smart warehouse applications for the Department of Defense's Naval Bases.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The defense industry is embracing the next generation of network technology, 5G, to revolutionize military operations with enhanced connectivity, real-time data sharing, and advanced IoT applications. This transition is crucial for situational awareness, public safety, and tactical reconnaissance in various domains, including military operations, public safety, and logistics. 5G's high-speed data transmission capabilities enable real-time data sharing for enhanced interoperability among military equipment, drones, autonomous vehicles, and ISR systems. Network functions virtualization, beamforming, MIMO antennas, and spectrum management are key network infrastructure advancements that contribute to this transformation. Security protocols and virtual networking architecture are essential for maintaining data security in defense applications.
In addition, the military spending on 5G technology is increasing to address the need for high capital investments in hardware upgrades and software-defined networking. 5G's capabilities extend to various defense applications, including emergency response, surveillance, and disaster management. Real-time data sharing facilitates faster decision-making, while connectivity issues and digital inclusivity are addressed through edge computing and enhanced mobile broadband. The integration of 5G in defense applications also supports precision agriculture, smart cell communication, and supply chain management. However, challenges such as cyberattacks, autonomous systems, and interoperability remain to be addressed for a seamless transition to 5G in the defense sector.
Market Scope |
|
Report Coverage |
Details |
Page number |
141 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 46.1% |
Market Growth 2024-2028 |
USD 4 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
32.8 |
Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
Performing market contribution |
North America at 44% |
Key countries |
US, China, Germany, UK, and India |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Aptiv Plc, AT and T Inc., Cisco Systems Inc., Huawei Technologies Co. Ltd., L3Harris Technologies Inc., Ligado Networks, NEC Corp., Nokia Corp., NVIDIA Corp., Qualcomm Inc., RTX Corp., Samsung Electronics Co. Ltd., Sierra Wireless Inc., Telefonaktiebolaget LM Ericsson, and Thales Group |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for market forecast period |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Communication Technology
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Opportunity/Restraints
10 Competitive Landscape
11 Competitive Analysis
12 Appendix
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