In the face of rising global geopolitical tensions, terrorism, and cross-border conflicts, the command and control (C2) systems market is set to experience notable growth. As countries continue to strengthen their defense capabilities, the significant increase in military expenditure globally facilitates the focus on procuring new generation C2 systems, which surpass the capabilities of existing models. These dynamic factors, coupled with ongoing military modernization programs and escalated spending on advanced defense systems, serve as catalysts propelling this market forward.
Mirroring the urgent need for non-obsolete technology in wartime, the rapid growth of C2 systems – a key component of enhanced communication, strategic planning and decision-making technologies (C4ISR systems) – becomes apparent. Furthermore, the network of Satellite Communications (SATCOM) deeply entwined in modern military operations lends crucial support to C2 systems' capabilities in remote and austere environments. The seamless integration and increased use of SATCOM are expected to open up new opportunities for the market in the future. Through the lens of these emerging trends, our expansive market research report will provide invaluable insights into the command and control systems market.
The defense sector suffered a mild impact due to the COVID-19 pandemic. Increasing political disputes and warfare situations, growing terrorism, and growing cross-border conflicts have led to the strengthening of global defense capabilities. According to the Stockholm International Peace Research Institute (SIPRI), global military expenditure increased by 0.7% in 2021 and reached USD 2,113 billion.
Increasing military expenditure has facilitated the armies to focus more on procuring new generation C2 systems, as the capabilities of the existing C2 systems are not up to the industry benchmark. The ongoing military modernization programs and rising spending on procurement of advanced defense systems will drive the market during the forecast period.
During wartime, defense departments cannot have any obsolete technologies, especially in C4ISR systems, because these systems are used for communication, strategic planning, and decision-making. C2 systems are a crucial part of C4ISR systems, whose growth is expected to be very rapid. The ongoing R&D activities to develop advanced systems may provide growth opportunities for the market in the coming years. Satellite communications (SATCOM) have become a firmly established part of modern military operations by providing enhanced capabilities for C2 in remote and austere environments. The growing use of SATCOM is expected to bring new opportunities for the market in the coming years.
Command & Control Systems Market Trends
Land-Based Platform Will Dominate the Market During the Forecast PeriodThe land-based command and control systems segment is estimated to hold the largest market share during the forecast period due to its high usage on the battlefield. The increasing number of military modernization programs and procurement of advanced defense systems by the defense forces drive market growth. The growing military operations across the world due to various geopolitical issues and the growth of terrorist and hostile activities have increased the demand for building fixed base control centers and land-based command headquarters. The land-based C2 systems act as a communication bridge between troops and ground station personnel on the battlefield.
For instance, in December 2021, the US Army signed a contract worth USD 1.4 billion with Northrop Grumman for the low-rate initial production and full-rate production of its future battle command system. Furthermore, in April 2020, the Swiss Armed Forces signed a three-year contract worth USD 15 million with Elbit Systems for the supply of command and control systems for the Tactical Reconnaissance System (TASYS) of the Swiss Armed Forces. Thus, growing investment in the procurement of advanced command and control systems drives the growth of the market.
Asia-Pacific is Estimated to Show Remarkable Growth During the Forecast PeriodAsia-Pacific will experience significant growth during the forecast period. The growth is attributed to growing defense expenditure and rising military modernization programs by countries like China, India, South Korea, and others. Increasing tensions between India and China over the line of control (LOC), rising cross-border conflicts, and growing terrorist activities across the region have led to increased spending on the defense sector by Asian countries. In addition, countries such as India, China, Japan, and Australia participate in several airborne, land, space, and naval modernization programs.
For instance, in July 2021, Collins Aerospace signed a contract with the Australian Defense Forces to supply the next-generation Digital Terminal Control Systems (DTCS) under the Australian Defence Land 17 Phase 2 program. It is a targeting system used by Joint Forward Observers (JFOs) and Joint Terminal Attack Controllers (JTACs) to request and coordinate support missions delivered by land, sea, or air platforms. The adoption of advanced C2 systems by the defense forces, thus, drives the market growth during the forecast period.
Command & Control Systems Market Competitor AnalysisThe market for command and control systems is fragmented, with the presence of several global and local players holding significant shares of the market. Some of the prominent players are L3Harris Technologies Inc., Lockheed Martin Corporation, Thales Group, Raytheon Technologies Corporation, and BAE Systems. With growing competition in the market, key OEMs are focusing on the development of next-generation solutions for defense forces.
Growing focus on innovation, research and development, and the introduction of advanced systems drive market growth. For instance, in September 2022, Anduril Industries, a defense and security technology company in the United States, announced a new command and control center that military forces could deploy to austere bases in harsh environments and set up in about 10 minutes.
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Table of Contents
1.2 Scope of the Study
4.2 Market Drivers
4.3 Market Restraints
4.4 Porter's Five Forces Analysis
4.4.1 Threat of New Entrants
4.4.2 Bargaining Power of Buyers/Consumers
4.4.3 Bargaining Power of Suppliers
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
5.2.1 North America
188.8.131.52 United States
184.108.40.206 United Kingdom
220.127.116.11 Rest of Europe
18.104.22.168 South Korea
22.214.171.124 Rest of Asia-Pacific
5.2.4 Latin America
126.96.36.199 Rest of Latin America
5.2.5 Middle East and Africa
188.8.131.52 United Arab Emirates
184.108.40.206 South Africa
220.127.116.11 Saudi Arabia
18.104.22.168 Rest of Middle East and Africa
6.2 Company Profiles
6.2.1 Raytheon Technologies Corporation
6.2.2 Thales Group
6.2.3 General Dynamics Corporation
6.2.4 L3Harris Technologies Inc.
6.2.5 BAE Systems PLC
6.2.6 Honeywell International Inc.
6.2.7 Saab AB
6.2.8 CACI INTERNATIONAL INC.
6.2.9 Kratos Defense & Security Solutions Inc.
6.2.10 Leonardo S.p.A
6.2.11 Lockheed Martin Corporation
A selection of companies mentioned in this report includes:
- Raytheon Technologies Corporation
- Thales Group
- General Dynamics Corporation
- L3Harris Technologies Inc.
- BAE Systems PLC
- Honeywell International Inc.
- Saab AB
- CACI INTERNATIONAL INC.
- Kratos Defense & Security Solutions Inc.
- Leonardo S.p.A
- Lockheed Martin Corporation