Naval Combat Management System Global Market Report 2025

The naval combat management system market size has grown strongly in recent years. It will grow from $8.73 billion in 2024 to $9.46 billion in 2025 at a compound annual growth rate (CAGR) of 8.4%. The growth during the historic period can be attributed to rising defense expenditure, ongoing fleet modernization programs, increasing geopolitical tensions, expansion in shipbuilding, and a stronger focus on maritime border security.

The naval combat management system market size is expected to see strong growth in the next few years. It will grow to $12.87 billion in 2029 at a compound annual growth rate (CAGR) of 8%. The growth in the forecast period is expected to result from escalating maritime disputes, prioritization of fleet survivability, regulatory compliance requirements, upgrades of legacy systems, and geopolitical tensions driving naval capability enhancement. Key trends in the forecast period include adoption of modular and open architecture, transition toward unmanned platforms, heightened focus on cybersecurity, formation of regional procurement alliances, and improved interoperability among allied fleets.

Rising geopolitical tensions are expected to drive growth in the naval combat management system market. Geopolitical tensions arise from conflicts and disputes between nations over political, economic, or territorial interests that threaten international stability. Territorial disputes and military conflicts, as countries compete for land, resources, and strategic influence, increase the demand for naval combat management systems. These systems are crucial for effective maritime defense, enabling naval forces to maintain operational readiness in contested waters. For example, in July 2024, the Armed Conflict Location and Event Data Project reported over 165,273 incidents of political violence worldwide between July 2023 and June 2024, marking a 15 percent increase from the previous year. During this period, one in seven people globally experienced exposure to conflict. Consequently, rising geopolitical tensions are fueling the demand for naval combat management systems.

Key players in the naval combat management system market are developing integrated sensor fusion solutions to enhance situational awareness and improve real-time decision-making. Integrated sensor fusion combines data from multiple sensors, including radars, sonars, and electro-optical devices, into a single coherent picture, providing accurate, comprehensive, and timely operational intelligence. In March 2022, Aselsan Elektronik Sanayi ve Ticaret A.Ş., a Turkey-based defense company, introduced its New Generation Centennial VTZ Combat Management System at the DIMDEX 2022 exhibition in Doha, Qatar. The system integrates a broad range of sensors, weapons, and command-and-control technologies to provide real-time tactical awareness and interoperability across naval platforms. It is scalable to different user and platform needs, capable of fusing data from radars, sonars, electro-optical devices, electronic warfare suites, and tactical data links, creating a clear operational picture. Its open system architecture allows seamless integration of various sensors and effectors, enabling faster and better-informed decisions while enhancing situational awareness and fire-control capabilities.

In October 2023, Thales S.A., a France-based defense technology company, partnered with Polska Grupa Zbrojeniowa S.A. to equip Poland’s MIECZNIK frigates with advanced combat systems, sensors, and radars. The partnership aims to enhance the Polish Navy’s multi-role operational capabilities, improve maritime situational awareness, and strengthen NATO’s collective defense and European security. Polska Grupa Zbrojeniowa S.A. is a Poland-based defense industrial group that designs, develops, and manufactures a wide range of defense platforms and systems.

Major players in the naval combat management system market are RTX Corporation, Lockheed Martin Corporation, General Dynamics Corporation, Northrop Grumman Corporation, BAE Systems plc, Thales S.A., L3Harris Technologies Inc., Leonardo S.p.A., Huntington Ingalls Industries Inc., Rheinmetall AG, Elbit Systems Ltd., Indra Sistemas S.A., Israel Aerospace Industries Ltd., Tata Advanced Systems Limited, Saab AB, Kongsberg Gruppen ASA, Bharat Electronics Limited, HENSOLDT AG, Atlas Elektronik GmbH, and Terma A/S.

North America was the largest region in the naval combat management system market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in naval combat management system report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The sharp hike in U.S. tariffs and the associated trade disputes in spring 2025 are notably impacting the aerospace and defense sector by raising costs for titanium, carbon fiber composites, and avionics materials largely sourced from global suppliers. Defense contractors, locked into fixed-price government contracts, absorb these added costs, while commercial aerospace firms face airline pushback on higher aircraft prices. Delays in component shipments due to customs bottlenecks further disrupt tight production schedules for jets and satellites. The industry is responding by stockpiling critical materials, seeking waivers for defense-related imports, and collaborating with allied nations to diversify supply chain.

The naval combat management system market research report is one of a series of new reports that provides naval combat management system market statistics, including naval combat management system industry global market size, regional shares, competitors with the naval combat management system market share, naval combat management system market segments, market trends, and opportunities, and any further data you may need to thrive in the naval combat management system industry. This naval combat management system market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

A naval combat management system is an integrated command and control solution that processes information from shipborne sensors and weapons to deliver situational awareness. It aids decision-making by assessing threats, suggesting responses, and coordinating combat operations in real time. The system allows naval platforms to detect, track, and engage multiple targets efficiently in complex maritime environments.

The primary components of naval combat management systems include hardware, software, and services. Hardware on naval vessels consists of durable physical components such as sensors, radars, and communication devices that gather data and enable real-time threat detection and system integration. These components are deployed on platforms including destroyers, submarines, frigates, aircraft carriers, corvettes, and other vessels. They support applications such as weapon management, surveillance, situational awareness, navigation, and other operational functions and are used by end-users including naval forces, coast guards, and other defense organizations.

The countries covered in the naval combat management system market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The naval combat management system market consists of revenues earned by entities by providing services such as sensor integration, data fusion and tactical picture building, threat evaluation and weapon assignment, navigation and mission planning, communication and data link management, electronic warfare support, operator console and user interface solutions. The market value includes the value of related goods sold by the service provider or included within the service offering. The naval combat management system market also includes sales of sensor suites, weapon systems, navigation systems, and data processing and fusion modules. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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