The global 5G in defense market size is projected to grow from USD 665 million in 2022 to USD 2,487 million by 2027, at a CAGR of 30.2% from 2022 to 2027.
Factors such as the Higher network speed, lower latency in 5G, and growing adoption of autonomous and connected devices are driving factors assisting the growth of 5G in the defense market.
The 5G in defense market is dominated by a few globally established players such as Ericsson (Sweden), Huawei (China), Nokia OYJ (Finland), Samsung (South Korea), NEC Corporation (Japan), Thales Group (France), L3Harris Technologies, Inc. (US), Raytheon Technologies (US), Ligado Networks (US), and Wind River Systems, Inc. (US).
The COVID-19 epidemic disrupted global economic conditions, particularly the implementation of commercial off-the-shelf (COTS) technologies such as 5G in the military. Due to severe economic conditions and disruptions in the supply chain of crucial components, the development and testing of 5G technologies for the defense industry have been halted.
The pandemic had a minor impact on communication system providers and operators due to delays in spectrum auctions, delays in regulatory timeframes, a restricted workforce for network roll-out, decreased capital and operational expenditures, and a reduction in technical improvements. However, several nations, such as the US and China, have made major investments in the implementation of 5G technology in the defense industry.
By Communication Infrastructure, the small cell segment projected to dominate 5G in the defense market during the forecast period
Small cell segment growth is attributed to the large-scale deployment of small cells by 5G network operators. With the further introduction of the 5G network, the data connectivity speed is expected to increase significantly. As small cells can help facilitate 5G deployment, they are anticipated to play a pivotal role in the market for 5G communication infrastructure.
By platform, the airborne segment to lead 5G in the defense market during the forecast period.
By platform, the airborne segment is projected to register the highest CAGR during the forecast period. With advancements in 5G technology, airborne applications (such as drones) and mission-critical communications will be able to perform with increased efficiency.
North America is projected to lead the 5G in the defense market during the forecast period
North America is estimated to lead the 5G in the defense market during the forecast period owing to increased investments by the US Department of Defense in 5G technology. The US is projected to be the largest developer and operator of 5G technology globally, resulting in a large share of the North American region in the global market.
5G technology in defense helps improve the processing and functioning of ISR (intelligence, surveillance & reconnaissance) systems, enables new command and control systems, enhances augmented and virtual reality applications, modernizes maintenance processes, and improves efficiency in logistics supply using technologies such as blockchain.
With the increasing use of connected systems through IoT, a need for low-latency communication technology has risen. The allocation of a wide frequency band to the US military has opened new opportunities for system designers to develop 5G enabled components and enhance the operational efficiency of all related systems.
Competitive Landscape
The 5G in defense market is dominated by a few globally established players such as Ericsson (Sweden), Huawei (China), Nokia Networks (Finland), Samsung (South Korea), NEC (Japan), Thales Group (France), L3Harris Technologies, Inc. (US), Raytheon Technologies (US), Ligado Networks (US), and Wind River Systems, Inc. (US).
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Market Dynamics
Drivers
Growing Adoption of Autonomous and Connected Devices
Digital Transformation Initiatives in Businesses, Paving Way for Advanced Wireless Networks
Higher Network Speed and Lower Latency in 5G
Demand for Information Processing for Big Data Analytics
Transition from On-Premises Legacy Systems to Cloud-Based Solutions
Restraints
Lack of Standards and Protocols for Use of 5G
High Cost Involved in 5G Infrastructure Deployment
Cybersecurity Threats to 5G Network
Opportunities
Growth of IoT
Increased Defense Budgets of Different Countries for Unmanned Systems
Technological Advancements in 5G Network
Upsurge in Business Use Cases Across Manufacturing, Oil & Gas, Mining, and Government Sectors
Challenges
Heat Dissipation in Massive Multiple-Input and Multiple Output (Mimo)
Inter-Cell Interference Management
Issues Related to Spectrum Allocation
Security Concerns on Collaboration with 5G Suppliers
Trends/Disruptions Impacting Customer's Business
Revenue Shift and New Revenue Pockets for 5G in Defense Market
5G in Defense Market Ecosystem
Prominent Companies
Private and Small Enterprises
End-Users
Technology Analysis
Portable & Transportable 5G Base Stations
Non-Standalone 5G Network
Standalone 5G Network
Use Case Analysis
Use Case: Automated Industrial Drones
Use Case: 5G Emergency Rescue Platform
Use Case: Enhanced Mobile Broadband (EMBB)
Use Case: Critical Communications (CC) and Ultra-Reliable and Low-Latency Communications (URLLC)
Use Case: Massive Internet of Things (MIoT)
Industry Trends
Technology Trends
Wi-Fi
Wimax
Small Cell Network
LTE Network
Multefire
Private 5G
Increased Bandwidth to Deliver Uninterrupted Availability, Reliability, and Security
