The global C4ISR market is anticipated to grow at a modest rate over the forecast period on account of high demand for these systems from governments around the world, to ensure that their defense forces are equipped to meet any eventuality. C4ISR stands for command, control, communications, computers, intelligence, surveillance and reconnaissance systems, and it comprises of a vast range of systems from land-based radar to binoculars for observation and through various other means like communication satellites. The realization of military operations depends on the integration and operation of advanced C4ISR systems. These systems aid defense forces by facilitating intelligence gathering regarding the enemy as well as help in analyzing the data and disseminating it through their ranks for proper action to be taken in an organized manner. These factors are expected to favor the market growth in the next few years.
Rising demand for these systems is guaranteed irrespective of the existing economic conditions. A successful military operation depends on the ability of defense organizations to gather enough intelligence and to analyze this information well, coupled with state of the art command and control structures. In the absence of features such as the ability to collect and analyze information quickly about enemy movements, capabilities and intentions, military operations become a huge risk, thus driving market demand. Rising government funding will propel market demand over the next eight years. This market is anticipated to provide significant growth opportunities for manufacturers to invest in research and development activities and produce C4ISR systems that are efficient and affordable for even poor nations. There also exists an opportunity for innovation to convert the existing bulky and high power consuming systems into more productive and reliable ones. In addition, reduction in size along with cost will drive
demand in the next few years. However, limited defense budgets are expected to hinder the growth of this market over the forecast period. However, even in the face of economic pressures and reduced defense spending, C4ISR systems are being given priority as they are seen as the central factor in attaining dominance in the modern battlefield. Another restraint for this industry is that these systems are retained till the previous technology becomes obsolete, and replacement becomes essential, thus preventing trade expansion.
The global C4ISR industry can be segmented into naval, airborne, land-based, space-based, and integrated systems. Land-based systems will occupy the largest market share over the forecast period, led by the replacement demand for old regimes. Airborne systems are expected to represent the fastest growing market segment over the forecast period as a result of increasing demand for sensors, unmanned aerial vehicles, synthetic aperture radars, geospatial solutions, mobility solutions, and cyber security.
North America is projected to capture the largest share for C4ISR systems, owing to technological advancements along with increasing government spending in the U.S. Asia Pacific will witness significant demand for sensor upgrades, networked communication, and electronic and intelligence warfare systems which in turn will fuel industry expansion over the forecast period. South Korea, China, and India will augment production growth owing to improvement in their military capabilities. Russia is also looking to refine its C4ISR capabilities for the future and in planning to invest heavily in the market, positively impacting the market. Israel, however, is one on the prominent operators of the C4ISR systems, and its desire to maintain military dominance in the region is likely to be a key driving factor for this market.
The global participants need to undergo more consolidation and integration of systems across platforms to win a competitive advantage. The major players in the industry include Lockheed Martin Corporation, CACI, Northrop Grumman Corporation, Boeing, BAE Systems, Raytheon, SAIC (Science Applications International Corporation) and L-3 Communications among others. The other prominent players in the market include Saab, Elbit Systems, General Dynamic, VT Milcom, Kratos Defence and Security Solutions, Rockwell Collins, Serco Inc., ManTech International Corporation, Harris Corporation, Rheinmetall Defence and Thales Raytheon Systems.
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