May 19, 2022   SOURCE: BusinessWire

$2.48 Bn 5G in Defense Markets by Communication Infrastructure, Core Network Technology, Platform, End User, Network Type, Chipset, Operational Frequency, Installation - Global Forecast to 2027 - ResearchAndMarkets.com

The "5G in Defense Market by Communication Infrastructure (Small Cell, Macro Cell), Core Network Technology, Platform (Land, Naval, Airborne), End User, Network Type, Chipset, Operational Frequency, Installation and Region - Global Forecast to 2027" report has been added to ResearchAndMarkets.com's offering.

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).

Premium Insights

  • Increasing Budget Allocations for R&D of 5G Network Drives Market Growth
  • Application-Specific Integrated Circuit (Asic) Chipset Segment to Lead 5G in Defense Market During Forecast Period
  • High Segment to Lead 5G in Defense Market During Forecast Period
  • Japan to Register Highest CAGR During Forecast Period

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

Impact of Megatrends

  • Multi-Band, Multi-Mission (MBMM) Antenna
  • AI and Cognitive Applications
  • Machine Learning
  • Deep Learning

Innovations and Patent Registrations

Competitive Landscape

  • Aeromobile Communications
  • Analog Devices, Inc.
  • Cisco Systems, Inc.
  • Deutsche Telekom AG
  • Gogo, Inc.
  • Huawei
  • Intel Corporation
  • Intelsat
  • L3Harris Technologies, Inc.
  • Ligado Networks
  • Marvell
  • Mediatek, Inc.
  • NEC Corporation
  • Nokia Oyj
  • Orange SA
  • Qualcomm, Inc.
  • Raytheon Technologies Corporation
  • Samsung Electronics Co. Ltd.
  • Smartsky Networks
  • T-Mobile US, Inc
  • Telecom Italia
  • Telefonaktiebolaget LM Ericsson
  • Thales Group
  • Verizon Communications, Inc.
  • Wind River Systems, Inc.

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