Military Software Market Growth Analysis | 2022-2028

Market Insights

The Military Software Market was estimated at US$ 650.5 billion in 2021 and is expected to grow at a CAGR of 4.3% during 2022-2028 to reach US$ ~790.3 billion in 2028.

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What is military software?

Software used in the defense sector to effectively manage the conditions on the battlefield is referred to as military software. Military software aids commanders in managing resources and making sure they are utilized effectively. For military use, developers are releasing complex software that offers enhanced features including higher dependability, failsafe mechanisms, and fast communication rates. The two main forms of software used by the military are COTS and embedded. COTS analytics software is typically used to analyze data gathered during ISR operations. Embedded software manages a wide range of technologies, including weaponry and unmanned systems. Military software must adhere to strict guidelines and be trustworthy and user-safe.

Market Dynamics

The use of military software systems creates high levels of integration between control devices, sensors, and communication devices. This is a key factor in the market for military software systems. New technologies like the Internet of Things (IoT) and artificial intelligence (AI) have enabled battlefield communication much faster and clearer than ever before thanks to their integration into military software systems.

Every service's ongoing requirement for innovative items creates a fantastic potential for the market to generate money. With new technology, the industry's potential grows, and it may also be the ideal market for newcomers to establish themselves. The military software business is expanding, which means there are more opportunities. The major barrier to the market for military software systems is the possibility of even a slight technical error or cyberattack in any software system component.

Covid-19 Impact

Covid-19 has seriously harmed the economies of several nations throughout the world. The pandemic has also influenced the production of military software, technology, and components. Although the production of military software for military applications is crucial, supply chain interruptions have temporarily stopped production. The extent of COVID-19 exposure, the efficiency of manufacturing processes, and import-export laws are some elements that determine when manufacturing may resume.

Several investments/guidelines in the industry have been directed in recent years, which would boost the overall Market. Some of them are:

• The military is investing in next-generation sensors to modernize older planes and weaponry. For instance, in 2020, the Pentagon (the seat of the US Department of Defense) and Lockheed Martin signed a 99,000,000 USD contract with Raytheon in December to integrate Raytheon's next-generation electro-optical distributed aperture system (DAS) into all F-35 variants over the course of the following two years.

Segments Analysis

By Platform Type

The market is segmented into land, Naval, and Airborne. The land segment is projected to lead the Military Software market during the forecast period. Installation of mobile and stationary units is part of the land segment. The US Army is already preparing to utilize cutting-edge software to facilitate easy communication. The military equipment category is anticipated to contribute to market expansion throughout the forecast period as it grows.

By Technology Type

The market is segmented based on technology: learning intelligence, advanced computing, and AI Systems.

By Application Type

The market is segmented into information processing and cyber security.

By Type

The market is segmented into command and control, military messaging, and electronic warfare.

Regional Analysis

In terms of regions, North America is likely to maintain its supremacy in the Military Software Market throughout the forecast period.  In North America, the US is the country with the biggest market for military software. The need for military software is also fueled by the US government's increasing financing for developing next-generation communication systems.

Governments in several nations are making every effort to maintain national security, which is spurring industry expansion. The market is driven by consumer desire for easier-to-use solutions to increase sector security. Every division of the army and navy is working to reduce conflicts, and if they cannot do so, they aim to win wars by fighting back. Many companies want to establish themselves in the market and accelerate expansion.

Concurrently, the Military Software Market in the Asia Pacific is anticipated to expand at the highest CAGR during the forecast period. The growth in terrorism in Asian countries like Pakistan, Bangladesh, and Afghanistan is to blame for this increase. Regional intelligence and military agencies are gradually deploying SDR to enhance communication systems and enable secure cooperation, greater information sharing, and shared situational analysis. Law enforcement's need to communicate more effectively during emergencies is another factor driving demand for military software. Government investment in SDR research and development in countries like China and Australia is also projected to boost demand for software-defined radio systems throughout the Asia Pacific. The Latin American market will expand faster due to the Brazilian army's requirement for better border monitoring to defend the region. According to the military software industry forecast, every region will impact the growing market.

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Key Players

There is stiff competition in the military software market. The growth of the companies is directly dependent on industry conditions and government support. These companies differentiate their military software based on their quality and penetration in the target and emerging markets. Also, some major mergers and acquisitions in the industry recently have significantly influenced the competitive dynamics. For example:

• In 2020, to help the armed services expand their counter-threat capabilities, Raytheon has created a virtual software factory to hasten the creation of military software. The software factory is made up of a combination of real-world coding environments, cloud-based tools, and software specialists. It will try to provide the military with new powers as soon as possible. In response to requests from military officials for a shift in how software is built by adopting the strategy utilized by the consumer technology industry, the virtual software factory was created. The factory will enable the corporation to use cutting-edge software development techniques like Agile and DevOps across all its programs.

The overall competitive landscape has been affected due to these mergers and acquisitions. The following are the major players in the military software market:

• Aselsan As
• Elbit Systems Ltd.
• General Dynamics Corporation
• Raytheon Technologies Corporation
• Honeywell International, Inc.
• Bae Systems
• IBM Corporation
• Rolta India
• Rohde & Schwarz
• Flir Systems Inc.
• Forescout Technologies, Inc.
• Lockheed Martin Corporation
• L3harris Technologies
• Saab Ab
• Systematic
• Kratos Defense & Security Solutions
• Northrop Grumman Corporation
• At&T Inc.
• Freewave Technologies, Inc.
• Thales Group
• Cobham Plc
• Kongsberg Maritime
• Viasat, Inc.

Research Methodology

This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools. More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data. We conducted more than 15 detailed primary interviews with the market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.

Report Features

This report provides market intelligence in the most comprehensive way. The report structure has been kept such that it offers maximum business value. It provides critical insights into the market dynamics and will enable strategic decision-making for the existing market players as well as those willing to enter the market.

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