Market Insights
The network centric warfare market was estimated at US$ 51.3 Billion in 2021 and is expected to grow at a CAGR of 4.5% during 2022-2028 to reach US$ 63.7 Billion in 2028.
Network-centric warfare, which focuses on strategic spectrum domination, is readily incorporated into contemporary conflict. Additionally, it encompasses fifth-generation warfare, which is waged in cyberspace and is crucial for maintaining national security since it often aims to stop cyberattacks and data breaches. Aeronautical, defense, and security groups employ cutting-edge technology in several locations worldwide to identify real and impending hazards. A military operation known as network-centric warfare uses electromagnetic energy to monitor, manipulate, reduce, or prohibit hostile electromagnetic spectrum usage, detect an approaching missile's radar, and collect radio transmissions from an adversary.
The market for network-centric warfare is expanding to support various operations, including border defense, area control, target selection, and battle damage assessment. Additionally, the worldwide expansion of the network-centric warfare industry is made possible by the increasing usage of visible and infrared defense technologies. Finding the regions under constant control has also increased anxiety about international wars and cross-border terrorism. However, some obstacles hinder market development, such as the most recent network-centric warfare technologies not being equipped to handle diverse threats. Therefore, the program won't be effective during periods of severe turmoil. Additionally, the program's high introduction costs are now a market limitation.
The network-centered market is anticipated to be driven by the rising need for strategic wartime operations for important decision-making over the forecast period. The development of complex computational algorithms created new possibilities for network-centric warfare. Additionally, network-centric warfare technologies make it simple to follow stealth aircraft and naval battleships that are difficult to notice. On certified mobile radio (PMR) systems, LTE technology has made it possible to analyze and transmit complex video and speech data in real-time. Additionally, it is projected that market growth will be fueled by the rising popularity of compact network-centric systems that can be integrated onto platforms like patrol boats and uncrewed aerial vehicles (UAVs).
By introducing network-centric warfare on the ground, air, sea, cyberspace, and space, the market for network-centric warfare is growing. In network-centric warfare, cutting-edge electromagnetic gear is anticipated to become more crucial and reasonably priced in future years. The e-warfare industry is seeing new growth potential due to military diversification.
Several investments/guidelines in the industry have been directed in recent years, which would boost the overall market. Some of them are:
- The IDC Artificial Intelligence Investment Report estimates that in 2020, global spending on AI systems will increase from its current USD$37.5 billion level to USD$97.9 billion. This will help the network-centric market that uses these technologies grow. Even as the COVID-19 situation causes issues across industries and reduces high technology investment, tech companies are increasing their focus on high-demand technologies and developing innovative methods to serve their customers.
- Real-time information is also needed to protect national boundaries. In light of this, the development of network-centric warfare aids in offsetting the requirement for intelligence, surveillance, and recognition (ISR) capabilities even in pandemic circumstances. Artificial intelligence (AI), virtual reality (VR), and augmented reality (AR) solutions are anticipated to make a substantial contribution to combating the COVID-19 pandemic and other ever-changing concerns. Such devices might also be remotely operated and used to detect upcoming threats to respond to them automatically.
Segment Analysis
Wired and wireless networks are the two types of communication networks. Due to its platform independence and cost-effectiveness, the wireless market is predicted to expand more quickly. Hardware and software are both included in the architecture sector. The software market is anticipated to grow more quickly due to the increasing need for middleware software in NCW systems.
Land-based, naval-based, aerial, and unmanned platforms comprise the platform category. Due to the widespread use of land-based network-centric warfare solutions in emerging nations like China and India, the land-based category is anticipated to expand at the highest rate.
The mission type segment is segmented into tactical and strategic operations. The increasing need for strategic operations in wartime for critical decision-making is expected to drive the network-centric market during the assessment period.
The ISR (intelligence, surveillance, and reconnaissance) subsegment is anticipated to rule the network-centric combat market in the application segment covered by this study. This expansion might be linked to the surge in defense network-centric solutions in developing nations like China and India, where demand is rising due to border monitoring and regional conflicts.
In terms of regions, North America is likely to maintain its supremacy in the Network Centric Warfare market throughout the forecast period. Rapid modernization and technological advancements in various sectors have resulted in a high rate of Network Centric Warfare.
Concurrently, the Network Centric Warfare market in the Asia Pacific is anticipated to expand at the highest CAGR during the forecast period. The major economies in this region are emphasizing modernizing their existing military systems, which is driving the growth of the Asia Pacific Network Centric Warfare market. Additionally, The information age's increased need for technologically superior defense equipment and the rise of networked UAVs utilized by emerging nations for border surveillance are two factors propelling the expansion of this market. On the other hand, recent adjustments in military budgets of emerging countries for cutting-edge marine, land, and air defense systems are anticipated to benefit the regional market.
Key Players
There is stiff competition in the Network Centric Warfare market. The growth of the companies is directly dependent on the industry conditions and government support. These companies differentiate their Network Centric Warfare 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:
- Lockheed Martin has awarded BAE Systems, a global leader in network-centric warfare, to upgrade the fifth-generation F-35 Lightning II fighter jets' offensive and defensive electronic warfare (EW) capabilities in 2020. The AN/ASQ-239 Network-centric Warfare/Countermeasures (EW/CM) program will be updated to address new threats and maintain the combatants from the United States and its allies' ability to conduct operations in contested airspace in a safe way.
- Additionally, Saab completed the first flight tests with its brand-new, highly sophisticated Electronic Attack Jammer Pod (EAJP) on November 4, 2020. Additionally, in October 2020, BAE Systems was awarded a US Navy contract worth USD$36.7 million to develop and test a new dual-band Fiber-Optic Towed Decoy (FOTD) to shield pilots and aircraft from advanced threats.
The overall competitive landscape has been affected due to these mergers and acquisitions. The following are the major players in the Network Centric Warfare Market:
- Airbus Group N.V.
- Harris Corporation
- Cisco Systems Inc.
- Bae Systems PLC.
- Northrop Grumann Corporation
- Thales Group
- Lockheed Martin Corporation
- The Raytheon Company
- Rockwell Collins, Inc.
- General Dynamics Corporation
- Elbit Systems Ltd
- L-3 Communications Holdings, Inc.
Research Methodology
This report offers high-quality insights and is the outcome of 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 book, press release, journals, investor presentation, white papers, patents, and articles have been leveraged to gather the data. We conducted more than 10 detailed primary interviews with the market players across the value chain in all four regions and with industry experts to obtain both the 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. The following are the key features of the report:
- Market structure: Overview, industry life cycle analysis, supply chain analysis
- Market environment analysis: Growth drivers and constraints, Porter’s five forces analysis, SWOT analysis
- Market trend and forecast analysis
- Market segment trend and forecast
- Competitive landscape and dynamics: Market share, product portfolio, product launches, etc.
- Attractive market segments and associated growth opportunities
- Emerging trends
- Strategic growth opportunities for the existing and new players
- Key success factors
