Market Insights
The Space-Based C4ISR Market was estimated at US$ 117.5 Billion in 2021 and is expected to grow at a CAGR of 4.1% during 2022-2028 to reach US$ ~145.3 Billion in 2028.
The C4ISR includes control, intelligence, surveillance, communications, and reconnaissance. All these components are necessary for the mission of C4ISR to be successful. To complete this task, the C4ISR infrastructure planning system is essential. The space C4ISR Market has access to various communication devices and accessories. With the right equipment and supplies, creating a successful mission is straightforward. As they provide a competitive advantage over foes in terms of technology, space-based C4ISR capabilities have grown in significance for the world's armed forces. Satellite technology is being used more frequently for both commercial and defense purposes, which has an effect across many industries. Operators must follow and monitor satellites for operational effectiveness after they are placed into orbit. Operators benefit from the continuous status updates of command, control, computer, and communication (C4) systems for Telemetry, Tracking, and Commanding (TT&C) operations on each satellite. This is necessary to keep the satellite functioning properly.
This is necessary to keep the satellite functioning properly. For instance, the US is investing significantly in creating space-based security systems to counter the rising dangers of nations like Russia and China. Strong command and control systems are needed to operate such satellites to develop sophisticated space-based intelligence and weaponry, which has increased expenditures in C4 architecture for space. The demand for space-based C4 systems is driven by the emergence of tiny satellites that deliver traditional satellite capability at a lower cost. The agency is particularly interested in lightweight laser communication terminals for the fleet of LEO satellites that the Pentagon's Space Development Agency intends to launch over the next few years. Additionally, the development of pseudo-high-altitude satellites (HAPS), which combine the greatest features of terrestrial and satellite-based communication systems, has closed the coverage and cost gap between drones and satellites.
The creation and acquisition of cutting-edge space-based C4ISR systems are fuelled by several nations' rising military spending. Despite the COVID-19 pandemic's negative economic effects, defense spending remained rising in 2020. Despite the pandemic delaying several launch programs for satellite-based C4ISR technology in 2020, there were no significant cancellations of scheduled launches. Additionally, the Market's growth prospects have been boosted by the growing deployment of geospatial technologies for improved surveillance and quicker response times. Microelectronics technology improvements have been essential for creating complex space-based C4ISR systems with cutting-edge capabilities while lowering associated R&D expenditures. Countries are gradually implementing space-based technologies to improve situational awareness, enable faster, more secure communication, and detect threats. High demand for space-based C4ISR systems is anticipated to drive the Market during the projected period due to capability upgrade measures implemented by the world's military superpowers.
On the other hand, Modern warfare requires C4, yet national defense budgets must cover the huge costs of developing and implementing these systems. C4 refers to the combination of different air defense, communication, computing, command, and control, as well as intelligence, surveillance, and reconnaissance systems on a platform that can operate across several domains. The creation, installation, and maintenance of these systems are expensive. As a result, two significant obstacles that restrict the development of these systems are their cost and length of time to create and install.
Several investments/guidelines in the industry have been directed in recent years, which would boost the overall Market. Some of them are:
- Some major industry participants include L3Harris Corporation, CACI International Inc., Northrop Grumman Corporation, and Lockheed Martin Corporation. Nevertheless, several other firms offer C4ISR options for the space platform. Favorable government policies and the current state of global security are encouraging regional and international market actors to work together strategically to combine their technical skills and create powerful space-based C4ISR systems. In the Asia-Pacific region, which is anticipated to be the next-largest Market during the forecast period and has significant potential and demand for space-based C4ISR capabilities, major players in the Market are actively forming JVs and partnerships with these domestic market leaders.
- Defense industry spending in several affluent nations has grown dramatically, and this trend is anticipated to continue in the future years. According to the Stockholm International Peace Research Institute (SIPRI) 2020, the United States, China, India, Russia, and the United Kingdom are the top five nations in terms of military spending as a proportion of GDP.
Segment Analysis
Based on purpose, the Market is segmented into C4 and ISR. The ISR segment will capture the major market share in 2021. Intelligence, surveillance, and reconnaissance are essential for a nation's strategic defense. Many countries are actively using ISR systems across the board to gather, process, and disseminate data supporting their present and future demands for national security. Several countries have strong image intelligence (IMINT) from space and are working on expanding their capabilities. Satellites provide the ISR data that the world's armed forces need round-the-clock, and as sensor technology advances, space-based ISR missions become more accessible, less expensive, and lighter. Every year, more countries put ISR satellites into orbit.
In terms of regions, North America is likely to maintain its supremacy in the Space-Based C4ISR Market throughout the forecast period. The modernization of existing military platforms, critical infrastructure, and law enforcement agencies increasing use of space-based C4ISR systems are key factors anticipated to propel the Market in North America. These investments are intended to improve the defense and surveillance capabilities of the armed forces.
Concurrently, the Space-Based C4ISR Market in the Asia Pacific is anticipated to expand at the highest CAGR during the forecast period. Furthermore, two good tendencies in this region are market expansion and strong profitability. The predicted year 2028 will see a swift expansion of the industry. This area's expansion will be fuelled by improvements to the Space-Based C4ISR communication, sensor, and warfare system. Emerging markets with respectable growth rates include the Middle East and South America. To stop the demand for Space-Based C4ISR in South America and the Middle East, a protection system is required.
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Report – Features
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Market Segmentation
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4
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Regions Covered
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6
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Countries/Sub-Regions Covered
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14
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No. of Figures & Tables
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>140
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Company Profiles
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11
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Key Players
There is stiff competition in the space-based C4ISR Market. The growth of the companies is directly dependent on the industry conditions and government support. These companies differentiate their space-based C4ISR 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:
- Under a USD 146 million order from the US Air Force, Northrop Grumman Corporation was awarded a contract in June 2021 to add more life-saving Large Aircraft Infrared Countermeasure (LAIRCM) systems to foreign and domestic fixed-wing and rotary-wing aircraft.
- A deal of USD$ 178 million was signed in March 2021 by Raytheon Technologies to support the US Air Force's principal intelligence-sharing system transition.
The overall competitive landscape has been affected due to these mergers and acquisitions. The following are the major players in the market:
- Thales Raytheon Systems
- The Rheinmetall Group - Defence Sector
- BAE Systems PLC
- Boeing Company
- Kratos Defense & Security Solutions, Inc.
- Lockheed Martin Corporation
- CACI International, Inc.
- General Dynamics Corporation
- Harris Corporation
- Maxar Technologies Ltd.
- Northrop Grumman Corporation
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.
