The global 5G in defense market is estimated at USD 281.8 billion in 2023. With a CAGR of 33.6% from 2023 to 2033, the market is expected to surpass a valuation of USD 5,118.3 billion by 2033. Smart cell communication infrastructure is expected to be the highest revenue-generating category, projected to register a CAGR of 31.5% during 2023 to 2033.
| Attributes | Details |
|---|---|
| Global 5G in Defense Market Size (2023) | USD 281.8 billion |
| Global 5G in Defense Market Size (2033) | USD 5,118.3 billion |
| Global 5G in Defense Market CAGR (2023 to 2033) | 33.6% |
| United States 5G in Defense Market Size (2033) | USD 1.3 billion |
| United States 5G in Defense Market CAGR (2023 to 2033) | 33% |
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As per the 5G in defense market research by Future Market Insights, historically, from 2018 to 2022, the market value of the 5G in defense market increased at around 82.8% CAGR. With an absolute dollar opportunity of USD 3.6 billion, the market is projected to reach a valuation of USD 3.8 billion by 2033.
The 5G mobile network can connect almost everyone and everything, including objects, gadgets, and machines. The utilization of remarkably fast 5G networks for defense and security objectives could expand ISR systems and processing, upgrade logistics operations for increased efficiency, and develop new command and control ways, among other things. MILITARY EQUIPMENT AND TECHNOLOGY COMPANIES WILL USE 5G software and hardware for current and future systems, benefiting from valuable properties such as quick response times and wide bandwidths, allowing for significantly fast transmission and reception of images demonstrating real-time battlefield scenarios.
The growing reliance on big data for decision-making is projected to drive the increased need for 5G networks of defense equipment. The increased use of real-time data for decisive decision-making has raised substantial data collections. With faster and more thorough communication, the 5G network will establish the capacity to take huge amounts of data more swiftly. Through its 5G network, this new wireless network would allow for real-time data transfer from unmanned aerial vehicles and surveillance drones to command centers, boosting situational awareness and tactical reconnaissance.
Defense program demand will propel interoperability forward in the defense market. End-to-end slicing for unique end users can be carried out via 5G networks. Slices can be tailor-made to offer system performance needed by programs such as autonomous cars and trucks and automated process technology.
Some materials can be optimized because of this broader, higher spectrum and bandwidth. Additionally, 5 G's greater bandwidth can contribute to logistics and supply chain management by providing real-time insight into logistics using various sensors. Higher government investment in 5G will likely lead to its success in the defense market.
The high cost of building 5G infrastructure has slowed the growth of 5G in defense industry. The 5G network is built on fiber infrastructure, which requires considerable investment to grow. Similarly, macrocells, which employ low frequency waves to cover larger distances and provide intermittent network services, have a higher installation rate than small cells and femtocells. Furthermore, the 5G network core is based on Software-defined Networking (SDN) and Network Function Virtualization (NFV), both of which use HTTP and REST API protocols, both of which have vulnerabilities that can be exploited with tools, raising the risk of cyberattacks.
The 5G network has been shown to boost the performance of autonomous systems. China, the United States, and Israel are testing and using 5G technology in their military forces. Countries in Europe, such as France and Italy, are also planning to integrate 5G in their military forces. The US Army planned to deploy an array of battle robots at various combinability factors, including autonomous navigation, surveillance, and IED evacuation, according to the Federation of American Scientists (FAS) report Artificial Intelligence and National Security, written in November 2020. These devices would be utilized along with the fighting vehicle that could be manned.
The Navy created the Rapid Autonomy Integration Lab (RAIL) to build, assess, certify, and deploy new and improved autonomous systems. The 5G network is said to have improved the efficiency of autonomous systems by providing faster speeds and more capacity. As a result, the market is expected to be driven by an increase in the adoption of autonomous systems and connected devices due to their better and higher performance on the 5G network.
Principal Consultant
5G enables governments worldwide to deliver secure, dependable, and agile safety for their citizens and assets. These characteristics encourage governments to boost their funding for 5G technology development. For example, Taiwan's National Communications Commission (NCC) offered a subsidy of USD 948.5 Million to five telecom operators for the implementation of a 5G network from 2021 to 2025. This demonstrates governments' intentions to encourage the development of 5G technologies.
Government subsidies, R&D grants for 5G suppliers, and other forms of government assistance assist telecom companies and other enterprises involved in the 5G industry in creating high-cost infrastructures and services to promote the growth of 5G. This move benefits several companies, including L3Harris Technologies, Inc., Raytheon Technologies Corporation, Telefonaktiebolaget LM Ericsson, and Nokia Corporation. Brazil, China, and India intend to introduce 5G in both private and government applications.
The rise of the 5G sector is aided by government funding. During the forecast period, the increase in government efforts is likely to boost the growth of the 5G in the military market.
Due to the increased investment in 5G technology by the US Department of Defense, the market in North America is projected to account for the fastest growth in the 5G defense market throughout the projection period. Furthermore, the expanding use of connected systems through IoT, increased demand for low-latency communication technology, and the allotment of a wide frequency band to the US military have given new chances for developers to create 5G components and improve the system's efficiency.
Since governments in the region are attempting to increase the processing and operation of ISR (intelligence, surveillance, and reconnaissance) systems, the 5G in military market in the Asia Pacific is expected to hold the second highest share throughout the projection period.
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The United States is expected to account for the highest market share of USD 1.3 billion by the end of 2033. The United States is projected to be the world leader in developing and deploying 5G technology, accounting for a large portion of the global market. 5G technology improves the speed and functionality of ISR systems, enables the creation of more advanced command and control systems, improves augmented and virtual reality applications, facilitates maintenance processes, and enhances logistical efficiency using technologies like blockchain.
5G network operators' large-scale deployment of small cells is the main reason responsible for the proliferation of tiny segments of 5G networks. The speed at which 5G data is transferred is expected to increase as 5G network operators continue to expand their use of small cells.
Small cell networks are expected to play an important role in the implementation of 5G communications infrastructure because of their contribution to deployment. Communication speed will increase substantially with the introduction of 5G networks, and small cells aid 5G initiation. They are expected to bring an important impact to the 5G communications infrastructure market.
The airborne segment is forecasted to grow at a CAGR of over 31% during 2023 to 2033. Airborne applications such as drones and mission-critical communications will be able to perform more efficiently as 5G technology advances. Rapid advancements in 5G networks and infrastructure and increased usage of IoT devices and 5G networks are driving this segment's growth. The goal is to modernize communication systems, improve interconnectivity, and minimize response time during critical moments. Another significant element driving revenue growth in the market is the increased use of automated vehicles for surveillance, intelligence gathering, and target recognition.
Over the forecast period, the Ultra-reliable Low-Latency Communications (URLLC) segment is projected to lead in terms of revenue contribution to the global market. The 5G network is projected to be 100 times faster than the 4G network, which means that communication networks in military operations will be able to act quickly and successfully in critical importance situations. This will create extra demand for the URLLC services that are presently used in military applications.
Some of the key market participants in 5G in defense market include Ericsson, Huawei, Nokia, Samsung, NEC, Thales Group, L3Harris Technologies, Inc., Raytheon Technologies, Ligado Networks, and Wind River Systems Inc.
During the projection period, the 5G in the defense market's CAGR is anticipated to be around 33.6%
North America and Asia Pacific are expected to dominate the 5G defense market.
Improved connections for communication, IoT integration, and real-time data analytics.
Remote control, real-time video streaming, and data sharing.
It facilitates the switch from antiquated communication systems to networks that are more adaptive.
1. Executive Summary 2. Market Overview 3. Market Background 4. Global Market Analysis 2018 to 2022 and Forecast, 2023 to 2033 5. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Communication Infrastructure 5.1. Small Cell 5.2. Macro Cell 5.3. Radio Access Network (RAN) 6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Core Network Technology 6.1. Software-Defined Networking (SDN) 6.2. Fog Computing (FC) 6.3. Mobile Edge Computing (MEC) 6.4. Network Functions Virtualization (NFV) 7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Platform 7.1. Land 7.2. Naval 7.3. Airborne 8. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By End User 8.1. Military 8.2. Homeland Security 9. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Network Type 9.1. Enhanced Mobile Broadband (eMBB) 9.2. Ultra-Reliable Low-Latency Communications (URLLC) 9.3. Massive Machine Type Communications (MMTC) 10. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Chipset 10.1. Radio Frequency Integrated Circuit (RFIC) Chipset 10.2. Millimetre Wave (mmWave) Chipset 11. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Operational Frequency 11.1. Low 11.2. Medium 11.3. High 12. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region 12.1. North America 12.2. Latin America 12.3. Western Europe 12.4. Eastern Europe 12.5. South Asia and Pacific 12.6. East Asia 12.7. Middle East and Africa 13. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 14. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 15. Western Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 16. Eastern Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 17. South Asia and Pacific Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 18. East Asia Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 19. Middle East and Africa Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 20. Key Countries Market Analysis 21. Market Structure Analysis 22. Competition Analysis 22.1. Ericsson 22.2. Huawei 22.3. Nokia 22.4. Samsung 22.5. NEC 22.6. Thales Group 22.7. L3Harris Technologies, Inc 22.8. Raytheon Technologies 22.9. Ligado Networks 22.10. Wind River Systems Inc. 23. Assumptions & Acronyms Used 24. Research Methodology
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5G in Defense Market
