Asymmetric warfare to drive C4ISR demand over next 5 years

Flat budgets may be suppressing demand in the U.S. military somewhat for C4ISR systems, but the market is expected to steadily grow worldwide over the next five years, according to a new market analysis report.

The report by MarketsandMarkets projects the global C4ISR market to be worth $93.04 billion by 2019. The current global C4ISR market is estimated to be $83.13 billion in 2014 and will maintain a compound annual growth rate (CAGR) of 2.28 percent.

Overall demand is expected to increase as a result of increased reliance upon C4ISR (command, control, communications, computers, intelligence, surveillance and reconnaissance) systems, as warfare continues to become more asymmetric.

According to the analysis, continued demand for interoperability and integrated solutions will drive the global market. Joint ventures between firms provide an advantage in winning C4ISR contracts due to their ability to provide integrated solutions for networked environments. These companies will transition toward faster and more efficient systems.

Airborne systems are predicted to have the highest CAGR compared to all other platforms, making up 40 percent of the total market share. Demand for cybersecurity, geospatial systems, biometrics, mobility solutions, synthetic aperture radar sensors, and UAVs will continue to increase.

The report found that although the United States and the United Kingdom are the largest markets of C4ISR systems, recent cuts in the defense budgets will weaken the demand in these nations. The cuts are predicted to last until 2016.

The primary market players in the U.S. and Europe will look toward nations such as India, Indonesia, Turkey and Brazil. Canada, Australia, Saudi Arabia and the Republic of Korea will possibly drive growth in the industry. Meanwhile, China and Russia are predicted to continue indigenized programs with respect to the market.

The full report forecasts detailed trends, market share, and revenues and categorizes the global market by country, platform, geography, and architecture.


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