Northbrook, IL -- (SBWIRE) -- 07/23/2021 -- The digital battlefield market size is projected to grow from USD 32.9 billion in 2020 to USD 68.9 billion by 2025, at a CAGR of 15.9% from 2020 to 2025.
Demand among defense forces remains high due to military upgrades as well as new procurement programs, particularly in developed and developing economies such as the US, India, and China, among others. Some of the major factors driving this market include increasing inclination towards cloud services in military & defense, rising modernization and investments in the defense sector for developing military equipment and foreign intelligence platforms, high demand for devices supporting 5G technology for high-speed data transfer, and rapid advancement in artificial intelligence, Big Data analytics and robotics technologies.
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Rising modernization of military equipment to strengthen defense forces is driving the growth of the digital battlefield products in defense applications
The rising focus of defense forces across the globe on modernizing their military equipment including digital battlefield products will propel market growth. For instance, in 2020, according to International Institute for Strategic Studies (IISS), defense spending across the globe was estimated to be over USD 1,830 billion, an increase of 3.9% over 2019. This could be attributed to the growing conflicts between countries, leading to efforts to strengthen their defense forces. In recent years, over nine major international conflicts have taken place, including the Syrian Civil War, the Saudi Arabia-Yemen conflict, US-Iran tensions, and India-China tensions. Such conflicts can lead to high procurement of innovative AI-enabled battlefield products and the incorporation of advanced technologies into existing military systems to make them highly efficient and reliable.
Several governments are establishing special departments or agencies to integrate AI capabilities into the existing equipment and focus on developing new capabilities in the digital battlefield. Initiatives by such agencies, including the Strategic Council for AI Technologies (Japan), The National Science and Technology Council (US), and the AI Council (UK), will in turn support the growth of the digital battlefield market over the projected timeframe.
Based on platform, the space segment of the digital battlefield market is projected to witness the highest CAGR during the forecast period
In terms of platform, the market is segregated into airborne, land, naval and space. Based on CAGR, the space segment is projected to witness the highest CAGR from 2020 to 2025. Digital battlefield systems deployed in the space platform enable real-time mapping of objects across Earth and aid in satellite communication networks. This will substantially support the space segment growth. Based on platform, the airborne segment is projected to lead the digital battlefield market from 2020 to 2025. The growth in the airborne segment is attributed to the rising inclination of defense forces towards digital battlefield products & systems.
New procurement sub segment of the digital battlefield market by installation is projected to witness the highest CAGR owing to increasing focus on defence equipment installation across the globe
Based on installation, the new procurement segment is projected to lead the digital battlefield market from 2020 to 2025. The growth in the new procurement segment is due to the rising installation of advanced defense systems and increasing procurement of digital battlefield products for battle troops. The upgrades segment will register substantial growth owing to the increasing modification & modernization activities of old military electronic systems by defense forces to gain an edge over incoming threats and enemy attacks.
The North America market is projected to contribute the largest share from 2020 to 2025 in the digital battlefield market
North America is estimated to account for the largest share (41.5%) of the digital battlefield market in 2020. In the North America region, the US, with its strong defense and economic policies, is recognized as one of the key manufacturers, exporters, and users of digital battlefield systems. The new defense strategy of the US indicates an increase in military spending to include advanced capabilities in existing defense systems of the US Army to counter incoming threats. Key manufacturers and developers of AI systems in the US include Lockheed Martin Corporation (US), Northrop Grumman Corporation (US), L3Harris Technologies, Inc (US), and Raytheon Technologies Corporation.
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Key Market Players
The digital battlefield market is dominated by a few globally established players such as BAE Systems (UK), Northrop Grumman Corporation (US), Raytheon Technologies Corporation (US), Lockheed Martin Corporation (US), and Thales Group (US).