The global 5G in defense market is expected to grow at a CAGR of around 58.2% from 2020 to 2027 and expected to reach the market value of around US$ 1,500 Mn by 2027.
The fifth-generation (5G) of mobile technologies will improve data transfer speed and bandwidth over existing fourth generation (4G) technologies, enabling new military and commercial applications. 5G for the military could also improve intelligence, surveillance, and reconnaissance (ISR) systems and processing, enable new methods of command and control, and streamline logistics systems for greater efficiency, among other applications. 5G technology has a lot of potential for future defense networks. Along with AI, cloud, and cybersecurity, one of the four pillars of the Defense Department's 2019 Digital Modernization Strategy is advancing the capabilities of command, control, and communications systems.
The Department of Defense (DOD) announced that it received US$600 Mn as grants for 5G experimentation and testing at five US military test sites in October 2020. This is one of the world's largest full-scale 5G tests center specialized in testing through dual-use applications. Each installation is collaborating with defense services (military), corporate leaders, and academic experts, to advance 5G capabilities. Furthermore, with the introduction of 5G enabled technologies that incorporate augmented/virtual reality for various mission planning and training aspects, 5G enabled smart warehouses and the evaluation of 5G technologies for improving distributed command and control are two important aspects of the project planning.
High government involvement supports the growth of global 5G in defense market
According to the National Defense Industrial Association report, the Defense Department announced rolling of a 5G strategy in May 2021, pinpointing to accelerate deployment of 5G technology supported by AI and other advanced technologies. These successful rolling of the project will ensure systems as well as those of US allied to stay protected, resilient, and reliable. For this program the department announced US$600 Mn in awards in 2020 for 5G testing and defense experimentation using 5G across the country. These operations will take place in Utah, Washington, Georgia, California, and Nevada. The federal government of the United States has already prohibited federal contractors from using Huawei and other Chinese-made telecommunications equipment.
As the 5G infrastructure for defense is being developed, companies involved in this technology must deal with issues such as information access, experimentation with military platforms, and the availability of regulations for development and testing, among others. Defense companies are also concerned about a lack of skilled labor.
The global 5G in defense market is segmented as communication infrastructure, core network technology, network type, chipset, and platform. Based on communication infrastructure the market is segmented as macro cell, small cell, and radio access network (RAN). By core network technology, the market is segmented as fog computing (FC), software-defined networking (SDN), network functions virtualization (NFV), and mobile edge computing (MEC). Further by network type the market is segmented as Ultra-reliable low-latency communications (URLLC), enhanced mobile broadband (eMBB), and massive machine type communications (MMTC). Chipset is segregated as radio frequency integrated circuit (RFIC) Chipset, application-specific integrated circuit (ASIC) chipset, and millimeter wave (mmWave) chipset. Platform is segmented as naval, land, and airborne.
North America dominates; Asia Pacific records fastest growing CAGR for the 5G in defense market
North America has taken the lead in the 5G defense market. This is due to significant government involvement, progressive technology adoption, and notable technological advancements, which are the primary factors driving the growth of 5G in the defense market. According to a report released by the Center for Strategic & International Studies (CSIS), 5G will shape the United States' economic future in the same way that the commercialization of the internet did 25 years ago. Unsurprisingly for a technological superpower, the United States leads in 5G deployments, with up to 270 million people having access to 5G services in the United States. Spectrum sharing, in which multiple users can access the same spectrum bands, is becoming more feasible in the United States as sharing technology matures. For example, NTIA and the Department of Defense are working to together to develop dynamic spectrum sharing capability known as Incumbent Informing Capability (IIC) for maximum usage of spectrum access for commercial 5G and defense use. This apart from that, a number of congressional initiatives has authorized federal action to accelerate 5G deployment, but they have not been accompanied by appropriations. As per the Center for Strategic & International Studies report, the US is holding more prominence in 5G. It is a central part of a new digitalized environment that uplift the advent of new technology involving AI, cloud computing, and 5G networks to enable new services and products. Further, defense priorities will need to accommodate 5G spectrum allocation. In the US by deployment of 5G, it will always be on the forefront by not compromising for the economic harm and damage to national security.
In contrast, Asia Pacific is expected to have the fastest growing CAGR for 5G in the defense market in the coming years. Over the next decade or so, 5G will provide enormous benefits to the Indian armed forces. It is widely regarded as cutting-edge technology that will have an impact on military operations. Furthermore, advancements in the processing and operation of ISR (intelligence, surveillance, and reconnaissance) systems are one of the driving forces behind the growth of 5G in the defense market.
The prominent players of the global 5G in defense market involve Telefonaktiebolaget LM Ericsson (Ericsson), Huawei Technologies Co., Ltd., Nokia Networks, Samsung, NEC Corporation, Thales Group, L3Harris Technologies, The Raytheon Company, and among others
Market By Communication Infrastructure
Radio Access Network (RAN)
Market By Core Network Technology
Software-Defined Networking (SDN)
Fog Computing (FC)
Mobile Edge Computing (MEC)
Network Functions Virtualization (NFV)
Market By Network Type
Enhanced Mobile Broadband (eMBB)
Ultra-Reliable Low-Latency Communications (URLLC)
Massive Machine Type Communications (MMTC)
Market By Chipset
Application-specific Integrated Circuit (ASIC) Chipset
Radio Frequency Integrated Circuit (RFIC) Chipset
Millimeter Wave (mmWave) Chipset
Market By Platform
5G in defense market is expected to reach a market value of around US$ 1,500 Mn by 2027.
The 5G in defense market is expected to grow at a CAGR of around 58.2% from 2020 to 2027.
Based on communication infrastructure, small cell segment is the leading segment in the overall market.
Technological advancements is one of the prominent factors that drive the demand for 5G in defense market.
Telefonaktiebolaget LM Ericsson (Ericsson), Huawei Technologies Co., Ltd., Nokia Networks, Samsung, NEC Corporation, Thales Group, L3Harris Technologies, The Raytheon Company, and among others.
North America is anticipated to grab the highest market share in the regional market
Asia Pacific is expected to be the fastest growing market in the forthcoming years