Global 5G In Defense Market Overview

The Global 5G In Defense market size is estimated to reach $1.9 billion by 2026, growing at a CAGR of 47.3% over the forecast period of 2022-2026. The 5G or cellular network of the 5th. The use of 5G technology is gradually increasing worldwide. 5G will significantly increase data transfer speed and improve bandwidth over 4th generation or 4G technology, which will support new military and commercial applications.

The global sales growth of 5G in the defense market is expected to be driven by factors such as increasing demand for the Internet of Things (IoT), increasing reliance on big data for decision making, increasing demand for automation in military and defense applications, and sectors, and growth of government investments in 5G technology, networks, and infrastructure.

The increase in the implementation of IoT for military applications is expected to fuel the market's revenue growth over the forecast period. IoT enables military systems equipped with sensors and software to connect and exchange data over the Internet. In addition, it would significantly increase the demand for 5G networks due to the low latency of the technology, which would allow IoT devices to connect and exchange data faster.

Impact of COVID-19:

COVID-19 outbreak led to adverse economic situations worldwide and significantly impacted the deployment of high investment technologies such as the 5G in defense. The development and testing of 5G technologies for the defense sector were put on hold owing to adverse economic conditions and disruption in the supply chain of critical components.

The pandemic moderately impacted the communication systems providers and operators due to delay in spectrum auctions, lag in regulatory timelines, limited workforce for the network roll-out, lowered capital expenditure, operating expenditure, and decline in technological developments. However, some countries such as the U.S. and China invested significantly in deploying 5G technology in the defense sector. With the initiation of vaccination across the globe and the resumption of efforts regarding the launch of 5G technologies worldwide, the 5G in the defense market is expected to witness an increased demand soon.

Key Takeaways from Global 5G In Defense Market Report:

• Evaluate market potential through analyzing growth rates (CAGR %), Volume (Units), and Value ($M) data given at country level – for Communication Infrastructure, Core network technology, Platform, Chipset, Network Type, and by different industry verticals.
• Understand the different market dynamics – key driving factors, challenges, and hidden opportunities.
• Get in-depth insights on your competitor's performance – market shares, strategies, financial benchmarking, product benchmarking, SWOT, and more.
• Analyze the sales and distribution channels across key geographies to improve top-line revenues.
• Understand the industry supply chain with a deep dive on the value augmentation at each step to optimize value and bring efficiencies in your processes.
• Get a quick outlook on the market entropy – M&As, deals, partnerships, product launches of all key players for the past four years.
• Evaluate the supply-demand gaps, import-export statistics, and regulatory landscape for more than the top 20 countries globally for the market.

By Procedural Requirement, the Mobile edge computing Segment market will grow at the highest CAGR during the forecast period.

During the forecast period, the mobile edge computing segment market is predicted to develop at the fastest rate of XX%. It is owing to the rise in adoption of MEC-enabled 5G wireless systems that will enable low latency and high bandwidth access to networks. In addition, MEC technology allows the collection and processing of data at the edge of the network, facilitating real-time analytics, reducing cloud data storage, and strengthening the network's security.

By Platform, Land Segment to grow at the highest CAGR during the forecast period.

The land segment is predicted to develop at the fastest CAGR during the projection period. As a result, land segments have also accounted for the largest revenue share in the global 5G in defense market in 2020. Rapid developments in 5G networks and infrastructure and rising adoption of IoT devices and 5G networks to modernize communication systems, improve interconnectivity, and reduce response time during critical moments are key factors driving the growth of this segment. Similarly, increasing usage of automated vehicles to perform surveillance, gather intelligence, or target recognition is another key factor fueling revenue growth.

North America to account for the largest market share during the forecast period.

North America held the largest share of the 5G In Defense market in 2020, with a global market share of 33%. The growth of this region is primarily attributable to an increase in government investment for the experimentation and testing of 5G networks. Additionally, increasing demand for high-speed, secure connections for military communications is expected to boost revenue growth of the 5G in defense market in this region.

The Asia Pacific is set to be the fastest-growing over 2021-2026. This growth is due to the military's increasing modernization due to the rise in Chinese posturing in the region and the increase in deployment of unmanned vehicles, and AI-augmented military technologies are some prime factors propelling revenue growth of the market the area. In April 2021, for instance, China opened a 5G signal station in the Himalayan region of Tibet to improve network access for its border security forces.

Market Dynamics

Driver:

The Growing adoption of autonomous and connected devices has been a prime reason for the market penetration.

5G technology can support up to 1 million devices in a square km range (approximately). It means multiple devices such as sensors can be connected using a 5G network. All autonomous systems or platforms work on a network through which data is transferred. Data is interpreted and then received by the systems through the network, which is used to take action by the autonomous systems.

With a network with higher speed and low latency, such systems will work more efficiently. For instance, the communication between an unmanned aerial vehicle and its controller will be quick and efficient when on a 5G network compared to current communication systems. In addition, autonomous platforms, such as armored vehicles and unmanned ground vehicles, can function efficiently with a secured 5G network.

The 5G network is observed to have improved the functioning of autonomous systems. Countries like China, the US, and Israel are testing and/or operating 5G technology within their military forces. European countries, such as France and Italy, are also looking forward to implementing 5G within their military forces. The increasing use of autonomous systems and connected devices will further increase the demand for the 5G network.

Challenge:

The Security concerns on collaboration with 5G suppliers are likely to impede the market growth.

Many countries, such as the US, Canada, France, Germany, and the UK, are looking forward to identifying potential 5G suppliers and integrators. Players such as Huawei, Nokia, and Ericsson dominate the 5G market. Data and network security are essential since the implementation is for defense purposes. The US is firm on not procuring hardware and solutions from unreliable sources, where data security can be a concern. It has decided to ban companies from China, especially Huawei.

The Canadian military has made a similar request to ban Huawei from the government. In the wake of intense competition between China and the US, the US pressures G7 countries to implement similar policies. European countries have not directly agreed to the infrastructure ban from Chinese companies; however, they have planned for a limited contract period. European countries prefer buying 5G devices from the European region to ensure data security. Countries like India are also looking forward to banning Chinese companies wherever data sensitivity is of concern in Asia.

Concerns regarding the sharing of sensitive data with private companies exist. For example, a military maintains data of its operations and activities, and sharing that data with others may jeopardize its plans and security. There are also concerns about cloud-based storage services, which are vulnerable to cyber-attacks, leading to the loss of sensitive information.

Key Market Players

Key Players in the Global 5G In Defense Market consist of Telefonaktiebolaget LM Ericsson, Huawei Investment & Holding Co., Ltd, Nokia Corporation, Samsung Electronics Co., Ltd, NEC Corporation, Thales Group, L3Harris Technologies, Inc., Raytheon Technologies Corporation, Ligado Networks, and Wind River Systems, Inc.

Recent Developments:

• In May 2020, Ericsson partnered with T-Mobile US, Inc. for standalone architecture (SA) 5G. T-Mobile partnered closely with leaders across the industry to notch several world-first achievements. Ericsson helped T-Mobile achieve the following: first SA 5G data session between commercial modems from two suppliers on a production network, first low-band SA 5G voice call using Evolved Packet System (EPS) fallback to VoLTE. It enables high-quality voice services utilizing VoLTE in the SA architecture while the industry fully develops voice over new radio (VoNR) 5G technology.

Report Coverage and Scope

The report "Global 5G In Defense Market" by Research Informatic covers an in-depth, detailed analysis of the following segments, which are covered under the scope.

By Communication Infrastructure

• Small Cell
• Macro Cell
• Radio Access Network (RAN)

By Core network technology

• Software-Defined Networking (SDN)
• Fog Computing (FC)
• Mobile Edge Computing (MEC)
• Network Functions Virtualization (NFV)

By Platform

• Land
• Naval
• Airborne

By Chipset

• Application-specific Integrated Circuit (ASIC) Chipset
• Radio Frequency Integrated Circuit (RFIC) Chipset
• Millimeter Wave (mmWave) Chipset

By Network Type

• Enhanced Mobile Broadband (eMBB)
• Ultra-Reliable Low-Latency Communications (URLLC)
• Massive Machine Type Communications (MMTC)

By Geography

• North America
• Europe
• APAC
• RoW

Chapter 1 5G In Defense Market Overview

1.1 Product Overview and Scope of 5G In Defense

1.2 5G In Defense Market Segmentation By Communication Infrastructure

1.2.1 Small Cell

1.2.2 Macro Cell

1.2.3 Radio Access Network (RAN)

1.3 5G In Defense Market Segmentation By Core network technology

1.3.1 Software-Defined Networking (SDN)

1.3.2 Fog Computing (FC)

1.3.3 Mobile Edge Computing (MEC)

1.3.4 Network Functions Virtualization (NFV)

1.4 5G In Defense Market Segmentation by Regions

1.4.1 North America

1.4.2 China

1.4.3 Europe

1.4.4 Southeast Asia

1.4.5 Japan

1.4.6 India

1.5 Global Market Size (Value) of 5G In Defense (2016-2026)

Chapter 2 Global Economic Impact on 5G In Defense Industry

2.1 Global Macroeconomic Environment Analysis

2.1.1 Global Macroeconomic Analysis

2.1.2 Global Macroeconomic Environment Development Trend

2.2 Global Macroeconomic Environment Analysis by Regions

Chapter 3 Global 5G In Defense Market Competition by Manufacturers

3.1 Global 5G In Defense Production and Share by Manufacturers (2016 to 2021)

3.2 Global 5G In Defense Revenue and Share by Manufacturers (2016 to 2021)

3.3 Global 5G In Defense Average Price by Manufacturers  (2016 to 2021)

3.4 Manufacturers 5G In Defense Manufacturing Base Distribution, Production Area and Product Type

3.5 5G In Defense Market Competitive Situation and Trends

3.5.1 5G In Defense Market Concentration Rate

3.5.2 5G In Defense Market Share of Top 3 and Top 5 Manufacturers

3.5.3 Mergers & Acquisitions, Expansion

Chapter 4 Global 5G In Defense Production, Revenue (Value) by Region (2016-2021)

4.1 Global 5G In Defense Production by Region (2016-2021)

4.2 Global 5G In Defense Production Market Share by Region (2016-2021)

4.3 Global 5G In Defense Revenue (Value) and Market Share by Region (2016-2021)

4.4 Global 5G In Defense Production, Revenue, Price and Gross Margin (2016-2021)

4.5 North America 5G In Defense Production, Revenue, Price and Gross Margin (2016-2021)

4.6 Europe 5G In Defense Production, Revenue, Price and Gross Margin (2016-2021)

4.7 China 5G In Defense Production, Revenue, Price and Gross Margin (2016-2021)

4.8 Japan 5G In Defense Production, Revenue, Price and Gross Margin (2016-2021)

4.9 Southeast Asia 5G In Defense Production, Revenue, Price and Gross Margin (2016-2021)

4.10 India 5G In Defense Production, Revenue, Price and Gross Margin (2016-2021)

Chapter 5 Global 5G In Defense Supply (Production), Consumption, Export, Import by Regions (2016-2021)

5.1 Global 5G In Defense Consumption by Regions (2016-2021)

5.2 North America 5G In Defense Production, Consumption, Export, Import by Regions (2016-2021)

5.3 Europe 5G In Defense Production, Consumption, Export, Import by Regions (2016-2021)

5.4 China 5G In Defense Production, Consumption, Export, Import by Regions (2016-2021)

5.5 Japan 5G In Defense Production, Consumption, Export, Import by Regions (2016-2021)

5.6 Southeast Asia 5G In Defense Production, Consumption, Export, Import by Regions (2016-2021)

5.7 India 5G In Defense Production, Consumption, Export, Import by Regions (2016-2021)

Chapter 6 Global 5G In Defense Production, Revenue (Value), Price Trend by Type

6.1 Global 5G In Defense Production and Market Share by Type (2016-2021)

6.2 Global 5G In Defense Revenue and Market Share by Type (2016-2021)

6.3 Global 5G In Defense Price by Type (2016-2021)

6.4 Global 5G In Defense Production Growth by Type (2016-2021)

Chapter 7 Global 5G In Defense Market Analysis by Application

7.1 Global 5G In Defense Consumption and Market Share by Application (2016-2021)

7.2 Global 5G In Defense Consumption Growth Rate by Application (2016-2021)

7.3 Market Drivers and Opportunities

7.3.1 Potential Applications

7.3.2 Emerging Markets/Countries

Chapter 8 5G In Defense Manufacturing Cost Analysis

8.1 5G In Defense Key Raw Materials Analysis

8.1.1 Key Raw Materials

8.1.2 Price Trend of Key Raw Materials

8.1.3 Key Suppliers of Raw Materials

8.1.4 Market Concentration Rate of Raw Materials

8.2 Proportion of Manufacturing Cost Structure

8.2.1 Raw Materials

8.2.2 Labour Cost

8.2.3 Manufacturing Expenses

8.3 Manufacturing Process Analysis of 5G In Defense

Chapter 9 Industrial Chain, Sourcing Strategy and Downstream Buyers

9.1 5G In Defense Industrial Chain Analysis

9.2 Upstream Raw Materials Sourcing

9.3 Raw Materials Sources of 5G In Defense Major Manufacturers in 2022

9.4 Downstream Buyers

Chapter 10 Marketing Strategy Analysis, Distributors/Traders

10.1 Marketing Channel

10.1.1 Direct Marketing

10.1.2 Indirect Marketing

10.1.3 Marketing Channel Development Trend

10.2 Market Positioning

10.2.1 Pricing Strategy

10.2.2 Brand Strategy

10.2.3 Target Client

10.3 Distributors/Traders List

Chapter 11 Market Effect Factors Analysis

11.1 Technology Progress/Risk

11.1.1 Substitutes Threat

11.1.2 Technology Progress in Related Industry

11.2 Consumer Needs/Customer Preference Change

11.3 Economic/Political Environmental Change

Chapter 12 Global 5G In Defense Market Forecast (2022 and 2026)

12.1 Global 5G In Defense Production, Revenue Forecast (2022 and 2026)

12.2 Global 5G In Defense Production, Consumption Forecast by Regions (2022 and 2026)

12.3 Global 5G In Defense Production Forecast by Type (2022 and 2026)

12.4 Global 5G In Defense Consumption Forecast by Application (2022 and 2026)

12.5 5G In Defense Price Forecast (2022 and 2026)

Chapter 13 Appendix