Digital Battlefield Market

Global Digital Battlefield Market Outlook (2022-2032)

The digital battlefield market is expected to grow at a 14% CAGR from 2022 to 2032, from US$ 35 Bn in 2022 to US$ 129.75 Bn by 2032. AI innovations in digital battlefields in the defense sector will be key to the growth of market players over the coming years.

Anticipated Market Value in 2022	US$ 35 Bn
Projected Market Value in 2032	US$ 129.75 Bn
Growth Rate (2022-2032)	14% CAGR
Key Companies Profiled	Raytheon Technologies Corporation BAE Systems Elbit Systems Ltd. General Dynamics Corporation FLIR Systems Inc. Lockheed Martin Corporation Northrop Grumman Corporation Rheinmetall AG Thales Group ATOS SE Airbus S.A.S Rafael Advanced Defence Systems Ltd. Israel Aerospace Industries Curtiss-Wright

Modern warfare and military combats across countries are being redefined with technology. The flow of information across military hierarchies has led to the evolution of defined horizontal and vertical communication. Budget planners and countries across the world have been increasing the proportion of digital battlefield technology share in their overall military and defence budgets.

Digital Battlefield Revenue Analysis 2017-2021 vs. Future Projections 2022-2032

Historically, the use of digital battlefields increased at 10% CAGR from 2017 to 2021, with key factors assisting this growth including companies' close communication with military budget planners and making their solutions flexible and customizable to suit a country's military and defense goals.

As the COVID-19 pandemic unfurled throughout 2020, prospects were altered drastically, as closure of international borders to contain the spread of the disease led to a decline in warfare and military operations. Since 2021, however, as borders have opened up, intelligence gathering on hostile international activities have gained momentum, thereby restoring projections.

The market is expected to grow over the next ten years. While virtual soldier training is expected to become an important part of military planning, the role of augmented and virtual reality is expected to grow in the coming years. According to Fact.MR, the market is projected to surge at a CAGR of 14% from 2022-2032.

Key Market Drivers Shaping Growth of the Digital Battlefield Industry

Rising Deployment of 5G Infrastructure for High-Speed Data Collection

The high capability of 5G technology, which can support over 1 million devices in a square kilometer range, will push the demand for digital battlefield products across the globe. Multiple devices including military devices embedded with smart sensors can be connected to each other using 5G network.

All autonomous systems or platforms for the digital battlefield, such as armored vehicles and unmanned ground vehicles, can work on a 5G connection through which data is transferred at high speeds in real time. This data is interpreted, received by the systems through the network, and used by autonomous platforms to take action.

With a network that has 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 quicker and more efficient through a 5G network than on current communication systems.

Reliance on Satellite-based Geospatial Analytical and GIS Tools for Faster Detection of Threats

The Geographical Information System (GIS) is a widely recognized visualization tool offering data in graphic form, convenient for communicating complex information through digital battlefield devices in military combat operations.

The integration of GIS and GPS can provide location and visualization aspects for defense forces and can be effectively utilized by the surveillance systems used in digital battlefield.

GIS and GPS integrated digital battlefield systems can also offer real time location and status of enemy assets. Several countries across the globe are modernizing their military systems to cope with the rapidly transforming digital battlefield scenarios.

Country-wise Analysis

How attractive are Growth Prospects across North America?

Heavy Defense Budget Allocation Encouraging Adoption of Digital Battlefield Solutions

North America accounts for approximately 39% of the global sales value of digital battlefields. The region is expected to offer around US$ 23.2 Bn absolute dollar opportunities from 2022 to 2032. With its strong defense and economic policies, the region is recognized as a key manufacturer, exporter, and user of digital battlefield systems.

The United States' new defense strategy indicates an increase in military spending to include advanced capabilities in the US Army's existing defense systems to counter incoming threats. Lockheed Martin Corporation (US), Northrop Grumman Corporation (US), L3Harris Technologies, Inc. (US), and Raytheon Technologies Corporation are among the leading manufacturers and developers of AI systems in the U.S.

The US Department of Defense selected Northrop Grumman Corporation to supply the forward area air defense command and control system in July 2020. (FAAD C2). The FAAD C2 will aid in the defense of small unmanned aerial systems. This system has demonstrated its performance and flexibility by allowing for simple integration with existing sensors and warning systems for launching real-time defense in close range and maneuvering enemy threats.

What is the Key Factor Enabling Growth in China?

Higher Budgetary Allocation towards Military Spending

With US$ 261 billion military spending, China was the second-largest military spender after the U.S. in 2019. The country has seen several neighboring and distant foes in the recent past, which has led it to constantly increase its military budget. Its tussle with the U.S., India, Japan, South Korea, Vietnam, Malaysia, and Taiwan has encouraged the country not only to invest in traditional warfare mechanisms but also in new technologies.

The country’s People’s Liberation Army (PLA) ranks among the leading militaries equipped with artificial intelligence and anti-ship ballistic missiles. The country’s Strategic Support Force, which was established in 2015, is engaged in channelizing electronic warfare, cyber warfare, and psychological operations. China is expected to account for nearly 13% of global digital battlefield revenues by 2032, showcasing an absolute dollar opportunity of around US$ 14 Bn.

Category-wise insights

Which Type of Installation Holds Larger Market Opportunity in the Future?

High Demand Anticipated for New Procurement Digital Battlefield Solutions

New procurement of digital battlefield solutions are expected to hold more than 50% share in the market. As countries have been replacing their existing military equipment and solutions with digital counterparts, new procurement is expected to account for a larger market share.

Which Digital Battlefield Platform Holds Significant Opportunity in the Market?

Elevated Demand for Space Digital Battlefield Platforms

Space platforms of digital battlefields are expected to grow at over 16%, thus showcasing significant opportunity through the forecast period. Systems of digital battlefields deployed in space, enabling real-time mapping of Earth objects helps military and defence leaders take real-time decisions, especially during cold wars and war-like situations. They are also helpful in foreign missions.

Competitive Landscape

Key players in the digital battlefield market discussed in the report have focused on winning new orders and contracts for digital battlefields. Strategies include product launches, collaborations with key players, partnerships, and mergers and acquisitions. Some of the key development are:

• In December 2020, the Royal Netherlands Army awarded Elbit Systems Ltd. to supply digital soldier systems. The contract includes provision of digital soldier systems and vehicular integration to the Royal Netherlands Army. The contract was valued at US$ 50 Mn.
• In December 2020, the Netherlands Armed Forces awarded a contract to Elbit Systems Ltd. to deliver micro-night vision systems. The contract was valued at US$ 15 Mn.
• In July 2020, the U.S. Department of Defense awarded Northrop Grumman a contract to supply forward area air defense command & control systems (FAAD C2).
• In June 2020, the U.S. Air Force selected Raytheon Technologies to participate in a contract to develop an advanced battle management system. The contract was worth around US$ 950 Mn.
• In April 2020, Consortium Management Group (CMG) awarded a contract to Lockheed Martin to begin phase 2 development of the multi-function electronic warfare air large (MFEW-AL) program of the U.S. Army. The contract was worth US$ 75 Mn.

Key Market Segments Covered

• By Technology

  • Artificial Intelligence
  • 3D Printing
  • Internet of Things
  • Big Data Analytics
  • Robotic Process Automation
  • Cloud Computing & Master Data Management
  • Digital Twin
  • Blockchain
  • AR and VR
  • 5G

• By Application

  • Warfare Platforms
  • Cyber Security
  • Logistics & Transportation
  • Surveillance & Situational Awareness
  • Command & Control
  • Communication
  • Health Monitoring
  • Simulation & Training
    • Combat Simulation and Training
    • Command and Control Training
  • Design and Manufacturing
  • Predictive Maintenance
  • Threat Monitoring
  • Real-Time Fleet Management
  • Electronic Warfare

• By Platform

  • Land-based Digital Battlefields
    • Military Fighting Vehicles
    • Unmanned Ground Vehicles
    • Weapon Systems
    • Headquarter and Command Centers
    • Dismounted Soldier Systems
  • Naval Digital Battlefields
    • Naval Ships
    • Submarines
    • Unmanned Maritime Vehicles
  • Airborne Digital Battlefields
    • Combat Aircraft
    • Helicopter
    • Special Mission Aircraft
    • Unmanned Aerial Vehicles
  • Space Digital Battlefields
    • CubeSat
    • Satellites

• By Installation

  • New Procurement Digital Battlefields
  • Upgrades in Digital Battlefields

• By Solution

  • Hardware
    • Communication Devices
    • Wearable Devices
    • Smart Clothing
    • Exoskeleton
    • Smart Helmets
    • Imaging Devices
    • Display Devices
    • Tracking Devices
    • Computer Hardware Devices
    • Data Distribution Units
    • Night Vision Devices
    • RFID
    • Others
  • Software
    • Command & Control Software
    • Military Situational Awareness
    • Security Management
    • Inventory Management
    • Fleet Management
    • Weapon Integration
    • Others
  • Services
    • Deployment & Integration
    • Upgrade & Maintenance
    • Software Support
    • Others