5G In Defense Market Size
| Study Period | 2019-2029 |
| Market Size (2024) | USD 95.01 Billion |
| Market Size (2029) | USD 412.06 Billion |
| CAGR (2024 - 2029) | 34.08 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
Major Players
*Disclaimer: Major Players sorted in no particular order |
5G In Defense Market Analysis
The 5G In Defense Market size is estimated at USD 95.01 billion in 2024, and is expected to reach USD 412.06 billion by 2029, growing at a CAGR of 34.08% during the forecast period (2024-2029).
- The growing dependence on big data is projected to drive the increased need for 5G networks of defense equipment. The increased use of real-time data for decisive decision-making has raised substantial data collections. With faster and more thorough communication, the 5G network will establish the capacity to take huge amounts of data more swiftly. Through its 5G network, this new wireless network would allow for real-time data transfer from unmanned aerial vehicles and surveillance drones to command centers, boosting situational awareness and tactical reconnaissance.
- Defense program demand will propel interoperability forward in the defense market. End-to-end slicing for unique end users can be carried out via 5G networks. Slices can be tailor-made to offer system performance needed by programs such as autonomous cars and trucks and automated process technology.
- However, the high costs involved in setting up 5G infrastructure might hinder the market growth during the forecast period.
5G In Defense Market Trends
Airborne Segment to Register the Highest CAGR During the Forecast Period
- The airborne segment is expected to grow with the highest CAGR owing to the rising procurement of unmanned aerial vehicles (UAVs) and military aircraft. 5G integration with airborne in the defense market has the potential to significantly enhance capabilities and transform military aerial operations.
- Incorporating 5G can greatly enhance UAV and drone operations. High-speed data transmission will allow real-time video and sensor data streaming, crucial for surveillance, reconnaissance, and combat operations. In December 2023, the National Defense Authorization Act (NDAA) announced that it would allocate USD 886 billion in defense spending. It also asked the US Defense Department to deploy 5G open RAN private wireless networks on military bases.
- The ultra-low latency of 5G can also support better remote control of UAVs in environments where every millisecond counts. 5G can ensure seamless data integration between airborne assets and ground or naval forces, creating a unified combat picture and improving joint operations' efficiency. 5G can facilitate communication between multiple drones, enabling swarm drone operations. Such drone swarms can collaboratively undertake tasks, be it for surveillance, electronic warfare, or even offensive operations.
Asia-Pacific to Witness the Highest Growth During the Forecast Period
- 5G technology in the Asia-Pacific region is experiencing significant growth due to countries such as China, South Korea, and Japan, which have advanced considerably in rolling out 5G networks, leading to a surge in demand for 5G technology solutions. China is outcompeting the US in the wireless network market, specifically with 5G technology. The widespread establishment of 5G networks in these and other countries in the area has propelled the expansion of the 5G testing market.
- For instance, the Indian Army wants to establish a 5G network along the border to improve communication and get a high-speed data network for operational requirements. China has already begun the operation of setting up a 5G network along the Line of Actual Control (LAC) for better communication.
- The Indian Army has been endeavoring to exploit 5G for supporting operations in the tactical battlefield area. In this context, in April 2022, a Memorandum of Understanding (MoU) for the establishment of a 5G testbed was signed between the Military College of Telecommunication Engineering and IIT Madras. Such developments will ensure speedy growth of the 5G defense market in Asia Pacific.
5G In Defense Industry Overview
The 5G in Defense Market is semi-consolidated, with the market players vying for a dominant market share through attractive offerings and competitive pricing strategies. Some of the key market participants in the 5G defense market include Telefonaktiebolaget LM Ericsson, Huawei Technologies Co., Ltd., NEC Corporation, L3Harris Technologies, Inc., and RTX Corporation. These major players operating in this market have adopted various strategies comprising M&A, investment in R&D, collaborations, partnerships, regional business expansion, and new product launches.
For instance, in April 2022, Lockheed Martin and Intel Corporation signed a memorandum of understanding to leverage their expertise in technology and communications to bring together innovative 5G-capable solutions. The memorandum of understanding (MoU) will expand the strategic relationship between the two companies to align 5G-enabled hardware and software solutions for the US Department of Defense.
5G In Defense Market Leaders
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Huawei Technologies Co., Ltd.
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L3Harris Technologies, Inc.
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NEC Corporation
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RTX Corporation
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Telefonaktiebolaget LM Ericsson
*Disclaimer: Major Players sorted in no particular order
5G In Defense Market News
- August 2023: The US Department of Defense granted RTX Corporation a potential two-year contract worth USD 6.6 million. The contract aims to facilitate the development of multi-hop mobile ad-hoc networks designed to provide advanced 5G connectivity for forward-deployed warfighters.
- November 2023: Peraton Labs secured a contract through the National Security Technology Accelerator’s (NSTXL) Strategic and Spectrum Missions Advanced Resilient Trusted Systems’ (S2MARTS) Other Transaction Agreement with the Department of the Navy, Naval Surface Warfare Center, Crane Division. This contract is intended to support S2MART’s Beyond 5G (B5G) initiative.
5G In Defense Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
- 4.1 Market Overview
- 4.2 Market Drivers
- 4.3 Market Restraints
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4.4 Porter's Five Forces Analysis
- 4.4.1 Threat of New Entrants
- 4.4.2 Bargaining Power of Buyers/Consumers
- 4.4.3 Bargaining Power of Suppliers
- 4.4.4 Threat of Substitute Products
- 4.4.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
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5.1 By Communication Infrastructure
- 5.1.1 Small Cell
- 5.1.2 Macro Cell
- 5.1.3 Radio Access Network
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5.2 By Core Network Technology
- 5.2.1 Software-Defined Networking (SDN)
- 5.2.2 Fog Computing (FC)
- 5.2.3 Mobile Edge Computing (MEC)
- 5.2.4 Network Functions virtualization (NFV)
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5.3 By Platform
- 5.3.1 Land
- 5.3.2 Naval
- 5.3.3 Airborne
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5.4 Geography
- 5.4.1 North America
- 5.4.1.1 United States
- 5.4.1.2 Canada
- 5.4.2 Europe
- 5.4.2.1 Germany
- 5.4.2.2 United Kingdom
- 5.4.2.3 France
- 5.4.2.4 Rest of Europe
- 5.4.3 Asia-Pacific
- 5.4.3.1 India
- 5.4.3.2 China
- 5.4.3.3 Japan
- 5.4.3.4 South Korea
- 5.4.3.5 Rest of Asia-Pacific
- 5.4.4 Latin America
- 5.4.4.1 Brazil
- 5.4.4.2 Rest of Latin America
- 5.4.5 Middle-East and Africa
- 5.4.5.1 United Arab Emirates
- 5.4.5.2 Saudi Arabia
- 5.4.5.3 Israel
- 5.4.5.4 Rest of Middle-East and Africa
6. COMPETITIVE LANDSCAPE
- 6.1 Vendor Market Share
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6.2 Company Profiles
- 6.2.1 Huawei Technologies Co., Ltd.
- 6.2.2 L3Harris Technologies, Inc.
- 6.2.3 NEC Corporation
- 6.2.4 Nokia Networks (Nokia Corporation)
- 6.2.5 Qualcomm Technologies, Inc.
- 6.2.6 RTX Corporation
- 6.2.7 Samsung Electronics Co., Ltd.
- 6.2.8 Telefonaktiebolaget LM Ericsson
- 6.2.9 THALES
- 6.2.10 Wind River Systems, Inc.
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
** Subject To Availablity5G In Defense Industry Segmentation
5G or 5th generation mobile network can considerably increase the speed of data transfer and improve bandwidth over 4th generation or 4G technology, in turn supporting new military and commercial uses.
The 5G in defense market is segmented by communication infrastructure, core network technology, platform, and geography. By communication infrastructure, the market is segmented into small cell, macro cell, and radio access networks. By core network technology, the market is segmented into software-defined networking, fog computing, mobile edge computing, and network functions virtualization. By platform, the market is segmented into land, airborne, and naval. The report also covers the market sizes and forecasts for the 5G defense market in major countries across different regions (North America, Europe, Asia-Pacific, Latin America, and Middle-East and Africa).
For each segment, the market size is provided in terms of value (USD).
| By Communication Infrastructure | Small Cell | |
| Macro Cell | ||
| Radio Access Network | ||
| By Core Network Technology | Software-Defined Networking (SDN) | |
| Fog Computing (FC) | ||
| Mobile Edge Computing (MEC) | ||
| Network Functions virtualization (NFV) | ||
| By Platform | Land | |
| Naval | ||
| Airborne | ||
| Geography | North America | United States |
| Canada | ||
| Geography | Europe | Germany |
| United Kingdom | ||
| France | ||
| Rest of Europe | ||
| Geography | Asia-Pacific | India |
| China | ||
| Japan | ||
| South Korea | ||
| Rest of Asia-Pacific | ||
| Geography | Latin America | Brazil |
| Rest of Latin America | ||
| Geography | Middle-East and Africa | United Arab Emirates |
| Saudi Arabia | ||
| Israel | ||
| Rest of Middle-East and Africa |
5G In Defense Market Research FAQs
How big is the 5G In Defense Market?
The 5G In Defense Market size is expected to reach USD 95.01 billion in 2024 and grow at a CAGR of 34.08% to reach USD 412.06 billion by 2029.
What is the current 5G In Defense Market size?
In 2024, the 5G In Defense Market size is expected to reach USD 95.01 billion.
Who are the key players in 5G In Defense Market?
Huawei Technologies Co., Ltd., L3Harris Technologies, Inc., NEC Corporation, RTX Corporation and Telefonaktiebolaget LM Ericsson are the major companies operating in the 5G In Defense Market.
Which is the fastest growing region in 5G In Defense Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in 5G In Defense Market?
In 2024, the North America accounts for the largest market share in 5G In Defense Market.
What years does this 5G In Defense Market cover, and what was the market size in 2023?
In 2023, the 5G In Defense Market size was estimated at USD 62.63 billion. The report covers the 5G In Defense Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the 5G In Defense Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
5G In Defense Industry Report
Statistics for the 2024 5G In Defense market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. 5G In Defense analysis includes a market forecast outlook to for 2024 to (2024to2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
