Market Trends of Japan C4ISR Industry
This section covers the major market trends shaping the Japan C4ISR Market according to our research experts:
Increasing Military Expenditure by Japan on C4ISR Systems
Japan has gradually increased its military spending over the years to modernize its military forces against the growing dominance of China and the threat of nuclear weapons from North Korea. Japanese military spending totaled $54.1 billion in 2021. In November 2021 the government allocated an additional $7.0 billion to its military budget, which resulted in a 7.3 percent increase in military spending over the year and the highest annual growth rate since 1972. At 1.1 percent of GDP in 2021, Japan's military burden surpassed the 1 percent of GDP threshold for the first time since 1960. the government announced several acquisition and R&D plans to enhance the EW capabilities of ground forces and the air force. The plans included the following:
The procurement of one complete system of truck-mounted Network Electronic Warfare Systems (NEWS) and the establishment of a new EW unit by the end of 2020. Also, additional investment in the development of a new ground-based, anti-aircraft EW system.
Continue the modernization of EW suites onboard F-15J/DJ Eagle aircraft, in order to expand its multirole capabilities and develop a new standoff jammer, which will be mounted on Kawasaki C-2 airlifter, to perform standoff jamming against adversaries in the air, land, and naval domains.
Also, the government is investing in the development of space-based ballistic-missile early-warning systems. Such investments in the procurement and development of advanced C4ISR solutions are anticipated to propel the development of the market during the forecast period.
Increasing Demand For Advanced Safety And Detection Systems In Land and Naval segment
The increasing demand for advanced safety and detection systems across the country has driven responsible government organizations to expand their services and capabilities in Japan. The already existing ground units and the future units are expected to increase the demand for electronic warfare units by a significant margin, leading to a noticeable growth in the market size. The country further expanded its military capabilities via electronic warfare units. As of April 2022, the new units established can also detect and analyze potential adversaries, communications, and radar emissions. The units hope to expand their counter-drone capabilities with these new electronic warfare units. The highly increasing military activity in China has alerted many countries around it. As a result, the countries around China have been investing in new technologies and partnerships in order to improve their safety. As part of this, Japan and the Philippines formed an agreement to set up security ties in April 2022, to bolster security cooperation and joint drills. This partnership is expected to drive significant demand for the C4ISR equipment to be used for various military activities executed by the partnership. Japan, in Jan and Feb 2022, made strategic defense partnerships with major countries like United States and the United Kingdom, for sharing knowledge of defense technologies, amid the increasing worry about China's military activity.
Several developments are expected to drive the market towards significant growth rates during the forecast period.
