The United States C4ISR market is expected to exhibit a growth rate of more than 4% during the forecast period.
- The growth in terrorism, threats from adversaries, and increasing global territorial tensions are some of the major factors that are generating the demand for advanced systems to carry out intelligence, surveillance and reconnaissance mission across land and sea borders of the United States.
- The growing investments into counter stealth technology, network-centric battle management technology and unmanned and autonomous vehicles technologies are major areas of the US Department of Defense (DoD) investments to enhance their C4ISR capabilities of the country. Such investments are driving the growth of the market in the coming years.
Key Market Trends
Growing Investments into Development of Advanced C4ISR Systems
With the growing military spending, the United States is subsequently investing in the research and development of new and advanced C4ISR systems. The investments are focused on the development of advanced enemy detection and tracking systems and network-centric battle communication technology to counter wide-range of threats. In July 2019, the US Air Forces awarded a USD 66.75 million contract to Leidos to develop new sensors suites for C4SIR and battlespace awareness across various domains. The contract is expected to complete by the end of 2024. Technologies such as artificial intelligence and machine learning are being integrated with defense assets to increase the battlefield operational efficiency and support effective integration of Command and Control systems with autonomous defense assets. In 2019, the US DoD launched its artificial intelligence strategy, which focuses on integration and adoption of AI capabilities across Army, Navy, Marine Corps and Air Force. Also, the government is investing in modernisation of existing C4ISR technology. For instance, in May 2019, John Hopkins University received additional funding of USD 2.35 billion to a previously awarded contract for research, development and engineering of the various program such as command, control, communication, radar, sonar, and undersea warfare, among others. Such investments into development of advanced communication and situational awareness systems is expected to accelerate the growth of the market.
Sea Segment of the Market is Expected to Witness Significant Growth
The US government is currently focusing on expansion and modernization of the existing naval fleet as well as procuring unmanned systems for better surveillance. The addition of new amphibious naval vessels, frigates and aircraft carriers among others to the naval fleet of the US Navy in the coming years is expected to generate demand for better and advanced C4ISR systems onboard the naval vessels. In June 2019, the US Navy awarded BAE Systems, Serco Inc., and Scientific Research Corp. contracts of worth USD 1.81 billion to integrate and install command, control, communications, computers and intelligence systems on large deck amphibious ships and aircraft carriers that are under construction. Apart from manned systems, the Navy is also an investment in the procurement of unmanned systems. The Navy is currently in plans to build new Medium Unmanned Surface Vehicle (MUSV) and Large Unmanned Surface Vehicle (LUSV), the new sea platforms with anti-surface and strike warfare capabilities for a range of missions, like anti-submarine sonar applications, command and control, and sweeping ISR. Also, the government making a substantial investment in the development of new autonomous vehicles, and also to convert the existing remotely controlled vehicles into autonomous vehicles, which is anticipated to bolster the growth of the segment.
The United States C4ISR Market is moderately fragmented with many players providing various systems like tactical communications systems, UAVs (unmanned aerial vehicles), USVs (unmanned sea vehicles), space systems etc. Some of the prominent players in the market are Lockheed Martin Corporation, L3Harris Technologies Inc., BAE Systems PLC, Northrop Grumman Corporation, Elbit Systems Limited. The innovation of new and advanced C4ISR systems is the major strategy of the players in the market to increase their share in the market. Also, long-term contracts of the companies to support the US DoD across land, air and sea platforms is expected to help them increase their share in the market in the coming years. For instance, in December 2019, CACI International was awarded a five-year contract of worth USD 438 million to provide support services to the command, control, communications, computers, intelligence, surveillance and reconnaissance programs of the Air Force Research Laboratory.
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