5G in Defense Market

[248 Pages Report] The 5G in Defense Market size is estimated to be USD 0.9 Billion in 2023 to USD 2.3 billion by 2028, at a CAGR of 19.9% from 2023 to 2028. The 5G in defense market is a rapidly growing market, and it is expected to continue to grow in the coming years. The potential of 5G technology to transform the defense sector is significant, primarily through the provision of enhanced, reliable communication and augmented data processing capacities. 5G and AI's synergistic growth could lead to a new era of capabilities for the defense sector. This emerging technology, characterized by its incredibly fast transmission speeds and ability to handle vast amounts of data, will usher in a multitude of critical IoT applications. These applications will involve capturing and processing data almost instantaneously.

5G in Defense Market Forecast to 2028

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5G In defense  Market Dynamics:

Drivers: 5G in elevation of  growing Situational Awareness drives the market

First responders and public safety officials in the field act as both contributors and recipients of heightened situational awareness. These ground forces can offer valuable data inputs—through sensors they employ, body-mounted cameras, and direct observations of the circumstances. Access to both on-site information and off-site data helps optimize decision-making. The capacity for public safety agencies to share actionable intelligence not only allows for superior personnel management but also facilitates coordination with each other, command units, or other agencies. Public safety operations stand to gain from the high speeds and minimal latency that 5G can deliver, technologies such as augmented reality (AR), virtual reality (VR), drone-acquired data, real-time situational intelligence, and more form the basis of these advantages.

With high-speed data transmission, 5G allows real-time or near-real-time collection, processing, and distribution of data. This could include data from various sources such as drones, satellites, sensors, and other surveillance systems, which can be quickly processed and distributed to provide a comprehensive picture of the operational environment.

Situational awareness relies on appropriate data capture solutions, including wearables, cameras, sensors, and drones, along with mechanisms to analyze and prioritize the data for quicker and better decision-making.

Restraints:  High investments in early phases

The substantial costs involved in the development and deployment of 5G networks pose a significant challenge. The technology necessitates new hardware for both the network infrastructure and the end-user devices intending to utilize it. In addition to the physical infrastructure, ensuring robust network security is also imperative, especially in the defense sector where sensitive data is at stake. These security measures also require substantial investments, thus further amplifying the cost barrier in the path of 5G adoption. 5G technology necessitates a considerable upgrade from existing telecommunications infrastructure. This includes the need for new base stations, antenna systems, and data centers. The higher frequency bands used in 5G also mean that more antennas are needed to cover the same area as previous generations of network technology. Accessing the radio spectrum needed for 5G can be costly. Governments typically auction off these rights, which can lead to high prices. For example, in 2019, the German government raised approximately $7.6 billion through a 5G spectrum auction. Compared to the current network, 5G will require 8-10 times more base stations, resulting in high capital investments by defense forces. During deployment, the total cost of base stations and new hardware adds up to the overall cost.

Opportunities: Increased defense budgets for R&D and technological advancements

Elevated defense budgets globally offer a significant opportunity for the advancement of 5G in the defense sector. This financial growth allows for more capital to be allocated towards technological upgrades, including 5G implementation. Countries with significant defense budgets, such as the U.S., China, Russia, and India, are likely to invest in 5G to maintain their technological edge in military operations.

Autonomous vehicles, drones, and robots are critical components of the military sector. These are autonomous gadgets that use telecommunication technology such as the 5G network to give real-time services to military agencies in risky, inconvenient, and impossible regions of operation, such as remote monitoring for enemy soldiers. Various governments throughout the world have concentrated on the development of unmanned systems for use in public and national security purposes. Several governments, both developed and developing, have invested billions of dollars in autonomous military projects, including the US, Russia, China, the European Union, India, and others.

In 2022, the world saw a substantial rise in military spending, as total global military expenditure increased by 3.7% in real terms, hitting a record high of $2240 billion. Europe experienced its sharpest annual increase in military spending in over three decades. Most of the global military expenditure was dominated by the United States, China, and Russia, collectively accounting for 56% of the worldwide total

Challenges: Complexity of Spectrum Management for 5G Deployment in Defense

Given the increasing demand for spectrum, there's growing interest in dynamic spectrum sharing, where the same frequencies can be used by different services at different times or in different locations. However, implementing spectrum sharing can be technologically complex and requires sophisticated management systems to avoid interference.

Another issue is potential interference between different uses of the spectrum. For instance, there's been concern about potential interference between 5G services in the 24 GHz band and weather satellites that operate in nearby frequencies. Such interference could potentially degrade the accuracy of weather forecasts. Mitigating this risk requires careful planning and coordination between different spectrum users and regulatory bodies.

The radio frequency spectrum, which includes both sub-6 GHz and millimeter-wave (mmWave) bands, is a limited resource governed by international and national regulatory bodies. In many countries, these bodies allocate different parts of the spectrum to different types of services, such as television broadcasting, mobile networks, satellite communications, and radar systems. Balancing the needs of these different services can be challenging, particularly as demand for spectrum increases. 5G networks use higher frequency bands in the mmWave range (24 GHz and above) to provide very high data rates. However, these frequencies have shorter range and are more susceptible to interference and signal degradation due to physical obstructions or atmospheric conditions. To overcome these challenges, 5G networks use technologies such as beamforming and massive MIMO (multiple-input, multiple-output) to improve signal strength and quality.

In the defense sector, effective spectrum management is particularly critical given the need for reliable and secure communications in a variety of challenging environments.

5g In Defense  Market Ecosystem

Ericsson (Sweden), Huawei (China), Nokia Networks (Finland), Samsung (South Korea), NEC (Japan), Thales Group (France), L3Harris Technologies, Inc. (US), Raytheon Technologies (US), Ligado Networks (US), and Wind River Systems, Inc. (US). are some of the leading companies in the  5G in Defense  market.  

Based on platform, the airborne segment is projected to grow at the highest CAGR in the 5G in defense market during the forecast period

Airborne 5G integration in the defense market has the potential to significantly enhance capabilities and transform military aerial operations. 5G can greatly enhance UAV and drone operations. High-speed data transmission allows for real-time video and sensor data streaming, crucial for surveillance, reconnaissance, and combat operations. 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.

Based on Solution, the core network segment is highest market share the 5G in defense during the forecast period

There is a growing demand for faster connectivity, high-speed data transfer, and highly responsive networks. Core network architectures are currently undergoing transformative changes, thanks to the introduction of concepts like Software-Defined-Networking (SDN) for improved control and Network Function Virtualization (NFV) for streamlined services, among others. These innovations are pivotal for the next-generation applications in 5G and location-centric IoT/wireless sensor network services. The rapid increase of IoT devices in Edge networks propels the expansion of a universally connected internet ecosystem. In the spectrum from Cloud to IoT devices, processing information at the Edge necessitates the creation of robust security measures within the framework of fog computing..

Based on Network Type, the EMBB segment has highest market share in the 5G in defense market during the forecast period

5G's enhanced mobile broadband (eMBB) stands as the pioneering category, introducing the general populace to 5G's advantages. Even in challenging environments, 5G eMBB ensures top-tier internet connectivity. It promises mobile broadband speeds in the gigabit range and greater data bandwidth. When 5G eMBB is integrated with mMTC and URLLC, it fortifies wireless networks to fulfill their essential needs. Incorporating eMBB, URLLC, and mMTC within 5G can significantly bolster large-scale IoT and critical ventures, with sectors like healthcare, defense, and industry standing to benefit immensely.

5G eMBB enables the following:

• Robust indoor connections across numerous devices in areas with high population density.
• A uniform user experience ensured by extensive network coverage.
• Instantaneous communication and connection, even when mobile broadband services are utilized from vehicles in motion.

Asia Pacific is expected to account for the highest CAGR in the forecasted period .

5G technology in the Asia-Pacific region are 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 technologica solutions. The widespread establishment of 5G networks in these and other countries in the area has propelled the expansion of the 5G testing market. In the Asia Pacific region, several sectors such as manufacturing, healthcare, automotive, and smart cities are embracing 5G technology to revolutionize their processes. To ensure the performance, security, and dependability of their 5G-integrated applications and services, these sectors necessitate faster adaption of technology. This need for sector-specific solutions has spurred the expansion of the 5G market in the Asia Pacific. The worldwide growth has been further facilitated by positive economic scenarios and strategic partnerships.

5G in Defense Market by Region

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Key Market Players

The 5G in defense  companies is dominated by a few globally established  players such as Ericsson (Sweden), Huawei (China), Nokia Networks (Finland), Samsung (South Korea), NEC (Japan), Thales Group (France), L3Harris Technologies, Inc. (US), Raytheon Technologies (US), Ligado Networks (US), and Wind River Systems, Inc. (US)., are some of the leading companies in the  5G in Defense  market.  These companies have well-equipped manufacturing facilities and strong distribution networks across North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.

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Scope of the Report

5G in Defense Market Highlights

This research report categorizes 5G in defense based on By Platform, By Solution, By End User, By Network Type, By Operational Frequency, By Installation & Region.

Recent Developments

• In February 2023 , Nokia announced that it has been selected by MTN South Africa (MTN SA) for the first time ever as one of its 5G Radio Access Network (RAN) equipment providers..
• In February 2023, The US Navy collaborates with Qualcomm to explore 5G and artificial intelligence technologies. This is a research collaboration agreement to explore s 5G, artificial intelligence, and cloud computing.
• In May 2022, BT and Ericsson announced today a multi-million-pound partnership to deliver commercial 5G private networks for the UK market. This marks the first such agreement in the nation. BT and Ericsson have entered into a multi-year agreement, allowing BT to offer next-generation mobile network technology products to entities in sectors including manufacturing, defense, education, retail, healthcare, transport, and logistics.
• In July 2022, Nokia announced an expansion of its collaboration with Hill Air Force Base and the National Spectrum Consortium. The objective of this partnership is to ensure harmonious coexistence between incumbent radar systems and 5G networks within a shared spectrum. This is achieved by real-time adjustments to the 5G system's behavior whenever the incumbent radar is active.

Key Questions Addressed by the Report:

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