"Smart Market Solutions to Help Your Business Gain Edge over Competitors"
The global combat management system market size was USD 755.8 million in 2020. The market is projected to grow from USD 804.9 million in 2021 to USD 1,249.86 million in 2028 at a CAGR of 6.49% during the 2021-2028 period. The global impact of COVID-19 has been unprecedented and staggering, with combat management system witnessing a negative impact on demand across all regions amid the pandemic. Based on our analysis, the global market exhibited a growth of 6.5% in 2020 as compared to the average year-on-year growth during 2017-2019. The rise in CAGR is attributable to this market's demand and growth, returning to pre-pandemic levels once the pandemic is over.
The digitalization of naval systems and sub-systems, along with significant technological advancements in naval combat systems, is influencing the emphasis of OEMs on the market. Other factors, such as digital diversification assisted surface combatants and the evolution of various CMS-enabled hardware and services, are propelling the market growth. With the high demand for network-centric warfare capabilities by blue water navy and increased emphasis on interoperability within multiple partner navies, combat systems providers have focused on creating an enhanced user experience for the future.
The significance of interoperability of various combat management systems and adoption of unmanned vehicles, such as UUVs (Unmanned Underwater Vehicles) and UAVs (Unmanned Aerial Vehicles), by various navies worldwide are the factors influencing the market growth during the forecast period. Also, most of the navies' vast utilization of sub-systems across the surface combatant fleet is predicted to influence the market growth. These developments are predicted to drive the market growth during the forecast period, which will help to grasp the traction for enhanced naval user experience.
Maritime Combat Management Systems (MCMS) continue to advance toward delivering a dynamic work program for its users, which is the main factor in the operational capabilities of the surface warships in the ever-evolving naval battlespace. The utilization of open architectures has brought the agile deliverance of critical mission systems to the front-line surface warships as they operate in more complex operational requirements.
The principal use of combat systems was introduced and designed for military applications to allow the precision target delivery, situational awareness, critical mission systems, and other shipborne systems to achieve the highest accuracy in crucial combat operations. These key developments are anticipated to stimulate demand and market growth for combat management systems in the forthcoming years.
Moderate COVID-19 Impact on Market Growth Owing to Demand for CMS Worldwide
The ongoing COVID-19 pandemic has majorly impacted various industries. All major regions have significantly impacted various industrial operations. The global market is anticipated to grow at a significant growth rate despite the pandemic. The sensitivity and growth of the global market can be defined through the following details:
Request a Free sample to learn more about this report.
Development in Intelligent Combat Management System Solutions to Create Significant Growth Opportunities
The advent of virtualization, artificial intelligence (AI)-based combat systems, naval fleet modernization, integrated naval combat mission system management, naval combat sub-system automation functions is key factors propelling the demand for next-generation intelligent combat systems. The implementation of combat system virtualization is to aggregate mission computers and consoles in the physical server, increasing energy, work efficiencies, and flexibility.
The next-generation systems have digital interfaces of sub-systems and a high degree of in-built intelligence. For instance, in February 2020, the Australian Department of Defense Saab Australia signed an enterprise partnering agreement to supply next-generation combat systems. The future CMS will be delivered, fitted, and tested on the Royal Australian Navy fleets such as ANZAC-class frigates, Arafura-class offshore patrol ships, mine countermeasures ships, military survey vessels, and Supply-class replenishment ships. Saab Australia is anticipated to enhance the capability of its next-generation combat systems with possible interfacing with the AEGIS system for the Hunter-class frigates and Hobart-class destroyers. Such developments will generate plenty of opportunities for the combat management system market growth.
High Demand for Enhanced Situational Awareness to Boost Market Growth
With dynamic operational requirements for operating in the contemporary naval battlefield, the demand for enhanced situational awareness is imminent. The surface combatants will need to meet functional requirements such as precise & quick data transmission, advanced surveillance systems, integrated command and control systems, and others. These factors are anticipated to create opportunities for market growth during the forecast period.
Steady Rise in Military Expenditure to Propel Market Growth
Consistent increment in military expenditure by emerging and developed countries to meet the ever-evolving and complex maritime operational requirements are the major factors influencing the global market growth during the forecast period. Generally, the economic progress of a country usually leads to an increment in defense spending in the respective fiscal year. The Stockholm International Peace Research Institute (SIPRI) validates the nature of military expenditure with respect to economic progress through its recent study. According to SIPRI Yearbook 2021, the global military expenditure progressed to USD 1,981 billion in 2020, 2.6% higher than that of 2019 and 9.3% higher than the military expenditure in 2011. The global military spending thrust over the world's Gross Domestic Product (GDP) increased by 0.2% points to 2.4% in 2020. It has been the highest ever growth in military expenditure since the 2009 global economic crisis.
Growing Adoption of Anti-Surface & Sub-surface Warfare (ASuW) Capabilities in Various Surface Ships to Influence Market Growth
The high adoption rate of anti-surface warfare by the navies worldwide is anticipated to facilitate the measurement of precise real-time positioning information for target acquisition and threat perception. This information is crucial in various applications such as area denial operations, search and rescue, counter-piracy missions, freedom of navigation operations, and military combat missions. Moreover, the advanced combat systems can allow an unmanned vehicle to perform effectively with an extended range.
As per the Diplomat Magazine, China's increasing belligerence in the Asia Pacific Naval Theatre claims the entire South and East China Seas and its area denial system for vessels passing through those seas. The other contender countries are threatened with the ever-growing People's Liberation Army Navy (PLA(N)) fleet of surface and sub-surface vessels. The rising maritime PLA(N) fleet of submarines and surface combatants has led to an arms race with India to produce anti-submarine warfare capabilities and increased emphasis on fleet management and interoperability. These factors are anticipated to propel the market growth of this market during the forecast period.
High Initial Cost of Combat Systems Components and Implementation to Hamper Market Growth
The combat management system requires various components to deliver critical mission systems to the end-user. Therefore, to increase interoperability and fleet management, more naval CMSs are needed. However, high costs associated with the design or customization of CMS across the range of naval platforms are anticipated to hamper the market growth.
Growing Need to Protect combat systems from Cyber Attacks is a Major Challenge for Market Development
The conflicts and skirmishes among neighboring countries are increasing with rapid economic progress. The constant conflicts and growing geopolitical tension has altered the nature of war from conventional to cyberspace. The risk of cyber-attacks poses an imminent threat to the CMS's naval self-defense and situational awareness capabilities. Therefore, protecting the global naval capabilities from cyber threats, such as jamming and spoofing, is a significant challenge to the CMS market. This challenge can be resolved by using anti-jamming and anti-spoofing products and solutions that help to protect the combat systems from cyber threats.
High Software Upgrade and Customization Demand Due to Critical System Replacement or Integration to Propel Market Growth
Based on type, the market segments include software and hardware. The hardware segment is classified into control consoles, combat data centers, and data network switchers. The software segment is anticipated to hold market dominance owing to the higher developmental cost involved in the software and complex combat systems architecture. The market has witnessed a high demand for CMS architectural customization due to integrating newer sub-systems and increased focus on network-centric warfare. The hardware segment is expected to grow over the forecast period due to increased defense expenditure and naval production.
Unmanned Vehicle Control System Segment to Boost Market Growth at Highest Growth Rate
Based on the sub-system, the market is segmented into track management system, self-defense management system, situational awareness system, weapon management system, display system, identification system, and unmanned vehicle control system. The unmanned vehicle control system is evaluated to grow at the highest CAGR in 2020 and is anticipated to rise at the higher CAGR during the forecast period. The growth is attributed to enhanced combat capabilities provided by the utilization and adoption of unmanned vehicles such as UUVs, UGVs, and UAS.
The self-defense management system segment is expected to witness a significant growth rate in the global market due to the rapidly increasing procurement of advanced weapons worldwide. The situational awareness system segment is projected to show a notable growth rate in this market due to the high demand for enhanced situational awareness. The track management system segment is anticipated to grow at a significant growth rate in the global market as track management systems integrate track structure data, inspect to assist seaways and check maintenance & accuracy. Other segments are anticipated to grow at a significantly moderate or slower growth rate during the forecast period.
To know how our report can help streamline your business, Speak to Analyst
Corvette Segment to Dominate Market Share Owing to Higher Production Rate
The global market is divided into destroyer, submarine, frigate, amphibious ship, corvette, fast attack craft (FAC), and aircraft carrier. The corvette segment held the largest market share in 2020. The growth is attributed to a higher delivery rate amongst surface combatants, an increase in the deliveries of the corvettes to the navies worldwide, and extensive utilization by blue as well as green water navies worldwide. Naval forces worldwide are focusing on the interoperability between naval systems and surface & sub-surface combatants, adoption of network-centric warfare, and anti-surface warfare across the globe by varying naval forces.
The submarine segment is anticipated to grow during the forecast period attributed to the second-largest delivery across naval vessels. Rising submarine fleet across the globe and fleet modernization of submarines from conventional diesel-electric to nuclear-powered submarines are factors influencing the growth of the submarine segment. The destroyer, frigate, amphibious ship, fast attack craft (FAC), and aircraft carrier are anticipated to grow significantly due to variable delivery time and modernization programs by the naval forces or defense agencies worldwide.
North America Combat Management System Market Size, 2020 (USD Million)
To get more information on the regional analysis of this market, Request a Free sample
By region, the combat management system market is divided into North America, Europe, Asia Pacific, the Middle East, and the Rest of the World. North America is evaluated to expand at a significant CAGR during the forecast period. The region's market dominance is attributable to higher military spending than the Rest of the World, the U.S. Navy's operational requirement for interoperability, enhanced situational awareness, and fleet modernization. OEMs such as Lockheed Martin Corporation, Northrop Grumman Corporation, and others are anticipated to drive the market growth in the region, owing to robust naval production and R&D structure.
The Europe market is expected to grow at a moderate CAGR due to the strong presence of OEMs and other critical component manufacturers such as Thales Group, Kongsberg Gruppen ASA, BAE Systems PLC, and among others. The significant growth by the manufacturers’ revenue is expected to drive strong market growth in naval production and in this market.
The Asia Pacific combat management systems market is estimated to be the fastest-growing by CAGR during the forecast period. China, Japan, India, Australia, and Southeast Asia support the primary revenue growth. The significant growth in China has been attributed to the increment in defense expenditure to USD 281.1 billion in 2021 despite the ongoing pandemic. India has a substantial development and growth in naval and shipbuilding self-reliance in naval production for the country and defense partners or allies. Furthermore, another factor influencing the market growth is the rise in maritime disputes despite the International Court of Justice's order to maintain and implement international navigation freedom. This development has led to an increment in the defense budgets for naval production and critical naval systems.
The Rest of the World is estimated to have a lower market share due to a hugely under-penetrated market. Meanwhile, the adoption of CMS in Israel, Saudi Arabia, Turkey, and Egypt is anticipated to boost the market growth for the Middle East.
Robust Portfolio Propelled Thales Group, BAE Systems, and Lockheed Martin to Lead Global Market
This market is fragmented due to the robust product portfolio and goodwill of significant companies in developed and emerging economies. However, high entry barriers will impact domestic players entering the global market and a highly fragmented market by 2028. The market has various manufacturers or OEMs operating worldwide. The key market players are Thales Group, Elbit Systems, Lockheed Martin, BAE Systems, and Leonardo DRS. Other key vendors include SAAB AB, Kongsberg Gruppen ASA, Terma AS, L&T Defense, and Atlas Elektronik GmbH. These companies have a strong presence in their products and services. Innovative next-generation products, complete life-cycle services, software advancements, strategic mergers & acquisitions, partnerships, and collaborations are key market strategies adopted by OEMs in the global market.
An Infographic Representation of Combat Management System Market
To get information on various segments, share your queries with us
The global combat management system market research report facilitates an in-depth industry analysis of this market. It emphasizes key aspects such as leading market players, OEMs, solutions offerings, critical system hardware, and applications of CMS product & services. Besides this, the report offers insights into the combat management technology trends and highlights key industry developments. Additionally, the report consists of various factors that have contributed to the growth of the next-generation market in recent years.
Value (USD million)
By Component Type
Fortune Business Insights says that the global market size was USD 755.8 million in 2020 and is projected to reach USD 1,249.86 million by 2028.
In 2020, the North America market value stood at USD 302.3 million.
The market is growing at a CAGR of 6.49%, and the market will exhibit steady growth over the forecast period (2021-2028).
The unmanned vehicle control system segment is expected to be the leading segment in this market during the forecast period.
Market players increasing demand for network-centric warfare applications and the integration of combat management across the surface combatant fleet are major factors driving the market growth.
Thales Group, BAE Systems, Saab AB, and Lockheed Martin Corporation are major OEMs in the global market.
North America dominated the market share in 2020 and is expected to witness the highest growth rate over the forecast period.
The launch of advanced technologies by market players, fleet management systems, high demand for interoperability within naval forces worldwide, and network-centric warfare capabilities are expected to drive the adoption in the global market.
“This report is really well done and we really appreciate it! Again, I may have questions as we dig in deeper. Thanks again for some really good work.”- U.S.-based biotechnology company focussing on treatment of chronic pain.
“Kudos to your team. Thank you very much for your support and agility to answer our questions.”- Europe-based provider of solutions to automate data centre operations.
“We appreciate you and your team taking out time to share the report and data file with us, and we are grateful for the flexibility provided to modify the document as per request. This does help us in our business decision making. We would be pleased to work with you again, and hope to continue our business relationship long into the future.”- India-based manufacturer of industrial and specialty intermediates with a strong global presence.
“I want to first congratulate you on the great work done on the Medical Platforms project. Thank you so much for all your efforts.”- One of the largest cosmetics company in the world.
“Thank you very much. I really appreciate the work your team has done. I feel very comfortable recommending your services to some of the other startups that I’m working with, and will likely establish a good long partnership with you.”- U.S. based startup operating in the cultivated meat market.
“We received the below report on the U.S. market from you. We were very satisfied with the report.”- Global hearing aids manufacturer.
“I just finished my first pass-through of the report. Great work! Thank you!”- U.S. based solar racking solutions provider.
“Thanks again for the great work on our last partnership. We are ramping up a new project to understand the imaging and imaging service and distribution market in the U.S.”- World’s leading advisory firm.
“We feel positive about the results. Based on the presented results, we will do strategic review of this new information and might commission a detailed study on some of the modules included in the report after end of the year. Overall we are very satisfied and please pass on the praise to the team. Thank you for the co-operation!”- Germany based machine construction company.
“Thank you very much for the very good report. I have another requirement on cutting tools, paper crafts and decorative items.”- Japanese manufacturing company of stationery products.
“We are happy with the professionalism of your in-house research team as well as the quality of your research reports. Looking forward to work together on similar projects”- One of the Leading Food Companies in Germany
“We appreciate the teamwork and efficiency for such an exhaustive and comprehensive report. The data offered to us was exactly what we were looking for. Thank you!”- Intuitive Surgical
“I recommend Fortune Business Insights for their honesty and flexibility. Not only that they were very responsive and dealt with all my questions very quickly but they also responded honestly and flexibly to the detailed requests from us in preparing the research report. We value them as a research company worthy of building long-term relationships.”- Major Food Company in Japan
“Well done Fortune Business Insights! The report covered all the points and was very detailed. Looking forward to work together in the future”- Ziering Medical
“It has been a delightful experience working with you guys. Thank you Fortune Business Insights for your efforts and prompt response”- Major Manufacturer of Precision Machine Parts in India
“I had a great experience working with Fortune Business Insights. The report was very accurate and as per my requirements. Very satisfied with the overall report as it has helped me to build strategies for my business”- Hewlett-Packard
“This is regarding the recent report I bought from Fortune Business insights. Remarkable job and great efforts by your research team. I would also like to thank the back end team for offering a continuous support and stitching together a report that is so comprehensive and exhaustive”- Global Management Consulting Firm
“Please pass on our sincere thanks to the whole team at Fortune Business Insights. This is a very good piece of work and will be very helpful to us going forward. We know where we will be getting business intelligence from in the future.”- UK-based Start-up in the Medical Devices Sector
“Thank you for sending the market report and data. It looks quite comprehensive and the data is exactly what I was looking for. I appreciate the timeliness and responsiveness of you and your team.”- One of the Largest Companies in the Defence Industry