C5ISR Market - Size, Industry Share, Growth Trends and Forecasts (2025 - 2032)

By Component:

Based on the component, the market is segmented into hardware, software, and service.

Trends in the Component:

• The trend towards miniaturization of devices such as wearable devices, communication systems and other used in military and defence sector is propelling the hardware component.
• Increasing adoption of cloud computing for storing large amounts of data due to high level of security provided by cybersecurity software is driving the C5ISR market trend.

Hardware accounted for the largest revenue share of 44.75% in the year 2024.

• The hardware segment comprises of sensors, communication devices, computers, surveillance systems and others which are collectively crucial for any military operations.
• Further, the ongoing investment in the technology and integration of hardware component with AI and IoT is propelling the development of hardware segment.
• Furthermore, the rising adoption of UAV’s in military operation as well as integration of systems with coast vehicles is driving the progress of hardware component which in turn is fuels the C5ISR market share.
• For instance, in June 2021, Northrop Grumman developed C5ISR and control systems for US Coast Guard offshore patrol cutters. The system integrates all cyber hardened systems.
• Thus, according to the C5ISR market analysis, ongoing investment and rising adoption of system is driving the hardware component.

Service is anticipated to register the fastest CAGR during the forecast period.

• The service component of market include the installation, maintenance, deployment and training of employees among other.
• Further, the regular maintenance of equipment and software systems associated with the market due to ongoing military operations requiring zero malfunction propels the need for service component.
• For instance, in April 2024, Leidos received a contract of USD 267 Million for base period of 11 months. The contract aims to provide the U.S. Army with technology-enabled services, including logistics support, hardware maintenance, renewal, and training.
• Therefore, according to the C5ISR market analysis, the need for regular maintenance and service is anticipated to boost the market during the forecast period.

By Platform:

Based on the platform, the market is segmented into land, space, naval and airborne.

Trends in the Platform:

• The rise of nanosatellites for providing surveillance and communication is driving the space-based platform.
• The integration of AI with naval ships for advancing sonar technology for tracking applications is driving the C5ISR market trend.

The land based accounted for the largest revenue share in the year 2024.

• The growing military and defence sector are increasingly leveraging systems for countering terrorism and others.
• Advantages of adopting technology on land include real time data analysis, improved decision making and others.
• Further, the increasing border security across countries is propelling the demand for systems based on land during emergencies.
• For instance, in December 2024, AGIS developed C5ISR CJADC2 System for Integrated Space, Air, Ground observation to project locations of Friendly and Hostile Space Intelligence satellites, overlaid upon the U.S./NATO Common Operational Picture (COP).
• Thus, as per the market analysis, the increasing border security is driving the need for land-based system.

The airborne based is anticipated to register the fastest CAGR during the forecast period.

• The airborne based system provide aerial view of the field providing valuable insights with accuracy.
• Further, rising adoption of UAV’s and drones in miliary and defence sector for airborne operations is propelling the C5ISR market progress.
• For instance, in January 2024, AGIS Synchronizes small drones for provide valuable insights, surveillance, and reconnaissance capabilities on the battlefield with system Command Center.
• Therefore, as per the market analysis, rising adoption of UAV’s and drones is anticipated to boost the C5ISR market size during the forecast period.

By Application:

Based on the application, the market is segmented into command and control, communication, surveillance and reconnaissance, electronic warfare, and intelligence.

Trends in the Application:

• 5G integration provides high speed, low latency data transfer driving the communication application.
• The trend towards leveraging combination of human intelligence with AI for improved decision making and reduce time consumption in data analysis is driving the intelligence application.

Surveillance and reconnaissance accounted for the largest revenue share in the year 2024.

• The system utilized high end sensors, communication systems and surveillance systems for providing meaningful insights and enhance data collection driving the market progress.
• Moreover, the adoption of advanced technology such as AI and cloud computing for analyzing surveillance data helps in real time decision making in turn driving the market development.
• Further, the system is used to gather cross-border data and information driving the adoption of market in surveillance and reconnaissance application.
• For instance, in October 2023, Amentum received a contract of USD 326.9 Million for five years from U.S. Army. The contract aims to engineer, integrate and test command, control, communications, computers, cyber, intelligence, surveillance, and reconnaissance systems.
• Thus, as per the analysis, rising demand for gathering cross-border data and adoption of advanced technology is driving the market in surveillance and reconnaissance application.

Electronic warfare is anticipated to register the fastest CAGR during the forecast period.

• The ongoing cyber-attacks, jamming and hacking activities across globe is increasing the need for advanced electronic warfare system.
• The system has the ability to support data sharing of sensors seamlessly across battlefield networks driving the adoption of market in electronic warfare application.
• Further, the integration of AI with system for minimizing electronic threat is fueling the market progress.
• For instance, in January 2025, QinetiQ US received an order for electronic warfare and sensors (IEW&S) from U.S. Army for USD 31.5 Million orders over 5 years.
• Therefore, the integration of AI as well as ongoing cyber-attacks, jamming and hacking activities are anticipated to boost the C5ISR market size during the forecast period.

By End-User:

Based on the end-user, the market is segmented into military & defence, aerospace, government, and others.

Trends in the End-User:

• The trend towards real time communication, surveillance and reconnaissance is driving the need for deployment of small satellites by government and aerospace sector.
• The government has integrated systems with traffic systems for surveying and improving safety by tracking and monitoring terrorism activities, in turn driving the market trend.

Military & defence sector accounted for the largest revenue share in the year 2024 and is anticipated to register the fastest CAGR during the forecast period.

• The military and defence sector are focusing on digitalization and modernization of equipment and technologies utilized with the adoption of AI, IoT, machine learning, and cloud computing, among others.
• Moreover, the prevailing joint operations between air, land, naval and airborne are boosting the market progress.
• Further, the increasing budget of military and defence sector as well as increasing border tension is driving the need for C5ISR industry in military and defence sector.
• For instance, in September 2023, DEVCOM C5ISR Center partnered with three industries in FY23 for supporting critical automation capabilities for the design of future armored platforms.
• Thus, the increasing budget of military and defence sector as well as prevailing joint operations is driving the C5ISR market share.