A new market research report (opens in new tab) published by MarketsandMarkets - pithily titled "5G in Defense Market by Communication Infrastructure, Core Network Technology, Platform, End User, Network Type, Chipset, Operational Frequency, Installation and Region-Global Forecast to 2025" - says the market size for 5G in defense will grow from $64m in 2020, to $1.3bn by 2025.
This level of growth will result in a compound annual growth rate (CAGR) of 57.9% from 2021 to 2025, with factors such as low latency IoT, autonomous vehicles, and 5G drones technology being driving factors in 5G’s increasing importance to the defense market.
In May 2020, the US Department of Defense published its 5G Strategy (opens in new tab), where it earmarked the protection and advancement of 5G as “critical” for the United States to maintain its military advantage.
“Ensuring that DoD can operate in a global 5G environment is challenging because potential US adversaries seek to dominate the 5G market in key partner nations, which could allow such competitors to gain unauthorized network and data access via exploited components in the supply chain, malicious software, and/or insider threats,” the report reads. “Accelerating the transition to 5G is challenged by key standards, security principles, and spectrum policies that are still in development.”
The 5G in defense market
According to the report, 5G technology in defense helps improve ISR (intelligence, surveillance & reconnaissance) systems, enables enhanced augmented and virtual reality applications, and improves efficiency in the logistics supply chain.
The 5G in defense market includes 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).
And North America is projected to lead the 5G in the defense market during the forecast period, owing to increased investments by the US Department of Defense in 5G technology.