Global Combat Management System Market By Type (Self-defense Management System, Situational Awareness System, Track Management System, Weapon Management System, Display System, Identification System, and Unmanned Vehicle Control System), By Application, By Region, and Key Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends and Forecast 2020-2029

Report Overview

The Global Combat Management System Market size is expected to be worth around USD 1386 million by 2032 from USD 750 million in 2022, growing at a CAGR of 6.5% during the forecast period 2022 to 2032.

A combat management system is a computer system that unites the ship’s sensors and radars with other equipment. Combat management systems provide situational awareness and intelligence to the crew, which allows them to carry out combat missions effectively. This system also ensures efficient deployment of ships, and other resources, especially in complex threat scenarios of littoral warfare.

The market for Combat Management Systems is experiencing significant growth, driven by the increasing demand for advanced defense capabilities and the modernization of military forces globally. The evolution of asymmetric warfare and the rising threat of terrorism and cross-border conflicts have prompted nations to invest in sophisticated defense technologies, including CMS.

This market is further propelled by the technological advancements in network-centric warfare systems, which require robust and interoperable CMS solutions to ensure seamless communication and coordination across diverse military assets.

Key Takeaways

• Market Projection: The Combat Management System Market is expected to reach a valuation of USD 1386 million by 2032, with a growth rate of 6.5% from 2022 onwards.
• By Component Analysis: Software segment dominates due to high development costs and complex system architecture. Hardware segment to grow significantly with increased demand for subsystem integration.
• By Sub-System: Unmanned Vehicle Control System (UVCS) to experience the highest growth rate.
• By Platform: Corvette segment holds the largest market share, emphasizing interoperability and Submarine segment to grow, driven by fleet expansion and modernization.
• Driving Factors: The market is primarily propelled by increased global military spending and the widespread adoption of anti-surface warfare capabilities, enhancing demand for combat management systems.
• Challenges: The market faces challenges due to high initial costs associated with system implementation and the need to safeguard these systems from cybersecurity threats.
• Latest Trends: The market is witnessing the development of intelligent combat management system solutions and an increasing demand for enhanced situational awareness to boost market growth.
• Growth Opportunities: The use of commercially available components, the development of intelligent combat management system solutions, and the demand for enhanced situational awareness are creating significant growth opportunities in the market.
• Regional Dynamics: North America leads the market, driven by substantial military spending, while the Asia Pacific region exhibits the most rapid growth, buoyed by maritime developments and increased defense budgets.
• Key Players: Notable market participants include BAE Systems PLC, Elbit Systems Ltd., and Saab AB, among others, driving innovation and competition within the sector.

By Component Analysis

Due to critical system replacement or integration to propel market growth, there is a high demand for software customization and upgrades

Software and hardware are the two main market segments based on their type. Hardware is divided into combat data centers, control consoles, and data network switchers. Market dominance is expected to be held by the software segment due to the high development cost and complex combat system architecture. Due to the integration of newer subsystems and increased emphasis on network-centric warfare, CMS architectural customization has been in high demand. Due to increasing defense spending and increased naval production, the hardware segment will grow in the forecast period.

By Sub-System

Unmanned Vehicle Control System Segment to Boost Market Growth at the Highest Growth Rate

The market is divided into track management systems, self-defense management systems, situational awareness systems, weapon management systems, display systems, identification systems, and unmanned vehicle control systems based on the subsystem. The unmanned vehicle control system is expected to expand at the highest CAGR in 2023 and throughout the forecast period. The increased use and adoption of unmanned vehicles like UUVs, UGVs, and UAS are credited with enhancing combat capabilities.

Due to the rapid increase in the purchase of cutting-edge weapons all over the world, it is anticipated that the self-defense management system segment will experience a significant rate of growth in the global market. Due to the high demand for improved situational awareness, it is anticipated that the situational awareness system segment of this market will experience significant growth. As track management systems integrate track structure data, inspect to assist seaways, and check maintenance and accuracy, the track management system segment is anticipated to expand at a significant rate in the global market. During the forecast period, it is anticipated that other segments will grow at a significantly moderate or sluggish rate.

By Platform

Corvette Segment to Dominate Market Share Owing to Higher Production Rate

The market can be divided into the following segments: destroyers, submarines, frigates, amphibious vessels, Corvettes, fast attack crafts (FAC), and aircraft carriers. In 2022, the Corvette segment accounted for the largest market share. This is due to an increase in surface combatant delivery rates, an increase of corvette deliveries to the navies around the world, and extensive use by both blue and green water navies. The interoperability of naval systems with surface and sub-surface combatants is a key focus for naval forces around the world. They also embrace network-centric warfare and are actively engaged in anti-surface warfare by different naval forces.

Due to the large number of delivery of naval vessels, the submarine segment is expected to grow over the forecast period. The submarine segment is being influenced by a growing submarine fleet around the world and the modernization of submarines from traditional diesel-electric to nuclear-powered. Due to the variable delivery times and modernization programs of naval forces and defense agencies around the world, it is expected that the aircraft carrier, destroyer, frigate, and amphibious ship (FAC) will grow in importance.

Key Market Segments

Based on Component

• Software
• Hardware

Based on Subsystem

• Self-Defense Management System
• Situational Awareness System
• Track Management System
• Weapon Management System
• Display System
• Identification System
• Unmanned Vehicle Control System

Based on Platform

• Destroyers
• Submarines
• Frigates
• Amphibious Ships
• Corvettes
• Fast Attack Craft (FAC)
• Aircraft Carriers

Driving Factors

Steady Rise in Military Expenditure to Propel Market Growth

The main factors that will influence global market growth over the forecast period are the consistent increases in military spending by both developed and emerging countries to meet ever-evolving, complex maritime operational needs. In general, an increase in defense spending is correlated with economic growth in a country’s respective fiscal year. Through its most recent study, the Stockholm International Peace Research Institute(SIPRI) validates the nature and economic progress of military spending.

Growing Adoption of Anti-Surface & Sub-Surface Warfare (ASuW) Capabilities in Various Surface Ships to Influence Market Growth

It is anticipated that the widespread adoption of anti-surface warfare will make it easier to measure precise real-time positioning data for target acquisition and threat perception. Search and rescue, counter-piracy, freedom of navigation, and military combat missions are just a few of the many applications for which this data is essential. In addition, the advanced combat systems may make it possible for an unmanned vehicle to operate efficiently over a greater distance.

Restraining Factors

High Initial Cost of Combat Systems Components and Implementation to Hamper Market Growth

In order to deliver essential mission systems to the end user, the combat management system needs several components. As a result, more naval CMSs are required to improve fleet management and interoperability. However, the market’s expansion is anticipated to be slowed by the high costs of designing or customizing CMS for a variety of naval platforms.

The Growing Need to Protect Combat Systems from Cyber Attacks is a Major Challenge for Market Development

Economic progress is accelerating the number of conflicts and skirmishes between neighboring countries. Constant conflicts and increasing geopolitical tension have changed the nature of war from traditional to cyberspace. Cyber-attacks are a serious threat to the CMS’s ability to provide situational awareness and naval self-defense. The CMS market faces significant challenges in protecting its global naval capabilities against cyber threats such as jamming or spoofing. Anti-jamming and counter-spoofing products can help solve this problem.

Growth Opportunity

The use of commercially available components, which are lighter and smaller in size, necessitated low development costs. Due to the aforementioned reasons, vendors of Vetronics systems are adopting this technology, indicating an emerging trend. COTS (Commercial off-the-shelf) components are used to rebuild many military vehicles. These components provide users with a smart display and seamless benefits. The software of this technology is based on HMI (Human Machine Interface) and the ARINC 661 standard. These are essential for dealing with critical missions in applications. Touch screens and smart device displays are compatible with HMI software like Presagis VAPS XT. In order to improve the system’s affordability and dependability, this software reconfigures itself on a variety of devices for a variety of purposes.

Latest Trends

Development in Intelligent Combat Management System Solutions to Create Significant Growth Opportunities

The demand for intelligent combat systems of the next generation is being driven primarily by the introduction of virtualization, combat systems based on artificial intelligence (AI), modernization of the naval fleet, integrated naval combat mission system management, and functions for automating naval combat subsystems. Combat system virtualization is used to consolidate mission computers and consoles on a physical server, boosting energy efficiency, flexibility, and work efficiency.

High Demand for Enhanced Situational Awareness to Boost Market Growth

The current naval battlefield’s dynamic operational requirements will necessitate enhanced situational awareness in the near future. Functional requirements for surface combatants include integrated command and control systems, precise and quick data transmission, and advanced surveillance systems. During the forecast period, these factors are anticipated to offer opportunities for market expansion.

Regional Analysis

The combat management system market framework is divided by region into North America and Europe, Asia Pacific, and the Middle East. The figure shows that North America will grow at a tremendous CAGR over the time period.

Market strength in the area is due to the U.S.’s higher military spending, the functional necessity of the naval force for interoperability, better situational mindfulness, and armada reformation. Market development in the District will be driven by OEMs such as Lockheed Martin Company and Northrop Grumman Organization. This is due to strong maritime creation and Research & Development structure.

Due to the strong presence of original equipment manufacturers (OEMs) and other critical component manufacturers like Kongsberg Gruppen ASA, Thales Group, BAE Systems PLC, and others, the Europe market is anticipated to expand at a moderate CAGR. It is anticipated that strong market growth will be in naval production and in this market will be driven by the significant growth in manufacturers’ revenue.

The Asia Pacific combat management system market is assessed to be the quickest developing by CAGR during the conjecture time frame. India, China, Australia, Japan, and Southeast Asia support essential income development. India has a significant turn of events and development in maritime and shipbuilding confidence in maritime creation for the nation and protection accomplices or partners.

Besides, another component affecting the market development is the ascent in sea questions notwithstanding the Worldwide Official courtroom’s structure to keep up with and carry out global route opportunities. This advancement has prompted an augmentation in the safeguard spending plans for maritime creation and basic maritime frameworks.

Due to a vastly under-penetrated market, it is anticipated that the Rest of the World will have a smaller market share. In the meantime, it is anticipated that the Middle Eastern market will expand more rapidly as CMS is implemented in Israel, Saudi Arabia, Turkey, and Egypt.

Key Regions and Countries

• North America
  • The US
  • Canada
  • Mexico
• Western Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Portugal
  • Ireland
  • Austria
  • Switzerland
  • Benelux
  • Nordic
  • Rest of Western Europe
• Eastern Europe
  • Russia
  • Poland
  • The Czech Republic
  • Greece
  • Rest of Eastern Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • Australia & New Zealand
  • Indonesia
  • Malaysia
  • Philippines
  • Singapore
  • Thailand
  • Vietnam
  • Rest of APAC
• Latin America
  • Brazil
  • Colombia
  • Chile
  • Argentina
  • Costa Rica
  • Rest of Latin America
• Middle East & Africa
  • Algeria
  • Egypt
  • Israel
  • Kuwait
  • Nigeria
  • Saudi Arabia
  • South Africa
  • Turkey
  • United Arab Emirates
  • Rest of MEA

Key Players Analysis

This market is fragmented due to the extensive product portfolio and solid reputation of major corporations operating in both developing and developed economies. There are numerous OEMs and manufacturers in the market. The market leaders are Elbit Systems and Thales Group. Key players include Leonardo DRS and Lockheed Martin. Other important suppliers include L&T Defense, Kongsberg Gruppen ASA, and Atlas Elektronik GmbH.

The products and services offered by these businesses are well-known. OEMs employ a variety of important market strategies. These include cutting-edge products of the next generation and services for the entire lifecycle. technological advancements, Partnerships, Collaborations, strategic acquisitions and mergers.

• BAE Systems PLC (U.K.)
• Elbit Systems Ltd. (Israel)
• Saab AB (Sweden)
• Israel Aerospace Industries Ltd (Israel)
• L&T Defense Ltd. (India)
• Bharat Electronics Limited (BEL) (India)
• ATLAS ELEKTRONIK GmbH (Germany)
• Kongsberg Gruppen ASA (Norway)
• The Raytheon Company (U.S.)
• Other Key Players

Recent Developments

• In March 2022, Leonardo was selected by Damen Naval, a Damen Shipyards Group subsidiary, to supply and install the German Navy’s four F126 frigates with its lightweight (LW) Vulcano defense systems.
• In January 2022, A shore-based anti-ship version of the BrahMos supersonic cruise missile was ordered by the Philippines under a contract worth $374.96 million from BrahMos Aerospace Private Ltd. Three missile batteries, operator and maintenance training, and the necessary Integrated Logistics Support (ILS) package are also included in the contract. The business will assist the Philippines in establishing bases for anti-ship missile systems, associated sensor suits, and combat management systems that will be utilized in the second half of 2023.

Report Scope