33% CAGR growth in 5G defence sales: Future Market Insights
The 5G in defence market revenue is estimated at US$ 213.5 million in 2022 and is anticipated to grow at a CAGR of 33.3% from 2022-2032, according to a recently published Future Market Insights report.
By the end of 2032, the market is expected to reach US$ 3.8 billion. Market revenues through small cell communication infrastructure are projected to grow 31.5% in the next decade.
Increased dependency on IoT device connectivity, big data usage for decision-making, increased government and military functions automation, and 5G network infrastructure upgrades and government investments are expected to drive a rapidly increasing market for 5G areas in defence markets.
As more IoT devices become integrated into military applications, revenue in the IoT market is projected to increase. In addition, cyber-physical systems, AI technology, and real-time 5G networks are expected to boost IoT use for military applications in the years ahead. This will allow these businesses to efficiently transmit and send information from embedded sensors and real-time networks over the internet.
Many countries are concentrating their efforts on strengthening their military infrastructure. Seamless connectivity is required for speedy upgrades and maximum efficiency. As a result, these elements are critical to the growth of the 5G military industry.
Several countries' governments are investing extensively in defence infrastructure to secure their borders from anti-social elements in neighbouring countries. Moreover, conflicts between certain neighbouring countries will also increase the defence budget. These considerations point to a positive future for 5G in the defence market.
The expansion of telecommunication infrastructure, owing to government backing, will play a significant role in the growth of the 5G military market. Furthermore, due to the growth measures adopted by the participants in the 5G in the defence market, they will have enormous potential to earn profits.
Some of the key market participants in 5G in the defence market include Ericsson, Huawei, Nokia, Samsung, NEC, Thales Group, L3Harris Technologies, Inc., Raytheon Technologies, Ligado Networks, and Wind River Systems.
Additionally, market growth is expected to be fuelled by collaborations among current players to improve quality throughout the research period. Over the projection period, established market players are expected to diversify their portfolios and offer one-stop solutions to combat fierce competition.
In June 2022, Raytheon Technologies Co and Northrop Grumman announced that they had won contracts from the U.S. to develop missiles that intercept hypersonic weapons.
In June 2022, Ligado announced that it had selected Sony Semiconductor Israel as the chipset developer for its 5G satellite network. The former's 5G satellite IoT network, based on 3GPP standards, will support millions of mobile devices that will empower critical machine-to-machine communications in the transportation, energy, and agricultural sectors.
In February 2022, Ericsson and Mobily inked a Memorandum of Understanding to expand cutting-edge 5G use cases in Saudi Arabia.
In January 2022, Intelsat, the world's largest integrated satellite and terrestrial network operator, and Thales Alenia Space, a joint venture between Thales (67%) and Leonardo (33%), agreed to develop two software-defined satellites as part of Intelsat's 5G software-defined network.
In May 2020, T-Mobile US, Inc. and Ericsson signed a partnership. While the industry is completely developing Voice over New Radio (VoNR) 5G technologies, this alliance provides high-quality voice services using VoLTE in the SA architecture.