Digital Battlefield Market

Digital Battlefield Market Outlook (2024 to 2034)

With projections to expand at a CAGR of 12.4% over the next ten years, the global digital battlefield market is expected to increase from a value of US$ 41.22 billion in 2024 to US$ 142.32 billion by the end of 2034.

Modern warfare and military systems are being redefined with the integration of advanced technologies. The flow of information across military hierarchies is leading to the evolution of defined horizontal and vertical communication. Budget planners and countries across the world are increasing the proportion of digital battlefield technology share in their overall military and defense budgets.

The close ties of digital battlefield companies with military budget planners and a high focus on making solutions flexible and customizable to suit each country's military and defense goals will substantially contribute to market growth over the coming years. Virtual soldier training programs are expected to become an important part of military planning. The role of augmented and virtual reality is expected to grow in the coming years, contributing to the growth of the digital battlefield market.

• The North American digital battlefield market size is estimated at US$ 16.8 billion in 2024.
• East Asia is forecast to capture 25% of the global digital battlefield market share by 2034.

Report Attribute	Detail
Digital Battlefield Market Size (2024E)	US$ 41.22 Billion
Forecasted Market Value (2034F)	US$ 142.32 Billion
Global Market Growth Rate (2024 to 2034)	12.4% CAGR
South Korea Market Value (2034F)	US$ 8.22 Million
Digital Battlefield Software Demand Growth (2024 to 2034)	13.2% CAGR
Key Companies Profiled	BAE Systems; Elbit Systems Ltd.; Lockheed Martin Corporation; Northrop Grumman Corporation; Rheinmetall AG; General Dynamics Corporation; Raytheon Technologies Corporation; FLIR Systems Inc.; Thales Group; Israel Aerospace Industries; Curtiss-Wright; ATOS SE; Airbus S.A.S; Rafael Advanced Defence Systems Ltd.

What is the Scenario for Digital Battlefield Solutions across the World?

“Market to Benefit Immensely from Rising Deployment of 5G Infrastructure for High-Speed Data Collection”

The high capability of 5G technology, which can support over 1 million devices in a square kilometer range, will push the demand for digital battlefield products around the globe. Multiple devices including military devices embedded with smart sensors, can be connected using a 5G network.

All autonomous systems or platforms for the digital battlefield, such as armored vehicles and unmanned ground vehicles, can work on a 5G connection through which data is transferred at high speeds in real time. This data is interpreted, received by the systems through the network, and used by autonomous platforms to take action.

With a network that has higher speed and low latency, such systems will work more efficiently. For instance, the communication between an unmanned aerial vehicle and its controller will be quicker and more efficient through a 5G network than on current communication systems.

“Adoption of Advanced Satellite-based Geospatial Analytical and GIS Tools for Real-Time Detection of Threats”

The geographical information system (GIS) is a widely recognized visualization tool offering data in graphic form, convenient for communicating complex information through digital battlefield devices in military combat operations.

Integration of GIS and geographical positioning system (GPS) can provide location and visualization aspects for defense forces and can be effectively utilized by surveillance systems. GIS and GPS-integrated digital battlefield systems can also offer real-time location and status of enemy assets. Several countries across the world are modernizing their military systems to cope with the rapidly transforming digital battlefield scenarios.

What is the Only Reason Lowering Adoption of Digital Battlefield Technologies?

“High Installation and Maintenance Costs Associated with Digital Battlefield Technologies”

Integration of technologies such as autonomous weaponry, drones, hypersonic, robotics, electronic warfare, quantum computing, artificial Intelligence (AI), big data analytics, and advanced missile defense systems are notable digital battlefield market trends. However, investments in these technologies require high funds. Countries with low budgets often deter opting for advanced defense technologies.

Digital battlefield technologies are essential for modern combat. Adoption of advanced defense systems may act as a significant expense on a budget-constrained economy. Also, wholly digitalizing a country’s defense system is a time-consuming and expensive procedure. It calls for a high level of research and development efforts. A digital battlefield embedded with artificial intelligence, the Internet of Things (IoT), and deep learning requires high capital and technical expertise. Furthermore, the maintenance cost associated with digital battlefield technologies is also high.

Start-up Ecosystem

• Axon Vision is an Israel-based start-up that offers an AI-based situational awareness engine. The company’s product 'edge360' utilizes computer vision to provide automated situational awareness to ground vehicles. Its intuitive user interfaces (UI) and customized alert mechanisms also offer estimations of threats in real time.
• Based in the United States, Espre Technologies is a start-up that manufactures a suite of sensor products for NIN communication. The company’s chipsets allow wireless digital encryption of data with 10x simultaneous transmissions.

Country-wise Analysis

Why is the United States an Attractive Market for Digital Battlefield Companies?

“Highest Military Spending in the World by Far”

Attribute	United States
Market Value (2024E)	US$ 12.1 Billion
Growth Rate (2024 to 2034)	11.2 % CAGR
Projected Value (2034F)	US$ 34.87 Billion

With its strong defense and economic policies, the United States is recognized as a key manufacturer, exporter, and user of digital battlefield systems. The United States' new defense strategy indicates an increase in military spending to include advanced capabilities in the United States Army's existing defense systems to counter incoming threats. Lockheed Martin Corporation, Northrop Grumman Corporation, L3Harris Technologies, Inc., and Raytheon Technologies Corporation are among the leading manufacturers and developers of AI systems in the United States.

What are the Key Accelerators for Market Growth in China?

“Significant Investments in Advancing Military and Defense Systems”

Attribute	China
Market Value (2024E)	US$ 4.76 Billion
Growth Rate (2024 to 2034)	13.5% CAGR
Projected Value (2034F)	US$ 16.9 Billion

The country has seen several neighboring and distant foes in the recent past, which has led it to constantly increase its military budget. Its tussle with the United States, India, Japan, South Korea, Vietnam, Malaysia, and Taiwan has encouraged the country not only to invest in upgrading traditional warfare mechanisms but also in adopting new defense technologies.

The country’s People’s Liberation Army (PLA) ranks among the leading militaries equipped with artificial intelligence and anti-ship ballistic missiles. The country’s Strategic Support Force, which was established in 2015, is engaged in channelizing electronic warfare, cyber warfare, and psychological operations. Thus, China is a high-growth marketplace for digital battlefield technology producers.

Why is Japan Bolstering its Digital Battlefield Infrastructure?

“Increasing Threat from Neighbouring Countries”

Attribute	Japan
Market Value (2024E)	US$ 2.81 Billion
Growth Rate (2024 to 2034)	14% CAGR
Projected Value (2034F)	US$ 10.46 Billion

Japan is witnessing a high frequency of digital attacks and cybersecurity threats. The increasing supremacy of China and North Korea in the field of military and defense is driving Japan to invest in advanced battlefield technologies.

Category-wise Analysis

Why is New Procurement of Digital Battlefield Solutions Expected to be Higher?

“Digitalization Trend Influencing Countries to Adopt Latest Defense Technologies”

New procurement of digital battlefield solutions are expected to hold leading market share throughout the forecast period. As countries have been replacing their existing military equipment and solutions with digital counterparts, new procurement is expected to exhibit high demand.

Which Type of Digital Battlefield Platform is Most Popular?

“Elevated Demand for Airborne Digital Battlefield Platforms”

Attribute	Airborne Digital Battlefield Platforms
Segment Value (2024E)	US$ 22.11 Billion
Growth Rate (2024 to 2034)	11.5% CAGR
Projected Value (2034F)	US$ 65.47 Billion

Airborne digital battlefield technologies are anticipated to hold high market share throughout the study period (2024–2024). Airborne digital battlefield technologies offer real-time high-fidelity situational awareness to military officials. The integration of advanced sensors, communication systems, and data fusion allows a comprehensive understanding of the battlefield environment.

Demand for digital battlefield systems deployed in space, enabling real-time mapping of Earth objects that helps military and defense leaders make real-time decisions, especially during cold wars and war-like situations is expected to increase at a high pace during the forecast period.

Competitive Landscape

Key players in the digital battlefield industry are focused on winning new orders and contracts. Some key strategies adopted by leading companies include product launches, collaboration with research institutions or technology producers, partnerships with other players, and mergers & acquisitions.

• In February 2024, China announced that researchers from the Beijing Institute of Technology had produced a new AI-powered technology that could enable smooth communications flows between Chinese units during military action. The system can also identify and suppress enemy communication systems. According to China, this AI-enabled surveillance technology will leave enemies nowhere to hide on the battlefield.

Fact.MR provides detailed information about the price points of key producers of digital battlefield technologies positioned across the world, sales growth, production capacity, and speculative technological expansion, in the recently updated market report.

Key Segments of Digital Battlefield Market Research

• By Technology :

  • Artificial Intelligence
  • 3D Printing
  • Internet of Things
  • Big Data Analytics
  • Robotic Process Automation
  • Cloud Computing & Master Data Management
  • Digital Twin
  • Blockchain
  • AR & VR
  • 5G

• By Application :

  • Warfare Platforms
  • Cyber Security
  • Logistics & Transportation
  • Surveillance & Situational Awareness
  • Command & Control
  • Communication
  • Health Monitoring
  • Simulation & Training
  • Design & Manufacturing
  • Predictive Maintenance
  • Threat Monitoring
  • Real-Time Fleet Management
  • Electronic Warfare

• By Platform :

  • Land
    • Military Fighting Vehicles
    • Unmanned Ground Vehicles
    • Weapon Systems
    • Headquarters and Command Centers
    • Dismounted Soldier Systems
  • Naval
    • Naval Ships
    • Submarines
    • Unmanned Maritime Vehicles
  • Airborne
    • Combat Aircraft
    • Helicopters
    • Special Mission Aircraft
    • Unmanned Aerial Vehicles
  • Space
    • CubeSat
    • Satellites

• By Installation :

  • New Procurement
  • Upgrades

• By Solution :

  • Hardware
    • Communication Devices
    • Wearable Devices
    • Smart Clothing
    • Exoskeleton
    • Smart Helmets
    • Imaging Devices
    • Display Devices
    • Tracking Devices
    • Computer Hardware Devices
    • Data Distribution Units
    • Night Vision Devices
    • RFID
    • Others
  • Software
    • Command & Control Software
    • Military Situational Awareness
    • Security Management
    • Inventory Management
    • Fleet Management
    • Weapon Integration
    • Others
  • Services
    • Deployment & Integration
    • Upgrade & Maintenance
    • Software Support
    • Others

• By Region :

  • North America
  • Latin America
  • Western Europe
  • Eastern Europe
  • East Asia
  • South Asia & Pacific
  • Middle East & Africa