Combat System Cybersecurity and Navigation Resilience Fuel US DoD C4ISR 2018-2023 Spend

Research and development in missile defense such as AI, quantum computing and directed energy will create future growth opportunities, finds Frost & Sullivan


SANTA CLARA, CaliforniaMarch 20, 2019 – Frost & Sullivan’s recent analysis, US DoD C4ISR, 2018–2023, reveals that augmented reality systems will be integrated into cockpits, bridges, ground vehicle turrets, and operations centers to provide netcentric warfare gains and integrate tactical assets and geospatial and tracking capabilities. Frost & Sullivan forecasts C4ISR funding from 2017 through 2023 to have a CAGR of 3.3% with mature technologies and proven services a focus for future spending.

“Multi-source sensors with optical acoustic signals, electronic warfare, cybersecurity, communications, and other technologies will enable faster and more accurate target detecting, targeting, and decision-making,” said Brad Curran, Industry Principal, Defense at Frost & Sullivan. “C4ISR spending will focus on combat system cybersecurity, navigation resiliency, and GPS improvements/alternatives.”

Curran predicts that defense industry consolidation and merger activities will accelerate with an emphasis on dual-use commercial products and services as the overall programs of record are reduced. Future technologies to enable missile defense such as artificial intelligence, quantum computing, and directed energy will be the foundation of defense research and development.

Five findings creating growth opportunities in the market include:

  1. A high priority set on securing space-based navigation assets and preparing readily available alternatives over the next three years
  2. Sharp operations and maintenance (O&M) increases for Army IT networks, Navy/Marines EW, and Air Force cyberspace activities
  3. The Navy has the largest share of funding
  4. Surveillance and reconnaissance (S&R) is the largest technology segment
  5. The largest technology area with the most contracts is network, both enterprise and tactical

“Despite significant opportunities, STEM (science, technology, engineering, and mathematics) workers are in short supply in the United States with expertise and skills such as cybersecurity hindering efficient research and development as well as production,” noted Curran. “Furthermore, uncertain defense spending, inefficient contracting processes, and ineffective government business practices are creating supply chain instability and hampering smaller firms’ participation in providing essential materials, components and advanced technologies.”

US DoD C4ISR, 2018–2023 provides an overview of budget spending, including program funding and contract activity for the DoD C4ISR market. The research includes an analysis of research, development, test and evaluation; procurement; operations and maintenance; and a variety of services. Program funding is derived from the DoD 2019 budget request and includes designated portions of overseas contingency operations funding. C4ISR systems inherent in new-build tactical ground vehicles, ships, and aircraft platforms are included if distinctly specified by program, contract, or contract modification with contract data based on the 2017 calendar year.

US DoD C4ISR Market, Forecast to 2023 is the latest addition to Frost & Sullivan’s Defense  research and analysis available through the Frost & Sullivan Leadership Council, which helps organizations identify a continuous flow of growth opportunities to succeed in an unpredictable future.

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