Procurement will overtake research, development, test and evaluation (RDT&E) for the largest share of spending by 2024, says Frost & Sullivan
SANTA CLARA, California, Sept. 10, 2020 /PRNewswire/ -- Frost & Sullivan's recent analysis, Assessment of the US DoD C4ISR Market, Forecast to 2025, highlights the US Department of Defense (DoD) command, control, communications, computers, intelligence, surveillance, and reconnaissance (C4ISR) budget spending and technology trends. The market spending for C4ISR programs is estimated to reach $58.50 billion by 2025 from $53.60 billion in 2019, at a compound annual growth rate (CAGR) of 1.5%. Despite the COVID-19 pandemic outbreak, the expenditure is not expected to create a long-term negative impact on the C4ISR program. However, the need to develop improved medical treatments will push the demand for additional investments.
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"C4ISR and IT industries are converging around artificial intelligence (AI), machine learning, data analysis, self-healing networks, and cloud computing," said Brad Curran, Aerospace & Defense Research Analyst at Frost & Sullivan. "Going forward, naval, airborne, and ground tactical networks are overly complex, making the networks too difficult to establish and defend. To resolve this problem, DoD requires integration and cybersecurity services from the defense industry."
Curran added: "Procurement will overtake research, development, test and evaluation (RDT&E) to take up the largest share of spending by 2024. It will primarily focus on manpack radio, fixed surveillance systems, naval IT networks, ship self-defense systems, anti-submarine warfare sensors, and deployable tactical networks. Further, the operations and maintenance department's spending will emphasize on service-wide communications, global early warning sensors and networks, cybersecurity, weather systems, and software/digital technology pilot programs."
The steady growth of the C4ISR budget spending presents immense growth prospects for its market participants, including:
Assessment of the US DoD C4ISR Market, Forecast to 2025 is the latest addition to Frost & Sullivan's Aerospace & Defense research and analyses 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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Assessment of the US DoD C4ISR Market, Forecast to 2025
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