The global NATO C5ISR market size hit USD 69.50 billion in 2021. The market value is slated to rise from USD 73.08 billion in 2022 to USD 110.85 billion by 2029, exhibiting a CAGR of 6.13% during the forecast period. As a worldwide Command and Control (C2) framework, C5ISR extends military C2 capabilities by providing command and control authority, situational awareness, secure encrypted communication, and military directives to assigned forces, says Fortune Business InsightsTM in its report titled, “NATO C5ISR Market, 2022-2029”.

Economic Impact of Russo-Ukrainian War is Hampering NATO C5ISR Market Growth


The Russia-Ukraine War initiated in February 2022 affected various industries across the globe. Strict travel bans over the Ukrainian Airspace have been announced worldwide. The Russia-Ukraine War has impacted the market in 2022.

The Russia-Ukraine war increases defense expenditure and strengthens defense forces from NATO countries. Most European countries have increased their defense spending due to Russia’s invasion. Germany increased its defense spending above 2% of GDP and allocated USD 109 billion, which is more than the total defense bill for 2021.

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By Type, Land Segment Anticipated to Dominate the Market 

Based on type, the market is classified into land, naval, airborne, and space. The space segment is expected to grow at the fastest rate. Increased small satellite launches for communication satellites, navigation, and internet connectivity will propel the market growth. The segment’s growth is being driven by rising demand for network-centric C5ISR solutions to improve electronic warfare capabilities.

By Application, the High-Density Interconnection Segment will Drive the Market 

The market is segmented into electronic warfare, ISR (intelligence, surveillance, and reconnaissance), weapon systems, theater command and control, information security and assurance, computing, and others based on application. This substantial portion is attributed to the expansion of strategic critical infrastructure and the infusion of modern naval and air assets in response to theater operational requirements.

By Solution, Non-Metal Segment to Augments Market Growth 

The market is divided into three segments based on solution, hardware and software and services. The hardware segment includes sub-segments such as sensor systems, communication, and network technologies, displays and peripherals, and weapon systems. Software and services segment is classified into cybersecurity, computing and analysis, system integration and engineering, simulation and training, managed services, support services, and others.

Geographically, the market is classified into the NATO (the U.K., Germany, France, Spain, Italy, Poland, Turkey, Canada, the Rest of NATO), and the U.S.

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Report Coverage-

The research report provides a detailed technical analysis of the market. It focuses on key aspects such as market leaders, the impact of the Russia-Ukraine war on the market, in-depth NATO command and control applications, and the research ideology of weather forecasting devices. Aside from that, the report provides insights into market trends and highlights key industry developments and trends. In addition to the previously mentioned factors, it provides multiple factors that will make a contribution to the market’s growth in the coming years.

Drivers & Restraints-

Market Growth is Fueled by the Growth of Cross-Border Conflicts

Border disputes occur all over the world, including in several countries, as a result of disagreements between two or more states over land possession or control of an area. In recent years, there have been territorial disputes between India, Pakistan, China, Nepal, Bangladesh, Iran, Afghanistan, Bhutan, Taiwan, Israel, Syria, and Russia. These countries are heavily investing in C5ISR systems and solutions to improve situational awareness through border patrol modernization. The C5ISR system’s high development cost is a significant impediment to the market growth.


Regional Insights-

U.S Dominated the Market in 2021

The market is studied across the U.S. and NATO. NATO consists of the U.K., Germany, France, Spain, Italy, Poland, Turkey, Canada, and the Rest of NATO. The U.S. dominated the market in 2021. The NATO C5ISR market share in the U.S. was valued at USD 47.50 billion in 2021, with a significant CAGR expected during the forecast period. The Department of Defense invested USD 1.3 billion in UAV procurement in 2020, according to the Defense Budget Overview.

Competitive Landscape-

Key Players to Implement Technological Advancements

Several key players are investing in the research and development of new command and control solutions to maintain their market position. The market is being boosted by a diverse product portfolio and innovative concepts that have been accepted by key players.

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Key Industry Development-

January 2022 – Collins Aerospace announced that it demonstrated its JADC2 as a part of the Pentagon’s initiative for CJADC2 (Combined Joint All Domain Command and Control), which facilitated that the systems help armed forces with actionable data and heightened situational awareness.

List of Key Market Players:

  • SAAB AB (Sweden)
  • Raytheon Technologies Corporation (U.S.)
  • L3Harris Technologies Inc. (U.S.)
  • Leonardo S.p.A. (Italy)
  • BAE Systems Plc (U.K.)
  • ManTech International Corporation (U.S.)
  • ST Engineering Ltd. (Singapore)
  • Lockheed Martin Corporation (U.S.)
  • General Dynamics Corporation (U.S.)
  • Northrop Grumman Corporation (U.S.)
  • CACI International Inc. (U.S.)
  • Elbit Systems Ltd. (Israel)
  • Kratos Defense & Security Solutions Inc. (U.S.)
  • Thales Group (France)


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By Emelia Murison

Emelia Murison is a freelance writer and editor with a passion for innovation and technology. She covers breaking industry news, #SpaceForGood, and product reviews for the group. She also provides copywriting services to startups around the world – one of which introduced her to the world of Aerospace.