Combat Management System Market Overview
Combat Management System Market Size was valued at USD 0.25 billion in 2023. The Combat Management System market is projected to grow from USD 0.2589 Billion in 2024 to USD 0.319 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 3.75% during the forecast period (2024 - 2032). The adoption of unmanned vehicles by different navies worldwide and the development of intelligent combat management system solutions are the key market drivers enhancing market growth.
Source Secondary Research, Primary Research, MRFR Database and Analyst Review
Combat Management System Market Trends
- Development of intelligent combat management system solutions is driving market Growth.
The digitalization of naval systems and subsystems and significant technological advancements in naval combat systems influence the focus of OEMs on the market. The development of various CMS-enabled hardware and services, along with other factors, such as the assistance of digital diversification for surface combatants, are boosting the market growth. The main purpose of combat systems was to enable precision target delivery, situational awareness, critical mission systems, and other shipborne systems to carry out critical combat operations with the utmost accuracy.
These important developments are anticipated to boost Combat Management System Market For instance, demand and demand for combat management systems in the upcoming years. The emergence of virtualization, AI-based combat systems, the modernization of naval fleets, integrated naval combat mission system management, and naval combat sub-system automation functions are major drivers of the demand for next-generation intelligent combat systems. To save energy, improve productivity, and increase flexibility, combat system virtualization is being used to group mission computers and consoles into a single physical server.
The systems of the next generation are highly intelligent and have digital sub-system interfaces. For instance, Saab Australia and the Australian Department of Defense signed a business partnership agreement in February 2020 to supply next-generation combat systems. The Royal Australian Navy fleets, including the ANZAC-class frigates, the Arafura-class offshore patrol ships, the mine-hunting ships, the military survey vessels, and the Supply-class replenishment ships, will receive the future CMS and have it fitted and tested on them. To improve the functionality of its next-generation combat systems, Saab Australia may interface with the AEGIS system for the Hunter-class frigates and Hobart-class destroyers. Such developments will create many opportunities for the market for combat management systems to expand. Thus, driving the Combat Management System market revenue.
Lockheed Martin: Received a USD 283 million contract from the US Navy to integrate its next-generation Integrated Combat System (ICS) onto Constellation-class frigates, improving interoperability and decision support. (September 2023)
Combat Management System Market Segment Insights
Combat Management System Platform Insights
Based on the platform, the combat management system market segmentation includes destroyers, submarines, frigates, amphibious ships, corvettes, fast attack craft (fac) and aircraft carriers. The corvette segment dominated the market, and the growth is attributed to a higher rate of delivery among surface combatants, an increase in corvette deliveries to navies worldwide, and extensive use by blue and green water navies ly. ly, different naval forces are focusing on network-centric warfare and anti-surface warfare. The interoperability between naval systems and surface and sub-surface combatants has recently enhanced the Combat Management System market CAGR ly.
Figure 1 : Combat Management System Market by Platform, 2022 & 2030 (USD billion)
Source Secondary Research, Primary Research, MRFR Database and Analyst Review
Combat Management System Sub-System Insights
Based on the sub-system, the combat management system market segmentation includes a self-defense management system, situational awareness system, track management system, weapon management system, display system, identification system and unmanned vehicle control system. The unmanned vehicle control system segment held the majority share in 2022 concerning the Combat Management System Industry revenue. The growth is attributed to enhanced combat capabilities by utilizing and adopting unmanned vehicles such as UUVs, UGVs, and UAS.
The self-defense management system segment is expected to witness a significant growth rate in the market due to the rapidly increasing procurement of advanced weapons worldwide. The situational awareness system segment is projected to show a notable growth rate in this market due to the high demand for enhanced situational awareness. As track management systems integrate track structure data, inspect to help seaways, and check maintenance and accuracy, the segment for these systems is expected to expand significantly in the Combat Management System Industry. Other segments are anticipated to grow at a significantly moderate or slower growth rate during the forecast period.
Combat Management System Regional Insights
By Region, the study provides market insights into North America, Europe, Asia-Pacific and the Rest of the World. The North America Combat Management System market will dominate this market. Due to higher military spending than the rest of the world, the U.S. and other countries, the region dominates its market. S. Navy operational needs improved situational awareness, interoperability, and fleet modernization. Because of the region's strong naval production and RandD structure, OEMs like Lockheed Martin Corporation, Northrop Grumman Corporation, and others are anticipated to drive market growth.
Further, the major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 2 : COMBAT MANAGEMENT SYSTEM SHARE BY REGION 2022 (%)
Source Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe’s Combat Management System market accounts for the second-largest market share. This results from the significant presence of OEMs and other key component producers like Thales Group, Kongsberg Gruppen ASA, BAE Systems PLC, and others. Strong market growth in naval production and this market are anticipated due to the manufacturers' revenue significantly growing. Further, the German market held the largest market share, and the UK Combat Management System market was the fastest-growing market in the European region.
The Asia Pacific Combat Management System Market is expected to grow at the fastest CAGR from 2023 to 2030. China, Japan, India, Australia, and Southeast Asia support the main revenue growth. Despite the ongoing pandemic, the increase in defense spending to USD 281.1 billion in 2021 has been blamed for China's significant growth. India has significantly increased its naval and shipbuilding self-reliance to benefit the nation and its allies or partners in the defense industry. The rise in maritime disputes despite the International Court of Justice's directive to maintain and enforce international navigation freedom is also a factor influencing the market's expansion. Budgets for critical naval systems and naval production have increased due to this development. Moreover, the India market held the largest market share, and the China Combat Management System market was the fastest-growing market in the Asia Pacific region.
Combat Management System Key Market Players & Competitive Insights
Leading market players are investing heavily in research and development to expand their product lines, which will help the Combat Management System market grow even more. Market participants are also undertaking various strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the Combat Management System industry must offer cost-effective items.
Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the Combat Management System industry to benefit clients and increase the market sector. The Combat Management System industry has recently offered some of the most significant medical advantages. Major players in the Combat Management System market, including Lockheed Martin Corporation (US), Thales Group (France), BAE Systems (UK), Saab AB (Sweden), Kongsberg Gruppen Asa (Norway), Israel Aerospace Industries Ltd. (Israel), Leonardo S.P.A. (Italy), Raytheon Technologies Corporation (US), Northrop Grumman Corporation (US), Elbit Systems Ltd. (Israel), Terma AS (Denmark) and others, are attempting to increase market demand by investing in research and development operations.
BAE Systems (UK) British multinational defense, security, and aerospace company BAE Systems plc. It is among the biggest defense contractors in the world, with operations in the United Kingdom, the United States, and several other nations. Among the many goods and services that BAE Systems designs develop, and produces are military aircraft, missiles, ships, submarines, and armored vehicles. In 1999, British Aerospace and Marconi Electronic Systems merged to form the business. It employs about 85,000 people worldwide and has its headquarters in Farnborough, Hampshire, in the UK. In addition to being a significant supplier to the US military, BAE Systems has a long history of providing defense equipment to the UK armed forces. The FTSE 100 Index includes BAE Systems, traded on the London Stock Exchange. The company works in cyber security, intelligence, surveillance, defense, and aerospace markets.
Leonardo S.P.A. (Italy), Leonardo develops multi-domain aerospace, defense, and security capabilities. The company is a trusted technological partner of governments, defense agencies, institutions, and businesses and plays a significant role in important international strategic programs. Leonardo’s business is built on innovation, ongoing research, digital manufacturing, and sustainability. Since 1948, Leonardo has been on the cutting edge of industrial advancement in Italy, paving the way for its international expansion. However, Leonardo has much older industrial roots. Over time, the Group acquires several companies. Many of them have histories that date back to the early 1900s or even the 19th Century, and in some cases, they change their name and specialization.
BAE Systems: Awarded a £500 million contract from the UK Ministry of Defence to deliver the next-generation Maritime Information and Communication System (MICS) for the Royal Navy, enhancing situational awareness and command & control capabilities. (October 2023)
Key Companies in the Combat Management System market include
- Kongsberg Gruppen Asa (Norway)
- Israel Aerospace Industries Ltd. (Israel)
- Raytheon Technologies Corporation (US)
- Northrop Grumman Corporation (US)
- Elbit Systems Ltd. (Israel) and Terma AS (Denmark)
Combat Management System Industry Developments
In March 2024, the Tawazun Council, Naval Group, and Marakeb Technologies entered into a collaborative development agreement to create the national combat management system (NCMS). This deal involves a comprehensive and thorough transfer of technology. The agreement, inked in Abu Dhabi, is a strategic initiative aimed at bolstering the UAE's defense and security sectors.
It seeks to facilitate the rapid expansion of the industry and develop national defense solutions that can effectively address future requirements. Naval Group and Marakeb Technologies, a subsidiary of Strategic Development Fund Company (SDF), have entered into an agreement to collaborate on this program. Marakeb Technologies has been selected as the national partner for collaborative development. Naval Group will enhance the NCMS capability for the UAE Navy, allowing them to establish a national CMS that will be seamlessly incorporated into their naval fleet, for both new ships and existing ones that require modifications.
In October 2023, Thales and Polska Grupa Zbrojeniowa (PGZ) entered into a contract for the provision of the TACTICOS integrated combat management system (CMS), sonars, air-surveillance and fire-control radars, and a 360° infrared sensor for the MIECZNIK1 Frigate programme of the Polish Navy. The frigates will be delivered by the PGZ-MIECZNIK Consortium as part of the Strategic Cooperation Agreement signed in 2022 by Thales, PGZ, and PGZ SW. This agreement enables the consortium to meet the required multirole capabilities. Thales will install the TACTICOS combat management system, sonars, infrared sensor, and radars on the Polish Navy MIECZNIK frigates.
These systems will enhance the warships' capabilities in detecting, identifying, commanding, controlling, and making decisions. The inaugural vessel is anticipated to commence operations in 2029 as part of a strategic initiative that involves a collaborative partnership between Thales and the PGZ-MIECZNIK Consortium, headed by Polska Grupa Zbrojeniowa.
The MIECZNIK class multi-role frigates have been specifically designed to perform various tasks at sea, such as safeguarding sea lines of communication and critical infrastructure. These frigates will greatly enhance the capabilities of the Polish Navy and serve as a significant contribution from the Republic of Poland to the North Atlantic Alliance. The warships will be outfitted with a suite of sensors designed by Thales and seamlessly integrated into the ship's combat system.
Elbit Systems: Unveiled a new open-architecture combat management system called "ETHOS" designed for flexibility and scalability across various platforms and missions. (August 2023)
Northrop Grumman Corporation: Successfully tested its Integrated Fire Control Network (IFCN) for joint all-domain operations, enabling seamless communication and targeting across air, land, and sea forces. (July 2023)
Thales Group: Secured a €1.7 billion contract from the French Ministry of Defense to upgrade the combat management systems of the Marine Nationale's frigates and aircraft carriers. (November 2023)
For instance,August 2021 To integrate fire control naval radars within the Brandenburg Class Frigates (F123) of the German Navy, Saab AB was given a contract worth USD 535 million by BAAINBw (the German Federal Office of Bundeswehr Equipment, Information Technology, and In-Service Support). As part of the contract, a new CMS will be implemented to reduce the risk of integrating fire control and naval radar capabilities.
For instance,September 2022 Lockheed Martin was chosen for a USD 93 Point 2 million one-year contract as part of a modification for maintaining the Freedom Class Littoral Combat Vessel's component-based Total Ship System. The contract also covers COMBATSS-21 testing and integration.
Combat Management System Market Segmentation
Combat Management System Platform Outlook
Combat Management System Sub-System Outlook
- Self-Defense Management System
- Situational Awareness System
- Unmanned Vehicle Control System
Combat Management System Regional Outlook
| Report Attribute/Metric |
Details |
| Market Size 2023 |
USD 0.25 billion |
| Market Size 2024 |
USD 0.2589 billion |
| Market Size 2032 |
USD 0.319 billion |
| Compound Annual Growth Rate (CAGR) |
3.75% (2023-2030) |
| Base Year |
2023 |
| Market Forecast Period |
2024-2032 |
| Historical Data |
2019- 2022 |
| Market Forecast Units |
Value (USD Billion) |
| Report Coverage |
Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered |
Platform, Sub-System and Region |
| Geographies Covered |
North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered |
The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled |
Lockheed Martin Corporation (US), Thales Group (France), BAE Systems (UK), Saab AB (Sweden), Kongsberg Gruppen Asa (Norway), Israel Aerospace Industries Ltd. (Israel), Leonardo S.P.A. (Italy), Raytheon Technologies Corporation (US), Northrop Grumman Corporation (US), Elbit Systems Ltd. (Israel) |
| Key Market Opportunities |
· Military spending continues to rise |
| Key Market Dynamics |
· Growing use of anti-surface and sub-surface warfare (ASSW) capabilities |
Combat Management System Market Highlights:
Frequently Asked Questions (FAQ) :
The combat management system market size was valued at USD 0.25 Billion in 2022.
The market is projected to grow at a CAGR of 3.75% during the forecast period, 2023-2030.
North America had the largest share of the market
The key players in the market are Lockheed Martin Corporation (US), Thales Group (France), BAE Systems (UK), Saab AB (Sweden), Kongsberg Gruppen Asa (Norway), Israel Aerospace Industries Ltd. (Israel), Leonardo S.P.A. (Italy), Raytheon Technologies Corporation (US).
The corvettes combat management system category dominated the market in 2022.
The unmanned vehicle control system channel had the largest share of the market.
