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Military IoT Market

ID: MRFR/AD/6077-CR
136 Pages
Swapnil Palwe
October 2019

Military IoT Market Research Report Information by Component (Hardware, Software and Services), Technology (Wi-Fi, Cellular, RFID and others), Application (Training and Simulation, Health Monitoring, Real-Time Fleet Management, Inventory Management, Equipment Maintenance and others) and Region (North America, Europe, Asia-Pacific, Middle East & Africa and Latin America) - Forecast till 2032

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Military IoT Market Summary

As per MRFR analysis, The Global Military IoT Market Size was estimated at 11300.0 USD Billion in 2024. The Military IoT industry is projected to grow from 12000.6 USD Billion in 2025 to 21900.2 USD Billion by 2035, exhibiting a compound annual growth rate (CAGR) of 6.2 during the forecast period 2025 - 2035.

Key Market Trends & Highlights

The Global Military IoT Market is poised for substantial growth driven by technological advancements and increasing demand for enhanced operational capabilities.

  • North America remains the largest market for Military IoT Market, driven by significant defense budgets and technological investments.
  • The Asia-Pacific region is emerging as the fastest-growing market, fueled by rising military modernization efforts and regional security concerns.
  • The Wi-Fi segment continues to dominate the market, while the cellular segment is experiencing rapid growth due to advancements in mobile connectivity.
  • Enhanced operational efficiency and improved situational awareness are key drivers propelling the adoption of Military IoT Market solutions.

Market Size & Forecast

2024 Market Size 11300.0 (USD Billion)
2035 Market Size 21900.2 (USD Billion)
CAGR (2025 - 2035) 6.2%

Major Players

Lockheed Martin (US), Northrop Grumman (US), Raytheon Technologies (US), Thales Group (FR), BAE Systems (GB), General Dynamics (US), Leonardo (IT), Hewlett Packard Enterprise (US), Cisco Systems (US)

Military IoT Market Trends

The Global Military IoT Market is currently experiencing a transformative phase, driven by advancements in technology and the increasing need for enhanced operational efficiency. Military organizations worldwide are integrating Internet of Things (IoT) solutions to improve communication, data collection, and real-time decision-making. This integration appears to facilitate better situational awareness and resource management, which are crucial for modern defense strategies. As nations invest in smart technologies, the demand for interconnected devices and systems is likely to rise, leading to a more cohesive and responsive military infrastructure. Moreover, the emphasis on cybersecurity within The Global Military IoT Market cannot be overstated. As military operations become increasingly reliant on digital networks, the potential vulnerabilities associated with IoT devices pose significant risks. Consequently, defense agencies are prioritizing the development of robust security measures to protect sensitive information and maintain operational integrity. This focus on security may drive innovation in the sector, as companies strive to create solutions that not only enhance functionality but also safeguard against cyber threats. Overall, The Global Military IoT Market is poised for substantial growth, characterized by a blend of technological advancement and heightened security awareness.

Increased Interconnectivity

The trend towards greater interconnectivity among military assets is becoming more pronounced. This interconnectedness allows for seamless communication between various platforms, enhancing operational efficiency and coordination during missions.

Focus on Cybersecurity

As military operations increasingly depend on IoT technologies, the emphasis on cybersecurity is intensifying. Defense organizations are prioritizing the development of advanced security protocols to protect sensitive data and ensure the integrity of their systems.

Adoption of Artificial Intelligence

The integration of artificial intelligence within The Global Military IoT Market is gaining traction. AI technologies are being utilized to analyze vast amounts of data collected from IoT devices, enabling more informed decision-making and predictive analytics.

Military IoT Market Drivers

Real-Time Data Analytics

Real-time data analytics represents a transformative driver in The Global Military IoT Industry. The ability to collect and analyze vast amounts of data instantaneously allows military personnel to make informed decisions on the battlefield. IoT devices equipped with advanced sensors can gather data on troop movements, equipment status, and environmental conditions, which can be analyzed to provide actionable insights. This capability is particularly vital in combat scenarios where timely information can be the difference between success and failure. The market for military analytics is projected to reach USD 10 billion by 2026, underscoring the growing importance of data-driven strategies in military operations. As the demand for real-time analytics continues to rise, it is expected to significantly influence the adoption of IoT technologies in military applications.

Improved Situational Awareness

Improved situational awareness is a critical driver in The Global Military IoT Industry. The deployment of IoT devices enables military forces to gain a comprehensive understanding of their operational environment. Sensors and connected devices provide real-time information about troop locations, equipment status, and potential threats, allowing for more effective strategic planning and execution. Enhanced situational awareness can lead to a reduction in response times and improved mission outcomes. According to recent studies, military operations that leverage IoT for situational awareness report a 25% increase in operational effectiveness. As the complexity of modern warfare increases, the demand for technologies that enhance situational awareness is expected to rise, driving further investment in the IoT sector.

Enhanced Operational Efficiency

The drive towards enhanced operational efficiency is a pivotal factor in The Global Military IoT Industry. Military organizations are increasingly adopting IoT technologies to streamline operations, reduce costs, and improve decision-making processes. By integrating IoT devices, military forces can monitor equipment in real-time, leading to predictive maintenance and reduced downtime. Reports indicate that the implementation of IoT solutions can lead to operational cost reductions of up to 30%. This efficiency not only enhances mission readiness but also allows for better resource allocation, which is crucial in a landscape where budgets are often constrained. As military forces seek to maximize their capabilities, the emphasis on operational efficiency through IoT adoption is likely to grow, driving the market forward.

Focus on Cybersecurity Measures

The focus on cybersecurity measures is becoming increasingly prominent in The Global Military IoT Industry. As military organizations adopt IoT technologies, the potential vulnerabilities associated with interconnected devices raise significant concerns regarding data security and operational integrity. Cyber threats can compromise sensitive information and disrupt critical operations, making robust cybersecurity protocols essential. The Global Military IoT Market is projected to reach USD 30 billion by 2027, indicating a strong emphasis on securing IoT infrastructures. Military forces are investing in advanced cybersecurity solutions to protect their IoT networks from potential attacks. This focus on cybersecurity not only safeguards military assets but also fosters confidence in the adoption of IoT technologies, thereby driving growth in the market.

Integration of Autonomous Systems

The integration of autonomous systems is emerging as a key driver in The Global Military IoT Industry. Military forces are increasingly exploring the use of drones, unmanned ground vehicles, and autonomous maritime systems, all of which rely heavily on IoT technologies for communication and data exchange. These systems enhance operational capabilities by providing surveillance, reconnaissance, and logistical support without putting personnel at risk. The global market for military drones alone is anticipated to exceed USD 20 billion by 2025, reflecting the growing reliance on autonomous systems. As military organizations continue to invest in these technologies, the integration of IoT with autonomous systems is likely to accelerate, further propelling the market's growth.

Market Segment Insights

By Technology: Wi-Fi (Largest) vs. Cell (Fastest-Growing)

In The Global Military IoT, the technology segment is primarily dominated by Wi-Fi technology, which accounts for a significant portion of market share due to its extensive implementation in various military applications. Wi-Fi's reliability, ease of integration, and cost-effectiveness make it the preferred choice for many military personnel. On the other hand, the Cell technology is gradually gaining momentum, attributed to its broad coverage and superior connectivity in remote areas, positioning it as the fastest-growing segment in this market.

Technology: Wi-Fi (Dominant) vs. Cell (Emerging)

Wi-Fi technology stands out as the dominant force in the military IoT segment, favored for its ability to support a high density of devices and provide robust communication solutions within military bases and operations. Its versatility allows for rapid deployment and adaptability to different military needs. Conversely, Cell technology, while currently emerging, is rapidly gaining traction due to advancements in cellular networks such as 5G, enhancing data speeds and latency improvements. This positioning enables cellular solutions to support critical military operations and enable real-time data exchange across vast terrains, thus making it an attractive alternative for future military IoT applications.

By Component: Hardware (Largest) vs. Software (Fastest-Growing)

The Global Military IoT is a complex ecosystem, segmented primarily into Hardware, Software, and Services. Among these, Hardware holds the largest share, driven by a significant demand for advanced IoT devices such as sensors and equipment used in military applications. Software follows, with considerable growth potential as middleware and cybersecurity solutions gain traction to ensure secure communication systems. Services, while essential, trail behind in market size yet remain integral to providing ongoing support and maintenance for military IoT systems.

Technology: Hardware (Dominant) vs. Software (Emerging)

In The Global Military IoT, Hardware has established itself as the dominant component, primarily composed of ruggedized IoT devices and sophisticated sensors that adhere to stringent military standards. This dominance is propelled by the increasing focus on battlefield automation and real-time data acquisition. On the other hand, Software represents an emerging segment, characterized by a growing emphasis on cybersecurity solutions and data analytics platforms designed specifically for military scenarios. The rise of software applications is fueled by the ongoing digital transformation within defense sectors, enhancing operational efficiency and enabling advanced tactical decision-making.

By Application: Training and Simulation (Largest) vs. Real-time Fleet Management (Fastest-Growing)

In The Global Military IoT, the application segment showcases a diverse distribution of functionalities. Training and Simulation takes the lead as the largest segment, reflecting the military's increasing emphasis on innovative training methodologies. In contrast, Real-time Fleet Management is emerging as the fastest-growing application, providing critical data and insights for optimal fleet operations. Other notable segments include Health Monitoring, Inventory Management, and Equipment Maintenance, which each play essential roles in enhancing operational efficiency and readiness.

Training and Simulation (Dominant) vs. Real-time Fleet Management (Emerging)

The Training and Simulation segment is characterized by its ability to create immersive environments for military personnel, facilitating skill development and strategic decision-making. This segment leads the market due to the military's focus on reducing training costs while enhancing combat readiness. In comparison, Real-time Fleet Management is gaining traction as it leverages IoT technologies for improved logistics and operational oversight. As militaries around the world recognize the importance of real-time data in managing their fleet, this segment's growth is propelled by advancements in connectivity and data analytics, making it essential for modern military operations.

Get more detailed insights about Military IoT Market

Regional Insights

North America : Defense Innovation Leader

North America is the largest market for Military IoT Market, holding approximately 45% of the global share. The region's growth is driven by significant defense budgets, technological advancements, and a focus on enhancing military capabilities through IoT integration. Regulatory support from government initiatives further catalyzes this growth, ensuring compliance and fostering innovation in defense technologies. The United States is the leading country in this sector, with major players like Lockheed Martin, Northrop Grumman, and Raytheon Technologies dominating the landscape. The competitive environment is characterized by continuous investment in R&D and strategic partnerships, ensuring that North America remains at the forefront of Military IoT Market advancements. The presence of key players solidifies the region's position as a hub for military technology innovation.

Europe : Emerging Defense Technology Hub

Europe is witnessing a significant rise in Military IoT Market adoption, accounting for approximately 30% of the global market share. The region's growth is propelled by increasing defense expenditures, collaborative defense initiatives among EU nations, and a strong emphasis on cybersecurity and data protection regulations. The European Union's regulatory frameworks are also fostering innovation and ensuring interoperability among member states' defense systems. Leading countries in this region include France, Germany, and the United Kingdom, where companies like Thales Group and BAE Systems are key players. The competitive landscape is marked by partnerships between governments and private sectors, focusing on developing advanced IoT solutions for military applications. This collaboration enhances the region's capabilities in defense technology and positions Europe as a formidable player in The Global Military IoT Market.

Asia-Pacific : Rapidly Growing Defense Sector

Asia-Pacific is emerging as a significant player in the Military IoT Market, holding around 20% of the global share. The region's growth is driven by increasing military modernization efforts, geopolitical tensions, and a focus on enhancing operational efficiency through IoT technologies. Countries are investing heavily in defense infrastructure, supported by government initiatives aimed at boosting local manufacturing and technological capabilities. Key players in this region include countries like China, India, and Japan, where companies are rapidly adopting IoT solutions for military applications. The competitive landscape is evolving, with both state-owned and private enterprises vying for market share. The presence of major global players, alongside local firms, is fostering innovation and driving advancements in Military IoT Market technologies across Asia-Pacific.

Middle East and Africa : Strategic Defense Investments

The Middle East and Africa region is gradually expanding its Military IoT Market, accounting for approximately 5% of the global share. Growth is driven by increasing defense budgets, regional conflicts, and a focus on modernizing military capabilities. Governments are investing in advanced technologies to enhance security and operational efficiency, supported by international partnerships and collaborations in defense technology. Leading countries in this region include the United Arab Emirates and South Africa, where investments in military IoT are gaining momentum. The competitive landscape features a mix of local and international players, with a focus on developing tailored solutions for regional security challenges. The presence of key global firms is also contributing to the growth of the Military IoT Market sector in the Middle East and Africa, fostering innovation and technological advancements.

Military IoT Market Regional Image

Key Players and Competitive Insights

The Global Military IoT is characterized by a rapidly evolving competitive landscape, driven by technological advancements and increasing defense budgets across various nations. Key players such as Lockheed Martin (US), Northrop Grumman (US), and Raytheon Technologies (US) are at the forefront, focusing on innovation and strategic partnerships to enhance their operational capabilities. These companies are not only investing in cutting-edge technologies but are also actively pursuing mergers and acquisitions to consolidate their market positions. The collective strategies of these firms contribute to a dynamic environment where agility and technological prowess are paramount.

In terms of business tactics, companies are increasingly localizing manufacturing and optimizing supply chains to enhance efficiency and responsiveness to market demands. The competitive structure of The Global Military IoT appears moderately fragmented, with several key players exerting substantial influence. This fragmentation allows for a diverse range of solutions and innovations, fostering a competitive atmosphere that encourages continuous improvement and adaptation.

In August 2025, Lockheed Martin (US) announced a strategic partnership with a leading cybersecurity firm to enhance the security of its IoT devices used in military applications. This move underscores the growing importance of cybersecurity in military operations, as the integration of IoT technologies increases the potential for cyber threats. By bolstering its cybersecurity measures, Lockheed Martin aims to provide more robust solutions to its clients, thereby reinforcing its competitive edge in the market.

In July 2025, Northrop Grumman (US) unveiled a new IoT-based surveillance system designed to improve situational awareness for military operations. This innovative system leverages advanced data analytics and machine learning to provide real-time insights, which could significantly enhance decision-making processes on the battlefield. The introduction of such technology not only positions Northrop Grumman as a leader in military IoT solutions but also reflects the broader trend of integrating AI and data analytics into defense operations.

In September 2025, Raytheon Technologies (US) expanded its IoT capabilities by acquiring a small tech firm specializing in edge computing solutions. This acquisition is likely to enhance Raytheon's existing product offerings by enabling faster data processing at the source, which is crucial for military applications that require immediate responses. Such strategic moves indicate a clear trend towards enhancing operational efficiency and responsiveness in military contexts, aligning with the increasing demand for real-time data processing.

As of October 2025, the competitive trends in The Global Military IoT are heavily influenced by digitalization, sustainability, and the integration of artificial intelligence. Strategic alliances are becoming increasingly vital, as companies seek to leverage complementary strengths to innovate and enhance their offerings. Looking ahead, it appears that competitive differentiation will evolve from traditional price-based competition to a focus on innovation, technological advancement, and supply chain reliability, reflecting the changing dynamics of the defense sector.

Key Companies in the Military IoT Market market include

Industry Developments

On Jun.22, 2023,

BT Group plc, a British multinational telecommunication company, announced securing a networks contract with the British Army to equipe its smart bases across the United Kingdom. It is a five-year contract to provide a managed Wi-Fi service known as MOD Wi-Fi. This agreement is also expandable to other defence customers, including the Royal Air Force and the Royal Navy.

On Jun.09, 2023,

QuSecure, a post-quantum cybersecurity company, announced receiving a $2M contract from the US army to develop quantum-resilient software solutions to secure tactical edge and IoT devices from quantum cyberattacks.

The funds will be used to conduct further research on quantum-resilient technologies and encryption solutions needed in battle-ready tactical edge and IoT devices. This five-year budget for research into emerging technologies like quantum computing and post-quantum cryptography (PQC) is awarded under the US Innovation and Competition Act of 2021

On Apr.13, 2023,

Smarter Technologies (the UK), a leading provider of IoT solutions, announced the successful completion of capability assessment trial of their asset tracking systems with the MoD at HMNB Devonport. Follow-on demonstrations are also planned for HMNB Portsmouth and other military establishments. The company highlighted the unique capabilities of their Orion IoT data network to defence in helping to defeat organised crime.

On Mar.15, 2023,

SpaceBridge, a leading broadband satellite communications systems provider, announced a partnership with nexTenna, a provider of advanced Ultra-thin ESA to offer satellite broadband solutions to enterprise and military. Electronically Steerable Antennas feature the industry leading lowest power consumption, to develop a new line of wireless communication systems targeting IoT, mobility IoT, and broadband & fixed broadband solutions.

On Aug.16, 2022,

American Armaments Research Company (ARC) announced that it will introduce its IoT full-stack technology in the Next Generation Squad Weapon (NGSW) program, in partnership with Sig Sauer. ARC’s embedded IoT sensors will provide unprecedented mission-critical data to ground leadership. US Army will integrate ARC’s IoT tech into next-gen squad weapons.

Future Outlook

Military IoT Market Future Outlook

The Global Military IoT Market is projected to grow at a 6.2% CAGR from 2024 to 2035, driven by advancements in connectivity, data analytics, and enhanced security protocols.

New opportunities lie in:

  • Development of integrated battlefield management systems
  • Expansion of predictive maintenance solutions for military assets
  • Implementation of secure communication networks for real-time data sharing

By 2035, the market is expected to be robust, driven by innovative technologies and strategic partnerships.

Market Segmentation

Military IoT Market Component Outlook

  • Hardware
  • Software
  • Services

Military IoT Market Technology Outlook

  • Wi-Fi
  • Cell
  • RFID
  • Others

Military IoT Market Application Outlook

  • Training and Simulation
  • Health Monitoring
  • Real-time Fleet Management
  • Inventory Management
  • Equipment Maintenance
  • Others

Report Scope

MARKET SIZE 202411300.0(USD Billion)
MARKET SIZE 202512000.6(USD Billion)
MARKET SIZE 203521900.2(USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR)6.2% (2024 - 2035)
REPORT COVERAGERevenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR2024
Market Forecast Period2025 - 2035
Historical Data2019 - 2024
Market Forecast UnitsUSD Billion
Key Companies ProfiledMarket analysis in progress
Segments CoveredMarket segmentation analysis in progress
Key Market OpportunitiesIntegration of advanced analytics and artificial intelligence in military IoT systems enhances operational efficiency and decision-making.
Key Market DynamicsRising demand for advanced surveillance systems drives innovation in military Internet of Things technologies and applications.
Countries CoveredNorth America, Europe, APAC, South America, MEA

Market Highlights

Author
Swapnil Palwe
Team Lead - Research

With a technical background as Bachelor's in Mechanical Engineering, with MBA in Operations Management , Swapnil has 6+ years of experience in market research, consulting and analytics with the tasks of data mining, analysis, and project execution. He is the POC for our clients, for their consulting projects running under the Automotive/A&D domain. Swapnil has worked on major projects in verticals such as Aerospace & Defense, Automotive and many other domain projects. He has worked on projects for fortune 500 companies' syndicate and consulting projects along with several government projects.

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FAQs

What is the projected market valuation of The Global Military IoT by 2035?

The projected market valuation for The Global Military IoT by 2035 is 21,900.2 USD Billion.

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