< Key Hightlight >
[197 Pages Report] The 5G in Aerospace & Defense Market size was estimated at USD 1.27 billion in 2023 and expected to reach USD 1.64 billion in 2024, at a CAGR 31.57% to reach USD 8.70 billion by 2030.
The 5G in aerospace & defense market encompasses implementing fifth-generation wireless communication technology within the aerospace and defense sectors. This market focuses on enhancing mission-critical services through ultra-reliable, low-latency communication, high-speed data transfer, and seamless connectivity across devices, sensors, and systems. Key applications include military communications, unmanned aerial vehicles (UAVs), air traffic control systems, aircraft operations support, satellite communication networks, and defense infrastructure. The increasing need for secure real-time communication across various domains such as land, air, sea, or space in dynamic digital battlefields and advancements in satellite communication technologies offering global connectivity with reduced latency through terrestrial networks supports the 5G network. On the other hand, high initial investment costs related to infrastructure deployment, security concerns surrounding 5G network implementation exposing vulnerabilities to cyber-attacks targeting critical defense information, and lack of globally harmonized spectrum allocation for 5G communication pose obstacles to market growth. They may lead to interoperability issues between systems from different regions. However, advances in 5G technologies for the military & defense sector and the deployment of autonomous and connected aircraft are expected to increase market growth in the coming years.
Regional Insights
In the Americas, particularly in North America, the United States has been at the forefront of 5G development. The U.S. Department of Defense invested heavily in research initiatives exploring potential 5G military use cases, such as enhanced communication systems for soldiers on battlefields, advanced drone swarms for surveillance purposes, and augmented reality training programs. Compared to other regions globally, South America's growth in this market may be slower due to limited infrastructure investments or economic constraints. However, countries such as Brazil and Mexico are progressively upgrading their military technologies, which could catalyze future opportunities for 5G adoption in aerospace & defense industries. The Asia-Pacific (APAC) is expected to witness rapid expansion of 5G in the aerospace & defense market due to increasing deployment of 5G coupled with rising military modernization efforts among key countries. China, South Korea, and Japan are aggressively investing in enhancing its military capabilities via autonomous vehicles and drones using 5G capabilities. Additionally, India is undertaking several military modernization programs and collaborations with global partners to enhance its technological prowess in defense, opening up opportunities for 5G integration. In Europe, the Middle East, and Africa, the growth of 5G in the aerospace & defense market is fueled by increasing commitments to upgrading military technologies across NATO member countries. The European Union countries are working collaboratively on joint research projects encompassing 5G technology in border security and critical infrastructure protection. In the Middle East, countries such as Israel, Saudi Arabia, and the United Arab Emirates are investing in modernizing their defense sectors, which could lead to an increased demand for advanced communication systems powered by 5G.