Combat Management System Market set to reach USD 1,386 Mn by 2032
Updated · Nov 27, 2025
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Indroduction
The Global Combat Management System (CMS) market reached USD 750 million in 2022 and is forecasted to expand to USD 1,386 million by 2032, driven by a steady CAGR of 6.5% over the 2022-2032 period. CMS integrates ship sensors, radars, and weapons into a unified computer-based platform, delivering real-time situational awareness and intelligence to naval crews for effective mission execution in complex scenarios like littoral warfare. This growth stems from surging global demand for advanced defense technologies amid modernization efforts, asymmetric threats, terrorism risks, and cross-border tensions, prompting nations to bolster naval capabilities.
Software leads the component segment due to high development costs and demands for customization in network-centric warfare, while hardware grows with rising naval production and subsystem integration. The unmanned vehicle control system sub-segment is set for the highest growth rate, fueled by adoption of UUVs, UGVs, and UAS to boost combat capabilities.
Corvettes dominate the platform segment with the largest market share in 2022, driven by high delivery rates to global navies and emphasis on interoperability in anti-surface warfare; submarines follow with expansion from fleet modernization. North America holds market leadership due to substantial U.S. military spending and OEM innovations, while Asia Pacific shows the fastest growth from maritime disputes and defense budgets in China, India, and Japan.
Key drivers include rising global military expenditures and anti-surface/sub-surface warfare adoption, though high initial costs and cybersecurity threats pose challenges. Trends feature intelligent AI-based CMS and enhanced situational awareness, with opportunities in commercial off-the-shelf components; major players encompass BAE Systems PLC, Elbit Systems Ltd., and Saab AB.
Key Statistics
- According to scoop.market.us In November 2018, BAE Systems announced a £20 million investment in augmented reality and artificial intelligence technologies for integration into future warship systems.
- These technologies are designed to enhance naval decision-making during combat scenarios, allowing crews to react faster to emerging threats.
- In June 2023, the European Commission revealed the results of the 2022 European Defence Fund (EDF) proposals, allocating €832 million to 41 joint defense R&D projects across the EU.
- The selected projects focus on strengthening the EU’s defense capabilities in naval, ground, and air combat, as well as space-based early warning and cybersecurity.
- In November 2023, Lockheed Martin’s Rotary and Mission Systems division received a $30.5 million contract modification from the U.S. Naval Sea Systems Command for work related to the AEGIS combat system.
Top Market Takeaway
- The CMS market is projected to grow from USD 750 million in 2022 to USD 1,386 million by 2032, with a CAGR of 6.5%, driven by increased global military spending and modernization of defense forces.
- The software segment dominates due to high development costs and complex system architecture needed for customization, while the hardware segment is growing steadily with demand for subsystem integration.
- Among subsystems, the unmanned vehicle control system is expected to achieve the fastest growth, propelled by widespread adoption of unmanned underwater, ground, and aerial vehicles enhancing combat capabilities.
- The corvette platform currently holds the largest market share due to increased surface combatant deliveries and emphasis on interoperability and anti-surface warfare; submarines are also growing driven by fleet expansions and modernization to nuclear power.
- Key growth drivers are rising military expenditure, adoption of anti-surface and sub-surface warfare technologies, and the evolution of network-centric warfare requiring robust, interoperable CMS solutions.
- Challenges include the high initial costs of CMS implementation and cybersecurity risks, including cyber-attacks that threaten system integrity and situational awareness.
- Emerging trends feature intelligent AI-based CMS solutions, virtualization to improve efficiency, and the use of commercial off-the-shelf (COTS) components to reduce costs and improve system flexibility.
- North America leads the market due to substantial defense budgets and strong OEM presence; Asia Pacific is the fastest growing region, buoyed by maritime developments and increased defense budgets in countries like China, India, and Australia.
- Key market players include BAE Systems PLC, Elbit Systems Ltd., Saab AB, Israel Aerospace Industries Ltd., and others who drive innovation through technology advancements,partnerships, and acquisitions.
Key Market Segment
By Component
- Software
- Hardware
- Control Consoles
- Combat Data Center
- Data Network Switchers
By Sub-System
- Self-Defense Management System
- Situational Awareness System
- Track Management System
- Weapon Management System
- Display System
- Identification System
- Unmanned Vehicle Control System
By Platform
- Corvettes
- Submarines
- Destroyers
- Frigates
- Amphibious Ships
- Fast Attack Craft (FAC)
- Aircraft Carriers
Top Key Players
- BAE Systems PLC (U.K.)
- Elbit Systems Ltd. (Israel)
- Saab AB (Sweden)
- Israel Aerospace Industries Ltd (Israel)
- L&T Defense Ltd. (India)
- Bharat Electronics Limited (BEL) (India)
- ATLAS ELEKTRONIK GmbH (Germany)
- Kongsberg Gruppen ASA (Norway)
- The Raytheon Company (U.S.)
- Other Key Players
Recent Development
- November, 2025, BAE Systems plc agreed on a collaboration to develop advanced combat system capabilities for submarines for Australia and the UK, focusing on autonomy and interoperability.
- August, 2025, Elbit Systems Ltd. secured a significant contract worth over $1.6 billion to supply advanced defense solutions, including combat vehicle upgrades and electro-optical systems.
Conclusion
The combat management system market is shaped by the rising need for integrated situational awareness, real-time decision support and secure command operations across naval platforms. Growth has been supported by the modernization of surface vessels and submarines, where advanced sensors, data fusion engines and weapon-control interfaces are being adopted. Demand has also been influenced by increasing geopolitical tensions, which continue to drive procurement activity among major naval forces. The market is expected to remain steady as multi-domain operations and digital warfare capabilities become central to future defence strategies.
Read More – https://market.us/report/combat-management-system-market/
