Global Military Software Market is projected to register a CAGR of 4.21% during the forecast period from 2020 to 2028.
High investments in developing modern warfare technologies and increased use of electronic warfare have significantly contributed to the expansion of the military software market. High competition owing to the presence of several players in the market has led military software providers to focus on innovation. Furthermore, increasing collaborations between prominent technology companies such as Accenture and SAP SE in developing digital defense solutions are also expected to drive the growth of the market. For example, in 2018, Accenture and SAP SE collaborated to develop digital defense solutions to enable defense and security agencies to adopt digital technologies.
However, issues associated with data management and cybersecurity issues might hamper the growth of the market.
The increasing use of the IoT and embedded systems in Battlefield Management Systems (BMS) is driving the growth of the market.
Growth Opportunities in the Market
The Army Segment to Register the Highest Growth Rate: By application, the army segment is expected to register the highest CAGR during the forecast period from 2020 to 2028. The growth of the segment can be attributed to rising military expenditures and growing military modernization activities conducted by countries such as the US and China. Furthermore, the growing demand for enhanced communications on the battlefield is also expected to drive the growth of the segment.
The Embedded Segment Is Expected to Be the Fastest-Growing: By type, the embedded segment is expected to register the higher CAGR during the forecast period, 2020 to 2028. Growing focus on cloud computing and wireless technology, the growing adoption of electronic warfare systems for geospatial intelligence gathering, and the increasing development of electronic warfare systems with enhanced capabilities are expected to drive the growth of the segment.