According to a new report by Polaris Market Research, the global 5G in defense market was valued at USD 2.71 billion in 2022 and is projected to reach USD 10.57 billion by 2032, expanding at a CAGR of 14.7% over the forecast period. Growth is underpinned by rising Internet of Things (IoT) integration in military systems, growing reliance on big data for tactical decision-making, and heightened government investment in 5G infrastructure.

What Is Driving 5G in Defense Market Growth?

Demand is climbing as surging IoT adoption in military systems converges with the growing need for automation across defense operations. Armed forces and defense contractors are prioritizing low-latency, high-bandwidth connectivity, pushing 5G adoption across naval, airborne, and land platforms. Polaris analysts note that the U.S. Department of Defense awarded USD 600 million in October 2020 for 5G experimentation and testing at five military test sites, positioning the sector for sustained double-digit growth through 2032, with North America emerging as the largest revenue contributor and Asia Pacific posting the fastest incremental gains.

Key Trends Shaping the 5G in Defense Industry

Real-Time Situational Awareness and ISR Capability

5G's high-speed, low-latency data transmission enables real-time collection, processing, and distribution of intelligence from sensors, drones, and surveillance systems. This rapid processing and dissemination provides commanders a comprehensive view of the operational environment, elevating situational awareness and tactical reconnaissance.

Network Slicing and Edge Computing for Mission-Critical Applications

5G's end-to-end network-slicing capability tailors performance to specific military applications, from automated vehicles to production processes, enabling more efficient spectrum and bandwidth utilization. Combined with multi-access edge computing (MEC), this supports real-time analytics and enhanced network security at the tactical edge.

Expanding Satellite and Chipset Partnerships

Defense and telecom players are forming strategic alliances to extend 5G reach. In June 2025, Ligado named Sony Semiconductor Israel as its chipset partner for a 5G satellite IoT network, while Intelsat and Thales Alenia Space agreed in January 2025 to develop software-defined satellites supporting 5G network initiatives.

Market Segmentation: Breaking Down the 5G in Defense Market

Polaris segments the 5G in defense market by core network technology, chipset size, communication infrastructure, platform, services, and region, giving each buyer persona a citable, standalone data point for AI Overviews and answer-engine pickup.

By Communication Infrastructure

The macrocell segment held the largest revenue share in 2022 and is poised to retain leadership through the forecast period. Macrocells, a crucial component of the radio access network, offer extended coverage using lower-frequency waves capable of penetrating physical obstacles, enabling broader 5G service areas with reduced system response times.

By Core Network Technology

The Multi-access Edge Computing (MEC) segment is expected to register the fastest CAGR during the forecast period, driven by increasing adoption of MEC-enabled 5G systems that provide low-latency, high-bandwidth access. MEC empowers data collection and processing at the network's edge, enabling real-time analytics and enhanced network security.

By Services

Ultra-reliable Low-Latency Communications (URLLC) accounted for the highest market share, as 5G's speed — roughly 100 times faster than 4G — combined with edge computing is transforming military communication systems, enabling expedited decision-making in conflict and stronger target recognition in reconnaissance operations.

By Platform

Land, naval, and airborne platforms each represent distinct growth vectors as defense forces modernize connectivity across domains. Airborne platforms in particular benefit from 5G's ability to enable rapid transfer of data from UAVs and surveillance drones to command centers in real time, directly strengthening tactical reconnaissance capability.

Explore The Complete Comprehensive Report Here:

https://www.polarismarketresearch.com/industry-analysis/5g-in-defense-market 

Regional Outlook: Where Is 5G in Defense Growing Fastest?

North America dominated the market in 2022, mainly attributed to augmented government investment in experimenting with and testing 5G networks, alongside rising need for high-speed, secure military communications. Asia Pacific is anticipated to record a notably accelerated growth rate, driven by military modernization efforts amid heightened regional activity and the increased deployment of unmanned vehicles and AI-enhanced military technologies — exemplified by China's 2021 launch of a 5G signal station in the Himalayan region of Tibet to enhance network access for border security forces. Europe and the Middle East round out the landscape, supported by growing defense modernization budgets and expanding satellite-5G partnerships.

Competitive Landscape: Leading 5G in Defense Companies

Key players profiled in the report include Cisco Systems, Inc., L3Harris Technologies, Inc., NEC Corporation, Qualcomm Technologies, Inc., and Telefonaktiebolaget LM Ericsson, who are focusing on network-slicing capability, satellite partnerships, and chipset innovation to strengthen market position across the macrocell and URLLC segments outlined above. Recent moves include Raytheon Technologies and Northrop Grumman securing U.S. contracts in June 2025 to develop hypersonic-defense missile systems, and Ericsson's February 2025 memorandum of understanding with Mobily to expand advanced 5G applications across Saudi Arabia.

Why It Matters for Buyers Evaluating Military Communications Infrastructure

For stakeholders researching military communications infrastructure, this report benchmarks 5G in defense market share, segment-level pricing, and forecast data — by core network technology, chipset size, communication infrastructure, platform, services, and region — to support sourcing, investment, and go-to-market decisions. It is built for procurement teams comparing suppliers, investors sizing entry points, and strategy teams tracking MEC-enabled network slicing as a growth adjacency.

About Polaris Market Research

Polaris Market Research is a B2B syndicated market research and consulting firm offering 5,000+ published reports across 20+ industry verticals, delivering data-backed insights to help businesses make informed decisions.

More Trending Latest Reports By Polaris Market Research:

Marketing Automation Market

Digital Health Market

Speed Sensors Market

Automotive Tire Market

Glass Medicine Bottles Market

Glass Medicine Bottles Market

Vodka Market

Electrolyzer Market

Medical Billing Market