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Why Defense Electronics, Software and Networks Are Capturing a Growing Share of Military Budgets

Mobility Foresights Aerospace & Defense Research | Hub Analysis | September 2026

Modern military advantage depends less on any single platform than on the network that connects sensors, decision-makers and weapons. That network is often described as the "sensor-to-shooter" chain, and in the United States as Combined Joint All-Domain Command and Control (CJADC2). Recent conflicts have shown three features of it:

• The electromagnetic spectrum is contested every hour, with jamming and spoofing constantly degrading radios, GPS and drones.
• Commercial satellite imagery and satellite broadband can change the course of operations.
• Software updates can matter as much as new hardware.

This hub brings together 101 Mobility Foresights market studies across six areas: electronic warfare; radar, ISR and surveillance; tactical communications; command and control, military AI and cyber; avionics and aircraft systems; and soldier modernization. A companion hub covers missiles, munitions, air defense, platforms, navigation and the defense industrial base.

Key Takeaways

• Electronic warfare has become a continuous, software-driven contest. Cognitive and AI-enabled systems adapt to new threats in the field rather than waiting for depot upgrades.
• Radar is being rebuilt around gallium nitride and digital beamforming. GaN AESA radars on ships and aircraft replace legacy systems with longer range and greater reliability.
• Communications are becoming hybrid and resilient. Mesh networks, proliferated low-Earth-orbit satellites and anti-jam terminals are replacing single-path links.
• AI is moving into command and control. Decision support, targeting assistance and autonomous mission management are funded programs, governed by policies requiring appropriate human judgment.
• Open architectures are now a procurement requirement. Modular, open systems allow faster upgrades and more competition in avionics and combat systems.

How We Segment Defense C4ISR and Electronics

1. Electronic Warfare and Signals Intelligence

Electronic warfare (EW) is the fight for control of the electromagnetic spectrum: detecting, disrupting and protecting against radar, communications and navigation signals. Our electronic warfare market report sizes the full category across air, land, sea and space. Three reports cover the modernization cycle now under way:

• The electronic warfare (EW) modernization programs study maps national programs through 2035.
• The EW modernization market report quantifies the upgrade spending behind them.
• The ELINT and SIGINT systems market study covers the intelligence side: collecting and analyzing adversary emissions.

Software is now the main source of EW advantage:

• Our AI-enabled cognitive electronic warfare system market report covers systems that learn unknown signals and generate countermeasures in real time.
• The AI/ML-enabled electronic warfare systems market study tracks the machine-learning components across EW products.
• The electronic attack (EA) and offensive EW systems market and digital electronic attack systems market reports cover jamming systems, including next-generation airborne jammers.
• The wideband RF transceiver and SDR market for electronic warfare study covers the radio front ends that make reprogrammable EW possible.
• The electronic warfare mission computers market report covers the processors that host EW software.

Platform-specific EW is growing fastest where threats are most acute:

• Airborne. The airborne self-protection systems market report covers defensive suites, the digital radar warning receiver systems market study covers threat-warning receivers and the airborne electronic warfare payload market report covers pod and payload EW.
• Naval. Attacks on shipping have made naval EW a priority. The naval electronic warfare systems market, military ship electronic warfare systems market, naval electronic warfare and surface combat systems market, maritime electronic warfare integration market and anti-ship missile threat response and EW countermeasures market studies cover shipboard EW from components to integrated combat-system defense.
• Counter-drone. The counter-UAS electronic warfare market report covers jamming and spoofing systems used to defeat small drones, the most widely fielded counter-drone approach.

2. Radar, ISR and Surveillance

2.1 Radar

Gallium nitride (GaN) has transformed military radar. It enables active electronically scanned arrays (AESA) with greater power, range and reliability, as seen in the U.S. Navy's new SPY-6 family. Our advanced radar and sensor fusion systems market report covers AESA, MIMO, passive radar and AI-enabled fusion. Four naval reports cover the fleet transition:

• The surface warship GaN AESA radar market report covers shipboard GaN AESA radars.
• The naval surface combatant sensor systems market and surface warfare sensor systems market studies cover the wider naval sensor suite.
• The software-defined surface-search radar system market report covers radars reconfigured through software.

Smaller and specialized radars:

• The multi-mission / multi-role compact (MM/C) radar market and next-gen compact radar systems market reports cover compact radars for counter-drone, base defense and vehicle protection.
• The military man-portable radar system market study covers radars carried by troops.
• The noise radar system market report covers low-probability-of-intercept designs that are hard for adversaries to detect.

2.2 ISR and space

Space has become essential to intelligence, surveillance and reconnaissance (ISR). Commercial imagery and proliferated satellite constellations complement national systems. Three reports cover space ISR:

• Our space-based ISR systems market report covers government and commercial space ISR.
• The military space launch and rapid-response space deployment market study covers the launch capacity needed to replace or augment satellites quickly.
• The satellite propulsion thrusters market report covers the electric and chemical thrusters used by maneuverable military satellites.

Airborne and ground ISR:

• The next-generation battlefield sensors and ISR systems market report sizes airborne and ground ISR.
• The military UAV sensor market study covers drone payloads.
• The wide-area motion imagery (WAMI) sensors market report covers persistent city-scale surveillance.
• The defense thermal imaging and EO/IR avionics market study covers electro-optical and infrared sensors.
• The military laser rangefinder market and military laser vibration sensor market reports cover laser-based targeting and remote sensing.

2.3 Airspace and border surveillance

Low-flying drones have made airspace monitoring a security issue for airports, critical infrastructure and borders:

• The airspace monitoring and surveillance market and civil and military airspace surveillance market reports cover shared civil-military air picture systems.
• The border surveillance, integrated monitoring and smart border technologies market and border security and surveillance technology market studies cover integrated border systems.
• The AI-driven border surveillance and counter-drone systems market report covers AI-enabled detection and response along borders.

3. Tactical Communications

Tactical networks must work under jamming, across services and with allies. Software-defined radios (SDRs) are the foundation, because their waveforms can be updated as threats change. Four reports cover radios and their waveforms:

• Our software-defined military radios market report sizes the radio market.
• The military programmable digital communications system market study covers programmable communication systems.
• The airborne tactical radio market report covers aircraft radios.
• The mission payload radio market study covers radios carried as drone and aircraft payloads.

Networks are becoming mesh-based and hybrid. Ukraine showed the value of low-Earth-orbit satellite broadband at the front line:

• The mesh networking and MANET tactical communications market report covers self-forming mobile networks.
• The tactical SATCOM and hybrid SATCOM-terrestrial networks market study covers the integration of satellite and ground links.
• The anti-jam SATCOM terminals market report covers protected satellite terminals.
• The next-generation military communications market study covers SATCOM, mesh networks and quantum encryption together.

Data links and security:

• The tactical data link (TDL) radio system market, tactical data links and cross-domain interoperability market and secure tactical data links market reports cover the data links that share targeting and situational data across platforms and allies.
• The anti-jamming and anti-spoofing tactical communications market and secure voice and encrypted battlefield messaging market studies cover protection.
• The AI-enabled tactical communications management market and AI-enabled battlefield networking market reports cover AI that routes traffic and manages spectrum automatically.
• The tactical communications for unmanned and robotic systems market study covers links for drones and ground robots.

4. Command and Control, Military AI, Cloud and Cyber

Command and control (C2) is being rebuilt around data and AI. Four reports cover the core systems:

• Our AI-enabled command and control (C2) systems market report covers doctrine, market and deployment roadmaps.
• The next-generation battlefield C2 system market study sizes new C2 systems.
• The AI-enabled battlefield management and decision support systems market report covers tools that fuse sensor data and recommend options.
• The military AI and autonomous targeting systems market study covers AI in targeting within the policy framework requiring appropriate human judgment over the use of force.

Infrastructure is moving to secure cloud and edge:

• The military cloud computing and secure edge networks market report covers military cloud and edge networks.
• The battlefield cloud computing and tactical edge data infrastructure market study covers tactical data infrastructure.
• The defense cloud infrastructure and high-security data center ecosystem market report covers classified data centers.
• The defense cybersecurity and zero-trust architecture adoption market study covers adoption across NATO, the Gulf and the Indo-Pacific, following the U.S. Department of Defense's zero-trust strategy.

Legacy system upgrades remain important:

• The nuclear command, control and communications (NC3) modernization market report covers the systems being modernized alongside new strategic platforms.
• The AFATDS upgrade market study covers the U.S. Army's artillery fire-control software.
• The open-architecture combat systems market report covers modular combat systems that let navies and armies integrate new sensors and weapons faster.

5. Avionics and Aircraft Systems

The sixth-generation fighter race is under way. The U.S. awarded its Next Generation Air Dominance fighter (F-47) to Boeing in 2025, while the UK, Italy and Japan are developing GCAP and France, Germany and Spain are developing FCAS. Our multi-domain air combat: fighter aircraft programs and 6th-gen roadmaps report covers these programs. The next-generation fighter aircraft and upgrade programs market study covers new-build fighters and upgrades to existing fleets.

Upgrades keep existing fleets relevant:

• The tactical fighter avionics and sensor upgrades market report covers fighter avionics and sensor upgrades.
• The NATO military aircraft modernization retrofit market study covers retrofit programs across allied fleets.
• The radar and electronic systems upgrade market for U.S. Navy tactical aviation and naval aviation combat systems market reports cover carrier aviation.

Avionics architecture is moving to open, modular designs:

• The next-generation avionics architecture market report covers open, modular avionics architectures.
• The rugged computing and embedded avionics systems market and embedded computing systems market for uncrewed vehicles and missile platforms studies cover the processors inside.
• The rugged in-vehicle computing platforms market report covers ground-vehicle computing.
• The AI-driven autonomous avionics market study covers autonomy for uncrewed and optionally crewed aircraft.
• The avionics flight management computer (AFMC) market report covers flight management computers.

Cockpit and component markets:

• The combat aircraft cockpit display system market, avionics display and HMI market for military aircraft and day night vision data display system market reports cover displays and pilot interfaces.
• The tactical avionics audio systems market study covers cockpit audio.
• The military aircraft canopy transparencies and optical systems market and military aircraft optical components market reports cover canopies, windows and optics.
• The military aircraft actuation systems market, aerospace hydraulic motor market, power solenoid driver modules market for aerospace and defense and rugged high-speed interconnects market studies cover actuation, hydraulics, power electronics and interconnects.

6. Soldier Modernization

The individual soldier is becoming a networked sensor node. Two reports size the category:

• Our soldier modernization systems market report sizes the category.
• The soldier modernization programs and future infantry systems study maps national programs.

Connectivity and situational awareness are the core of these programs:

• The tactical soldier networking market, next-generation soldier connectivity market and dismounted soldier communication system market reports cover soldier radios and networks.
• The dismounted situational awareness system market and networked infantry systems market studies cover heads-up displays, blue-force tracking and squad-level integration.
• The military 3D audio system market report covers spatial audio that helps soldiers locate threats and teammates.

Physical protection and endurance complete the soldier system. The soldier-worn exoskeleton market report covers exoskeletons that reduce load-carriage injuries. The military boots and protective gear market study covers footwear, body armor and protective clothing.

Where Value Is Created: The C4ISR Value Chain

Regional perspective

• United States. The largest C4ISR market, focused on CJADC2, space-based sensing, sixth-generation aircraft and zero-trust networks.
• Europe. Rapid growth in EW, air-surveillance and secure communications as NATO members rebuild capability, with emphasis on interoperability and European suppliers.
• Asia-Pacific. Strong demand for naval radar, ISR and EW in Japan, South Korea, Australia and India.
• Middle East. Priority on airspace surveillance, counter-drone and border systems.

What to Watch Through 2032

1. Cognitive EW fielding: how quickly AI-enabled EW moves from demonstration to operational units.
2. Proliferated satellite constellations: military use of low-Earth-orbit communications and ISR.
3. Sixth-generation fighter milestones: development funding and supplier selection across U.S. and European programs.
4. AI governance in C2: doctrine and certification standards for AI decision support and targeting.
5. GaN supply security: gallium export controls and alternative sources for RF components.

Frequently Asked Questions

What is C4ISR?

C4ISR stands for command, control, communications, computers, intelligence, surveillance and reconnaissance. It covers the sensors, networks, computers and software that allow forces to see the battlespace, decide and act.

What is cognitive electronic warfare?

Cognitive EW uses machine learning to detect and characterize unfamiliar signals and to generate countermeasures in real time, instead of relying only on pre-programmed threat libraries.

Why is GaN important for military radar?

Gallium nitride transistors handle higher power and heat than older technologies, allowing AESA radars with longer range, better reliability and smaller size. This is why new naval and airborne radars are GaN-based.

How are satellites changing tactical communications?

Proliferated low-Earth-orbit constellations provide high-bandwidth, lower-latency links that are harder to disrupt than single large satellites. They are increasingly combined with terrestrial mesh networks and anti-jam terminals.

How is AI used in military command and control?

AI helps fuse data from many sensors, prioritize information and suggest options to commanders, and supports autonomous mission management. Policies require appropriate human judgment over the use of force.

What are sixth-generation fighter programs?

They are next-generation combat aircraft programs, including the U.S. F-47, the UK-Italy-Japan GCAP and the French-German-Spanish FCAS. They combine advanced sensors, networking and teaming with uncrewed aircraft.

What do Mobility Foresights defense electronics reports include?

Each linked report provides market size and multi-year forecasts, program analysis, segmentation by platform, component and region, competitive landscape and company profiles, and recent contract developments. Customization is available on request.

Work With Mobility Foresights

Mobility Foresights provides syndicated and custom market intelligence across defense electronics, ISR, communications, avionics and soldier systems. Each report linked above can be purchased individually or tailored to a specific program, technology or region. To request a sample or commission a bespoke study, contact our aerospace and defense research team.