The Japanese C4ISR market is anticipated to register a CAGR of over 4% during the forecast period.

  • In Japan, defense spending, as well as investments in control, command, communications, computer, intelligence, surveillance, and reconnaissance (C4ISR), is mainly increasing, due to the rising dominance of China and North Korea in Asia-Pacific.
  • The integration of advanced technologies in battlefield management, to provide better tactical communications and enhance the situational awareness of soldiers, is anticipated to propel the growth of the C4ISR market in Japan.
  • Also, the country is investing in the integration of artificial intelligence into various military platforms and command and control centers, in order to increase the effectiveness of these systems in aiding ISR and combat missions.



Key Market Trends

Increasing Military Expenditure by Japan on C4ISR Systems

Japan has gradually increased its military spending over the years to modernize its military forces against the growing dominance of China and the threat of nuclear weapons from North Korea. The defense spending of the country increased by more than 4% during 2010-2019 and reached USD 47,609 million in 2019. In December 2019, the Japanese government announced to increase its military budget by 1.1%, to USD 48.56 billion, for FY 2020. The investment for 2020 includes the procurement of fighter jets, missiles, and electronic warfare (EW) solutions for armed forces. Earlier, in April 2019, the government announced several acquisition and R&D plans to enhance the EW capabilities of ground forces and the air force. The plans included the following:

  • The procurement of one complete system of truck-mounted Network Electronic Warfare System (NEWS) and establishment of a new EW unit by the end of 2020. Also, additional investment in the development of a new ground-based, anti-aircraft EW system.
  • Continue the modernization of EW suites onboard F-15J/DJ Eagle aircraft, in order to expand its multirole capabilities and develop a new standoff jammer, which will be mounted on Kawasaki C-2 airlifter, to perform standoff jamming against adversaries in the air, land, and naval domains.



Also, the government is investing in the development of space-based ballistic-missile early-warning systems. Such investments in the procurement and development of advanced C4ISR solutions are anticipated to propel the development of the market during the forecast period.

The Naval Segment of the Market is Anticipated to Record the Highest CAGR During the Forecast Period

The naval segment of the market is anticipated to witness the highest growth, due to the increasing investments by the country in the surveillance and protection of its water borders. This is due to the territorial conflicts of the country with China in the South China Sea. The government announced its plan to procure three maritime surveillance drones during 2019-2023. It also has plans to procure about 20 ship-transportable aerial vehicles later. In July 2019, the defense ministry announced to introduce 20 unmanned helicopters onboard destroyers and other naval vessels to monitor faraway foreign vessels and other objects. The contract for unmanned helicopters is expected to be provided in 2022, and the deliveries are planned to begin from 2023. Also, the Maritime Self-defense Force plans to develop an underwater drone with early warning and surveillance capabilities against submarines and other underwater vessels. Such investments in unmanned systems for sea-based ISR missions, as well as investments in artificial technologies to increase the autonomy in unmanned systems, are anticipated to accelerate the growth of the segment during the forecast period.

Competitive Landscape

The prominent players in the market are Northrop Grumman Corporation, Thales Group, Elbit Systems Ltd, and L3Harris Technologies Inc. Local firms, like Kawasaki Aerospace Company, occupy a significant share in the market, as they provide patrol aircraft and other surveillance platforms to Japan’s armed forces. The procurement of new surveillance platforms, in accordance with the government’s modernization plans, is anticipated to help companies receive new contracts. For instance, in May 2019, Northrop Grumman Corporation delivered its first E-2D Advanced Hawkeye to the Japanese Air Self-defense Force (JASDF). It includes enhanced early warning, command, and control capabilities for the evolving security needs. Further, the government plans to procure and deploy unmanned systems for ISR missions. Such contracts and development plans are anticipated to help companies further enhance their presence in the country.

Reasons to Purchase this report:

  • The market estimate (ME) sheet in Excel format
  • 3 months of analyst support