5G in Defense: Exploring Growth with AI and MIoT Solutions

Key takeaways:

• Introduction
• Use of 5G in military applications
• Product launches in the industry

In the last few years, several developed and developing countries have launched 5G technology to improve telecommunication facilities and offer advanced Internet services even in the remotest parts of the region. The growing adoption of digital tools in various end-use industries has enhanced the utility of 5G technology in residential, commercial, and industrial applications. Furthermore, the advent of Artificial Intelligence, the Internet of Things, machine learning, data analytics, blockchain, etc., has expanded the scope of the technology. In recent times, the use of 5G services in the defense sector has also increased, owing to the rising geopolitical tensions and disputes across the globe.

Growing utility of 5G in defense applications bringing new investment opportunities

The 5G in defense industry accounted for $551 million in 2020 and is predicted to gather a revenue of $76,014.6 million in 2030, rising at a CAGR of 67.7% during 2021-2030. The growing investments by governmental agencies in this emerging technology have created favorable conditions for the growth of the market. For example, Taiwan’s National Communications Commission (NCC) recently announced that in the five years it had put more than $900 million in various telecom operation projects to enhance the deployment of 5G services. Similarly, the US Department of Defense highlighted that it had increased its budgetary allocation for 5G military applications by around $500 million in recent times.

The growing use of autonomous drones and vehicles in combat and reconnaissance operations has also played a major role in the growth of the market. These UAVs and other such solutions depend on 5G technology to provide real-time information to the control and command centers regarding the latest developments and events taking place on the battlefield. The use of video transmission devices powered by 5G aids in enhancing the situational awareness and safety of the military units deployed on the ground.

In addition, the role of advanced geospatial mapping has also increased significantly in the past few years. These solutions are now embedded with AI analytics and machine learning algorithms to improve accuracy and precision while designing different maps and terrain models. Moreover, the ability of these technologies to predict the likely issues and challenges that can arise in the future has increased their popularity in the defense sector. Apart from this, the rising threats of cyberattacks have led to the growth in the use of 5G technology for protecting critical military equipment and offering comprehensive support to defense networks. The interoperability among various army, navy, and air force operations provided by 5G services has contributed to the expansion of the industry.

Launch of innovative tools accelerating sectoral growth

Recently, several IT companies have unveiled state-of-the-art 5G solutions for military applications, thus strengthening their position in the industry. For instance, in October 2024, Ericsson, a multinational telecom company, announced the launch of seven 5G Advanced software products for designing high-performing programmable networks. These seven subscription-based models include real-time powered automation, outdoor positioning, mission-critical services, RAN differentiated connectivity, premium network performance, energy efficiency and management, and battery device performance. Among these solutions, mission-critical services involve the use of 5G technology for railway operations, military applications, and other contingency measures. As per several industry experts, these software programs are expected to increase the footprint of the company in the coming period.

In March 2025, Lockheed Martin, an aerospace and defense company, announced a partnership with Nokia and Verizon to advance the capabilities of its 5G.MIL® Hybrid Base Station (HBS) solution. Nokia and Verizon have been two of the biggest telecommunication businesses globally, thus making this collaboration a major development in the 5G in defense industry. The main aim of this business move is to improve the resilience of military communication systems and provide an effective deterrence against evolving threats, thereby speeding up decision-making capabilities in the long run.

Winding up, the growth in the applicability and utility of 5G technology in various reconnaissance, surveillance, and combat operations has helped the industry flourish. Additionally, the rising deployment of autonomous vehicles and drones, MIoT tools, and AI analytics solutions is estimated to open new avenues for investments in the 5G in defense market in the near future.

Reach out to our experts for valuable insights on key growth factors and investment opportunities in the sector!

Related Post