Combat Management System Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Component (Software, Hardware), By Subsystem (Self-defense Management System, Situational Awareness System, Track Management System, Weapon Management System, Display System, Identification System, Unmanned Vehicle Control System), By Platform (Destroyers, Submarines, Frigates, Amphibious Ships, Corvettes, Fast Attack Craft (FAC), Aircraft Carriers), By Region & Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 444.75 MIllion
CAGR (2026-2031)	3.81%
Fastest Growing Segment	Unmanned Vehicle Control System
Largest Market	North America
Market Size (2031)	USD 556.61 MIllion

Market Overview

The Global Combat Management System Market will grow from USD 444.75 MIllion in 2025 to USD 556.61 MIllion by 2031 at a 3.81% CAGR. A Combat Management System is a centralized suite that integrates a naval vessel’s sensors, weapons, and data links to provide a unified operational picture for tactical decision-making. The market is propelled by the urgent need for fleet modernization to counter emerging asymmetric threats and the growing requirement for interoperability among allied forces. Governments are actively upgrading legacy platforms to maintain strategic superiority in contested waters. According to the Stockholm International Peace Research Institute, in 2025, global military expenditure reached $2,718 billion for the year 2024, demonstrating the substantial financial resources nations are allocating toward defense capabilities.

However, the market faces a significant impediment regarding the technical complexity of integrating modern open-architecture systems with aging naval hardware. This retrofitting process often incurs substantial cost overruns and technical delays which can severely hinder the timely deployment of upgraded vessels. Such integration difficulties create a critical bottleneck that complicates procurement schedules and restricts the pace at which navies can fully adopt advanced combat solutions.

Key Market Drivers

The escalation of geopolitical tensions and regional maritime disputes serves as a primary catalyst for the Global Combat Management System Market, compelling nations to aggressively bolster their naval readiness. Defense ministries are prioritizing the procurement of integrated combat suites that ensure superior response times and threat evaluation in contested waters. This strategic pivot is evidenced by substantial capital injections into naval procurement, as nations strive to maintain deterrence capabilities. According to the U.S. Department of the Navy, March 2024, in the 'Highlights of the Department of the Navy FY 2025 Budget', the service requested $257.6 billion to sustain forward presence and enhance warfighting readiness. This heightened security posture directly translates into industrial growth; according to Thales Group, October 2024, in the 'Order intake and sales as of September 30, 2024' report, order intake in the Defense & Security segment reached €8,951 million for the first nine months of the year, reflecting the surge in global demand.

Simultaneously, the modernization and lifecycle extension of existing naval fleets forces navies to maximize the utility of legacy platforms through advanced retrofits. Rather than commissioning entirely new hulls, naval forces are integrating contemporary combat management systems into older vessels to maintain parity with evolving asymmetric threats. This approach necessitates complex engineering to interface modern open-architecture software with aging hardware, creating a sustained revenue stream for specialist integrators. According to BAE Systems, in 2024, the company received a $212 million contract to modernize the amphibious transport dock USS Green Bay, underscoring the heavy investment in extending the operational relevance of current surface combatants.

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Key Market Challenges

The technical complexity inherent in integrating modern open-architecture systems with legacy naval hardware stands as a formidable obstruction to the growth of the Global Combat Management System Market. This retrofitting process requires extensive custom engineering to bridge the gap between advanced digital interfaces and aging analog platforms, creating severe technical bottlenecks that disrupt project timelines. As these integration challenges prolong delivery schedules and drive unanticipated costs, defense budgets are increasingly consumed by variance management rather than new procurement. This unpredictability creates a reluctance to commit to large-scale modernization concurrently, thereby reducing the volume of active contracts in the pipeline.

The market is further constrained by the industrial base's limited capacity to handle these highly specialized integration demands under pressure. According to the National Defense Industrial Association, in its 2025 report, approximately 27.3 percent of critical defense supplier industries are projected to experience shortages in the event of a surge in demand. This fragility in the supply chain means that even when funds are available, the pace of delivering these complex, retrofitted combat solutions is physically restricted, directly dampening the overall revenue potential of the market.

Key Market Trends

The Integration of Artificial Intelligence for Automated Threat Evaluation is fundamentally altering the functional core of combat management systems by transitioning them from passive data displays to cognitive decision-support engines. As naval engagement timelines compress due to hypersonic threats, CMS architectures are embedding machine learning algorithms to autonomously prioritize targets and recommend engagement sequences faster than human operators can process. This technological shift is commercially validated; according to GovCon Exec International, December 2025, in the 'Thales Awarded Potential $135M Contract to Deliver AI-Enabled Minehunting Command Centers for Royal Navy', Thales secured a $135 million contract to develop command suites that integrate AI-powered automatic target recognition to filter sensor data and accelerate decision-making cycles.

The Convergence of Manned and Unmanned System Operations is reshaping market requirements as navies demand CMS platforms capable of seamlessly controlling remote autonomous assets alongside organic shipboard weapons. This trend moves beyond simple interoperability, requiring the combat system to act as a central mothership hub that directs swarms of unmanned surface and underwater vehicles to extend sensor horizons and kinetic reach without exposing the crewed vessel to direct fire. The financial scale of this transition is significant; according to DefenseScoop, June 2025, in the 'Billions for new uncrewed systems and drone-killing tech included in Pentagon's 2026 budget plan', the U.S. Navy programmed $5.3 billion for autonomy investments across all domains to accelerate the fielding of these collaborative uncrewed capabilities within the fleet.

Segmental Insights

The Unmanned Vehicle Control System segment is recognized as the fastest-growing category in the Global Combat Management System Market. This rapid expansion is driven by the increasing deployment of autonomous naval assets intended to minimize risks to personnel during hazardous operations. Defense agencies are prioritizing the integration of unmanned surface and underwater vehicles for intelligence and surveillance missions, necessitating centralized control modules. Consequently, naval forces are upgrading existing command infrastructures to ensure seamless interoperability between manned vessels and unmanned systems, allowing commanders to coordinate complex tactical maneuvers directly from the primary combat management interface.

Regional Insights

North America maintains a leading position in the Global Combat Management System Market, primarily driven by the extensive defense budget allocated by the United States. The region benefits from the United States Navy's strategic initiative to upgrade existing fleets and procure new vessels equipped with integrated command and control networks. Furthermore, the Department of Defense actively funds research to enhance interoperability among naval assets, ensuring a steady reliance on domestic technology providers. This consistent government support, combined with a concentrated base of major defense manufacturers, secures North America's status as the central hub for market activity.

Recent Developments

• In November 2025, the Canadian Commercial Corporation finalized a government-to-government contract to equip the German Navy with Lockheed Martin Canada’s CMS 330 combat management system. The agreement, projected to exceed a value of $1 billion, involved the integration of the system into the German fleet to enhance situational awareness and interoperability. Originally developed for Canada’s Halifax-class frigates, the CMS 330 was selected to manage shipboard sensors, weapons, and communications for air, surface, and subsurface warfare. The deal strengthened defence cooperation between the two nations and expanded the user base of this naval technology.
• In February 2025, Saab signed a contract with Damen Naval to supply the 9LV Combat Management System for the Colombian Navy’s new frigate programme. The agreement covered the delivery of the combat management suite along with fire control systems and sensors for the Plataforma Estratégica de Superficie class vessels. The selected system was designed to coordinate all shipboard sensors and weapons, creating a unified operational picture for the command team. This collaboration with the Dutch shipbuilder ensured the integration of advanced command and control capabilities into the frigates, which were based on the SIGMA 10514 design.
• In January 2025, BAE Systems was awarded a contract worth £285 million by the United Kingdom’s Ministry of Defence to support the Royal Navy’s combat management systems. Under the eight-year programme known as RECODE, the company agreed to maintain and update the systems across the fleet, including Type 45 destroyers, Type 26 frigates, and Queen Elizabeth-class aircraft carriers. The initiative focused on ensuring high levels of availability and security while enabling the agile deployment of new capabilities. The project also adopted modern software engineering principles to deliver updates rapidly to meet evolving operational needs.
• In November 2024, Hanwha Systems signed a contract with South Korea's Defense Acquisition Program Administration to develop a mine warfare combat management system. This agreement represented the first domestic development of such a system in the country, intended for installation on next-generation minesweepers scheduled for deployment by 2029. The solution was designed to function as the central processing unit for the vessels, integrating data from sensors like sonar and radar while controlling armaments. The company planned to incorporate artificial intelligence and big data technologies to automate mine detection and identification, distinguishing underwater objects from mines in real-time.

Key Market Players

• Lockheed Martin Corporation
• Thales Group
• BAE Systems Plc.
• Saab AB
• Kongsberg Gruppen Asa
• Israel Aerospace Industries Ltd.
• Leonardo S.P.A.
• Raytheon Company
• Northrop Grumman Corporation
• Elbit Systems Ltd

By Component	By Subsystem	By Platform	By Region
Software Hardware	Self-defense Management System Situational Awareness System Track Management System Weapon Management System Display System Identification System Unmanned Vehicle Control System	Destroyers Submarines Frigates Amphibious Ships Corvettes Fast Attack Craft (FAC) Aircraft Carriers	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Combat Management System Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Combat Management System Market, By Component:

• Software
• Hardware

• Combat Management System Market, By Subsystem:

• Self-defense Management System
• Situational Awareness System
• Track Management System
• Weapon Management System
• Display System
• Identification System
• Unmanned Vehicle Control System

• Combat Management System Market, By Platform:

• Destroyers
• Submarines
• Frigates
• Amphibious Ships
• Corvettes
• Fast Attack Craft (FAC)
• Aircraft Carriers

• Combat Management System Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE