Combat System Integration Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Application (Land Based, Naval, Airborne), By Platform (Large Combat Ships, Medium Combat Ships, Small Combat Ships, Submarines, Fighter Aircraft, Combat Helicopters, Others), By Region, By Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 25.71 Billion
CAGR (2026-2031)	10.29%
Fastest Growing Segment	Fighter Aircraft
Largest Market	North America
Market Size (2031)	USD 46.27 Billion

Market Overview

The Global Combat System Integration Market will grow from USD 25.71 Billion in 2025 to USD 46.27 Billion by 2031 at a 10.29% CAGR. The Global Combat System Integration Market encompasses the technological unification of diverse weaponry, sensors, communication networks, and command and control modules into a cohesive operational architecture for military platforms. The primary drivers supporting market growth include the urgent necessity for interoperability among allied forces to execute joint missions effectively and the strategic imperative to modernize aging fleets with network-centric warfare capabilities. Furthermore, escalating geopolitical tensions are accelerating the demand for integrated systems that facilitate rapid decision-making and precise threat neutralization.

However, a significant challenge that could impede market expansion is the technical complexity and high financial cost associated with retrofitting legacy analog platforms to interface with modern open-architecture standards. This integration barrier often results in extended project timelines and substantial budget overruns, complicating procurement cycles. Illustrating the sector's robust economic scale, according to the 'Aerospace Industries Association', in '2025', 'the United States aerospace and defense industry generated over $995 billion in total business activity during 2024'.

Key Market Drivers

Rising defense budgets and capital allocation for military modernization are fundamentally reshaping the Global Combat System Integration Market, driven by acute geopolitical instability. Nations are prioritizing the procurement of integrated combat suites to ensure readiness against near-peer adversaries. This financial influx targets the replacement of siloed legacy platforms with interconnected systems capable of joint-domain operations. Illustrating this surge, according to NATO, February 2024, in the 'Pre-Ministerial Press Conference', European allies were projected to invest a combined total of $380 billion in defense during 2024, meeting the 2% of GDP spending target for the first time. This historic investment underscores the urgency with which governments are addressing security gaps through advanced system integration.

The rapid advancement and integration of Artificial Intelligence (AI) and Machine Learning (ML) serves as a critical technological catalyst, enabling combat systems to process vast sensor data for real-time decision-making. As warfare becomes increasingly data-driven, integrators are embedding AI algorithms directly into command architectures to facilitate autonomous threat detection and neutralized response times. According to the U.S. Department of Defense, March 2024, in the 'Fiscal Year 2025 Budget Request', the department specifically allocated $1.8 billion for artificial intelligence capabilities to accelerate the adoption of these technologies across the joint force. This demand for sophisticated technology is translating into substantial industrial activity; for instance, according to Thales Group, in 2024, the company's Defence & Security segment recorded a 127% organic increase in order intake during the first quarter, driven by large-scale contracts for integrated air surveillance and combat platforms.

Download Free Sample Report

Key Market Challenges

The technical complexity and high financial cost associated with retrofitting legacy analog platforms to interface with modern open-architecture standards act as a substantial barrier to market expansion. Integrating advanced digital combat systems into aging hardware requires extensive re-engineering, which inevitably drives up expenses and extends development schedules. These integration hurdles often force defense departments to delay critical modernization programs or reduce the scope of upgrades to remain within budget. Consequently, the slow pace of retrofitting hampers the broader adoption of unified combat architectures, directly limiting the revenue potential for system integrators.

This operational friction is reflected in recent industry assessments regarding the difficulties of executing defense contracts. According to the 'National Defense Industrial Association', in '2025', '64 percent of private sector respondents identified complex and protracted procurement processes as the most pressing issue facing the defense industrial base'. This statistic highlights how intricate integration requirements and the resulting bureaucratic delays create a feedback loop that stalls market momentum. By complicating the acquisition cycle, these challenges prevent the rapid deployment of necessary interoperable capabilities, thereby restricting the overall growth trajectory of the Global Combat System Integration Market.

Key Market Trends

The adoption of the Modular Open Systems Approach (MOSA) is emerging as a critical trend in the Global Combat System Integration Market, fundamentally shifting procurement strategies away from proprietary, vendor-locked architectures. This approach mandates the use of standardized, non-proprietary interfaces and data standards, such as SOSA and FACE, enabling defense departments to rapidly insert new technologies and ensure interoperability across diverse platforms. By decoupling hardware from software, MOSA allows for continuous incremental upgrades, significantly reducing the lifecycle costs and integration times that have historically plagued complex defense programs. The urgency of this shift is evident in major recent contract awards; for instance, according to Lockheed Martin, December 2025, in the 'News Releases' update, the company received a contract award worth over $1 billion to expand the Proliferated Warfighter Space Architecture, a key program designed around open standards to ensure seamless connectivity and data integration across the joint force.

Concurrently, the implementation of Manned-Unmanned Teaming (MUM-T) is redefining operational concepts, driving the integration of autonomous "loyal wingman" drones with manned combat platforms. This trend requires sophisticated combat management systems capable of unifying the control of unmanned assets with the situational awareness of piloted aircraft, effectively extending sensor reach and weapons payload without increasing risk to personnel. As integrators develop these complex teaming capabilities, the market is witnessing substantial financial activity linked to autonomous system demand. Illustrating this growth, according to Elbit Systems, March 2025, in the 'Fourth Quarter and Full Year 2024 Results' report, the company recorded annual revenues of $6.8 billion, a financial milestone largely attributed to a 9% increase in aerospace sales driven by the heightened demand for Unmanned Aerial Systems (UAS) and associated teaming technologies.

Segmental Insights

The Fighter Aircraft segment is positioned to register the fastest growth in the Global Combat System Integration Market, driven by extensive fleet modernization programs and the demand for enhanced avionics. Defense departments, such as the United States Department of Defense, are increasingly funding the unification of disparate sensors, weaponry, and communication modules to ensure interoperability across allied forces. This strategic focus on network-centric warfare requires complex integration to manage data flow effectively. Consequently, the necessity to upgrade legacy platforms with unified digital architectures is a primary factor accelerating expansion within this sector.

Regional Insights

North America retains the leading position in the Global Combat System Integration Market, largely due to significant capital allocation by the U.S. Department of Defense. The region's dominance is underpinned by strategic initiatives aimed at unifying disparate military platforms into a cohesive network, a concept central to programs like Combined Joint All-Domain Command and Control. This drive for multi-domain interoperability necessitates extensive system integration updates across naval, airborne, and ground assets. Furthermore, a strong domestic defense industrial base supports the continuous delivery and sustainment of these complex integrated frameworks, solidifying the region's market superiority.

Recent Developments

• In September 2025, Thales announced the successful completion of Factory Acceptance Tests for the mission and combat systems designated for the Royal Navy's Type 31 frigates. The company finalized the rigorous assessments for the TACTICOS Combat Management System, which functions as the operational core for the vessels' command and decision-making processes. This milestone, achieved in close collaboration with industry partners, validated the system's proficiency in critical areas such as sensor control, situational awareness, and weapon deployment. Following this achievement, the systems were prepared for land-based integration trials to ensure their operational effectiveness before installation on the HMS Venturer.
• In June 2025, Leonardo DRS secured a contract valued at $41 million from the U.S. Naval Sea Systems Command to deliver advanced combat management system hardware. Under this agreement, the company was tasked with manufacturing multi-screen consoles, display units, and peripheral equipment for use by the U.S. Navy, the U.S. Coast Guard, and allied nations such as Australia, South Korea, and Japan. The hardware was designed to serve as the primary operator interface for the Aegis combat system, enabling sailors to process battlespace information efficiently and facilitating interoperability and scalability across the fleet’s current and future maritime platforms.
• In November 2024, BAE Systems was awarded a five-year contract worth $251 million by the U.S. Navy to provide critical systems engineering and technical support. The agreement tasked the company with maintaining and enhancing complex combat system configurations for the AEGIS Technical Representative organization, serving the Navy, the Missile Defense Agency, and Foreign Military Sales programs. The scope of the project encompassed logistics, cybersecurity, and test and evaluation services. Additionally, the company implemented advanced digital analytic tools to provide real-time assessments of software performance, thereby improving investment decisions and boosting the operational combat readiness of surface vessels.
• In October 2024, Lockheed Martin successfully demonstrated a virtualized version of a key combat system running on hardware designed for the U.S. Navy's future Integrated Combat System. During the event at the Navy's software facility, the company executed the Ship Self-Defense System on the new developmental infrastructure, validating the concept of decoupling combat software from specific computing hardware. This technical breakthrough marked a pivotal advancement in the service's strategy to enable rapid, efficient software updates across the fleet. The demonstration highlighted the potential for enhanced agility and seamless integration of combat capabilities across aircraft carriers and amphibious ships.

Key Market Players

• Lockheed Martin Corporation
• Leonardo S.p.A.
• BAE Systems Plc
• QinetiQ Limited
• Saab AB
• Thales S.A.
• ICI Services Corporation
• Kongsberg Gruppen ASA
• Elbit Systems Ltd
• Bharat Electronics Limited (BEL)

By Application	By Platform	By Region
Land Based Naval Airborne	Large Combat Ships Medium Combat Ships Small Combat Ships Submarines Fighter Aircraft Combat Helicopters Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

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

• Combat System Integration Market, By Application:

• Land Based
• Naval
• Airborne

• Combat System Integration Market, By Platform:

• Large Combat Ships
• Medium Combat Ships
• Small Combat Ships
• Submarines
• Fighter Aircraft
• Combat Helicopters
• Others

• Combat System Integration 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