Europe & CIS Network Centric Warfare (NCW) Market By Application (Intelligence, Surveillance, and Reconnaissance (ISR), Communications, Command and Control, Computer, Cyber), By Platform (Land, Air, Naval), By Country, Competition, Forecast & Opportunities, 2020-2030F

Market Overview:

Europe & CIS Network Centric Warfare (NCW) Market was valued at USD 45.49 Billion in 2024 and is expected to reach USD 66.04 Billion by 2030 with a CAGR of 6.41% during the forecast period. Network Centric Warfare (NCW) market is witnessing strong momentum driven by the increasing demand for advanced communication systems, the integration of artificial intelligence in defense platforms, and the growing emphasis on joint operations across air, land, sea, space, and cyber domains. Defense forces are adopting network-enabled capabilities to enhance situational awareness, ensure interoperability among diverse units, and facilitate faster decision-making. The shift toward modernized command-and-control structures is pushing investments in secure communication networks, data fusion technologies, and real-time intelligence systems that allow seamless coordination in complex combat environments.

Market Drivers

Modernization of Defense Infrastructure

Defense forces are undergoing extensive modernization to upgrade legacy systems with advanced digital capabilities. Traditional platforms, often limited by outdated communication methods, are being integrated with cutting-edge systems to enable interoperability and adaptability in fast-changing operational environments. Modernization efforts focus on building resilient command-and-control systems, enhancing cyber defense frameworks, and adopting technologies such as cloud-based solutions and software-defined networks to ensure mission readiness. This transition helps create a more agile force capable of handling multi-domain operations that extend across land, maritime, air, and space environments. For instance, in 2024, EU states spent $370B on defence, up 19% from 2023 and projected at $412B in 2025. Investments reached $115B, with $95B for equipment, expected to top $108B in 2025. R&D rose to $14B and should hit $18B in 2025. The defence industry generated $172B turnover, $62B exports, and 627K jobs in 2023. EU programmes added $9.5B via the Defence Fund, $1.8B for mobility, $300M for joint procurement, $500M for ammunition, and a planned $1.6B under EDIP by 2027, with 2,500 SMEs central to supply chains.

Expansion of Unmanned and Autonomous Systems

The increasing use of unmanned aerial vehicles, ground robots, and naval drones is propelling the need for advanced NCW infrastructure. These platforms rely heavily on secure communication links and integrated data-sharing networks to perform surveillance, reconnaissance, and combat roles effectively. As the role of unmanned systems expands from intelligence gathering to active engagement in strike missions, the necessity for robust, network-centric frameworks becomes paramount. These systems generate vast amounts of data, which must be processed, analyzed, and distributed quickly across multiple command levels. Network Centric Warfare enables seamless integration of unmanned platforms into broader defense ecosystems, ensuring they operate in coordination with manned forces. The trend toward swarming tactics, where large groups of drones function collaboratively, further reinforces the need for real-time data exchange and advanced interoperability solutions. The deployment of autonomous systems powered by artificial intelligence requires highly resilient networks capable of managing complex, multi-source data flows. For instance, European Defence Fund allocated $1B to 62 projects spanning drones, unmanned systems, hypersonic defense, AI, and rotorcraft. Major awards: $110M ENGRT II, $55M iMUGS2, $31M Eurosweep, $85M hypersonic defense, $39M Scepter, $38M Beast, $52M Citadel Range, $33M Fasett2, and $32M Ninja2. SMEs secured 27% of funding, Ukraine joined for the first time, and EDF has spent half of its $8.8B 2021–2027 budget.

Integration of Cybersecurity into Defense Networks

As military operations become increasingly reliant on interconnected systems, the integration of advanced cybersecurity into NCW frameworks has emerged as a vital driver. Modern battlefield networks are vulnerable to cyberattacks that can disrupt communications, manipulate intelligence data, or disable command systems. Ensuring the security of tactical and strategic communications is a top priority, pushing investments in encrypted channels, intrusion detection systems, and resilient architectures. The rising sophistication of cyber threats requires defense forces to embed cybersecurity at every layer of NCW operations, from sensor nodes to cloud-based command centers. This integration not only safeguards critical assets but also enhances trust among allied forces sharing sensitive information across joint operations. Secure NCW infrastructures enable uninterrupted information flow, even in contested environments where adversaries actively attempt to disrupt networks. For instance, at the 2025 NATO Summit, allies pledged to raise defense spending to 5% of GDP by 2035, with 3.5% for core defense and 1.5% for cybersecurity and infrastructure, marking a sharp increase from the prior 2% benchmark. This shift channels consistent, multi-year funding into vulnerability management, incident response, secure-by-design software, and defense-specific cloud platforms, while boosting ICT investments projected at $11B in Europe in 2025. The EU’s $926B ReArm Europe plan includes $1.6B (2025–2027) for defense industry strengthening.

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Key Market Challenges

High Implementation and Maintenance Costs

Deploying a full-scale NCW framework requires significant financial investment, making cost one of the primary challenges for its adoption. The development and integration of advanced communication networks, real-time data fusion systems, and AI-driven decision-support platforms demand substantial funding. Beyond the initial deployment, continuous upgrades and maintenance further increase expenditure, as outdated systems quickly become ineffective in fast-evolving combat environments. High costs often extend to training personnel, as forces must be equipped with the technical expertise to operate, secure, and maintain advanced networks. Unlike traditional platforms that may function independently, NCW systems require constant connectivity and regular updates to remain functional, creating long-term operational expenses. Resource-constrained defense budgets can delay implementation or restrict the scope of network-centric modernization.

Complexity of System Integration

The integration of diverse platforms, sensors, and communication networks into a single NCW framework poses significant technical challenges. Modern defense forces operate a wide range of legacy systems alongside advanced technologies, making seamless interoperability difficult to achieve. Each platform may use different protocols, architectures, and operating standards, requiring complex customization for integration. The difficulty of harmonizing these systems often leads to delays, technical failures, or reduced efficiency. Moreover, as NCW extends across multi-domain operations land, air, sea, space, and cyber the need for flawless connectivity becomes critical. .

Key Market Trends

Adoption of Artificial Intelligence in Command Systems

Artificial intelligence is increasingly shaping the evolution of NCW by enhancing command-and-control decision-making. AI algorithms are being used to process massive streams of battlefield data, detect patterns, and provide predictive insights that enable proactive strategies. By integrating AI into command systems, defense forces can reduce decision-making time, enhance threat detection, and optimize resource deployment. Machine learning models can filter and prioritize data, ensuring commanders focus on critical information without being overwhelmed by irrelevant details. This improves accuracy in fast-paced combat environments, where delays can result in mission failure. AI is also enabling greater autonomy for unmanned systems, facilitating collaborative operations across manned and unmanned platforms. In logistics, AI supports predictive maintenance by identifying system failures before they occur, reducing downtime and ensuring operational readiness.

Growth of Cloud-Based Battlefield Networks

Cloud technology is becoming a critical enabler of NCW by providing scalable, flexible, and secure platforms for data storage and real-time information exchange. Defense forces are moving away from isolated, hardware-dependent systems toward cloud-based architectures that enable seamless sharing of intelligence across multiple domains. Cloud infrastructure supports the processing of large data volumes from sensors, satellites, and drones, making it possible to deliver integrated battlefield awareness to command centers and deployed units. This trend is reducing dependency on rigid infrastructure while offering mobility and adaptability, which are essential in modern combat environments. Cloud-based solutions also facilitate collaboration among allied forces by offering shared access to mission-critical data under secure protocols.

Increasing Use of 5G-Enabled Communication Networks

The deployment of 5G technology is emerging as a key trend, providing NCW with ultra-low latency, high-speed, and reliable communication channels. These capabilities are essential for supporting real-time operations that involve massive data flows from multiple platforms, including drones, satellites, and ground units. 5G enables faster and more secure transfer of mission-critical data, improving coordination and responsiveness in dynamic battlefield environments. Its ability to connect a large number of devices simultaneously makes it suitable for supporting swarming operations of unmanned systems and enhancing situational awareness for distributed forces. The technology also provides a foundation for integrating augmented and virtual reality applications into training and operations, improving preparedness and effectiveness. By enabling edge computing, 5G ensures that data can be processed closer to the source, reducing delays and ensuring timely insights for commanders.

Segmental Insights

Platform Insights

In 2024, the land segment emerged as the dominant platform in Europe & CIS Network Centric Warfare market, supported by the growing emphasis on ground-based modernization and the integration of advanced communication and surveillance systems for land forces. Armies are prioritizing digitized battlefield management systems, secure tactical data links, and advanced radar networks to enhance operational efficiency and ensure seamless coordination across units. The focus on real-time situational awareness and rapid decision-making has accelerated the deployment of mobile command-and-control centers, secure wireless communication systems, and ground-based sensors capable of integrating with broader defense networks. The increasing role of armored vehicles, artillery, and infantry in combined operations requires robust network-enabled solutions that ensure interoperability and resilience against electronic warfare threats.

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Country Insights

In 2024, Germany represented the dominant region in Europe & CIS Network Centric Warfare market, driven by strong investments in digitized land platforms, advanced radar systems, and secure communication technologies. The region’s focus on network-enabled ground forces created demand for integrated battlefield management systems and data-sharing platforms that improve situational awareness and interoperability. The adoption of advanced electronic warfare solutions and AI-driven decision-support tools strengthened Germany’s position, as defense modernization emphasized seamless coordination across joint operations. The prioritization of cyber resilience in defense networks also boosted growth, ensuring robust protection of sensitive communication channels. For instance, Germany is set to launch a multi-billion-dollar defense procurement drive, including an order for 20 Eurofighter jets ($4.6–$5.7B), up to 3,000 Boxer armored vehicles ($11.5B), and around 3,500 Patria infantry fighting vehicles ($8B), with deliveries planned over the next decade. The defense budget will rise to $95.8B in 2026, supported by exemptions from debt limits, while additional purchases will cover IRIS-T air defense systems and hundreds of SkyRanger drone-defense platforms. The initiative under Chancellor Friedrich Merz aims to build Europe’s strongest conventional force and meet NATO’s 3.5% of GDP defense spending goal by 2029.

Russia stood as the second largest market in 2024, benefiting from continuous investment in modern command-and-control frameworks and expanded deployment of unmanned systems with secure communication networks. Emphasis on electronic warfare capabilities and network-enabled platforms supported its expansion, with significant focus on enhancing air defense systems integrated with land and naval domains. Large-scale defense programs and prioritization of real-time intelligence gathering sustained its strong presence in the market.

Recent Developments

• ​In 2024, Lockheed Martin, Nokia, and Verizon integrated military-grade 5G into Lockheed Martin’s 5G.MIL Hybrid Base Station, enabling secure, high-speed communications. The system allows seamless switching between commercial and tactical networks, enhances battlefield data sharing, and reduces risks from jamming and cyber threats, with further testing ongoing at Lockheed Martin’s experimental network site.
• In 2025, the Dassault nEUROn stealth UCAV, developed with European partners, advanced as a testbed for autonomous flight, stealth, and networked warfare. Featuring a delta wing design, composite frame, and Mach 0.9 speed with 460 kg payload, it integrates EO/IR sensors and secure links to operate with manned fighters. The program strengthens Europe’s defense autonomy and future UCAV capabilities.
• In 2025, In a bold strategic proposal from mid-2025, a German start-up called Helsing has pitched the concept of a “drone wall” along NATO’s eastern border deploying 100,000 AI-equipped HX-2 combat drones to form a high-tech aerial shield that could “prevent a land invasion of the continent once and for all”. The idea envisions creating this drone barrier across the approximately 3,000 km eastern frontier within a year.
• In 2025, Indra advanced the AIDA project with a €32M EU grant, creating a platform to manage autonomous AI agents for military cyber operations. Using its IndraMind system, Indra enables deployment, monitoring, and recovery of intelligent defense agents, ensuring interoperability across 15 EU nations.

Key Market Players

• Cisco Systems Inc
• BAE Systems PLC
• General Dynamics Corporation
• Elbit Systems Ltd
• Lockheed Martin Corporation
• Northrop Grumman
• Raytheon Technologies Corporation
• Thales Group
• L3Harris Technologies Inc. 
• Lumen Technologies

Report Scope:

In this report, Europe & CIS Network Centric Warfare (NCW) Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• ·         Europe & CIS Network Centric Warfare (NCW) Market, By Application:

o    Intelligence, Surveillance, and Reconnaissance (ISR)

o    Communications

o    Command and Control

o    Computer

o    Cyber

• ·         Europe & CIS Network Centric Warfare (NCW) Market, By Platform:

o    Land

o    Air

o    Naval

• ·         Europe & CIS Network Centric Warfare (NCW) Market, By Country:

o    Germany

o    Russia

o    France

o    Spain

o    Italy

o    United Kingdom

o    Poland

o    Rest of Europe & CIS

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in Europe & CIS Network Centric Warfare (NCW) Market.

Available Customizations:

Europe & CIS Network Centric Warfare (NCW) Market report with the given market data, TechSci Research offers customizations according to the company’s specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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