The US 5G in Defense Market is witnessing robust growth, driven by rapid technology adoption, increased demand for secure and real-time communications, and expanding government investments. The market is segmented by type, application, technology, distribution channels, and organization size, supporting defense modernization through enhanced connectivity and interoperability. With leading defense and telecom companies pushing innovation, the market is poised to address emerging security, logistics, and operational challenges, ensuring readiness for future defense strategies.
Latest Market Dynamics
Key Drivers
Rising demand for secure, high-speed military communications for real-time data exchange. For example, Lockheed Martin's partnership with AT&T
to deliver advanced 5G connectivity for military bases in 2025 is accelerating adoption.
Government investments in defense infrastructure modernization. Northrop Grumman’s recent 5G-enabled autonomous systems project highlights the drive to enhance operational efficiency across defense ecosystems.
Key Trends
Increasing deployment of private 5G networks, as seen with Verizon's tailored military installations in 2025, enabling secure, robust on-site connectivity.
Adoption of network slicing and edge computing for mission-critical applications, illustrated by Raytheon Technologies integrating 5G edge capabilities into battlefield systems.
Key Opportunities
Integration of 5G-enabled IoT and autonomous systems, with BAE Systems launching remote operations platforms leveraging low latency 5G in 2025.
Expansion of cybersecurity solutions for 5G defense networks, with Palantir Technologies providing secure analytics platforms for US military deployments.
Key Challenges
Stringent security requirements and threat of cyber-attacks; Booz Allen Hamilton noted increased costs and complex compliance demands for secure 5G deployment.
Interoperability across legacy defense systems; Cisco Systems is addressing integration issues through scalable 5G solutions compatible with existing military infrastructure.
Key Restraints
High investment costs for nationwide 5G rollout, which limits small to mid-sized defense contractors’ participation. L3Harris Technologies cited funding barriers for widespread adoption.
Regulatory hurdles and spectrum allocation delays; Ericsson’s US defense market entry faced timeline challenges due to protracted approval processes.
In 2025, Hardware dominates the US 5G in Defense Market type segmentation with 38%, followed by Services at 33% and Software at 29%. The prominence of hardware underscores the necessity for advanced devices and network infrastructure to support mission-critical defense operations. Meanwhile, services are gaining ground due to the rising requirement for system integration, maintenance, and managed services. Software's substantial share is led by the need for secure, scalable, and interoperable platforms that can support complex military networks. The diverse mix indicates defense organizations are prioritizing resilient, end-to-end 5G ecosystems for seamless operational support.
US 5G in Defense Market Share by Applications, 2025
Military Communications leads at 34% in the application segment, reflecting the critical emphasis on secure, real-time connectivity in defense operations. Intelligence, Surveillance & Reconnaissance claims 28%, boosted by the need for fast data aggregation and analysis. Logistics & Supply Chain Management accounts for 18%, as 5G optimizes mission support and inventory control. Command & Control and Remote Equipment Operations share 10% each. The distribution highlights growing demand for robust communications and situational awareness, while also signaling expanding use cases in automation and logistics optimization through 5G-enabled networks.
US 5G in Defense Market Revenue (USD Million), 2020-2035
The US 5G in Defense Market is projected to grow significantly from $680 Million in 2020 to $5,100 Million by 2035. This significant revenue growth is fueled by steady investments in defense modernization and increasing adoption of advanced 5G-enabled systems across military operations. Revenue trends indicate sharp acceleration post-2025, coinciding with rapid deployment of standalone 5G networks and edge computing solutions tailored for mission-critical defense use cases.
YOY growth in the US 5G in Defense Market is anticipated to be robust, averaging 20-28% between 2025-2030, before moderating to around 12% by 2035 as market saturation increases. Surging investments and rapid post-pandemic digitalization drive initial high growth, while subsequent years see stabilization, reflecting broader adoption and maturation of 5G defense infrastructure.
US 5G in Defense Market by Regions Share (%), 2025
In 2025, the South US region accounts for 42% market share, driven by the presence of major defense installations and federal funding. The West holds 34% with strategic bases and leading tech companies, while the Northeast and Midwest share 24%, benefiting from robust R&D ecosystems but with fewer direct deployments. This regional distribution indicates focused investments in areas with existing military infrastructure and advanced technology initiatives.
Lockheed Martin leads with 18%, followed by Northrop Grumman (15%) and Raytheon Technologies (13%), reflecting strong portfolios in 5G defense innovation. Verizon and AT&T capture 12% and 10% respectively, advancing the telecom-defense integration. The remainder is split among players like L3Harris Technologies and BAE Systems. This competitive landscape showcases collaboration between traditional defense and telecom giants to deliver comprehensive 5G solutions.
The Department of Defense (DoD) constitutes 57% of buyers, followed by Homeland Security at 18% and other federal agencies at 15%. State and local agencies comprise the remaining 10%. This underscores the DoD's pivotal role in driving 5G adoption across mission-critical defense activities while signaling expanding interest from other security and intelligence agencies.
Study Coverage
Metrics
Details
Years
2020-2035
Base Year
2025
Market Size
1700
Regions
South US, West US, Northeast & Midwest US
Segments
Hardware, Software, Services, Network Infrastructure, Devices & Equipment, Security Solutions, Military Communications, Intelligence, Surveillance & Reconnaissance, Command and Control, Logistics & Supply Chain Management, Remote Equipment Operations, Cybersecurity Operations, Standalone, Non-Standalone, Edge Computing, Network Slicing, Massive MIMO, Beamforming, Direct Sales, Distributors, Online, Value-added Resellers, System Integrators, Government Tenders, Small, Medium, Large
June 2024: Lockheed Martin and AT&T launch advanced 5G pilot network for secure communications at military bases.
July 2024: Northrop Grumman unveils autonomous systems integrating 5G edge computing for mission flexibility.
August 2024: Verizon enables private 5G networks at key Department of Defense installations.
September 2024: BAE Systems introduces secure 5G IoT platform for unmanned defense systems.
October 2024: Palantir Technologies collaborates with DoD to deploy analytics platforms on 5G networks.
Frequently Asked Questions
About the Author
Manisha C
Lead Industry Analyst
Manisha C is a Lead Industry Analyst specializing in market research, industry analysis, and business consulting across Aerospace & Defence. Manisha C brings a commercially grounded perspective to sectors shaped by changing demand, innovation, and competitive dynamics, helping turn complex market trends into clear strategic insights for business decision-makers. With 10+ years of experience across research, analytics, and strategic advisory roles, Manisha C has helped organizations translate data into actionable growth strategies.
