Valued at USD 2.71 billion in 2022, the 5G in Defense Market is expected to rise to USD 3.09 billion in 2023 and reach USD 10.57 billion by 2032, registering a CAGR of 14.7% during the forecast period 2023–2032. Companies profiled by Polaris Market Research include AeroMobile Communications Ltd., Cisco Systems, Inc., Huawei Technologies Co. Ltd, L3Harris Technologies, Inc., NEC Corporation, Qualcomm Technologies, Inc., Raytheon Technologies Corporation, Telefonaktiebolaget LM Ericsson, and Thales Group. This article examines how infrastructure, core network, and service segmentation define the market.

Communication Infrastructure in the 5G in Defense Market

The macrocell segment held the largest revenue share in 2022 and is poised to lead throughout the forecast period. A macrocell is a crucial component of the radio access network, offering extended coverage with lower-frequency waves that can penetrate physical obstacles. Typically mounted on towers, it provides 5G services over a broader area and reduces system response times. The small cell segment, which includes femtocells and picocells, completes the infrastructure segmentation.

Core Network Technology and Edge Computing

The core network segmentation covers fog computing, network functions virtualization, software-defined networking, and multi-user edge computing (MEC). The MEC segment is expected to exhibit a rapid CAGR, owing to growing adoption of MEC-enabled 5G wireless systems that provide low-latency, high-bandwidth network access. This form of edge computing enables data collection and processing at the network's edge, supporting real-time analytics, reduced cloud data storage, and enhanced network security.

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Services: Ultra-Reliable Low-Latency Communications Lead

The ultra-reliable low-latency communications (URLLC) segment accounted for the highest market share and is poised to dominate revenue contribution over the forecast period. The report notes that 5G is projected to be 100 times faster than 4G, primarily owing to its low latency. When coupled with edge computing, this will transform military communication systems, enabling expedited decision-making in times of conflict and bolstering target recognition in reconnaissance operations. The services segmentation also includes massive machine type communications and enhanced mobile broadband, while platform segmentation spans naval, airborne, and land systems. Chipset segmentation covers radio frequency integrated circuit, application-specific integrated circuit, and millimeter wave chipsets.

Regional Context

North America leads the market on the strength of government investment, while Asia Pacific is growing rapidly as military modernization and the deployment of autonomous systems expand.

Challenges Facing Adoption

Polaris Market Research identifies high deployment costs, integration with legacy systems, and cybersecurity risks as key challenges. The report also cites the absence of standardized rules and regulations as a restraint.

Competitive Landscape and Recent Developments

Competition is intense, with established players relying on advanced technology, high-quality products, and strong brand image. Companies pursue research and development, mergers and acquisitions, and technological innovation to expand their portfolios. Recent developments include the following:

•       In June 2025, Raytheon Technologies and Northrop Grumman secured US contracts to develop missile systems designed to stop hypersonic weapons.

•       In June 2025, Ligado announced Sony Semiconductor Israel as its chipset partner for a 3GPP-based 5G satellite IoT network.

•       In February 2025, Ericsson and Mobily signed a Memorandum of Understanding to expand advanced 5G applications across Saudi Arabia.

•       In January 2025, Intelsat and Thales Alenia Space agreed to develop two software-defined satellites as part of Intelsat's 5G software-defined network initiative.

•       In May 2024, T-Mobile US, Inc. and Ericsson partnered to support voice services during the transition to VoNR on 5G standalone networks.

Outlook for B2B Stakeholders

With a 14.7% CAGR through 2032, the 5G in Defense Market offers vendors opportunities across macrocell deployments, edge-enabled networks, and low-latency services. Segment leaders include macrocell infrastructure, MEC core network technology, and URLLC services.

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