The US 5G in defense market is experiencing accelerated growth, driven by increased demand for secure, high-speed communication systems and the modernization of military infrastructure. The market size was valued at USD 880 million in 2025 and is expected to reach USD 7,650 million by 2035 at a CAGR of 23.7% from 2024 to 2035.
The economic impact of tariffs on "US 5G in Defense Market".
Market Growth Drivers
Increased Demand for Secure Communication Networks: The US Department of Defense (DoD) and military agencies are adopting 5G technology to support mission-critical communications with low latency and enhanced security. Lockheed Martin and Verizon have partnered to test 5G private networks on military bases, ensuring proprietary data remains protected while enabling seamless coordination among connected devices on battlefields.
Rising Military Modernization Initiatives: Modernization programs across the US military are integrating 5G to enable autonomous vehicles, augmented reality (AR) for training, and real-time intelligence sharing. In 2024, Northrop Grumman announced integration of 5G-driven sensors and AI-powered logistics at several forward-operating bases, boosting operational efficiency and battle readiness.
Market Trends
Adoption of 5G-enabled Autonomous Systems: The US defense sector is rapidly deploying unmanned ground and aerial vehicles (UGVs/UAVs) using 5G networks for real-time remote control and data transmission. General Dynamics, for example, is piloting smart drones coupled with 5G to enhance battlefield surveillance and reconnaissance, reducing personnel risk and increasing operational efficiency.
Deployment of Private 5G Networks on Military Bases: The trend toward deploying secure, private 5G networks within military facilities is reshaping operational communications. In 2024, AT&T secured multiple DoD contracts to install private 5G networks enhancing cybersecurity, enabling edge computing, and supporting next-gen applications like IoT and AR for both training and logistics.
Market Opportunity
Expansion of Smart Logistics and Supply Chain: 5G enables real-time tracking and predictive maintenance of military assets. Companies like Boeing are collaborating with the US Air Force to implement 5G-powered logistics hubs, streamlining parts inventory and reducing downtime.
Cyber-resilient Battlefield Applications: The need for robust cyber defense combined with ultra-fast connectivity opens up opportunities for developing advanced cyber-resilient applications. Raytheon Technologies has recently launched initiatives to create 5G-enabled battlefield management systems to provide real-time threat detection and response.
US 5G in Defense Market Revenue (USD Million), 2020-2035
The revenue chart illustrates a significant growth trajectory for the US 5G in defense market from 2020 to 2035. Beginning at USD 90 million in 2020, the market witnessed steady adoption, reaching approximately USD 880 million in 2025. With the continued integration of 5G technologies across defense operations and increased investments by both government and private enterprises, the forecast projects rapid acceleration, culminating at around USD 7,650 million by 2035. This rise reflects the escalating focus on next-generation communication solutions, intelligence systems, and automation in the defense sector.
US 5G in Defense Market Share by Region (%), 2025
As per the 2025 data, the South Atlantic region dominates the US 5G in defense market, accounting for 38%, primarily due to high military presence and base modernization. The Pacific region follows with a 23% share given its strategic importance and early adoption of 5G programs. The Midwest and Southwest regions contribute 18% and 13% respectively, reflecting ongoing DoD investments. The Northeast region holds an 8% market share, benefitting from several new pilot projects. This distribution reveals the alignment of 5G investments with regions hosting critical defense infrastructure.
Recent Developments in the US 5G Defense Market
In March 2024, Lockheed Martin and Verizon finalized a partnership to expand private 5G network installations across US military installations. This initiative is aimed at improving secure communication for critical operations, improving bandwidth and security for connected defense systems, and enabling advanced edge computing capabilities for command centers.
In April 2024, AT&T was awarded a new contract by the Department of Defense to deploy 5G-powered logistics and maintenance systems at key Air Force bases. These deployments will improve the efficiency of supply chain operations, streamline predictive maintenance of aircraft, and leverage IoT-enabled sensors for real-time asset monitoring across multiple facilities.
In June 2024, Raytheon Technologies launched a next-generation cyber-resilient battlefield management application powered by 5G in collaboration with the US Army. This system will be piloted over the next year to provide real-time intelligence sharing, secure data transmission, and adaptive threat response capabilities—enabling more agile and resilient operations in contested environments.
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