USD
GBP 
CNY 
EUR 
INR 
JPY 
MYR 
ZAR 
KRW 
THB 
Digitalisation in Defence
Commercial Business Models Challenging Traditional Defence Business Patterns
14-Jun-2019
Global
Market Research
ME96-01-00-00-00
AE01343-EU-MR_23118
The rise of digital platforms is empowering the military, enabling a better continuity of operations and bringing armed forces at a new level of combat readiness. However, the Digital Transformation is also bringing new players into the market place, where traditional industries have been used for decades to well-established business and working processes. From now on, a progressive impregnation of commercial services is witnessed across the military, with a growing appetite for aaS models, ready for deployment, data monetization and pay as you go types of services, due to constrained defence budgets.
Digital transformation of the military ecosystem has started its journey, shifting traditional working processes, operations and level of services with a deep impact on delivering military capabilities.
Digital technologies, such as the Internet of Things (IoT), Cloud Computing, Big Data, Data Analytics, Artificial Intelligence, Augmented Reality, and Blockchain are being progressively leveraged at both the agency and operational levels to ease workflow and bring more efficiency to missions.
However, there are several roadblocks slowing down defence digitalisation due to the lack of technical maturity of these new technologies and overall lack of security around them. Security is actually a crucial point, where a large spectrum of threats and concerns holds military authorities from moving forward, right from ensuring data integrity, its protection, to where it is hosted.
Similarly, these factors delay external player’s market penetration, notably from the IT sector and leading companies such as Amazon, Google, Microsoft, IBM, Cisco, etc. as these companies do not have all the military standards and required certifications to be vetted by military entities and budget holders. There are also some concerns amongst military end users on the robustness of these new technologies in the environments they operate in. Besides, social acceptance within these IT conglomerates is also a key parameter to consider, with potential effects on further market penetration.
Moreover, unlike any other commercial industries (retail, mobility, automotive, energy, chemicals, commercial aerospace and space, mass transport, etc.), the military ecosystem envisions digital transformation as another tool in the toolbox and will invest in it only when essential benefits can be realised (life safety, faster deployments, ease of operability, etc.). Each of these relevant aspects is included in this report, with use cases and actual and/or upcoming applications, and what are the main drivers and restraints behind these adoptions.
This study also provides perspectives on the changing competitive landscape globally, assessing how defence players are already digitally fluent and their strengths to embrace the transformational journey. Finally, this study includes in-depth analysis of the digital transformation impact on traditional business models. A key focus on new approaches to outsourcing is also included, especially in the light of the “as-a-Service” model. Digital transformation also brings a new horizon focusing on data and dealing with an ever growing flow. What does this mean for the military industry and future business opportunities? This study also aims to reply to this question by exploring potential and likely avenues to monetise data in the military ecosystem
Author: Alix Leboulanger
|
|
Key Findings
Key Findings (continued)
Introduction
Introduction (continued)
Research Overview and Key Questions
How Digitalised is Defence?
How Digitalised is Defence? (continued)
How Digitalised is Defence? (continued)
Geographical Overview—Digital Transformation Map
Geographical Overview—Digital Technologies Adoption Map
Macro Environment Analysis Of Defence Digitalisation
Macro Environment Analysis Of Defence Digitalisation (continued)
Digital Transformation Drivers
Digitalisation in Defence Key Challenges
Digitalisation in Defence Key Challenges (continued)
Digital Technologies
Digital Technologies Selection
Digital Technologies Selection (continued)
Digital Technology 1—Internet of Things
Internet Of Things
Internet of Battlefield Things
Internet of Things Overview
IoT Main Challenges
IoT Timeline
Key Applications for IoT in Military
Research Case
Iot Impact on the Military and Industry
Digital Technology 2—Digital Twin
Digital Twin
Digital Twin Overview
Pilot Programme Case
The Impact of Digital Twin
Digital Technology 3—Cloud Computing
Cloud Computing
Cloud Computing Overview
Cloud Computing in Defence
Future Contracts
The Tale of 2 Clouds
The Next Step—Deploying Defence Cloud in Battlefield Battlefield ‘Cloudification’
Securing the Cloud
Case Study
Cloud Computing Impact on the Military and IndustryFinancial boosters
Digital Technology 4—Data Analytics
Data Analytics
Data Analytics Overview
Data Analytics and Big Data
Data Analytics and Big Data—Explained
Thriving in a Data Centric World
From Big Data Discovery, To Exploitation, Deluge And Control
From Big Data Discovery, To Exploitation, Deluge And Control (continued)
Missing The Big Data Bits
Case Study
Case Study (continued)
Data Analytics Impact on the Military And Industry
Digital Technology 5—Artificial Intelligence
Artificial Intelligence
Artificial Intelligence Overview
AI Ecosystem
AI Projects
AI Landscape
Intelligent Cloud
Project Quantum
AI Impact on the Military and Industry
Digital Technology 6—Blockchain
Blockchain in Defence
Blockchain Overview
The Blockchain
Blockchain on the Way
Blockchain Impact on the Military and Industry
Digital Technology 7—Virtual and Augmented Reality
Virtual and Augmented Reality
Augmented Reality Overview
Augmented Reality Key Applications
Augmented Reality Impact on the Military and Industry
Defence Industry Landscape
Two Different Environments And Buying Patterns
The Maturity of Defence Digital Product Portfolio Offering
The Maturity of Defence Digital Product Portfolio Offering (continued)
Commercial Digital Leading Players Map
Digital Supply Chain
Digital Participants—A Certain Agility
Leading Defence Participants and Digital Players
Powerful Partnerships for Strategic Positioning
Aggressive Vertical Merger and Acquisitions
The Digital Competitive Landscape is far from Maturity
Defence Digitalisation and its Impact on Competition
Business Models Evolution
Business Models Evolution (continued)
Business Models Evolution (continued)
Business Models Evolution (continued)
Business Models Evolution (continued)
US Navy—Finding The Right Path Between Business Models
New Business Models Brought by Digitalisation
New Business Models Brought by Digitalisation (continued)
Future Business Models Potential Applications
New Business Models
New Business Models and Potential Advantages to the Military Explained
New Business Models And Potential Advantages To The Military Explained (continued)
New Business Models And Potential Advantages To The Military Explained (continued)
A Deeper Look at the Network Effect
New Business Models Impact
Data Monetisation
Data Monetisation in Militaryi-is there a Market?
Data Monetisation for the Military Industry in a Data-Centric Context
Data Monetisation for the Military Industry in a Data-Centric Context
Data Monetisation Commercial Landscape
Transformation in Defence Industry Ecosystem—2018
Growth Opportunity 1—Digitalised Engineering
Growth Opportunity 2—Military Cloud Computing
Growth Opportunity 3—Blockchain To Boost Security
Strategic Imperatives for Success and Growth
Digital Technologies Impact Summary
Digital Technologies Impact—Criteria Definitions
Key Takeaways
Key Takeaways (continued)
Towards A New Competitive Landscape
Legal Disclaimer
Digital Transformation Definitions
Digital Transformation Definitions (continued)
Digital Transformation Definitions (continued)
List of Acronyms
List of Exhibits
List of Exhibits (continued)
List of Exhibits (continued)
List of Exhibits (continued)
The Frost & Sullivan Story
Value Proposition: Future of Your Company & Career
Global Perspective
Industry Convergence
360º Research Perspective
Implementation Excellence
Our Blue Ocean Strategy
Speak directly with our analytics experts for tailored recommendations.
Recent related Aerospace Defence and Security research
29 Oct 2026 | Global | Market Research
AI Security Operations Center (AI SOC) Market, Global, 2025–2029
This study examines the emerging global AI security operations center (AI SOC) market. This rapidly evolving segment applies autonomous and agentic artificial intelligence to automate threat detection, investigation, and response while maintaining human oversight.AI SOCs are gaining traction as orga...
21 Oct 2026 | Global | Market Research
Insights for CISOs: The Transition to Quantum-Safe
The emergence of post-quantum cryptography (PQC) reflects a significant problem: powerful quantum computers may soon compromise the cryptographic algorithms underpinning today’s digital economy, threatening the confidentiality and integrity of sensitive data and communications. Addressing this risk ...
16 Oct 2026 | Global | Market Research
Customer Transformation Journeys External Risk Mitigation and Management: BitSight
This report explores how organizations are accelerating cyber risk reduction and remediation through Bitsight’s intelligent External Risk Management and Mitigation (ERMM) solution. It examines customer transformation journeys, highlighting how continuous visibility, contextualized risk intelligence,...
15 Oct 2026 | Global | Market Research
Network Detection and Response (NDR) Sector, Global, 2026–2030
This study examines the global NDR market over the 2022–2030 forecast period. It finds that rising investment reflects NDR's evolution from a discretionary security enhancement into a foundational component of enterprise cyber defense, underscoring stronger buyer commitment and heightened vendor com...
09 Oct 2026 | Global | Frost Radar
Frost Radar™: Workforce Identity and Access Management, 2026
Hybrid work and software as a service have shifted security enforcement from the network perimeter to identity, transforming it into a control plane. Workforce identity and access management (IAM) now determines whether every user, device, and session should retain access based on context, risk, and...
Purchase includes:
- Report download
- Growth Dialog™ with our experts
Growth Dialog™
A tailored session with you where we identify the:- Strategic Imperatives
- Growth Opportunities
- Best Practices
- Companies to Action
Impacting your company's future growth potential.