# US C5ISR Funding Reaches $42.7 Billion as AI, Open Architectures, and Next-Generation Technologies Reshape Defense Modernization - Link: https://www.thailand-business-news.com/pr-news/us-c5isr-funding-reaches-42-7-billion-as-ai-open-architectures-and-next-generation-technologies-reshape-defense-modernization - Published: 2026-06-19T03:11:00+07:00 - Author: PR Newswire **_Frost & Sullivan identifies significant growth opportunities across quantum technologies, edge integration, and the Internet of Battlefield Things_** SILICON VALLEY, Calif., June 19, 2026 /PRNewswire/ — Frost & Sullivan’s latest analysis, _C5ISR Industry, United States, 2025–2030_, finds that growing geopolitical tensions, rapid advances in artificial intelligence (AI), and increasing adoption of open- architecture defense systems are accelerating investment in the United States command, control, communications, computers, cyber, intelligence, surveillance, and reconnaissance( C5ISR) market. The study finds that the US Department of Defense (DoD) has requested $42.7 billion in FY2026 funding for C5ISR-related programs, representing an 11.4% increase over FY2025. The research highlights expanding opportunities for defense contractors, technology providers, and emerging innovators as the military prioritizes AI-enabled decision support, cyber-resilient architectures, space-based communications, multi-domain operations, and next-generation networking capabilities. Frost & Sullivan identifies quantum technologies, edge integration, and the Internet of Battlefield Things ( IoBT) as key growth opportunities expected to shape the future of the C5ISR ecosystem. "Modern military operations increasingly depend on secure, interoperable, and data- driven networks capable of delivering real-time situational awareness and decision superiority," said Shreya Khakurel, Industry Analyst, Aerospace & Defense at Frost& Sullivan. "As geopolitical pressures intensify and digital transformation accelerates across defense organizations, demand is rising for advanced C5ISR capabilities that can support multi-domain operations, autonomous systems, and AI-enabled mission execution." According to the study, the DoD’s continued emphasis on the Modular Open Systems Approach (MOSA) is creating new opportunities for specialized technology providers and small businesses by encouraging modular, interoperable solutions and reducing reliance on proprietary architectures. The growing integration of commercial technologies, particularly in AI, cloud computing, and space-based capabilities, is further expanding opportunities across the defense innovation ecosystem. The report identifies several factors driving market growth, including increased adoption of AI and machine learning technologies, greater reliance on commercial space services and data, and sustained investment in digital modernization initiatives. These developments are enabling enhanced sensor fusion, predictive decision-making, edge processing, cyber resilience, and multi-domain command and control capabilities. Within the FY2026 budget request, intelligence, surveillance, and reconnaissance( ISR) programs account for the largest share of funding at nearly $11.9 billion, followed by communications programs at $10.7 billion. The Air Force remains the leading funding organization, representing approximately 41% of total C5ISR spending. "The future of C5ISR will be defined by the ability to integrate data, platforms, and decision-making across domains while maintaining resilience in increasingly contested environments," Khakurel added. "Organizations that invest in AI-enabled systems, open architectures, advanced communications, and emerging technologies such as quantum computing and edge intelligence will be best positioned to capitalize on the significant growth opportunities emerging across the US defense landscape." 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The company’s Growth Pipeline as a Service provides the CEO’s Growth Team with transformational strategies and best-practice models to drive the generation, evaluation, and implementation of powerful growth opportunities. For over 60 years, Frost & Sullivan has partnered with investors, corporate leaders, and governments to identify, prioritise, and execute transformational growth strategies. **Contact:** Kristina Menzefricke Marketing & CommunicationsGlobal Customer Experience, Frost& Sullivan[kristina.menzefricke@frost.com](https://www.thailand-business-news.com/pr-news/kristina.menzefricke@frost.com) --- | This article was produced by Cision PR Newswire, our trusted news partner. 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