Military Communication Market Size, Share, and Industry Analysis, By Component (Hardware and Software), By Hardware (Transceiver, Antenna, Transmitter, Receiver, and Others), By Technology (SATCOM, VHF/UHF/L-Band, HF Communication, and Data Link), By Platform (Airborne, Ground, Naval, and Space), and Regional Forecast, 2024-2032

The global military communication market size was valued at USD 33.12 billion in 2023. The market is projected to grow from USD 34.74 billion in 2024 to USD 60.40 billion by 2032, exhibiting a CAGR of 7.2% during the forecast period. North America dominated the military communications market with a market share of 31.49% in 2023.

The U.S. military communications market needs advanced communication equipment and has significantly adopted military communication shields. Advanced communication equipment is being developed as satellite communication systems are critical to the defense sector. The military needs an advanced communication system to improve battlefield situational awareness and tactical communication through updated protocols and codes for better coordination between commanders, their forces, and allies.

The first decade of the 21^st century has shown exponential technological advancements in the communications industry and advancement in military communication terms. Satellite Communications System (SATCOM) was utilized effectively in the military and civilian domains through communication devices such as cellphones and satellite-based equipment to the tactical communications system.

The growth of the global military communication market has also been anticipated due to adoption of military communication shields. Satellite communication systems have been critical to the defense services and new methods are being developed. The military require research and development and advanced communication systems to improve battlefield situational awareness and tactical communication between military commanders and their forces and allies in the form of communication protocols and codes.

The systems also differentiate battlefield forces which is a critical strategic and tactical advantage. The C2 (Command and Control) systems utilize military communication satellites and lines of sight to propagate the data across the communications network. Situational awareness also facilitates the capability to send combat messages such as enemy spot or reconnaissance reports, situational reports, position reports, medical evacuation requests, and combat orders. Graphical control measures with individual systems displayed can provide a visual aid to better command and control the battlefield scenarios.

Furthermore, the growing procurement of IoT-based communication systems to strengthen the defense sector boosts the market growth. A rise in the adoption of Ka-band technology for communication applications, the increased usage of IoT for military applications, emerging 5G technology, and continuously growing military expenditures are creating multiple future opportunities for the market.

The ongoing Russia-Ukraine war has had a significant impact on military communication systems, highlighting both importance and vulnerabilities of secure battlefield communications. The war demonstrated the critical need for secure military communications to avoid interception and targeting by the enemy. Russian troops have used unencrypted devices such as personal cell phones, making them vulnerable to Ukrainian eavesdropping and targeting. In addition, the Ukrainian military has used Electronic Warfare (EW) systems to jam Russian communications and GPS signals, disrupting their communications infrastructure.

Military Communication Market Trends

Growing Adoption of Military Satellite Communication System (Military SATCOM System) Technology to Provide Advanced Communication Solution

As the battlefield becomes more network-centric in the 21^st century, the adoption of satellite communication technology has also advanced to its next generation and demand for it peaked. In the present scenario, a connected soldier should possess the network capability that facilitates real time information on a real-time basis to meet the mission requirements and maintain operational capability. Naval Battlefield may become a challenging task for the navy due to vast AOR (area of responsibility).

Naval forces worldwide have emphasized network-centric warfare, which facilitates the connectivity between all the sensors, weapons, and platforms distributed across the battlefield. SATCOM is a critical component in establishing and achieving network-centric capabilities for armed forces. In addition, geographical challenges have often compounded the challenge for terrestrial networks and are deemed unreliable most of the time.

The design features of SATCOM technology enable communication channels on air-to-ground, air-to-air, ship-to-ship, and ship-to-shore platforms. Communication satellite terminals enable a tactical communication network on the move and easier integration of mobile devices, ships, and aircraft. As a result, there is an increasing demand for platforms equipped with portable satellite terminals for battlefield situational intelligence missions.

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Military Communication Market Growth Factors

Rise in Procurement of Advanced Communication System to Strengthen Defense Communication Security

The protection of highly confidential information and maintenance of consistent communication are two primary requirements of the defense sector. If the critical data is not protected carefully or real-time data has not been transferred accurately, it might risk the safety of citizens or may lead to disputes among various countries. Moreover, defense communication consists of all aspects related to military forces' transmission of information and data for well-organized functioning, military surveillance, command, and control. 

In addition, communication is usually based on a complex and extensive network of hardware components and software to transfer information between people and geographically. Besides, increasing global disputes between countries would increase military investments. These significant military investments would be used to acquire advanced communication systems that ensure confidential, accurate, and secure real-time transmission of data. An increase in procurement of communication systems with advanced security and privacy features is expected to boost the military communication market growth during the forecast period.

Growing Adoption of Wireless Communication Technology for Various Military Applications to Boost Market Growth

Evolving technologies in communication, such as SATCOM, very high frequency and ultra-high frequency communication, are replacing the traditional wired communication systems for secure data transmission and network infrastructure. Under the program, Warfighter Information Network Tactical program (WIN-T), the U.S. Army provides its soldiers with secure voice and data communications on the field without the need for fixed infrastructure.

Furthermore, the U.S. military is developing a comprehensive, unified, and interoperable wireless networking system known as Joint All-Domain Command and Control (JADC2). The system runs on 5G. It will connect sensors from all military domains that includes Army, Air Force, Navy, Space Force, and Marine Corps into a single network. The introduction of such advanced technologies is set to drive the growth of the market.

RESTRAINING FACTORS

High Initial Development Cost of Military Communication and Networking Infrastructure May Hamper the Market Growth

Military communications’ design should be very robust as they are used and installed in harsh environments. The system has multi-features to be used according to the changing military mission. Moreover, the regular maintenance of such systems is not feasible. Therefore, these systems consist of high-quality material that helps in increasing the lifespan of the system. The development of one military communication satellite system requires USD 1 billion and the launch cost of this satellite is between USD 55-90 million to USD 90 million. Thus, high cost associated with the infrastructure, installation, and data links hinders the market growth.

Military Communication Market Segmentation Analysis

By Component Analysis

Hardware Segment to Exhibit the Fastest Growth Owing to their Increasing Adoption Worldwide

Based on component, the market is bifurcated into hardware and software.

The hardware segment dominated the market in 2023 and is estimated to be the fastest growing segment during the forecast period. The dominance is due to the increasing demand for advanced communication system in various military applications such as ISR, combat, and logistical supply route monitoring. The rising demand for military-grade communication devices, such as handheld, vehicle mounted, and man portable radios, tactical radios and data links, wireless digital intercoms, transceivers, and satellite communication (SATCOM) systems, drives the segmental growth.

The software segment is anticipated to show significant growth during 2024-2032. This growth is attributed to the rising adoption of software-defined radio (SDR) systems for advanced communication. In September 2020, the U.S. Army signed a USD 13 billion contract with 31 vendors to provide software products and maintenance of 14 product categories that include communication, NetOps, programming and development, and modeling and simulation.

By Hardware Analysis

Antenna Segment to Depict the Fastest Growth Due to Rising Demand for Various Applications

Based on hardware, the market is classified into transceiver, antenna, transmitter, receiver, and others.

The antenna segment dominated the market in 2023 and estimated to be the fastest growing segment during the forecast period. The segment is expected to grow significantly due to the increasing demand for advanced communication systems to cater to modern battlefield requirements. Moreover, the growing adoption of antenna for various applications, such as surveillance, electronic warfare, navigation, communication, SATCOM, telemetry, and electronic warfare, and others, drives the segmental growth.

The receiver segment is anticipated to account for the second-largest segment during the study period. This is due to increasing development and next-generation upgradation in the product. For instance, in December 2023, the government of Poland has been given green light by the State Department for the purchase of communications equipment built by L3Harris Technologies. L3Harris would be the main contractor for the deal, which includes supplying handheld and man pack radios with multiband and multichannel capabilities, GPS receivers equipped with selective availability anti-spoofing modules, and support equipment and spare parts.

By Technology Analysis

SATCOM Segment Dominated Due to its Usage in the ISR and Combat Operations

By technology, the market is subdivided into SATCOM, HF communication, VHF/UHF/L-Band, and data link.

Among these, the SATCOM segment held the highest share in the market in 2023. The segment growth is attributed to the increased adoption of SATCOM technology to conduct military operations across the globe and improve communication facilities for airborne, naval, and space platforms. SATCOM dominated the market due to its critical role in Intelligence, Surveillance, and Reconnaissance (ISR) and combat operations. SATCOM systems provide robust, reliable, and secure communication channels essential for real-time data transmission, situational awareness, and coordination in military operations. Their ability to offer global coverage, high bandwidth, and resistance to jamming and interference makes them indispensable for modern military and defense applications. Consequently, the growing emphasis on advanced ISR capabilities and the need for seamless communication in combat scenarios have driven the widespread adoption and dominance of SATCOM technologies in the market.

The data link segment is expected to expand at a significant growth rate during the forecast period. The expansion is attributed to the rising demand for advanced data links for numerous applications such as command & control, situational awareness, and electronic warfare. In September 2019, Data Link Solutions LLC signed a USD 30 million contract with the U.S. military to upgrade and enhance data for the U.S. military. Link 16 is a military data link network used by the U.S. army that enables fighter jets, ground forces, and naval ships to exchange tactical picture in near-real time.

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By Platform Analysis

Ground Segment Led the Market Due to Increasing Use of Ground Antennas for Situational Awareness

By platform, the market is classified into airborne, ground, naval, and space.

The ground segment held the largest share in the market in 2023. This dominance is due to the growing use of advanced data links, VHF/UHF/L-Band, and high frequency communication for ground platform military platforms. The ground forces use military antennas for situational awareness for threat detection.

The airborne segment is anticipated to showcase remarkable growth during 2024-2032. The growth is due to the introduction of next-generation avionics systems for fighter planes. The advanced systems will provide wideband voice, video, and data for military forces. For instance, Viasat has provided wideband SATCOM capability for the Bell-Boeing V-22 tiltrotor aircraft.

REGIONAL INSIGHTS

By region, the market is segmented into North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

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The findings based on our research methodology indicate that North America held the largest market value in 2023. The U.S. accounted for the highest military spender in the world in 2023. Moreover, the region has the presence of leading communication system and equipment manufacturers such as Collins Aerospace, General Dynamics Corporation, Honeywell International Inc., Northrop Grumman Corporation, and RTX Corporation that would facilitate industry growth during the forecast period.

Europe is estimated to be the fastest growing region due to the presence of airborne and naval communication solution manufacturers such as Thales Group and Cobham Plc. The defense spending cuts of the U.K., France, and Germany in Europe are anticipated to grow at a moderate growth rate due to the impact of COVID-19 pandemic. Moreover, the ongoing war in the region is creating lucrative opportunities and demand for next-generation communication systems for armed forces which is driving the regional market growth.

The Asia Pacific market is estimated to hold the second-largest military communication market share owing to the significant rise in commercial aircraft deliveries in developing countries such as India and China. The region is expected to showcase long-term growth in the market due to the adoption of network-centric warfare. Furthermore, the rise in military spending by the economies such as China and India to develop advanced military systems to strengthen the defense sector is expected to fuel the market growth in Asia Pacific. For instance, according to the Stockholm International Peace Research Institute (SIPRI), the U.S. and China accounted for 50% of the world’s military spending despite the impact of the COVID-19 pandemic.

The Middle East & Africa market is expected to show a moderate growth rate during the forecast period. The rise in defense expenditure of Saudi Arabia, the UAE, Israel, and others is anticipated to drive the market growth.

The Latin America market depicts cumulative growth as countries such as Brazil, Mexico, and others are increasing their defense budgets and there is a growing adoption of advanced communication systems.

List of Key Companies in Military Communication Market

Key Players Focus on Increasing R&D Investments and Adopting Innovative Strategies to Increase their Market Share

The competitive landscape of the market depicts the domination of selected players such as Collins Aerospace, Northrop Grumman Corporation, and RTX Corporation. A diversified portfolio of communication solutions and increased investment in R&D activities and strategic acquisitions are the prominent factors responsible for the dominance of these companies. These companies adopt organic and inorganic growth strategies such as mergers and acquisitions and develop new technology for communication systems. In addition, they are entering into long-term contracts and partnerships with air, naval, and land forces to provide communication solutions with advanced features.

LIST OF KEY COMPANIES PROFILED:

• ASELSAN A.S. (Turkiye)


• General Dynamics Corporation (U.S.)


• L3Harris Technologies, Inc. (U.S.)


• Viasat Inc (U.S.)


• Cobham PLC (U.K.)


• BAE Systems PLC (U.K.)


• Elbit Systems Ltd. (Israel)


• Lockheed Martin Corporation (U.S.)


• Northrop Grumman Corporation (U.S.)


• RTX Corporation (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• March 2024 - The U.S. Space Force awarded Boeing a USD 439.6 million contract to build the WGS-12 military communications satellite. The Ministry of Defense announced the signing of the contract on March 1. WGS-12 is the 12^th satellite in the Wideband Global Satcom geostationary constellation, which provides communications services to the U.S. and its allies.


• June 2023 - The Ministry of Defense signed a contract with ICOMM Tele for the acquisition of 1035 5/7.5-ton radio communication equipment containers. The Radio Relay Containers address a long awaited demand of mobile units from the Indian Army. These containers are used to create a secure environment for communication devices to function flawlessly and reliably.


• November 2021 – Collins Aerospace showcased its new directional communication system specially designed for small aerial platforms such as UAVs operational in contested territory, a part of the DARPA Pheme project. It showcased connectivity capability in the CJADC2 (Combined Joint All Domain Command and Control) battlespace.


• October 2021 – The U.S. Army's ninth delivery contract was awarded to Collins Aerospace. The move was aimed at facilitating the AN / PRC – 162 ground radios HMS (handheld, man-portable, small form-fit) program.


• July 2021 – Aselsan provided the Turkish Armed Forces with the next-generation electronic countermeasure system. This would help facilitate the neutralization of strategic military communication systems.

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An Infographic Representation of Military Communications Market

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The global military communication market report offers qualitative and quantitative insights of the market. It provides a detailed analysis of the market size and growth rate for all possible segments in the market. Along with this, the report provides an elaborative analysis of dynamics, COVID-19 impact, emerging trends, and the competitive landscape of the market.

Key insights offered in the report are the adoption trends by individual segments, recent industry developments such as mergers & acquisitions, partnerships, consolidated SWOT analysis of key players, Porter's five forces analysis, business strategies of leading market players, micro and macroeconomic indicators, and the leading industry trends.

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