Military Communications Market – Trends Forecast Till 2030

Market Snapshot

Market Overview

The global Military Communications market size was estimated at USD 36.3 billion in 2022 and is projected to reach USD 50.8 billion in 2030 at a CAGR of 4.3% during the forecast period 2023-2030.

The global expenditure on military communication has exceeded a trillion-dollar milestone, driven by significant investments made by governments to embrace advanced communication solutions across various governmental departments. The demand for improved interoperability and enhanced security in military operations is fueling the growth of the military communication market, which encompasses cutting-edge mechanisms and technologies.

Software-defined radios are experiencing rapid growth and are utilized in various types of radios, including Tetra radio, joint tactical radio, and mobile radio systems. However, the high costs associated with adopting these advanced technologies pose a significant challenge to market growth. The integration of multiple communication platforms such as LTE, 3G, 2G, and 4G requires substantial hardware and increases complexity, ultimately driving up costs.

Several factors are expected to further propel the growth of the military communication market in the forecast period. These include rising concerns about the security of military communications, increased global investments in military advancements, growing adoption of military communication solutions due to escalating conflicts between countries, and the need to upgrade and replace aging communication equipment. However, interoperability concerns emerge as a major obstacle to market growth in the coming years. On the other hand, the proliferation of mobile phones, the advent of mobile ad-hoc networks (MANETs), and the swift adoption of innovative Ka-band satellites for communication services offer lucrative opportunities for market expansion throughout the forecast period. Nonetheless, budget constraints may pose challenges to the development of the military communication market in the near future.

Delvens Industry Expert's Standpoint

There is a rising focus on expanding investments in the integration of cutting-edge technologies such as machine learning and artificial intelligence into communication solutions to enhance military communication capabilities. This is anticipated to drive market growth in the foreseeable future. The military entities necessitate advanced communication systems to obtain real-time information on the battlefield. Additionally, tactical communication among armed forces, military commanders, and allies is crucial in terms of communication protocols. The command and control (C2) system relies on data from military communication satellites and line-of-sight connections. Moreover, the increasing investment in Internet of Things (IoT)-based communication systems to augment defense operations serves as a catalyst for market expansion.

Market Portfolio

Key Findings

• In terms of component, the market is categorized into military satcom systems, military radio systems, military security systems, and communication management systems. The military satcom systems segment is projected to maintain a substantial market share throughout the forecast period. These systems play a vital role in facilitating military operations worldwide. The military radio systems segment is anticipated to witness significant growth at a high compound annual growth rate (CAGR) during the forecast period. The increasing adoption of software-defined radios for military radio equipment is expected to drive market growth in the forecast period.

• In terms of application, the military communications market is divided into command and control, routine operations, situational awareness, and emergency response, among others. The situational awareness segment is projected to exhibit the highest compound annual growth rate (CAGR) during the forecast period (2019-2026). Communication systems play a crucial role for armed forces in the modern battlefield, which is a complex environment where uninterrupted flow of large amounts of information is essential and protection against enemy breaches is paramount. Situational awareness solutions assist military forces in analyzing situations and making effective decisions on the battlefield.
   
• The military communications market is categorized by end-user into land forces, naval forces, and air forces. Land forces are projected to hold the largest market share in terms of volume during the forecast period (2019-2026). Ground-based communication systems are widely utilized by armies worldwide to facilitate the transfer of crucial information. Military communications within land forces play a vital role in keeping soldiers informed about the battlefield situation and enabling the execution of routine operations.

• The market is also divided into various regions such as North America, Europe, Asia-Pacific, South America, and Middle East and Africa. There was a significant demand for military communications in North America. This can be attributed to the presence of prominent vendors like Harris Corporation, General Dynamics, Raytheon, Rockwell Collins, Viasat, Iridium, L3 Technologies, Lockheed Martin, Northrop Grumman, and Kratos Defense & Security Solutions in the region, which have played a key role in the market's growth.

Regional Analysis

North America to Dominate the Market

• The rapid adoption of advanced military communication systems, including KA band and mobile Ad Hoc networks, has also contributed to the growth of the North American market.
   
• On the other hand, the Asia Pacific region is expected to experience the highest compound annual growth rate (CAGR) during the forecast period. The region's fast-growing economies such as China, India, and Japan have been enhancing their defense capabilities, thereby driving the market growth. Additionally, technological advancements in military communications in the Asia Pacific region present further opportunities for market expansion.

Competitive Landscape

• Airbus SAS (France)
• BAE Systems PLC
• Northrop Grumman
• Raytheon Technologies
• General Dynamics
• Israel Aerospace Industries
• Alcatel (France)
• Collins Aerospace (US)
• General Dynamics Corporation (US)
• Harris Corporation (US)
• Lockheed Martin Corporation (US)
• Northrop Grumman Corporation (US)
• Raytheon Company (US)
• Thales Group (France).
• Citadel Defense
• Airspace Systems
• Fortem Technologies
• CRON Systems
• Vantage Robotics
• Rufus Lab
• Cobham
• Viasat
• Inmarsat
• Iridium
• Leonardo
• Rolta
• Aselsan

Recent Developments

• September 2022: Collins Aerospace has been granted a contract by the US Army to provide AN/PRC-162 ground radios in support of its handheld, manpack, and small form fit (HMS) program.
   
• May 2022: General Dynamics Mission Systems has announced that it has secured a contract from the National Security Agency (NSA) to create, develop, test, and deliver a certifiable 400 Gbps high-assurance encryption solution that adheres to the Ethernet Data Encryption Cryptographic Interoperability Specification (EDE-CIS).

Reasons to Acquire

• Increase your understanding of the market for identifying the most suitable strategies and decisions based on sales or revenue fluctuations in terms of volume and value, distribution chain analysis, market trends, and factors.
   
• Gain authentic and granular data access for the Military Communications Market to understand the trends and the factors involved in changing market situations.
   
• Qualitative and quantitative data utilization to discover arrays of future growth from the market trends of leaders to market visionaries and then recognize the significant areas to compete in the future.
   
• In-depth analysis of the changing trends of the market by visualizing the historic and forecast year growth patterns.

Report Scope