Vehicle Intercom System (VIS) Market – Trends Forecast Till 2030

Market Snapshot

Market Overview

The global Vehicle Intercom System (VIS) Market size was estimated at USD 855.2 million in 2023 and is projected to reach USD 1,220.5 million in 2030 at a CAGR of 6.3% during the forecast period 2024-2030.

The Vehicle Intercom System (VIS) market is rapidly expanding, driven by escalating demand for advanced communication solutions across military, defense, and commercial sectors globally. VIS operates as an independent voice communication system, facilitating clear and secure communication within vehicles and between vehicle occupants and external sources, thereby enhancing operational safety and efficiency.

Key drivers of growth in the VIS market include technological advancements integrating digital signal processing, noise cancellation, and wireless connectivity. These innovations bolster system reliability, making VIS effective in challenging environments and long-range communication scenarios. Additionally, there's a notable trend towards customization and integration with other vehicle systems like navigation, entertainment, and surveillance, enhancing overall vehicle functionality and user experience.

The market benefits significantly from increasing adoption of military-grade communication systems in civilian applications such as public transportation, emergency services vehicles, VIP transportation, and law enforcement. These sectors prioritize secure and reliable communication, fueling demand for sophisticated VIS solutions.

Geographically, the Asia Pacific region is poised for substantial growth, projected to achieve the highest compound annual growth rate (CAGR) during the forecast period. Countries in this region are increasing investments in tactical vehicle intercom systems and radios, transitioning from analog to fully digital communication devices. This shift is driven by the need for upgradable systems with enhanced operational capabilities throughout their lifecycle, particularly in land-based military operations.

Overall, the VIS market is characterized by dynamic technological advancements and a growing emphasis on safety and security across diverse applications. Companies in this sector are well-positioned to capitalize on these trends by innovating new products and targeting emerging market segments. With continued advancements in technology and increasing global demand, the VIS market is expected to maintain robust growth, offering significant opportunities for stakeholders across military, defense, and commercial sectors alike.

Delvens Industry Expert's Standpoint

The Vehicle Intercom System (VIS) market is currently experiencing robust growth driven by the critical need for reliable communication in various vehicle applications. VIS installations facilitate clear communication among vehicle occupants and with external parties, crucial for operations in noisy and challenging environments, particularly in emergency vehicles. Technological advancements in the communication industry are further boosting market expansion, enhancing the capabilities and reliability of VIS across sectors. Looking ahead, the market is set for continued growth with key players like Cobham Plc., Harris Corporation, David Clark, Elbit Systems, and Thales Group leading in innovation and market share. Future growth is anticipated due to increasing global defense expenditures aimed at improving military communication capabilities through next-generation VIS technologies. For instance, the United States' substantial investments in military communication systems underscore a promising outlook for VIS. Overall, with expanding applications in defense, emergency services, and commercial sectors, the VIS market is positioned for sustained expansion in the foreseeable future.

Market Portfolio

Key Findings

• On the basis of Technology, In 2023, the Vehicle Intercom System market segmentation by technology includes Analog and Digital segments. The Digital segment dominated with approximately 64% market revenue share, driven by its superior audio quality, noise-cancellation capabilities, and compatibility with modern communication technologies. These features position digital systems as the preferred choice for advanced military and commercial vehicle communication systems, reflecting their growing adoption and contribution to the market's technological advancements.

• On the basis of Application, In 2023, the Vehicle Intercom System market segmented by application comprises Military Vehicles, Commercial Vehicles, Airport Ground Support Vehicles, and Emergency Vehicles. The Military Vehicles segment led with approximately 61% market revenue share. This dominance is driven by the essential requirement for secure and effective communication within military vehicles, which significantly enhances situational awareness and mission success. The robust adoption of vehicle intercom systems in military applications underscores their pivotal role in ensuring operational efficiency and safety, thereby solidifying their position as a key driver in the market's growth trajectory.

• On the basis of Component, In the Vehicle Intercom System market segmented by component, categories include Central Unit, Crew Control Unit, Wireless Intercom Unit, Headset Dismounted Interface, Intercom User Unit (IUU), Radio Interface Unit, Loudspeaker Unit, Wire/Cable, Tactical Ethernet Switch, and Adapter. The Central Unit segment commands the largest market share, highlighting its critical role in overseeing and coordinating communication within vehicle intercom systems. This dominance stems from its essential function in facilitating seamless and well-organized communication across diverse components and users, underscoring its pivotal importance in ensuring the efficiency and effectiveness of vehicle intercom systems.

• The market is also divided into various regions such as North America, Europe, Asia-Pacific, South America, and Middle East and Africa. North America held the largest Vehicle Intercom System (VIS) Market share driven by advancing technology and increased research and development efforts focused on enhancing VIS capabilities across the region.

Regional Analysis

North America to Dominate the Market

• North America dominates the Vehicle Intercom System (VIS) market, driven by the region's extensive fleet of active vehicles, robust patrolling stations, and strategic presence in disputed regions. The United States, which accounted for 40% of global military spending in 2021 with $850 billion in 2022, plays a pivotal role. Increasing expenditures on advanced VIS procurement, bolstered by Canadian defense forces' investments, further propel market growth. For instance, Canada's contract with L3Harris for over 1,000 compact team radios enhances tactical communications. Additionally, ongoing initiatives like the development of the Armored Multi-Purpose Vehicle by the U.S. Army and BAE Systems underscore North America's leadership in integrating advanced VIS into military operations.

Competitive Landscape

• Cobham Plc.
• Harris Corporation
• David Clark
• Elbit Systems
• Thales Group
• Sytech Corporation
• Teldat
• Communications-Applied Technology
• Wolf Elec
• Aselsan A.S.
• Vitavox
• Gentex Corporation
• Leonardo DRS
• MER Group

Recent Developments

• In December 2022, INVISIO, a Swedish company, has secured a contract in Europe to provide its Intercom and Vehicle systems. The Intercom system, priced at 230 million kronor ($22 million), will serve as the interface between personnel on foot and those in vehicles. Additionally, the company will oversee the procurement of vehicle radios valued at 235 million kronor ($23 million) from a third party. Acting as the principal contractor, INVISIO will manage the entire execution of Dismounted Soldier systems, including installation and training. Deliveries are slated from the second to fourth quarters of 2024, with maintenance and spare part packages expected in 2025 and 2026 respectively.

• In August 2022, L3Harris has secured a contract worth $10,424,820 to supply the Indonesian government with communication and electronics equipment, along with engineering technical services. The contract encompasses multi-band radios, very high and ultra-frequency radios, high frequency radios, Battle Management Systems, intercom systems, maintenance benches, accessories, and spares. All activities will be conducted in Indonesia, and the project is scheduled for completion by February 28, 2025.

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Report Scope