Tactical Communication Market analysis, Size and Growth 2028

[Research Report] The tactical communication market is expected to grow from US$ 18,122.45 million in 2022 to US$ 29,142.61 million by 2028; it is estimated to grow at a CAGR of 8.2% from 2022 to 2028.

As the battlefield in the 21st-century is becoming ever more network-centric, satellite communication technology is moving to its next-generation, and demand for it is increasing. A connected soldier must have network capabilities that allow real-time information sharing to accomplish mission requirements and preserve operational capability in the current environment. Due to the large area of responsibility (AOR), naval battlefields may become a difficult task.

Network-centric warfare, which permits communication across all sensors, weapons, and platforms spread across the battlespace, has been highlighted by naval forces worldwide. SATCOM is a vital component in creating and realizing network-centric capabilities for military forces. Geographical obstacles have compounded the situation for terrestrial networks, which are often considered unsafe.

On air-to-ground, air-to-air, ship-to-ship, and ship-to-shore platforms, SATCOM technology design elements provide communication channels. The communication satellite terminals make it easier to integrate tactical communication networks on mobile platforms, warships, and aircraft. For instance, in November 2020, Elbit Systems, the Israel-based defense company, introduced a portable tactical satellite communications (SATCOM) system named the E-LynX-Sat system. The system included a mobile terminal weighing less than 1kg that interfaces with Elbit Systems’ E-LynXTM Software Defined Radio (SDR) solution to enable communication. As a result, the tactical communication market increases the demand for combat situational awareness equipment with portable satellite terminals.

Strategic Insights

Impact of COVID-19 Pandemic on Tactical Communication Market

Asia Pacific (APAC) was severely affected by the COVID-19 pandemic, with Asian countries experiencing a drop in GDPs, international trade, and economy. The APAC military electronic industry was disrupted during the first half of 2020, leading to a massive decline in the revenue of key players operating in the tactical communication market. The outbreak resulted in a decrease in military operations and disruptions of supply chains across the region. Many emerging economies had to cut their defense budget and redirect the funding to fulfill healthcare demands. This further led to the reduction in military expenditure. Similarly, Military spending decreased worldwide in 2020 due to the COVID-19 outbreak and the budget allotment for COVID-19 recovery programs in various countries. The onset of the COVID-19 pandemic led to raw material supply chain disruptions. This hampered the tactical communication market size.

Lucrative Regions for Tactical Communication Market

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Market Insights – Tactical Communication Market

Europe held the third-largest share in the global market in 2021. The well-established aerospace, military, and defense sectors in Europe are generating a huge demand for tactical communication systems. Governments of European countries are taking several initiatives for the development of advanced military communication systems and technology platforms, which bolsters the demand for tactical communication products in the aerospace & defense industries. These factors significantly impact the growth of the Europe tactical communication market. Moreover, Thales Group, Ultra Electronics, BAE Systems, Edisoft, and Leonardo S.p.A  are the key market players in the region. These companies are generating significant revenue for the tactical communication market.

As per a report published by SIPRI in 2021, the total military spending in Asia Pacific reached US$ 586 billion in 2021, accounting for a rise of 3% over the spending in 2020. The tactical communication market's growth potential is enormous in growing countries such as China, India, South Korea, Indonesia, Australia, Singapore, and Japan. Due to the adoption of network-centric warfare, Asia Pacific is likely to have long-term growth in the market. Furthermore, rising military spending by economies such as China and India to build modern military systems and improve the defense sector is driving the tactical communication market growth in Asia Pacific.

Type-Based Insights

Based on type, the tactical communication market share is segmented into soldier radio, manpack radio, vehicular intercommunication radio (VIC), high capacity data radio (HCDR), and others. The VIC segment is expected to register the highest CAGR during the forecast period. As part of the Bowman communication system, HCDR is a development of the Near-Term Digital Radio (NTDR) for the UK government. It is a secure wideband UHF radio system operating between 225 MHz and 450 MHz. It provides a self-managing IP-based Internet backbone capability without additional infrastructure connections, such as mobile phones and fixed communications. The increasing presence of HCDR providers across the globe, such as L3Harris Technologies, Inc. and Elbit Systems Ltd, is a driving factor for the tactical communication market growth. The L3Harris RF-7880NR Enhanced High Capacity Data Radio (EnHCDR) is built on the battle-proven networking heritage of HCDR and offers an 8-fold increase in user data throughput using the latest waveform technology. This in-vehicle solution combines high-capacity radio capabilities with the latest mobile LTE technology to deliver an eight-fold increase in user data throughput. These factors are further contributing to the growth of the tactical communication market size.

The tactical communication market is segmented into platform, type, technology, application, and geography. Based on type, the tactical communication market is segmented into airborne, shipborne, land, and underwater. Based on type, the market is categorized into soldier radio, manpack radio, vehicular intercommunication radio (VIC), high capacity data radio (HCDR), and others. Based on technology, the market is bifurcated into time-division multiplexing (TDM) and next-generation network (NGN). Based on application, the market is segmented into ISR, combat, communications, and command & control. Based on geography, the market is primarily segmented into North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South America.

Bae Systems plc., BAE Systems PLC, Raytheon Technologies Corporation, Thales Group, General Dynamics Corporation, and Elbit Systems Ltd are some of the key tactical communication market players.

Players operating in the tactical communication market are mainly focused on the development of advanced and efficient products.

• In 2022, the US Air Force has chosen BAE Systems to supply software-defined radios for its Airborne High-Frequency Radio Modernization (AHFRM) program, with assistance from FlexRadio.
• In 2021, Viasat Inc., a global communications company, announced that it had increased production run rates to over 200 Non-Developmental Item (NDI) Link 16 Next-Generation Tactical Data Links radios per month to meet current interest and pending orders from the US and international defense customers.