The Tactical Communication Market size is estimated at USD 13.90 billion in 2024, and is expected to reach USD 16.53 billion by 2029, at a CAGR of 3.54% during the forecast period (2024-2029).
Driven by rising geopolitical tensions and the urgent need for advanced situational awareness, the global tactical communications market is experiencing robust growth. This surge is primarily fueled by the military's increasing demand for secure communication systems. As military forces modernize their communication infrastructures to counter emerging threats, technological advancements in secure and real-time communication play a pivotal role.
Key technological innovations, such as cognitive radio systems and advanced encryption technologies, are reshaping the tactical communications landscape. These innovations ensure dynamic spectrum access and secure, encrypted communication channels, which are vital for maintaining operational superiority in contested environments, especially due to their resistance to jamming and eavesdropping.
While interoperability remains a challenge, it is a primary focus as allied forces seek seamless communication during joint operations. In response, the market provides solutions prioritizing standards and protocols, ensuring compatibility across various national forces. This focus strengthens collaborative efforts and boosts operational efficiency in multinational missions.
The market segments its focus by platform, addressing the unique communication needs of airborne, naval, and ground forces. Airborne platforms are rapidly adopting satellite communication (SATCOM) for beyond-line-of-sight capabilities, whereas ground forces are increasingly relying on mobile ad hoc networks (MANETs) for their field operation versatility and reliability.
In this competitive arena, industry leaders like L3Harris Technologies, RTX Corporation, and THALES are spearheading innovations. These companies, in addition to providing cutting-edge tactical communication systems, are strategically partnering and acquiring, aiming to expand their market presence and meet the diverse needs of global defense forces.
Land-based communication systems are rapidly evolving, allowing ground forces to leverage advanced wireless technologies and smartphones, whether moving in vehicles or operating as dismounted infantry. This heightened demand for secure, mobile communication has spurred the development of compact solutions, like manpack radios, with a strong emphasis on mobility.
Recognizing the significance of land-based missions, militaries worldwide are enhancing their capabilities, given that these forces typically have the largest personnel numbers and operate the most vehicles. Current 5G networks and the promise of emerging 6G networks are set to transform tactical communication for ground forces, delivering superior data bandwidth, speed, and connectivity.
For example, in March 2024, Ricardo Defense Inc., in partnership with the National Center for Manufacturing Sciences (NCMS), clinched a contract to advance its Dismounted Soldier Communication System (DSCS) in collaboration with the US Army. Under this agreement, Ricardo Defense will outfit three brigades of M88 vehicles with the DSCS solution to gather data and feedback from soldiers. Such feedback will be crucial for evaluating and validating the system's performance and effectiveness from the user's perspective.
Land forces are integrating software-defined radios into infantry soldiers and armored vehicles to modernize, ensuring secure communication. Furthermore, armies are upgrading their infrastructure to SDRs, facilitating more secure communication channels between ground-to-air and ground-to-ground platforms.
Initiatives aimed at bolstering situational awareness are driving the growing demand for land-based tactical communication systems. These include advancements in geospatial intelligence, unmanned ground vehicles (UGVs), land-based command and control (C2) systems, and intelligence, surveillance, and reconnaissance (ISR) systems.
In 2023, North America dominated the market, holding the largest share among all regions. The US, recognized as the world's top military spender, saw its military expenditure rise 2.3% in 2023, reaching a staggering USD 916 billion. This figure represented a significant 37% of the global military expenditure, as reported by SIPRI. The US plans to boost its funding for communications, sensors, and electronics by approximately 20% in real terms over the next two years.
According to a 2019 US DoD document, the country's Handheld, Manpack, and Small Form Fit (HMS) program, which focuses on acquiring software-reprogrammable radios for tactical voice and data communications, is poised to drive substantial demand for Leader and Manpack radios during the forecast period.
The US Army's current acquisition targets include 100,000 Leader Radios, 65,622 Manpack Radios, 21,579 Rifleman Radios, and 104,496 Single Channel Data Radios. In September 2022, a delivery order for the Manpack Radio FRP2 was awarded, covering 5,444 units (3,264 from L3Harris and 2,180 from Collins). By December 2022, 893 units had been delivered. Similarly, Leader Radio FRP2 saw an order of 6,968 units in September 2022 (4,188 from THALES and 2,780 from L3Harris), with 255 units delivered by December 2022.
Plans to procure naval vessels in the region are set to drive growth in the tactical communication market. For example, the FY24 version of the National Defense Authorization Act (NDAA) bill, recently passed by the US Senate, outlines the US Navy's procurement of ten battleforce ships. This includes a Columbia-class ballistic-missile submarine (SSBN), two Virginia-class attack submarines (SSN), two Arleigh Burke-class destroyers (DDG), two Constellation-class frigates (FFG), a John Lewis-class fleet oiler (T-AO), a submarine tender (AS), and a San Antonio-class amphibious transport dock (LPD). These vessels will be equipped with various advanced tactical communication systems.
The tactical communication market remains fragmented, with numerous players offering communication systems across diverse platforms. L3Harris Technologies Inc., General Dynamics Corporation, THALES, Elbit Systems Ltd., and RTX Corporation are the key players in the market. Investments in research and development of faster, more reliable, and secure tactical communication systems are expected to bolster these companies' market presence and share.
Over the years, several local players have emerged, spurred by a focus on indigenous manufacturing in various countries. For example, under the Indian government's 'Atmanirbhar Bharat' (self-reliant India) initiative, firms like Bharat Electronics Limited (BEL) and Tata Advanced Systems are at the forefront of developing indigenous tactical communication systems. Their innovations, including the Software Defined Radio (SDR), enable secure voice and data communication for military branches. This push for self-reliance diminishes foreign dependency and nurtures innovation, leading to systems specifically designed for the Indian Armed Forces.
Similarly, in July 2024, the Indian Army finalized a deal with Tata Advanced Systems Limited for the Tactical Access Switch. This device, being compact and rugged, is set to bolster the Army's tactical communication capabilities.
In this report,
Search for an exact word or phrase by placing the word or phrase in quotation marks ("market trend"). Search for different versions or tenses of a word by placing an asterisk at the end of the word (pharma*).
Please note that your term must be at least three characters long and numbers will be blocked by the # sign.
Learn how to effectively navigate the market research process to help guide your organization on the journey to success.
Download eBook