Defense Tactical Radio Market by Type (Handheld/Portable and Vehicle Mounted), by Platform Type (Ground-based, Naval-based, and Airborne), and by Application (Special Operation Force (SOF), Army, Navy, and Air force) – Global Opportunity Analysis and Indu

Defense Tactical Radio Market by Type (Handheld/Portable and Vehicle Mounted), by Platform Type (Ground-based, Naval-based, and Airborne), and by Application (Special Operation Force (SOF), Army, Navy, and Air force) – Global Opportunity Analysis and Industry Forecast, 2024 – 2030

The Defense Tactical Radio Market size was valued at USD 14.69 billion in 2023, and is predicted to reach USD 32.89 billion by 2030, with a CAGR of 12.2% during the forecast period, 2024–2030.

The defense tactical radio industry plays a vital role in modern military operations by enabling secure and reliable communication among military units worldwide. These advanced radio systems, including software-defined radios and network-centric platforms, are equipped with features like secure encryption and ruggedness for dynamic battlefield conditions. Collaboration among defense contractors and government agencies drives innovation, enhancing military effectiveness across different domains. As communication becomes increasingly crucial for military superiority, the demand for advanced tactical radios is expected to fuel growth and innovation in the defense communication market, ensuring the success and safety of military operations.

The rise in government military budgets significantly impacts the demand for the defense tactical radio industry, with both developed and developing nations focusing on bolstering their military capabilities to remain competitive amid escalating global tensions. As reported by the Stockholm International Peace Research Institute, global military expenditure peaked at USD 2240 billion in 2022, marking a 3.7% real-term increase and a 19% growth over the 2013-2022 period. Increased defense spending enables defense agencies to invest more in advanced communication systems, including tactical radios.

This heightened investment spurs a notable demand for defense tactical radios as agencies prioritize upgrading their communication infrastructure to enhance operational effectiveness and maintain strategic advantage. Therefore, the defense tactical radio sector witnesses a surge in demand for its offerings, fostering growth and innovation within the industry.

However, stringent regulatory compliance in the defense tactical radio industry poses challenges and costs for manufacturers, requiring extensive testing and certification for security, encryption, and interoperability, ultimately restraining demand in the defense tactical radio industry.

On the contrary, introduction of advanced technologies such as Software-Defined Radio (SDR) revolutionize defense tactical radios, offering flexibility and adaptability. For instance, the U.S. Marine Corps is upgrading 50,000 radios with new software-defined models, enhancing capabilities and resilience against threats.

Segment Overview

The global defense tactical radio industry is segmented on the basis of type, platform type, application, and region.
By type, the market is divided into handheld/portable and vehicle mounted.
By platform type, the market is classified into ground-based, naval-based, and airborne.
By application, the market is classified into special operation force (SOF), army, navy, and air force.
By region, the market is segmented into North America, Europe, Asia-Pacific, and the rest of the world (RoW).

Regional Analysis

North America holds the dominant market share

North America leads the defense tactical radio industry, primarily due to the region's high military expenditures, particularly in the U.S., which boasts the world's largest military budget. The U.S. proposed a FY 2025 defense budget of USD 849.8 billion, indicating a significant demand for advanced communication technologies, including tactical radios.

Furthermore, prominent North American defense technology companies such as L3Harris Technologies, Raytheon Technologies Corporation, and General Dynamics Corporation contribute significantly to the industry's growth and development. For instance, L3Harris' USD 479 million contract with USSOCOM for next-gen tactical radios in January 2024 underscores its critical role in modern military operations.

Key Market Players

The key players in the global defense tactical radio market include:
• L3Harris Technologies
• Thales Group
• Raytheon Technologies Corporation
• BAE Systems plc
• General Dynamics Corporation
• Leonardo S.p.A.
• Elbit Systems Ltd.
• Northrop Grumman Corporation
• Rohde & Schwarz GmbH & Co. KG
• Saab AB

Recent Developments

November

Elbit Systems announced the delivery of its 600,000th operational tactical radio, reinforcing its status as a leading global provider of advanced communication solutions. The company's radios are recognized for their secure and dependable features, effectively addressing the needs of contemporary military operations. This milestone serves as a testament to Elbit Systems' dedication to innovation and superiority in military communication.

October 2023

L3Harris Technologies secures a substantial USD 479 million contract from USSOCOM for next-gen tactical radios and support services, showcasing its leadership in the tactical communication market. With a history of supplying the US military, including a USD 403 million contract in 2017, L3Harris reaffirms its commitment to innovation and excellence in military communication. This contract underscores its pivotal role in modern military operations.

KEY BENEFITS
• The report provides quantitative analysis and estimations of the defense tactical radio market from 2024 to 2030. This analysis assists in identifying the prevailing market opportunities to capitalize on.
• The study comprises a detailed analysis of the defense tactical radio market trends, including the current and future trends to depict the prevalent investment pockets in the market.
• The information related to key drivers, restraints, and opportunities and their impact on the defense tactical radio market is provided in the report.
• The competitive analysis of the market players along with their market share in the defense tactical radio market is provided in the report.
• The SWOT analysis and Porter’s Five Forces model are elaborated in the study.
• The value chain analysis in the market study provides a clear picture of the roles of stakeholders.