A Tactical Data Link Market Forecasts to 2028 – Global Analysis By Solution (Software and Hardware), Platform (Air, Ground and Sea), Data Link Type (Link 11, Link 16, Link 22 and Other Data Link Types), Frequency (Ultra High Frequency and High Frequency)

Tactical Data Link Market Forecasts to 2028 – Global Analysis By Solution (Software and Hardware), Platform (Air, Ground and Sea), Data Link Type (Link 11, Link 16, Link 22 and Other Data Link Types), Frequency (Ultra High Frequency and High Frequency), Application and By Geography

According to Stratistics MRC, the Global Tactical Data Link Market is accounted for $8.1 billion in 2022 and is expected to reach $12.08 billion by 2028 growing at a CAGR of 6.9% during the forecast period. Tactical data link (TDL) is a communication standard that uses various data channels for the transmission and exchange of tactical information among arm forces. It provides a secure communication network for military missions. IDM, Link 11, AFAPD, Link 16, Link 22, SADL, JREAP, VMF, and SIMPLE are some tactical networks. The network can be chosen according to the requirements of the application. For example, the Link 16 data link is utilised for direct communication. SADL is a situational awareness tool. The Link 22 data link is used for communication applications that require more than direct line of sight. TDL-enabled secure communication enables military personnel to make sound judgements in critical situations.

According to the Stockholm International Peace Research Institute (SIPRI) analysis, global military spending has increased by 2.6% and reached the value of USD 1981 billion in 2020.

Market Dynamics:

Driver:

Rise in airspace modernization programs

Modernizing and revamping the airspace is a top priority in North American and European countries to improve safety and reduce flight delays. Airspace modernization programmes include the development of new communication antennas to boost aircraft connectivity. ThinKom Solutions, for example, devised a new communication antenna in March 2021 that provides flexible installation options for special-purpose aeroplanes. The business has created a new model of its Variable Inclination Continuous Transverse Stub (VICTS) antenna for government and military Beyond-Line-of-Sight (BLoS) applications. Initial units of the product are now being integrated, with official qualifying set to begin soon.

Restraint:

Rigorous military standards and stringent regulations

The safe communication of data lines is critical in the defence sector since it can correct an incorrect perception of communication. As a result, the defence sector establishes the criteria for developing and testing data link technologies. The North Atlantic Treaty Organisation (NATO) has established criteria that all NATO members and other countries must adhere to. However, these stringent norms and regulations stymie industry expansion. Furthermore, defence equipment must meet many military criteria before it can be purchased by defence services. The size, weight, and power (SWaP) specifications required by military aircraft should be met by defence equipment in addition to meeting military criteria.

Opportunity:

Growing demand for enhanced interoperability

Electromagnetic compatibility (EMC) design is essential in electrical components and systems. The increased demand for enhanced interoperability across military services and coalition partners is propelling the development of advanced technological solutions. Interoperability allows the system or arm forces to collaborate in a given situation and increase communication security. As a result of the growing demand for secure communication, end-users are increasingly adopting tactical data link solutions. NATO communicates with its coalition members through military data link 16 networks. As more nations join NATO, the demand for standardised tactical data linkages is likely to rise during the forecast period.

Threat:

Lack of skilled workforce

Countries such as South Africa, Nepal, and Bhutan lack skilled technical personnel in the defence industry. Potential workforce difficulties impact the safety and effectiveness of operations, limiting the number of missions that the systems can undertake. As a result, the absence of a competent workforce hampers the growth of the tactical data link industry. Critical land, sea, aerial, and space operations increasingly rely on highly qualified professionals for duties such as research and development, patent development, and software development and application. Thus, recruiting a competent staff is an important aspect of assuring innovation in business processes and products in the defence industry.

Covid-19 Impact

The COVID-19 epidemic has had a large-scale impact on economies all across the world. The global manufacturing of tactical data links, components, and assembly lines has been impacted. COVID-19 has presented numerous hurdles to various industries. The Aerospace and Defence industry is no exception. Several countries have decreased their defence budgets in response to the COVID-19 epidemic. This puts most research initiatives on hold. The export of tactical data links to a number of nations in the Middle East, Africa, and Latin America has also been reduced. All of these possibilities have implications for the development of tactical data linkages.

The hardware segment is expected to be the largest during the forecast period

The hardware segment is estimated to have a lucrative growth. Sensors, antennas, weapon data link controllers, and processors comprise the TDL system. As a result of increased international security concerns and political tensions among neighbouring nations, the segment is likely to grow. Modern tactical data connection technologies are increasingly being used by defence forces for effective communication and real-time data transfer between troops and authorities. For example, the US Special Operations Command (USSOCOM) granted L3Harris Technologies an IDIQ contract worth $552 million in May 2022 to provide Falcon IV AN/PRC-167 radio systems.

The link-16 segment is expected to have the highest CAGR during the forecast period

The link-16 segment is anticipated to witness the highest CAGR growth during the forecast period. The segment's growth has been attributed to increased demand for link-16 network-enabled solutions from aerial, maritime, and ground-based units. The Link 16 data link is used for information exchange between tactical command, control, communications, computers, and intelligence (C4I) systems. Link 16 is an identification, navigation, and communication system that connects ground, air, and sea-based units. It is a tactical digital data link network that is jam-resistant, encrypted, and devoid of nodes. Link 16 provides two networks for digital voice messaging: 2.4 kbit/s and 16 kbit/s, allowing the exchange of image data, text messages, and voice communications.

Region with highest share:

Asia Pacific is projected to hold the largest market share during the forecast period owing to the highest defense expenditure by the U.S. Furthermore, increased investment on creating advanced military security systems, as well as the presence of many hardware and software developers across the area, promote market expansion during the projection year. The market in North America is primarily driven by the increasing need for tactical data linkages for unmanned aerial vehicles and unmanned ground vehicles for various military applications in the United States and Canada.

Region with highest CAGR:

Europe is projected to have the highest CAGR over the forecast period. Military modernization programmes from the United Kingdom, France, Russia, and others are credited with the increase. Among the key factors driving the market's revenue growth in Europe are the increasing use of tactical data links in the defence industry, the presence of large players in the region's nations such as Thales Group, Leonardo S.p.A., and others, and the expansion of R&D activities for the development of more sophisticated communication services.

Key players in the market

Some of the key players profiled in the Tactical Data Link Market include BAE Systems, Honeywell International Inc, ViaSat, Leonardo S.p.A., General Dynamics Corporation, Lockheed Martin Corporation, L3harris Technologies, Thales Group, Collins Aerospace, Iridium Communications Inc, Tactical Communications Group, Northrop Grumman Corporation, Raytheon Company, Telefunken Racoms and Saab AB.

Key Developments:

In May 2022, Thales was one of two (2) vendors awarded an Indefinite Delivery, Indefinite Quantity (IDIQ) contract by the US Army to deliver advanced tactical radios under the US Army’s Combat Net Radio (CNR) modernization program. The competitive 10-year contract for the Combat Net Radio (CNR) program includes a five-year base ordering period and an additional five-year optional ordering period.

In May 2022, L3Harris Technologies received an IDIQ contract increase for its Falcon IV AN/PRC-167 radio systems from the US Special Operations Command (USSOCOM). USSOCOM increased the initial IDIQ ceiling from USD 255 million to USD 552 million.

In January 2022, BAE Systems Technology Solutions and Services was awarded a contract to provide research and development, engineering, technical, and logistics support services in support of the delivery of radio communication systems valued at USD 32.3 million. The contract is projected to be completed in June 2027.

Solutions Covered:
• Software
• Hardware

Platforms Covered:
• Air
• Ground
• Sea

Data Link Types Covered:
• Link 11
• Link 16
• Link 22
• Other Data Link Types

Frequencies Covered:
• Ultra High Frequency
• High Frequency

Applications Covered:
• Electronic Warfare
• Command & Control
• Situational Awareness
• Intelligence, Surveillance & Reconnaissance (ISR)
• Radio Communication

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements