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The military communication market size is estimated to grow at a CAGR of 4.93% between 2022 and 2027. The market size is forecast to increase by USD 9.36 billion. The growth of the market depends on several factors, including the increasing procurement of advanced military communication systems to strengthen defense communication security, the increasing adoption of wireless communication technology, and the rising military expenditure. The term "military communication" refers to any and all means by which information can be shared with the goal of improving a nation's military readiness and capabilities. The transmission of information via military-grade communication devices, such as handheld, man-portable, and vehicle-mounted radios, wireless digital intercoms, and tactical radios, is known as military communication. These devices are used for reconnaissance as well as the transmission of commands and instructions from commanders to subordinates.
This military communication market report extensively covers market segmentation by component (hardware and software), end-user (army, air force, and navy), and geography (North America, APAC, Europe, South America, and the Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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Increasing procurement of advanced military communication systems to strengthen defense communication security is the key driver for the growth of the market. Maintaining consistent communication and protecting highly confidential information are the two top needs of the defense industry. If important data is not carefully protected and not transmitted correctly then it can make endanger the safety of citizens and also result in disputes between different countries.
Additionally, defense communication bound all aspects related to the transmission of information and data by the armed forces for well-organized operations such as surveillance, command, and military control. Furthermore, communication commonly depends on a complex and extensive communication network of hardware and software components to convey information throughout the geographical region and people. Besides, rising disputes between countries around the world will rise military investments. Hence, the increased procurement of communication systems with enhanced security is expected to drive the growth of the global military communication market during the forecast period.
Rising demand from the aerospace and defense industry in APAC is the primary trend in the global military communication market. In the aerospace and defense industries, APAC countries have been developing all-inclusive assessments of their defense strategies and resources. Such initiatives are contributing to the rising number of designing, production, commercial research, and operational activities done by defense equipment vendors in APAC.
Moreover, as many countries are focusing on building a local industrial base to ensure enhanced security due to geopolitical tensions and rising economic growth. Several market players in the aerospace and defense industries have succeeded in meeting this growing demand. In addition, factor such as the presence of a skilled workforce in APAC plays an important role in the development of better radar systems and advanced technology. This trend is expected to drive the growth of the global military communication market during the forecast period.
The high cost of deployment and repair in military communication systems is the major challenge to the growth of the market. Service providers need to integrate communication test equipment to establish a network connection for military communication, which includes oscilloscopes, spectrum analyzers, and frequency analyzers. Equipment such as amplifiers, filters, receivers, and transmitters, are used for a power network connection. In major cases, the cost of establishing a connection and its maintenance depends on customers. Based on the needs of end-users the cost of deploying equipment varies from one location to another location.
Moreover, deployment costs may depend upon the bandwidth requirements for a particular network connection. For the expansion of the network, capacity requires the existing equipment to be upgraded and replaced. If faults cases in cables happen, it becomes highly difficult to identify the point and source of faults as long-haul networks are huge. This leads to a loss of time and raised the overall cost. Therefore, the need for large investments and deployment costs is expected to impede the adoption of communication systems for the market in focus during the forecast period.
The market share growth by the hardware segment will be significant during the forecast period. The hardware segment of military-grade communication devices includes handheld, man-portable, and vehicle-mounted radios, wireless digital intercoms, and tactical radios. The hardware segment is expanding rapidly due to the rising need for secure and dependable communication in the defense sector. In the last decade, the segment has grown significantly due to the rising demand for lightweight and portable communication devices.
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The hardware segment showed a gradual increase in the market share of USD 16.99 billion in 2017 and continued to grow by 2021. The segment is notably driven by the growing demand for better safety and communication for military personnel and the need for highly sophisticated features. The segment is also being spurred by the growing popularity of digital radios and the increasing number of market players that sell land mobile radio tactical communications. Hence, rising investments in satellite communication systems are expected to grow the demand in the military communication hardware segment and drive the growth of the market in focus during the forecast period.
In the army segment, a continuously evolving battlefield requires better and more advanced communication systems. This results in the demand to not only protect the lives of soldiers but also to help in identifying and communicating enemy-related information. As a result, countries are collaborating with market players to develop new and more advanced systems. Moreover, for example, in March 2023, the Indian Army signed a contract with NewSpace India Limited to deliver an advanced communications satellite for USD 365 million. This is a technologically advanced five-ton class communication satellite for land forces like the army. The satellite enhances the communication capabilities of the Indian Army by providing mission-critical, beyond-line-of-sight communication to troops. Such factors are expected to have a positive impact on the army segment and lead to accelerated growth of the market during the forecast period.
The air force segment in the global military communication market will grow significantly compared with other end-user segments during the forecast period. Owing to the rising adoption of connectors and growing investments in UAVs. They provide complete protection against electromagnetic interference and electromagnetic compatibility and radio frequency interference during operation. Developed and developing countries such as the US, India, and China are investing in the development of UAVs for military purposes. Hence, the rising investment in UAVs and the increasing adoption of military connectors are expected to drive the growth of the global military communication market during the forecast period.
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North America is estimated to contribute 45% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The US military continues to maintain its military base in various other regions, such as Iraq, and their involvement is expected to increase in the future amid the Middle East and IS crisis. In North America, the US is the largest military power and has the largest number of military aircraft, naval vessels, and military land vehicles in the world.
Moreover, the US has further invested in many programs aimed at the modernization of its military capabilities. Thus, this drives the growth of the regional military. The growth rate in the aerospace industry in the region is expected to increase due to the need for enhanced military capabilities like high-security communications systems and satellite communications. North American countries are rapidly investing in satellite communication. These rising investments in satellite communication are expected to grow the demand for military communication systems in the region during the forecast period.
The COVID-19 pandemic in 2020 negatively affected several countries in the region. However, in 2021, the decline in the number of COVID-19 cases owing to the large-scale vaccination drives conducted in the region, lockdown restrictions were lifted. Additionally, with the rising investments in the military sector, the demand for military communication systems is expected to grow rapidly in the region which will drive the growth of the regional market in focus during the forecast period.
The Military Communication Market industry report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Military Communication Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
BAE Systems Plc: The company offers military communications such as multiband communications and cryptosystems.
Bittium Corp.: The company offers military communications such as Tactical Manet.
Cobham Ltd.: The company offers military communications such as SeaTel 1500.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The military communication market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Military Communication Market Scope |
|
Report Coverage |
Details |
Page number |
171 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.93% |
Market growth 2023-2027 |
USD 9.36 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
4.24 |
Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
Performing market contribution |
North America at 45% |
Key countries |
US, China, Russia, France, and Germany |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Airbus SE, ASELSAN AS, BAE Systems Plc, Bittium Corp., Cobham Ltd., Elbit Systems Ltd., General Dynamics Corp., Iridium Communications Inc., Kymeta Corp., L3Harris Technologies Inc., Leonardo Spa, Lockheed Martin Corp., Mercury Systems Inc., Nemco Ltd., Nokia Corp., Northrop Grumman Corp., Raytheon Technologies Corp., Spectra Group UK Ltd., Thales Group, and Viasat Inc. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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