Tactical Communications Market Opportunity, Growth Drivers, Industry Trend Analysis, and Forecast 2024 – 2032
The Global Tactical Communications Market was valued at USD 19.9 billion in 2023 and is estimated to grow at a CAGR of 5.9% from 2024 to 2032. Increasing defense budgets, particularly in countries like the U.S., China, and India, are driving market growth. The evolution of technologies such as software-defined radios (SDRs), cognitive radios, and advanced encryption methods has enhanced tactical communication systems. In April 2024, the U.S. Army highlighted the Integrated Tactical Network (ITN) radio as a key component of its Unified Network Plan. The ITN provides essential voice and data communication to tactical units, ensuring a converged and reliable network.
This system supports combat systems and mission command, maintaining the Army's tactical advantage over competitors like Russia, China, and North Korea. These technological advancements increase the demand for advanced communication solutions, offering improved security, flexibility, and performance in complex military operations. The tactical communications industry faces several major restraints, including high development costs, budget constraints for defense organizations, and interoperability challenges among different systems. However, significant growth opportunities exist, particularly through advancements in 5G and 6G technologies, which offer enhanced speed and reliability.
The increasing focus on cybersecurity and the integration of AI present additional avenues for innovation. Evolving regulatory frameworks address security concerns and ensure compliance, creating a more structured environment for market participants while encouraging the adoption of new technologies. Based on platform, the market is segmented into ground, airborne, naval. In 2023, the ground segment accounted for the largest market share with over 48% share.
The ground segment of tactical communication focuses on keeping soldiers and command centers connected. It uses advanced radios, satellite terminals, and network tools that work together seamlessly. These systems are designed to be set up quickly and work in challenging environments, ensuring troops can always stay in touch. Based on components, the tactical communications market is divided into hardware & software.
In 2023, the software is the fastest-growing segment with a CAGR of over 7%. The software part of tactical communication plays a vital role in making operations run smoother and keeping information safe. It includes clever radios called software-defined radios (SDRs) that can talk to different systems easily. The software also helps scramble messages, manage networks, and process information quickly, which is crucial when every second counts in military operations.These tools are essential for commanders to make fast, informed decisions.North America dominated the tactical communications market with a share of over 35% in 2023. North America, with the United States at the forefront, plays a crucial role in shaping the market. The region's strong position stems from its substantial investment in defense and its commitment to technological advancement. The U.S. military's ongoing efforts to modernize and maintain readiness have created a growing need for innovative communication tools.These include advanced systems like software-defined radios and secure satellite networks. The region's strength is further bolstered by close partnerships between the military and major defense contractors.
This system supports combat systems and mission command, maintaining the Army's tactical advantage over competitors like Russia, China, and North Korea. These technological advancements increase the demand for advanced communication solutions, offering improved security, flexibility, and performance in complex military operations. The tactical communications industry faces several major restraints, including high development costs, budget constraints for defense organizations, and interoperability challenges among different systems. However, significant growth opportunities exist, particularly through advancements in 5G and 6G technologies, which offer enhanced speed and reliability.
The increasing focus on cybersecurity and the integration of AI present additional avenues for innovation. Evolving regulatory frameworks address security concerns and ensure compliance, creating a more structured environment for market participants while encouraging the adoption of new technologies. Based on platform, the market is segmented into ground, airborne, naval. In 2023, the ground segment accounted for the largest market share with over 48% share.
The ground segment of tactical communication focuses on keeping soldiers and command centers connected. It uses advanced radios, satellite terminals, and network tools that work together seamlessly. These systems are designed to be set up quickly and work in challenging environments, ensuring troops can always stay in touch. Based on components, the tactical communications market is divided into hardware & software.
In 2023, the software is the fastest-growing segment with a CAGR of over 7%. The software part of tactical communication plays a vital role in making operations run smoother and keeping information safe. It includes clever radios called software-defined radios (SDRs) that can talk to different systems easily. The software also helps scramble messages, manage networks, and process information quickly, which is crucial when every second counts in military operations.These tools are essential for commanders to make fast, informed decisions.North America dominated the tactical communications market with a share of over 35% in 2023. North America, with the United States at the forefront, plays a crucial role in shaping the market. The region's strong position stems from its substantial investment in defense and its commitment to technological advancement. The U.S. military's ongoing efforts to modernize and maintain readiness have created a growing need for innovative communication tools.These include advanced systems like software-defined radios and secure satellite networks. The region's strength is further bolstered by close partnerships between the military and major defense contractors.
Report Content
CHAPTER 1 METHODOLOGY & SCOPE
1.1 Market scope & definitions
1.2 Base estimates & calculations
1.3 Forecast calculations
1.4 Data sources
1.4.1 Primary
1.4.2 Secondary
1.4.2.1 Paid sources
1.4.2.2 Public sources
CHAPTER 2 EXECUTIVE SUMMARY
2.1 Industry synopsis, 2021-2032
CHAPTER 3 INDUSTRY INSIGHTS
3.1 Industry ecosystem analysis
3.1.1 Factor affecting the value chain
3.1.2 Profit margin analysis
3.1.3 Disruptions
3.1.4 Future outlook
3.1.5 Manufacturers
3.1.6 Distributors
3.2 Supplier landscape
3.3 Profit margin analysis
3.4 Key news & initiatives
3.5 Regulatory landscape
3.6 Impact forces
3.6.1 Growth drivers
3.6.1.1 Rising global defense expenditures accelerate market expansion
3.6.1.2 Technological innovations boost secure military communication capabilities
3.6.1.3 Increased focus on border security and counterterrorism operations
3.6.1.4 Modernization of outdated legacy military systems drives demand
3.6.1.5 5G and 6G enable reduced latency for real-time operations
3.6.2 Industry pitfalls & challenges
3.6.2.1 Challenges from mechanical stress in adverse conditions
3.6.2.2 Interoperability challenges and compatibility issues hinder operations
3.7 Growth potential analysis
3.8 Porter’s analysis
3.9 PESTEL analysis
CHAPTER 4 COMPETITIVE LANDSCAPE, 2023
4.1 Introduction
4.2 Company market share analysis
4.3 Competitive positioning matrix
4.4 Strategic outlook matrix
CHAPTER 5 MARKET ESTIMATES & FORECAST, BY PLATFORM, 2021-2032 (USD MILLION)
5.1 Key trends
5.2 Ground
5.3 Airborne
5.4 Naval
CHAPTER 6 MARKET ESTIMATES & FORECAST, BY APPLICATION, 2021-2032 (USD MILLION)
6.1 Key trends
6.2 Command & control
6.3 Intelligence, surveillance & reconnaissance
6.4 Combat operations
6.5 Others
CHAPTER 7 MARKET ESTIMATES & FORECAST, BY TYPES, 2021-2032 (USD MILLION)
7.1 Key trends
7.2 Satellite communication
7.3 Radio communication
7.4 Encryption and cybersecurity solutions
7.5 Mobile communication systems
7.6 Data communication and networking
CHAPTER 8 MARKET ESTIMATES & FORECAST, BY COMPONENT, 2021-2032 (USD MILLION)
8.1 Key trends
8.2 Hardware
8.3 Software
CHAPTER 9 MARKET ESTIMATES & FORECAST, BY POINT OF SALE, 2021-2032 (USD MILLION)
9.1 Key trends
9.2 New
9.3 Upgrade
CHAPTER 10 MARKET ESTIMATES & FORECAST, BY FREQUENCY, 2021-2032 (USD MILLION)
10.1 Key trends
10.2 Single
10.3 Multiple
CHAPTER 11 MARKET ESTIMATES & FORECAST, BY REGION, 2021-2032 (USD MILLION)
11.1 Key trends
11.2 North America
11.2.1 U.S.
11.2.2 Canada
11.3 Europe
11.3.1 UK
11.3.2 Germany
11.3.3 France
11.3.4 Italy
11.3.5 Spain
11.3.6 Russia
11.4 Asia Pacific
11.4.1 China
11.4.2 India
11.4.3 Japan
11.4.4 South Korea
11.4.5 Australia
11.5 Latin America
11.5.1 Brazil
11.5.2 Mexico
11.6 MEA
11.6.1 South Africa
11.6.2 Saudi Arabia
11.6.3 UAE
CHAPTER 12 COMPANY PROFILES
12.1 Aselsan A.S.
12.2 BAE Systems
12.3 Barrett Communications
12.4 Bharat Electronics Ltd.
12.5 Cobham Advanced Electronic Solutions Inc.
12.6 Collins Aerospace
12.7 Curtiss-Wright Corporation
12.8 Data Link Solutions
12.9 Elbit Systems Ltd.
12.10 General Dynamics Corporation
12.11 Honeywell International Inc
12.12 L3harris Technologies
12.13 Leonardo S.p.A.
12.14 Lockheed Martin Corporation
12.15 Northrop Grumman Corporation
12.16 Rafael Advanced Defense Systems Ltd.
12.17 Rhode & Schwarz
12.18 Rolta India Limited
12.19 Saab AB
12.20 Thales Group
12.21 Ultra
12.22 Viasat Inc.
CHAPTER 1 METHODOLOGY & SCOPE
1.1 Market scope & definitions
1.2 Base estimates & calculations
1.3 Forecast calculations
1.4 Data sources
1.4.1 Primary
1.4.2 Secondary
1.4.2.1 Paid sources
1.4.2.2 Public sources
CHAPTER 2 EXECUTIVE SUMMARY
2.1 Industry synopsis, 2021-2032
CHAPTER 3 INDUSTRY INSIGHTS
3.1 Industry ecosystem analysis
3.1.1 Factor affecting the value chain
3.1.2 Profit margin analysis
3.1.3 Disruptions
3.1.4 Future outlook
3.1.5 Manufacturers
3.1.6 Distributors
3.2 Supplier landscape
3.3 Profit margin analysis
3.4 Key news & initiatives
3.5 Regulatory landscape
3.6 Impact forces
3.6.1 Growth drivers
3.6.1.1 Rising global defense expenditures accelerate market expansion
3.6.1.2 Technological innovations boost secure military communication capabilities
3.6.1.3 Increased focus on border security and counterterrorism operations
3.6.1.4 Modernization of outdated legacy military systems drives demand
3.6.1.5 5G and 6G enable reduced latency for real-time operations
3.6.2 Industry pitfalls & challenges
3.6.2.1 Challenges from mechanical stress in adverse conditions
3.6.2.2 Interoperability challenges and compatibility issues hinder operations
3.7 Growth potential analysis
3.8 Porter’s analysis
3.9 PESTEL analysis
CHAPTER 4 COMPETITIVE LANDSCAPE, 2023
4.1 Introduction
4.2 Company market share analysis
4.3 Competitive positioning matrix
4.4 Strategic outlook matrix
CHAPTER 5 MARKET ESTIMATES & FORECAST, BY PLATFORM, 2021-2032 (USD MILLION)
5.1 Key trends
5.2 Ground
5.3 Airborne
5.4 Naval
CHAPTER 6 MARKET ESTIMATES & FORECAST, BY APPLICATION, 2021-2032 (USD MILLION)
6.1 Key trends
6.2 Command & control
6.3 Intelligence, surveillance & reconnaissance
6.4 Combat operations
6.5 Others
CHAPTER 7 MARKET ESTIMATES & FORECAST, BY TYPES, 2021-2032 (USD MILLION)
7.1 Key trends
7.2 Satellite communication
7.3 Radio communication
7.4 Encryption and cybersecurity solutions
7.5 Mobile communication systems
7.6 Data communication and networking
CHAPTER 8 MARKET ESTIMATES & FORECAST, BY COMPONENT, 2021-2032 (USD MILLION)
8.1 Key trends
8.2 Hardware
8.3 Software
CHAPTER 9 MARKET ESTIMATES & FORECAST, BY POINT OF SALE, 2021-2032 (USD MILLION)
9.1 Key trends
9.2 New
9.3 Upgrade
CHAPTER 10 MARKET ESTIMATES & FORECAST, BY FREQUENCY, 2021-2032 (USD MILLION)
10.1 Key trends
10.2 Single
10.3 Multiple
CHAPTER 11 MARKET ESTIMATES & FORECAST, BY REGION, 2021-2032 (USD MILLION)
11.1 Key trends
11.2 North America
11.2.1 U.S.
11.2.2 Canada
11.3 Europe
11.3.1 UK
11.3.2 Germany
11.3.3 France
11.3.4 Italy
11.3.5 Spain
11.3.6 Russia
11.4 Asia Pacific
11.4.1 China
11.4.2 India
11.4.3 Japan
11.4.4 South Korea
11.4.5 Australia
11.5 Latin America
11.5.1 Brazil
11.5.2 Mexico
11.6 MEA
11.6.1 South Africa
11.6.2 Saudi Arabia
11.6.3 UAE
CHAPTER 12 COMPANY PROFILES
12.1 Aselsan A.S.
12.2 BAE Systems
12.3 Barrett Communications
12.4 Bharat Electronics Ltd.
12.5 Cobham Advanced Electronic Solutions Inc.
12.6 Collins Aerospace
12.7 Curtiss-Wright Corporation
12.8 Data Link Solutions
12.9 Elbit Systems Ltd.
12.10 General Dynamics Corporation
12.11 Honeywell International Inc
12.12 L3harris Technologies
12.13 Leonardo S.p.A.
12.14 Lockheed Martin Corporation
12.15 Northrop Grumman Corporation
12.16 Rafael Advanced Defense Systems Ltd.
12.17 Rhode & Schwarz
12.18 Rolta India Limited
12.19 Saab AB
12.20 Thales Group
12.21 Ultra
12.22 Viasat Inc.
