Military Communications Market - Forecast(2024 - 2030)

Military Communications Market Overview

The Military Communications market size is forecast to reach $44.02 billion by 2030, growing at a CAGR of 4.3% from 2024 to 2030. The Military Communications Market is estimated to witness a sustainable growth over the forecast period majorly because of its applications in Governmental Organizations in embedded systems for communications. In day-to-day lives where end users come through many situations in which human life and other services for society are at risk and end-users require next-level communication flexibility, vast coverage, high capacity, high security, high data rate and low latency satellite communications between first responders and the receiver. It is essential to avoid or at least reduce damage during any sort of communication process. Rise in security concerns of various industries and fast-growing technology in communication sector is expected to drive the market growth. On the other hand, factors such as slow adoption of technology such as software defined radio, high installation costs, lack of accessibility, limited data capacity hinders its market growth. Lack of transparency between Military organizations and private narrow band radio network systems providers brings major challenge for the Military Communications Market growth. 

Military communications systems are increasingly integrating advanced technologies such as artificial intelligence (AI), machine learning (ML), and quantum encryption to enhance security, improve data transmission speeds, and enable seamless interoperability across different platforms and units. These technologies help in mitigating cybersecurity threats, optimizing bandwidth usage, and providing real-time situational awareness to military personnel.

With the growing need for secure and reliable communication in remote and harsh environments, satellite communication systems continue to play a crucial role in military operations. Advancements in satellite technology, including the development of small satellites, high-throughput satellites, and low Earth orbit (LEO) constellations, are enabling faster data transmission rates, expanded coverage areas, and enhanced resilience against jamming and interception attempts. Additionally, the integration of satellite communication with terrestrial networks and other communication mediums is facilitating seamless connectivity and mission coordination for military forces

COVID-19 Impact

The pandemic has disrupted global supply chains, affecting the availability of components and equipment necessary for military communication systems. Delays in production and delivery of hardware has impacted the deployment of new communication technologies. Many governments have faced economic challenges due to the pandemic, leading to budget constraints and the need to prioritize spending. This had resulted in adjustments to military communication projects, potentially delaying or scaling back certain initiatives.

Like many other sectors, the military have adapted to remote operations where possible during the pandemic. This includes increased reliance on satellite communication, drones, and other remote technologies for surveillance, reconnaissance, and command purposes. With the shift towards remote work and operations, there is an increased need for secure communication solutions within the military to ensure confidential information remains protected. This has led to a greater demand for encrypted communication systems and cybersecurity solutions.

Military Communications Market Report Coverage

The report: “Military Communications Market– Forecast (2024-2030)”, by IndustryARC covers an in-depth analysis of the following segments of the Military Communications Market.

By Communication Type – Airborne, Air-Ground, Underwater, Ground Based, Marine

By Network Technology – Satellite Communication (SATCOM), Secure Tactical Data Links (TDLs), Radio Frequency (RF), Mobile Ad-Hoc Networks (MANETs), HF Radio and Others

By Application – Command and Control, Routine Operations, Situational Awareness and Others

By Solutions – Hardware (Safety Equipment, Controlling Devices, Satcom, Radio, Security Systems and Others) and Services (Security, Maintenance services and Others)

By Geography - North America (USA, Canada, and Mexico), Europe (UK, Germany, France, Italy, Netherlands, Spain, Russia, Belgium, and Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Australia, and New Zealand, Indonesia, Taiwan, Malaysia, and Rest of APAC), South America (Brazil, Argentina, Colombia, Chile, and Rest of South America), and Rest of the World (Middle East, and Africa)

Key Takeaways

• The Military Communications Market is estimated to witness a sustainable growth over the forecast period 2024 – 2030 because human life and other services for society are at risk and where fast and reliable communications between first responders and the receivers is essential.
• Ongoing demands of next-level communication flexibility, vast coverage, high capacity, high security, high data rate and low latency communications between military personnel and the receiver tends to promote technological advancements which uplifts market growth.
• Rising security concerns in various military organizations where the communication with the responder is most important tends to drive its market growth in many Governmental Organizations.

Military Communications Market Segment Analysis - By Network Technology

SATCOM held highest shares in the market in 2023. The growth is attributed to the increased adoption of SATCOM technology to conduct military operations across the globe and improve communication facilities for airborne, naval, and space platforms. It allows military forces to communicate over long distances, often in remote or hostile environments where traditional communication infrastructure is unavailable or unreliable

The TDLs segment is expected to grow with a significant growth rate of 6.08% during the forecast period 2024 - 2030. These are specialized networks used for transmitting tactical data, such as situational awareness information, targeting data, and command and control instructions, between military platforms like aircraft, ships, and ground forces. The growth is attributed to the rising demand for advanced data links for numerous applications such as command & control, situational awareness, and electronic warfare.

Military Communications Market Segment Analysis - By Type

High costs associated with the R&D and deployment of a satellite in the space is anticipated to increase the demand for the HF radio system which is cost-efficient and more reliable compared to satellite communication. This increase in deployment of HF radios especially in military end-user applications is anticipated to drive the military communication market growth. The global HF Radio Market size is estimated to grow at a CAGR of 4.4% during the forecast period 2024 - 2030. The growing number of contracts between the manufacturers and the government of various countries for the supply of HF radios will drive the market growth. Countries such as Afghanistan, Australia, and others have immense demand for HF Radio.

Military Communications Market Segment Analysis - By Geography

North America accounts for the highest market among other regions by geography at 39.5% in 2023. The market growth in this region is predominantly rising due to economies such as United States, Canada and Mexico. Ongoing developments in technologies to increase communication flexibility, vast coverage, high capacity, high security, high data rate and low latency communications uplifts the market growth in this region. North America is closely followed by Europe in which United Kingdom has the largest market. The Military Communications Association (TCCA), a global leader in the promotion of standardized Military Communications solutions in United Kingdom and many other organizations adopted Industry 4.0 to provides many opportunities by Industrial IoT Technology that will enhance public safety at the global level. These developments will elevate the Military Communications Market in global market.

The ongoing Russia – Ukraine war has also increased the demand of communications equipment in North America and Europe, as nations in these regions supply their equipment to the ongoing war efforts.

Military Communications Market Drivers

Ongoing Russo-Ukraine War:

The conflict has underscored the importance of secure communication systems for military forces. As a result, there's a heightened demand for encrypted communication technologies that can protect sensitive information from interception or tampering. Military organizations are placing greater emphasis on establishing resilient and redundant communication networks to ensure continuity of operations, even in the face of disruptions caused by conflicts or hostile actions. The conflict has prompted increased collaboration and partnerships between allied nations in the development and deployment of interoperable communication solutions, enabling more effective coordination and cooperation among military forces. The conflict has also spurred the adoption of next-generation communication technologies, such as software-defined networking (SDN), artificial intelligence (AI), and machine learning (ML), to improve the efficiency, flexibility, and resilience of military communication systems.

Rise in Public safety measures taken by Governmental Organizations

High Installation cost

One of the major challenges faced by Military Communications Market globally is the high installation cost of Safety and Security communication systems. Military Communications applications, such as PPDR (Public Protection and Disaster Relief), are vital and must be supported. PPDR provides widespread mobile broadband access for major industries and Public Safety Agencies (PSAs). Any efforts to use part of the 700 MHz band’s uplink or downlink channels for PPDR would reduce the amount available for mobile services which in turn can negatively impact the cost, communication coverage, and data capacity of mobile broadband. This has brought a major challenge in the market growth of Military Communications Market globally.

Military Communications Industry Outlook

Product launches, acquisitions, and R&D activities are key strategies adopted by players in the Military Communications Market. The key companies in the Military Communications Market are: 

1. Ascom

2. Cobham 

3. Ericsson

4. Harris Corporation

5. Huawei

6. Viasat (Inmarsat)

7. Leonardo S.p.A.

8. Mentura Group

9. Lenovo (Motorola)

10. Nokia

Acquisitions/Technology Launches/Partnerships

In May 2022, General Dynamics Corporation received a national security agency contract for a high-assurance ethernet encryptor. Through this, the company is likely to be offering a high-assurance encryption solution that is compliant with ethereal data.

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