Military Communication Market Size, Share, and COVID-19 Impact Analysis by Component (Hardware and Software), By Technology (SATCOM, VHF/UHF/L-Band, HF Communication, and Data Link), By Platform (Airborne, Ground, Naval, and Space), By Application (Command and Control, Intelligence, Surveillance, and Reconnaissance (ISR), Situational Awareness, Routine Operations, and Others), and Regional Forecast, 2022-2029

The global military communication market size was valued at USD 33.10 billion in 2021. The market is projected to grow from USD 35.12 billion in 2022 to USD 54.11 billion by 2029, exhibiting a CAGR of 6.37% during the forecast period. The global COVID-19 pandemic has been unprecedented and staggering, with military communication equipment experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. Based on our analysis, the global market exhibited a growth of 3.31% in 2020 as compared to 2019.

As per our research study, the first decade of the 21^st century has shown exponential technological advancement in the communications industry and advancement in military communication terms. Satellite Communications (SATCOM) was utilized effectively in the military and civilian domains through communication devices such as cellphones, and satellite-based equipment to the tactical communications system. The market has also exhibited growth in the adoption of military communication shelters.

Satellite communications systems have been critical to the defense services and new methodologies are being developed. The military needs an advanced communication system for better battlefield situational awareness and tactical communication between military commanders and their armed forces and allies as communication protocols and codes.

It also differentiates battlefield forces, a critical strategic and tactical advantage. This C2 (Command and Control) system utilizes military communication satellites and lines of sight to propagate the data across the communications network. Situational awareness also facilitates the capability to send combat messages such as enemy spot or reconnaissance reports, situational reports, position reports, medical evacuation requests, and combat orders. Graphical control measures with individual systems displayed can provide a visual aid to better command and control the battlefield scenarios. Also, the growing procurement of IoT-based communication types to strengthen the defense sector boosts the market growth. Furthermore, rise in the adoption of Ka-band technology for communication applications, increased usage of IoT for military applications, emerging 5G technology, and continuously growing military expenditures are creating multiple future opportunities for the market.

COVID-19 Impact

Despite Ongoing COVID-19 Pandemic, High Demand for Military Communication Systems Worldwide to Have Positive Impact on Market Growth

The ongoing COVID-19 pandemic has impacted the defense industry, but this market has showcased heightened growth in 2020 and is anticipated to grow during the forecast period.

• The ongoing pandemic has impacted mainly the telecommunication industry, which has shown market growth owing to the requirement of means of communication for better situational awareness to tackle the ongoing pandemic. Various governments and their armed forces were involved in humanitarian and medical assistance operations within their countries, requiring a robust communication network for better situational awareness. Armed forces primarily relied on military communication networks.


• Three major European countries, which account for more than 50% of European military expenditure, had implemented the slicing of the army spending owing to the ongoing pandemic, impacting the market growth and share of the market.


• The rapid growth of terrorism, cross-border disputes during the COVID-19 pandemic have influenced the developed and developing countries to safeguard their national security scenarios. This factor has impacted the market growth and high demand for submarines.

LATEST TRENDS

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Growing Adoption of Satellite Communication (SATCOM) Technology to Provide Advanced Communication Solution

As the battlefield becomes more network-centric in the 21^st century, the adoption of satellite communication technology has also advanced to its next-generation, and demand for it peaked. In the present scenario, a connected soldier should possess the network capability that facilitates information on a real-time basis to meet the mission requirements and maintain operational capability. Naval Battlefield may become a challenging task for naval due to vast AOR (area of responsibility).

Naval forces worldwide have emphasized network-centric warfare, which facilitates the connectivity between all the sensors, weapons, and platforms distributed across the battlespace. SATCOM is a critical component in establishing and achieving network-centric capabilities for armed forces. Also, Geographical challenges have often compounded the challenge for terrestrial networks and are deemed unreliable most of the time.

SATCOM technology design features enable communication channels on air-to-ground, air-to-air, ship-to-ship, and ship-to-shore platforms. The communication satellite terminals enable tactical communication networks on the move and integration on mobile platforms, vessels, and aircraft easier. As a result, the demand for platforms equipped with portable satellite terminals is growing for battlefield situational awareness missions.

DRIVING FACTORS

Rise in Procurement of Advanced Communication System to Strengthen Defense Communication Security

Protection of highly confidential information and maintenance of consistent communication are two primary requirements of the defense sector. Suppose the critical data is not protected carefully or real-time data has not been transferred accurately. In that case, it might risk the safety of citizens or may lead to disputes among various countries. Moreover, defense communication consists of all aspects related to military forces' transmission of information and data for well-organized functioning, military surveillance, command, and control.

Furthermore, communication generally relies on a complex and vast network of hardware components and software to convey information to people and across geography. In addition to this, the growing disputes among countries across the globe would increase military investments. These significant military investments are used to procure advanced communication systems that provide confidential, accurate, and secure real-time data transmission. Therefore, the rise in procurement of communication systems with enhanced security and privacy features is expected to upsurge the military communication market growth during the forecast period.

Growing Adoption of Wireless Communication Technology for Various Military Applications to Boost Market Growth

Evolving technologies in communication, such as SATCOM, very high-frequency communication, and ultra-high frequency communication, are replacing the traditional wired communication systems for secure data transmission and network infrastructure. Under the program, Warfighter Information Network Tactical programme (WIN-T), the U.S. Army provides its soldiers with secure voice and data communications on the field without the need for fixed infrastructure.

Furthermore, the U.S. military is developing a comprehensive, unified, and interoperable wireless networking system known as Joint All-Domain Command and Control (JADC2). The system runs on 5G. It will connect sensors from all military domains that includes Army, Air Force, Navy, Space Force, and Marine Corps into a single network. Thus, the introduction of such advanced technologies drives the growth of the market.

RESTRAINING FACTORS

High Initial Development Cost of Military Communication and Networking Infrastructure Hampers the Market Growth

Military communications’ design should be very robust as they are used and installed in harsh environments. The system has multi-features to be used according to the changing military mission. Moreover, regular maintenance of such systems is not feasible. Therefore, these systems consist of high-quality material that helps in increasing the lifespan of the system. Development of one military communication satellite system requires USD 1 billion and the launching cost of this satellite is between USD 55 million to USD 90 million. Thus, high cost associated with the infrastructure, installation, and data links hinders the market growth.

SEGMENTATION

By Component Analysis

Hardware Segment to Dominate Owing to their Increasing Adoption Worldwide

Based on component, the market is bifurcated into hardware and software.

The hardware segment is further sub-segmented by transceivers, antenna, transmitter, receiver, and others. The hardware segment dominated the market in 2021. The dominance is due to the increasing demand for advanced communication system in various military applications such as ISR, combat and logistical supply route monitoring. Rising demand for military-grade communication devices, such as handheld, vehicle mounted, and man portable radios, tactical radios and data links, wireless digital intercoms, transceivers, and satellite communication (SATCOM) systems, drives the segmental growth.

The software segment is anticipated to show significant growth during 2022-2029. This growth is attributed to the rising adoption of software-defined radio (SDR) systems for advanced communication. In September 2020, the U.S. Army signed a USD 13 billion contract with 31 vendors to provide software products and maintenance of 14 product categories that include communication, NetOps, programming and development, and modeling and simulation.

By Technology Analysis

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SATCOM Segment Dominated the Market in 2021 Due to its Usage in the ISR and Combat Operations

Based on technology, the market is segmented into SATCOM, VHF/UHF/L-Band, HF communication, and data link. Among these, SATCOM held highest shares in the market in 2021. 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.

The data link segment is expected to grow with a significant growth rate during the forecast period. The growth is attributed to the rising demand for advanced data links for numerous applications such as command & control, situational awareness, and electronic warfare. In September 2019, Data Link Solutions LLC signed a USD 30 million contract with the U.S. military to upgrade and enhance data for the U.S. military. Link 16 is a military data link network used by the U.S army that enables fighter jets, ground forces, and naval ships to exchange tactical picture in near-real time.

By Platform Analysis

Ground Segment to Lead in 2021 due to Increasing Use of Ground Antennas for Situational Awareness

By platform, the market is classified into airborne, ground, naval, and space. The ground segment held the largest share in the market. This dominance is due to the growing use of advanced data links, VHF/UHF/L-Band, and high frequency communication for ground platform military platforms. The ground forces use military antennas to obtain situational awareness for threat detection.

The airborne segment will showcase remarkable growth during 2022-2029. The growth is due to the introduction of next generations avionics systems for fighter planes. The advanced systems will provide wideband voice, video, and data for military forces. Viasat has provided wideband SATCOM capability for the Bell-Boeing V-22 tiltrotor aircraft.

By Application Analysis

Command & Control Segment to Lead Market in 2021 Owing to High Adoption of Man-Pack Radios

Based on application, the market is segmented into command and control, ISR, situational awareness, routine operations, and others. The command and control segment dominated the market in 2021. This large share is due to the higher adoption of man pack radios for command and control applications, rise in cross-border conflicts, and political disputes among neighboring countries.

ISR segment is estimated to grow at a significant growth rate during the forecast period owing to continued rise in military deployment of the armed forces across the globe in all platforms such as ground, naval, and aerial for ISR operations. In March 2021, Parsons Corporation signed a contract worth USD 250 million with the Naval Information Warfare Center (NIWC) to develop field ISR systems that provide robust communication, surveillance, and security to the U.S. Navy.

REGIONAL INSIGHTS

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The market is segmented into North America, Europe, Asia Pacific, and the Rest of the World.

The findings based on our research methodology indicate that North America was estimated to hold the largest market value of USD 12.80 billion in 2021. The U.S. accounted for the highest military spender in the world in 2021. Moreover, the region has the presence of leading communication system and equipment manufacturers such as Collins Aerospace, General Dynamics Corporation, Honeywell International Inc., Northrop Grumman Corporation, and Raytheon Company that would facilitate growth during the forecast period.

Europe was estimated to hold the second-largest military communication market share in 2021 due to airborne and naval communication solution manufacturers such as Thales Group and Cobham Plc. The defense spending cuts of the U.K., France, and Germany in Europe are anticipated to grow at a moderate growth rate due to the ongoing pandemic.

Asia Pacific is expected to exhibit strong growth in the market during the forecast period owing to the significant rise in commercial aircraft deliveries in developing countries such as India and China. The region is expected to showcase long-term growth in the market due to adopting network-centric warfare. Furthermore, the rise in military spending by the economies such as China and India to develop advanced military systems to strengthen the defense sector is expected to fuel the market growth in Asia Pacific. For instance, according to Stockholm International Peace Research Institute (SIPRI), the U.S. and China accounted for 50% of the world’s military spending despite the impact of the ongoing COVID-19 pandemic.

The Rest of the World is expected to show a moderate growth rate during the forecast period. The rise in defense expenditure of Saudi Arabia, the UAE, Israel, Brazil, and others is anticipated to drive the market growth.

KEY INDUSTRY PLAYERS

Key Players Focus on Increasing R&D Investments and Adopting Innovative Strategies to Grow the Market Growth

The competitive landscape of the market depicts the domination of selected players such as Collins Aerospace, Northrop Grumman Corporation, and Raytheon Company. A diversified portfolio of communication solutions and increased investment in R&D and strategic acquisition are the prominent factors responsible for the dominance of these companies. These companies adopt organic and inorganic growth strategies such as mergers and acquisitions and develop new technology to enable communication systems. Also, they are entering into long-term contracts and partnerships with air, naval, and land forces to provide communication solutions with advanced features.

LIST OF KEY COMPANIES PROFILED:

• ASELSAN A.S. (Turkey)


• BAE Systems PLC (U.K.)


• Cobham PLC (U.K.)


• General Dynamics Corporation (U.S.)


• Iridium Communications Inc. (U.S.)


• L3Harris Technologies, Inc. (U.S.)


• Lockheed Martin Corporation (U.S.)


• Northrop Grumman Corporation (U.S.)


• Raytheon Technologies Inc. (U.S.)


• Rohde & Schwarz (Germany)


• Thales Group (France)


• Viasat Inc. (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• November 2021 – Collins Aerospace showcased its new directional communication system specially designed for small aerial platforms such as UAVs operational in contested territory, a part of the DARPA Pheme project. It showcased connectivity capability in the CJADC2 (Combined Joint All Domain Command and Control) battlespace.


• October 2021 – Collins Aerospace was awarded a delivery contract, the U.S. Army's ninth order to facilitate AN / PRC – 162 ground radios HMS (handheld, man-portable, small form-fit) program.


• July 2021 – Aselsan delivered the next-generation electronic countermeasure system to the Turkish Armed Forces, facilitating the neutralization of strategic military communication systems.

REPORT COVERAGE

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The global military communication market report offers qualitative and quantitative insights into the market. It provides a detailed analysis of the market size & growth rate for all possible segments in the market. Along with this, the report provides an elaborative analysis of dynamics, the COVID-19 effect, emerging trends, and the competitive landscape in the market.

Key insights offered in the report are the adoption trends by individual segments, recent industry developments such as mergers & acquisitions, partnerships, consolidated SWOT analysis of key players, Porter's five forces analysis, business strategies of leading market players, micro and macroeconomic indicators, and the leading industry trends.

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