Military Communications Market Size, Share & Trends Analysis Report By Frequency Band (UHF/VHF, L-Band, S-Band, Ka-Band, Others), By Communication Type (Airborne, Air-Ground, Underwater, Ground-based, Ship-based, Others), By System (Military SATCOM systems, Military radio systems, Military security system, Communication management systems) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2022-2030

Market Overview

The global military communications market revenue was valued at USD 37.43 billion in 2023. It is expected to reach USD 52.33 billion in 2032, growing at a CAGR of 3.8% over the forecast period (2024-32). Rapid advancements in communication technologies, including satellite communications (SATCOM), secure networking, software-defined radios (SDR), and tactical communication systems, drive market growth. Innovations enhance data transmission rates, interoperability, cybersecurity, and resilience in military communications networks.

Military communication is the demonstration of command orders and instructions to subordinates and transmitting information from reconnaissance and other units in contact with the enemy. It includes all methods of communicating orders, reports, and other data between the command center and outlying facilities or ships, as well as in the field. The military communications market is driven by several factors, including an unstable geopolitical environment, expanding use of multi-mode tactical radio systems, the increasing use of uncrewed aerial vehicles (UAVs), and the requirement for secure data transmission.

The military has become increasingly reliant on the Ka-band frequency (0-31 GHz uplink, 20.2-21.2 GHz downlink) because of the advantages of better download and upload data rates, superior spectral efficiency, cheaper bandwidth, and reduced spectrum band congestion. One of the fundamental demands of the defense administration is the protection of sensitive information and the preservation of constant communication.

Market Dynamics

Market Drivers

Growing Concerns about Confidential Communication

The military industry has traditionally prioritized secure data transfer and communications, particularly during hostilities or geopolitical crises. Security breaches to the network and data infrastructure used for military communications could endanger public safety. Additionally, the defense industry has always needed reliable communication between its soldiers stationed in far-flung areas. The main requirements of military communications are prompt establishment, effective operations, rapid response, and information confidentiality. The potential for information systems to store evidence and adversarial strategies is enormous.

Connectivity issues between first responders and military personnel threaten the safety of their fellow troops. These systems are highly suited for critical military scenarios since they aid in spontaneous decision-making, process code languages, and real-time communication. Especially between 2015 and 2019, defense spending has seen a dramatic increase in recent years. According to reports, a sizeable portion was dedicated to research and development and partnerships with for-profit businesses that provide current information technology solutions.

Market Restraints

Information Security Issues

The military forces must maintain data security for national security interests due to their heavy reliance on the communication infrastructure and associated technologies for signal processing, monitoring, and intelligence. Military personnel routinely transmit and retain sensitive information about locations, border situations, and strict information on adversaries through these communication infrastructure mediums. The industry is more vulnerable to cyberattacks as a result of digitization. Hackers target the information more than their larger competitors because smaller businesses are less likely to adopt cutting-edge IT security practices. This information is valuable for adversaries or cyber attackers to employ in conflict and war.

The governments are working to maintain freedom of access to prevent collateral harm that can raise issues regarding public safety. For instance, to keep abreast of emerging malware and viruses, the Unmanned Aircraft Systems Operations Centers Support (UASOCS), situated at the Creech Air Force Base in Nevada, U.S., does weekly scans. This mission installed over 100 security fixes to block unneeded accounts and suspect users, primarily focusing on preserving communications networks for remotely routed aircraft in air patrols.

Market Opportunities

Rapid Innovations in the Existing Infrastructure

The main goal of military communications is to ensure that staff and leaders can always maintain control over subordinate powers. The military communications industry is anticipated to undergo a variety of developments due to the armed forces’ dynamic need for secure data transfer. The demand for recently enhanced infrastructure that is more adaptable, affordable, adjustable, and interoperable is another factor influencing the market growth. At first, military communications were carried out using messengers primarily on foot and sound and signs like flames, drums, or landmarks. The early 20th century saw the widespread use of military radios, telephones, and telegraphs for radio, radiotelegraph, and telephone communications. Signals were sent via flags, rockets, and sirens, while postal communication used wired media.

The advancement of technology has made it simpler to identify friendly forces, identify one another, and acquire targets. They are more advanced than their preceding generations, benefiting from increased automation, communication, mobility, and lethality. The modernization of transmission across air, land, and water media has also been exposed to spectrum upgrades, directly enhancing mission success. Depending on the tactical environment, many advanced communication technologies are used to provide military communications reliability.

Regional Analysis

The global military communications market is divided into four regions, namely North America, Europe, Asia-Pacific, and LAMEA. 

North America is the most significant global military communications market shareholder and is expected to grow at a CAGR of 4.40% during the forecast period. Due to a shortage of suitable military satellite systems, the U.S. government has been procuring more and more commercial capacity. New satellite communication platforms, such as the US-based Mobile User Objective System (MUOS) and Advanced Extremely High Frequency (AEHF) systems give tactical warfighters and strategic command working on diverse platforms secure communications capabilities. North America held 40.1% of the global market share in 2020. Rising technological advancements in the military and defense sector across the region are responsible for the sizeable cash generating.

Europe is expected to grow at a CAGR of 4.90% during the forecast period. Europe was expected to hold the second-largest military communication market share in 2021 thanks to businesses like Thales Group and Cobham Plc, which create aerial and naval communication solutions. The ongoing pandemic is expected to cause the U.K., France, and Germany's reductions in defense spending in Europe to expand at a moderate rate.

Asia-Pacific is anticipated to grow significantly over the forecast period. Due to the significant increase in commercial aircraft deliveries in developing nations like India and China, the Asia-Pacific region is predicted to experience robust market growth throughout the forecast period. Adopting network-centric warfare in the region is anticipated to result in long-term market growth. Additionally, the increased military spending by nations like China and India to build cutting-edge military equipment and boost the defense industry is anticipated to fuel market expansion in the Asia Pacific region. For instance, the United States and China accounted for 50% of global military spending, according to the Stockholm International Peace Research Institute (SIPRI).

A moderate growth rate is anticipated for the rest of the world during the projected period. The increasing defense spending in Saudi Arabia, the United Arab Emirates, Israel, Brazil, and other countries is predicted to fuel market expansion.

Segmental Analysis

The global military communications market is segmented by frequency band, communication type, and system.

Based on frequency band, the global market is bifurcated into UHF/VHF, L-Band, Ka-band, and others.

The UHF/VHF segment is the highest contributor to the market and is expected to grow at a CAGR of 3.95% during the forecast period. The sector with the highest penetration, UHF/VHF, is likely to rise over the projected period. It is anticipated that the category will keep monopolizing the market over the forecast period. This may be explained by the capability of conducting cutting-edge data and voice communications for lethal missions inclement weather, operational conditions, and electromagnetic surroundings. Additionally, satellite and phone towers' air control transmissions strongly favor the UHF and VHF bands. However, using these frequencies, transmission with underwater submarines is impossible since they cannot pass through construction materials or bunkers.

Ka-band demonstrated a low level of market penetration and is anticipated to experience the most rapid expansion over the forecast period. The band provides a bandwidth range five times greater than the C-band and quadruples that of the Ku-band. The wavelength of the data delivered across these bands is shorter, making it an ideal candidate for communication via close-range radars. The range is equipped with focused spot beams that enable frequency reuse when a crucial area contains many spot beams, hence increasing the capacity of the satellite systems. These spot beams are a distinctive characteristic of the range. However, because water vapor is incompatible with the resonance of the Ka-Range frequency band, transmission through this channel is impaired in environments with high relative humidity.

Based on communication type, the global market is bifurcated into airborne, air-ground, underwater, ground-based, and others.

The airborne segment owns the highest market share and is expected to grow at a CAGR of 4.20% during the forecast period. It is envisaged that the aerial sector will establish itself as the preeminent communication kind during the projected era. When providing seamless guidance on the battlefield, the members of the armed forces make use of the systems available for aerial, air-ground, undersea, ground-based, and ship-based interactions. In 2020, the sector that generated the most revenue was airborne, which also accounted for 33.2% of the total market share worldwide. One of the key factors supporting income generation is the increased investments made by wealthy nations and developing economies to enhance their air forces.

The undersea segment is anticipated to have significant expansion over the forecast period. Information exchanged between the pilot and ground-based air traffic control is referred to as air-ground. VHF is typically needed for long-distance or marine information transmission in this type of communication. As nations concentrate on creating advanced submarines and other underwater warfare equipment to improve their security over maritime boundaries, the market is anticipated to give significant growth possibilities over the forecast period. The information exchange that takes place underwater using sound waves and microphones, typically between naval troops, is covered in the underwater part. Low-frequency bands are commonly used for underwater communications.

Based on the system, the global market is bifurcated into military SATCOM systems, military radio systems, and others.

The military SATCOM systems segment is the highest contributor to the market and is expected to grow at a CAGR of 4.40% during the forecast period. The core system investigated in this research comprises various subsystems, including military radio systems, military SATCOM systems, military security systems, and communication management systems. In 2020, the military SATCOM systems market was the one that generated the most revenue and accounted for 37.6% of the total market share. When it comes to matters of defense communication, the majority of countries rely on SATCOM. This is owing to its advantages, which include simple mobility, more extensive coverage, greater security, and a more extended range of communication.

Recent Developments

• March 2024 - The Signals Technology Evaluation and Adaptation Group (STEAG) was established by the Indian Army, marking a major step forward in the capability's technological development. The mission of this elite squad is to study and assess the potential military uses of cutting-edge communication technologies such as 6G, AI, ML, and quantum computing.
• May 2024 - During SOF Week, Curtiss-Wright displayed their most recent tactical communications solutions, which included a modular radio center and several ultra-compact tactical communications and processing modules that could be snapped together. According to the company, the PacStar MRC is a modular, rugged solution that combines military and civilian radios into a small chassis. It supports a variety of radio integration use cases, such as legacy Radio over IP (RoIP), integration with mobile ad hoc networks (MANETs), and interoperability with tactical data links (TDLs).