Signals Intelligence Market

Market Overview

The global signals intelligence market size was valued at USD 16 billion in 2023 and is projected to reach USD 24 billion by 2032, registering a CAGR of 4.7% during the forecast period (2024-2032). The market expansion over the forecast period is driven by the rising instances of terrorism worldwide and the increased use of technology in the defense industry.

Signal intelligence, also known as SIGINT, refers to the collection of information through the interception of signals. These signals include both human-to-human communications, known as COMINT, and electronic signals not directly involved in communication, known as ELINT. Signal intelligence is a component of the broader intelligence collection and management field. Signal intelligence necessitates the utilization of cryptanalysis to decrypt transmissions, as secret and sensitive information is often encrypted.

Additionally, traffic analysis, examining the communication patterns between individuals and the volume of their interactions, is employed to reintegrate information. In addition, signal intelligence (SIGINT) has become essential to command and control systems, public safety and security initiatives, and situational awareness. SIGINT can promptly gather data, including texts, emails, phone calls, and other relevant information, to generate intelligence that can be acted upon. Signal intelligence is the acquisition and examination of electronic signals and communications from a specific target to obtain information.

Moreover, the market growth is being enhanced by the expanding interconnectivity and dependency on information exchange through various communication channels, the rising internet penetration, the expansion of digital devices, and the development of telecommunications infrastructure.

Highlights

• Communications Intelligence (COMINT) generates the highest revenue share based on type.
• Airborne intelligence generates the highest revenue share based on application.
• Fixed generates the highest revenue share based on mobility.

Market Dynamics

Global Signals Intelligence Market Drivers:

Emergence of Geopolitical Uncertainties

The increasing geopolitical tensions, including the Russia-NATO tensions, U.S.-China competition, and the Israel-Palestine war, are driving the desire for more efficient techniques of intercepting communication. Due to the rising frequency of cyberattacks and the need to exchange sensitive information, governments and organizations increasingly depend on interception technologies to monitor conversations and acquire intelligence. 

In November 2023, the Ukrainian business Falcons created a SIGINT system named Eter. This system consists of three direction finding (DFDF) devices that identify communication signals, electronic warfare systems, and uncrewed aerial aircraft (UAVs). The complex can function continuously for 24 hours and identify equipment using frequency-hopping spread-spectrum (FHSS) techniques. Multiple distinct military groups utilize Ether to assist soldiers in operating drones, executing combat missions, and confronting hostile locations. The system is portable and modular, allowing for the replacement of damaged components.

Advancements in Artificial Intelligence 

Numerous organizations are now incorporating AIAI into SIGINT to improve the effectiveness and swiftness of interception due to the progress in artificial intelligence (AIAI). In August 2023, Vectra AI, a creator of cyber risk detection and response solutions using artificial intelligence, announced the release of its unique Vectra AIAI Platform, powered by Attack Signal Intelligence. The Vectra AIAI Platform enables organizations to integrate signals from many sources, such as cloud, identity, SaaS, and network, with existing endpoint detection and response (EDR) signals. This integration helps spot suspicious activity that conventional tools cannot detect. The platform harnesses the capabilities of artificial intelligence to examine the actions of attackers and automatically classify, connect, and rank security incidents. The combined signal drives the XDR system, effectively thwarting advanced adversaries, optimizing security operations, and bolstering cyber resilience.

Global Signals Intelligence Market Restraints:

Government Regulations 

The inability to address different threats and the high cost involved with installing signal intelligence systems are expected to hinder the growth of the global market. Furthermore, limited financial resources and a shortage of skilled personnel pose challenges for the military in implementing contemporary and groundbreaking technology and products. Financial limitations often impede the implementation of modern communication systems. EUEU member states experiencing economic recovery have signaled a willingness to decrease defense expenditures. To reduce costs, nations worldwide are examining and soliciting inventive substitutes for military apparatus.

Consequently, the SIGINT business is shifting from a focus on defense to a focus on commercial applications. An instance of this would be the reduction of defense budgets in significant economies like Saudi Arabia, the United Kingdom, France, and Germany. This reduction would negatively impact the demand for SIGINT equipment in the coming years, creating an obstacle to the expansion of the business.

Global Signals Intelligence Market Opportunity:

Rising Demand for Cyber Intelligence 

SIGINT is of utmost importance in the operations of government and defense authorities. In addition, the aerospace and military industry is actively adopting technological advancements such as the Internet of Things (IoT), artificial intelligence (AIAI), machine learning (ML), and Industry 4.0. These technologies are significantly digitizing the operations of the defense industry.

Furthermore, the increasing automation of this business is anticipated to create new opportunities for the SIGINT industry. Moreover, the US Army intends to seek electronic warfare prototypes and conduct experiments in signals intelligence and cyber platforms. Hence, including a tactical signals intelligence vehicle in the terrestrial layer system (TSIG) is anticipated. The United States Army is utilizing the platform to conduct trials of technologies related to sensing, signals intelligence, electronic warfare, and RF-enabled cyber-attacks.

Moreover, using signals intelligence (SIGINT) in the space or satellite market is essential for safeguarding and securing operations, particularly in distance planning activities and mission organizations. The satellites are engineered to offer crucial evaluations of potential dangers and enhanced tactical support to commanders and troops. The market for signals intelligence (SIGINT) is gaining popularity due to the rising demand for satellite-based signal intelligence (SIGINT). In addition, signal intelligence (SIGINT) satellites support military personnel by supplying real-time data, often daily throughout the year. The diverse range of aspects of signal intelligence (SIGINT) and its various applications could provide new market opportunities.

Regional Analysis

North America Dominates the Global Market

The global signals intelligence market analysis is conducted across North America, Europe, Asia-Pacific, the Middle East and Africa, and Latin America.

North America is the most significant global signals intelligence market shareholder and is estimated to grow at a CAGR of 4.2% over the forecast period.  North America is the region that allocates the most funds to military and defense activities, with the United States being the primary contributor to this expenditure. As to the US Department of Defense, the US Navy has allocated around USD 58.48 billion for military personnel expenditures in the current fiscal year, nearly a quarter of its total budget allocation. During the same fiscal year, the United States Army allocated around USD 69.07 billion towards military personnel expenditures.

Additionally, HackerOne, a cybersecurity startup based in the United States, reported that ethical hackers discovered nearly 460 vulnerabilities in an Air Force platform during the most recent "Hack the Air Force" initiative round. The ethical hackers have identified around 12,000 vulnerabilities due to the Department of Defense's Hack the Pentagon effort. The data highlights a substantial demand for cybersecurity solutions in the aircraft industry, namely for safeguarding infrastructure.

Similarly, the increasing occurrences of terrorist attacks in recent years have forced the administration of the region to adopt strong and effective physical security measures. Therefore, the companies in the country are actively prioritizing their product innovation strategies to provide improved security solutions specifically tailored to the defense industry. Over the past decade, the military sector has seen significant transformation. The rapid progress in information technology, the improvement of existing weapons with surveillance and intelligence capabilities, and the growing amount of classified data collected from different systems have created a need for more advanced and dependable cybersecurity solutions in the military industry.

Moreover, the frequency and complexity of cyberattacks are increasing as military organizations become more reliant on the internet network. The defense sector is significantly emphasizing implementing cybersecurity solutions to mitigate these risks. 

Europe is estimated to grow at a CAGR of 4.9% over the forecast period. The signal intelligence market in Europe holds the second-largest market share, primarily driven by the increasing advancements in information technology, the upgrade of existing weapons with surveillance and intelligence capabilities, and the growing volume of classified data collected from various systems. These factors have created a demand for enhanced and reliable cybersecurity solutions in the defense industry, leading to market growth in this region. In addition, the German signal intelligence market dominated the market share, while the UK signal intelligence market experienced the highest growth rate among all European countries.

The Asia-Pacific region ranks as the second largest in terms of size. The implementation of physical solid security methods by the region's administration is a direct response to the increasing number of terrorist incidents in recent years. Therefore, the companies in the country are diligently concentrating on their product innovation strategies to provide improved security solutions specifically tailored to the defense industry. Additionally, China dominated the signal intelligence market with the largest market share, while the Indian signal intelligence market experienced the highest growth rate in the Asia-Pacific region.

Segmental Analysis

The global signals intelligence market is segmented based on type, application, and mobility. 

The market is segmented based on type into Electronics Intelligence (ELINT), Communication Intelligence, and Foreign Instrumentation Signals Intelligence (FISINT). 

The communication intelligence segment dominated in 2023. In emerging economies, the expansion of some sectors is propelled by their ability to assist armed forces in making immediate decisions and offering a tactical advantage in combat situations. The system retrieves the adversary's data from their communication system, encompassing auditory and written signals. 

The Electronics intelligence (ELINT) segment is the fastest growing because of its extensive use in overseeing operations in disturbed and remote regions. ELINT enables aviators, ground forces, and sailors to stay connected with the control center and receive crucial information. The Electronic Intelligence (ELINT) category now holds the largest market share in the Signal Intelligence (SIGINT) market.

Additionally, electronic Intelligence (ELINT) aids strategists in gaining valuable insights to oversee operations in contested regions and other critical locations effectively. It also provides crucial information to aviators, sailors, and ground forces regarding potential threats they may face. The task involves collecting information about the adversary's electronic defense network, specifically focusing on electronic devices such as radars, surface-to-air missile systems, aircraft, and electronic transmitters.

The market is segmented based on application into Land-Based, Airborne, Naval, Space, and Cyber.

The airborne segment dominated in 2023. Signal intelligence systems facilitate universal situational awareness, effective air-force management, and thorough, collaborative mission planning. These solutions are crucial for making decisions in real time. Nevertheless, the naval sector is experiencing rapid growth primarily because of cutting-edge technology for gathering and analyzing intercepted foreign communication systems and non-communications. The individuals in question detect and process intercepted signals and then analyze them to ascertain target identification and operational patterns. Subsequently, they utilize this data to construct combat, strategic, and tactical intelligence determinations.

The cyber segment is the fastest growing. The swift progress of technology has led to a significant increase in cybercriminal activities worldwide. Consequently, businesses and individuals are now vulnerable to threats like evil hackers, cyber terrorism, targeted infiltration, script-kiddies, and other associated risks. Cyber-solution aids in resolving these challenges by evaluating operational data, which may also help identify the source of the incursion. The industry's growing digitalization is expected to create new avenues for cybercriminal behavior, posing a more significant threat than other sectors. Violating a nation's existing cyber defense strategies can result in substantial long-term economic and resource depletion.

The navy segment is the second largest. SIGINT solutions assist professionals in the Navy. They employ cutting-edge technology to gather and analyze intercepted foreign communication systems and non-communications. Their role involves identifying and processing intercepted signals and then analyzing them to ascertain target identification and operational trends. Subsequently, they utilize this data to construct combat, strategic, and tactical intelligence determinations. These elements contribute to the market's expansion throughout the projected timeframe.  

Based on mobility, the market is bifurcated into Fixed and Portable. 

The fixed segment dominated in 2023. This can be ascribed to the increasing demand for extensive surveillance and non-active information gathering. Portable SIGINT devices emit signals intentionally for interception purposes, while fixed SIGINT devices collect intelligence passively. This approach makes it challenging for adversaries to discover the activities and minimizes the danger of compromising intelligence sources. 

The portable segment is the fastest growing. The rise in demand for flexibility in covert operations and Special Forces assignments is the main factor for this growth. Contemporary battles frequently entail fluid circumstances and moving objectives, necessitating the need for intelligence-gathering tools that can swiftly adjust and mobilize. Portable SIGINT systems provide adaptability and swiftness to address these ever-changing dangers. Efforts are underway to conduct research and development aimed at creating more compact and portable SIGINT devices. 

Additionally, in June 2022, Mercury Systems, Inc., a technology company specializing in military and aerospace, introduced power-efficient and compact tuner modules. These modules are designed for various applications such as direction finding (DFDF), SIGINT (Signals Intelligence), and test and measurement. The device incorporates high-speed broadband radio-frequency processing modules, namely the AM9030 and AM9018.

Recent Developments

• February 2024- The Direct-to-Digital Data Converter, developed by CAES, was designed to fulfill the bandwidth and form factor specifications of radar, electronic warfare (EWEW), signals intelligence (SIGINT), and C4ISR applications. The Intel Agilex 9 FPGA Direct RF-Series is a comprehensive solution that meets the increasing need for adaptability and programmability in radar, communications, EWEW, and SIGINT systems. It integrates an FPGA and an RFRF transceiver into a single package.
• May 2024– Science Applications International Corp. (NASDAQ: SAIC) received a USD 232 million contract from the US Army to create signals intelligence and electronic warfare equipment. SAIC received this contract under the Department of Defense Information Analysis Center's (DoD IAC) multiple-award contract (MAC) program. The US Air Force's 774thEnterprise Sourcing Squadron awards these DoD IAC MAC task orders (TOsTOs) to produce and generate new information to improve the DTIC repository and the R&D and S&T community.