Tactical Communication Market Size, Share, Trends

^{_{Update: 10/22/2024}}

Tactical Communication Market Size and Share

[236 Pages Report] The Tactical Communication Market Size is estimated to be USD 12.5 billion in 2022 and is projected to reach USD 16.0 billion by 2027, at a CAGR of 4.9% from 2022 to 2027. The Tactical Communication Industry Share is driven by factors such as transition of radio communication devices from analog to digital, customized communication on the move solutions for unmanned ground vehicles, etc.

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The COVID-19 Outbreak has caused multiple challenges for defense industry. Though the industry was not severely affected but still has faced many economic downturns. The global manufacturing of tactical communication, components, and assembly lines have been impacted. The military budget allotted to the defense sector has been reduced by several countries due to the COVID-19 pandemic. This puts most research projects on hold. The export of tactical communication systems to several countries in the Middle East, Africa, and Latin America has also been reduced. All these scenarios affect the development of tactical communication.

Tactical Communication Market Dynamics

Drivers: Transition of radio communication devices from analog to digital

Due to advancements in software-defined platforms, land mobile radio products have transitioned from analog to digital. The rising demand for digitalized products and standards, including DMR, TETRA, and P25, owing to the various advantages over analog products, is expected to lead to the growth of the tactical communication market. Digital devices offer robust communication experiences and higher spectrum efficiency that facilitate machine-to-machine (M2M) and high-end IoT applications. Such digital systems can also support both, voice and data services such as M2M applications on highly reliable networks, providing coverage across a large service territory. The growing significance of digital radio systems, coupled with their advantages over analog systems, are expected to lead to market growth during the forecast period.

Restraints: Growing security concerns

The chances of a security breach are high when installing or loading new software in a tactical communication unit through an over-the-air update. There is high possibility of unauthorized and potentially malicious software being installed on the specified platform. The process is similar to the installation of software on laptops or personal computers wherein the prevention of any malicious functions is required.

Concerns related to unlicensed codes restrict market growth owing to the potential for compromising the security of the users’ assets along with threats to the communication capabilities of devices. Such security concerns are expected to lead to barriers to the growth in the sales of communication systems, including advanced tactical software-defined radios. Thus, security concerns act as a key restraining factor for the growth of the tactical communication market.

Opportunities: Demand for next-generation IP radio systems

Companies are focusing on increasing profitability by offering consumers a wide range of advanced IP radio systems due to the increasing demand across the globe. Sales of such products are also expected to provide new or enhanced services for the networking industry while at the same time, reducing transaction costs and further enhancing the end user experience. Next-generation frontline mobile communications also tend to shift away from high power single line contact methods towards mesh systems with low power, which enable higher numbers of operators to be linked together by means of multi-node mesh systems. Such systems have low susceptibility towards failures in single points and are also capable of self-healing, thereby enabling the communication packets to find the best transfer routes based on available system bandwidth and traffic levels. These next-generation IP radio systems are expected to provide opportunities for the usage of advanced tactical communication.

Challenges: High power consumption

Power consumption is considered to be one of the key challenges for the tactical communication industry. Tactical radios generally require high power for a specific function compared to other equipment designed specifically for analog or digital architectural partitioning. High power consumption is majorly challenging for small handheld radios and manpack radio units. The rapidly evolving field programmable gate arrays (FPGAs), digital signal processors (DSPs), and enhancements in parallel computation have helped increase the performance of communication systems.

Various technologies can be utilized in tactical communication radios including application-specific integrated circuits (ASICs), DSPs, general purpose processors (GPPs), and FPGAs. The GPP technology offers higher flexibility with low performance results in high power consumption, creating a challenge for market growth. However, the ASIC technology which delivers the least flexibility and high-performance can be used to minimize power consumption and maximize performance. Thus, reducing the high power consumption of various tactical radios is expected to be a challenge for the industry.

Tactical Communication Market Segments

Ground segment of the Tactical Communication Market by platform, to grow at highest market share during the forecast period

Based on platform, the ground segment is projected to grow from USD 5,131 million in 2022 to USD 6,601 million by 2027, at a CAGR of 5.2% during the forecast period. The growth can be attributed to the increasing demand of UGVs for both military application.

Soldier Radios segment to command the Tactical Communication Market Size by type, during the forecast period

Based on type, the Soldier Radios segment is projected to grow from USD 4,178 million in 2022 to USD 5,412 million by 2027, at a CAGR of 5.3% during the forecast period. The growth can be attributed to the higher adoption of technologically advanced Tactical Communication products owing to the ease of operation and maintenance.

Upgradation segment to dominate the Tactical Communication Market by point of sale, during the forecast period

Based on point of sale, the upgradation segment is projected to grow from USD 7,161 million in 2022 to USD 9,212 million by 2027, at a CAGR of 5.2% during the forecast period.

Tactical Communication Market Regions

The North America market is projected to contribute the largest market share from 2022 to 2027

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Emerging Industry Trends

GNU RADIO

GNU radio is one of the open-source software development frameworks or toolkits available for SDRs. It is one of the powerful frameworks for the streaming, development, and real-time signal processing of Software Defined Radio on general processors. This toolkit provides signal processing blocks for the implementation of software-defined radios. GNU radio can be used with readily available low-cost external RF hardware to create software-defined radios, or without hardware in a simulation-like environment. It is widely used in the research, academia, and government sectors.

Tactical Communication Companies: Top Key Market Players

The Tactical Communication Companies is dominated by globally established players such as:

• Collins Aerospace (US)
• L3harris Technologies (US)
• Northrop Grumman Corporation (US)
• Thales Group (France)
• General Dynamics Corporation (US)

The report covers various industry trends and new technological innovations in the Tactical Communication Market for the period, 2018-2027.

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Scope of the Report

The study categorizes the Tactical communication Market based on platform, application, type, technology, and region

By Platform

• Ground
  • Ground Control Stations/Command Centre
  • Armored vehicles
  • Soldiers
• Airborne
  • Fixed
  • Rotary
• Naval
  • Ships
  • Submarines
• Unmanned Systems
  • Unmanned Ground Vehicles (UGVs)
  • Unmanned Aerial Vehicles (UAVs)
  • Underwater Vehicles

By Application

• Command & Control
• Intelligence, Surveillance & Reconnissance
• Communication
• Combat

By Type

• Soldier Radios
• Manpacks
• Vehicular Intercommunication Radio (VIC)
• High Capacity Data Radio (HCDR)

By Frequency

• Single Frequency
• Multi Frequency

By Technology

• Time division multiplexing (TDM)
• Next generation network (NGN)

By Point of Sale

• New Installations
• Upgradation

By Region

• North America
• Europe
• Asia Pacific
• Rest of the World

Recent Developments

• In May 2022, Thales was one of two (2) vendors awarded an Indefinite Delivery, Indefinite Quantity (IDIQ) contract by the US Army to deliver advanced tactical radios under the US Army’s Combat Net Radio (CNR) modernization program. The competitive 10-year contract for the Combat Net Radio (CNR) program includes a five-year base ordering period and an additional five-year optional ordering period.
• In May 2022, L3Harris Technologies received an IDIQ contract increase for its Falcon IV AN/PRC-167 radio systems from the US Special Operations Command (USSOCOM). USSOCOM increased the initial IDIQ ceiling from USD 255 million to USD 552 million.

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