Tactical Communication Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Market Overview

The tactical communication market is estimated to reach USD 17.27 billion by 2030, registering a CAGR of 4.72% during the forecast period (2021 - 2030).

The COVID-19 pandemic and the subsequent travel restrictions and lockdowns have caused disruptions in the supply chains of various players in the market. However, players have adjusted their operations in response to the pandemic in the latter half of the year, which has mitigated the pandemic’s impact on the market.

According to SIPRI, global military spending witnessed an increase of 2.6% in 2020, despite the fall in the global GDP. Nevertheless, defense spending may come down in the near future due to the global economic turndown triggered by the pandemic. This can challenge the growth of the market during the forecast period.

The rapid shift toward asymmetric warfare is forcing the militaries to develop their tactical communication capabilities. To improve combat effectiveness, the global armed forces are focusing on enhancing the network-based communication capabilities of their military platforms across the land, air, and sea domains, which is driving the growth of the market.

Also, the increasing investments toward the integration of advanced battlefield technologies and growth in demand for network-centric warfare and satellite-based communication are anticipated to propel the demand in the tactical communication market during the forecast period.

Scope of the report

Tactical communication is military communication in which information of any kind, especially orders and military intelligence, is conveyed from one command, person, or place to another on a battlefield, particularly during the conduct of combat. The market is segmented by application (airborne, naval, and land) and geography (North America, Europe, Asia-Pacific, Latin America, and Middle-East and Africa). The report offers the market sizes and forecasts in value (USD billion) for all the above segments.

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Key Market Trends

The Land Segment Held the Largest Market Share in 2020

Militaries across the world are strengthening their land-based mission capabilities as land-based forces are the largest in terms of personnel strength and operate the highest number of vehicles. Land-based communication systems are becoming increasingly sophisticated, allowing ground-based forces to leverage advanced wireless technology and smartphones while actively moving in ground vehicles or as dismounted infantry. The growing demand for secure communication for land-based forces on the move has given rise to communication solutions in a smaller form factor that enhances mobility like the manpack radios. For instance, in April 2021, L3Harris Technologies announced that its Falcon III AN/PRC-117G manpack radios were selected by the German Ministry of Defence for the German Army. There is also a growing demand for SATCOM-on-the-move solutions allowing soldiers to maintain communications in any situation while their vehicle is moving. In June 2020, Airbus unveiled a land-based communication solution that offers units in operation a secure satellite-based broadband connection with high availability to exchange videos, voice, and operational flows in fast-moving circumstances. The solution, named OTM-T (On-The-Move Terre), is compact, weighs less than 60 kg, and can easily be integrated into any armored vehicle. The French Army is expected to be the prime customer for the solution. The current 5G and future 6G networks are expected to open new frontiers in tactical communication for military forces on the ground as they equip them with better data bandwidth, resulting in better data speed and improved connectivity and reach. These technologies are further expected to bolster the prospects of the segment during the forecast period.

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