The global defense communication system market is estimated to be around USD 46.7 billion in the current year 2023. The market is predicted to reach a valuation of USD 120.62 billion by 2033, expanding at an impressive CAGR of 9.9% during the forecast period.
Defense communication system sales currently account for almost 25% share of the global aerospace & defense market. Growing reliance on commercial wireless technologies and a surging need for satellite communication equipment are driving the demand for defense communication systems.
Next-generation technologies are becoming prevalent in military and defense communication networks these days. Text and data capability integration in previous voice-only systems has facilitated data distribution, which now includes multimedia versions of combat maps.
| Attributes | Details |
|---|---|
| Global Defense Communication System Market Size (2022) | USD 43.2 billion |
| Global Market Size (2023) | USD 46.7 billion |
| Sales Revenue Forecast (2033) | USD 120.62 billion |
| Global Market Growth Rate (2023 to 2033) | 9.9% CAGR |
| North America Market Share | 36.5% |
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The market is anticipated to face some hurdles by innovation across a wide range of engineering disciplines, along with future waveform upgrades. However, numerous countries have recognized the security risks posed by foreign UUVs, prompting them to establish defense communication systems using low-frequency sonars.
Defense high-frequency communication systems (DHFCS) are the world's most modern tactical communications networks, as well as the most automated system. ADF now has a new level of communication capability thanks to its remarkable range and capacity to automatically identify the best frequency. Also, its ability to connect without operator interaction and great connection speed is expected presently making it the most notable market segment.
The rising adoption of Internet of Things (IoT) technology is significantly improving many aspects of military operations, besides communication. Also, the adoption of IoT in military services is strengthening their intelligence reconnaissance operations surveillance by reducing the need for active communication.
Recent improvements in low-power computing, miniaturization, and radio frequency are also creating high-growth opportunities for defense communication system providers. Going ahead, some leading players are now incorporating digital identification, and machine-to-machine communication techniques to gain a competitive edge over their rivals.
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Based on the defense communication system market survey report numbers, the net worth of the market stood at USD 31.93 billion. Defense communication system sales rose at an average annual growth rate of 7.8% from 2018 to 2022. Continuous advances in defense infrastructure by several economies were the main driving force for this appreciable growth of the market.
Many countries slashed military spending thereby lowering the demand during the years 2020 and 2021 because of the pandemic impact on the economy. However, rising tensions between Russia and Ukraine in 2021 encouraged countries to possess advanced tactical weapons helping manufacturers reclaim their market share.
Because of high spending on national defense, demand for defense communication systems in North America and Europe remains relatively high than in other regions. North America’s defense communication system market accounted for a market share of around 36.5% in the global landscape in 2022. The sales of defense communications systems in the countries of Europe secured 24.8% of the global market share in 2022.
The demand for defense communication systems in countries of Latin America accounted for 4.4% of the global market share in 2022. During the forecast years, sales in the region are expected to be driven by rising border safety issues.
Asia Pacific market is expected to rise notably and recorded 28% of the global market share in 2022. High government investments in military and defense equipment are presenting an attractive potential for defensive communication system providers in the region.
The Middle East and Africa together accounted for only 6.3% of the worldwide market share in 2022. This regional market is likely to grow at a slow pace than other regions; however, improving by the end of the projected period.
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The United States defense sector is known for having a huge network of logistical and remote operations that needs continuous monitoring. As such, demand for defense communication systems with modern technologies is always high in the country.
The United States Army is planning to spend more than USD 3 billion on new handheld man-pack radios by 2024, according to its budget reveals. These radios are only a part of the army's updated battlefield network spending, which it wants to expand every two years going ahead.
| Regional Markets | Global Market Share in Percentage |
|---|---|
| The United States | 20.5% |
| Germany | 7.6% |
| Japan | 5.4% |
| Australia | 3.2% |
Up to half of all defense spending in Europe is spent by 3 countries, namely the United Kingdom, France, and Germany. Germany is the leading region for the production and sales of defense communication systems owing to its strong industrial and manufacturing base. Though the domestic demand for defense equipment in Germany is insignificant the manufacturers have captured a considerable share in the international market.
The requirement for the defense communication system in the United Kingdom is growing incessantly these years intending to strengthen military power. Similarly, France is also anticipated to present some key growth opportunities during the forecast years.
| Regional Markets | CAGR (2023 to 2033) |
|---|---|
| The United Kingdom | 8.7% |
| China | 9.7% |
| India | 12.1% |
China is known to be one of the advanced military powers along with a robust market for all types of advanced defense equipment and communication technologies. Interestingly, FMI finds the marine defense communication systems industry, in particular, is projected to see significant expansion in China over the coming years.
There is a significant need for coastal security systems, and a significant increase in marine commerce operations is supporting China’s market growth. Furthermore, China's marine communication system business is rising as a result of obligatory government laws and expanding marine commercial operations.
Satellite communication is critical to preserving the integrity of international borders with advanced communications and observation systems. Bandwidth demand has grown dramatically as operational needs have increased and technical innovations have evolved at a quick pace.
Expansion of satellite communication infrastructure aids in the development of new terrestrial broadcasting networks, which improves operational coordination. As a result of the expansion of satellite communication infrastructure, demand for the communication system segment is increasing notably.
Radio systems are also helpful in communicating through radio waves. Because sonar systems are effective against mines and aid in anti-submarine warfare, they are widely used in naval combat. To boost their marine capabilities, many countries are upgrading their naval fleets rendering the radio segment at a promising growth rate through 2033.
| Category | Product Type |
|---|---|
| Top Segment | Systems |
| Market Share in Percentage | 58.7% |
| Category | Military Branch |
| Top Segment | Land Force Defense Communication System |
| Market Share in Percentage | 40.3% |
Currently, the use of wireless communication systems in the land forces defense sector is quite high and dominates the overall market. As land forces constitute the first line of defense, so years of efforts to modernize it has supported such growth of this segment. Most of the leading manufacturers operating in the market today focus on this segment due to high sales opportunities.
Ship-to-ship and ship-to-shore communication are both parts of marine communication systems that is gaining traction in recent years. New technologies in the field of marine communication systems are constantly strengthening this segment nowadays. A significant share of the marine communication equipment market is held by local and emerging marine communication providers, resulting in a highly concentrated market.
Air forces also utilize satellite and radio communication channels. However, less dependence on this military branch has kept the demand for defense communication systems limited in this segment.
Companies are focusing on providing advanced communication products by leveraging the latest technologies. They further aim at expanding their product portfolios with innovations in defense management solutions. Continuous refinement in the defense sector is also creating high competition among participants for technological breakthroughs in communication systems, thereby diversifying the market.
Industries producing defense communication system components are continually focusing on providing leading products following up on the revised mandates of military organizations. They are also following the strategy of entering into collaborations and partnerships with other big players to get new market opportunities.
In developed markets, opportunities for defense communication system makers remain strong as they have advanced beyond basic two-way communication to multiple-device communication. Further, the advancement of communication systems with low-latency point-to-point wireless links is expected to bring in several opportunities.
Significant advancement and integration of IoT have resulted in the manufacturing of robust defense communication devices in recent years. During the forecast years, fusing many such cutting-edge technologies can be an appropriate step for existing players to expand their business.
| Attribute | Details |
|---|---|
| Forecast Period | 2023 to 2033 |
| Historical Data Available for | 2018 to 2022 |
| Market Analysis | USD million for Value |
| Key Regions Covered | North America; Latin America; Europe; East Asia; South Asia & Pacific; The Middle East & Africa (MEA) |
| Key Countries Covered | The United States, Canada, Brazil, Mexico, Germany, The United Kingdom, France, Spain, Italy, China, Japan, South Korea, India, Indonesia, Malaysia, Singapore, Australia, New Zealand, Türkiye, South Africa, GCC Countries |
| Key Market Segments Covered | By Product Type, By Application, By Military Branch, By Region |
| Key Companies Profiled | General Dynamics Corporation; Airbus S.A.S.; QinetiQ Group PLC; BAE Systems PLC; Northrop Grumman Corporation; Rockwell Collins Inc.; Lockheed Martin Corporation; Raytheon Company; Thales Group; Harris Corporation |
| Pricing | Available upon Request |
The market value for 2023 is USD 46.7 billion.
Through 2033, market sales will rise at a 9.9% CAGR.
The market rose at a 7.8% CAGR from 2018 to 2022.
United States holds a 20.5% revenue share in the market.
Systems will be the key product type through 2033.
1. Executive Summary 2. Market Overview 3. Market Background 4. Global Market Analysis 2018 to 2022 and Forecast, 2023 to 2033 5. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Product Type 5.1. Systems 5.1.1. Satellite Communication Systems 5.1.2. Radar & Sonar Systems 5.1.3. Radio Systems 5.2. Services 5.2.1. Consulting 5.2.2. Testing & Integration 5.2.3. Support & Maintenance 6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Application 6.1. Intelligence, Surveillance, and Reconnaissance 6.2. Situational Awareness 6.3. Command & Control 7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Military Branch 7.1. Air Force 7.2. Land Force 7.3. Naval Force 8. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region 8.1. North America 8.2. Latin America 8.3. Europe 8.4. South Asia 8.5. East Asia 8.6. Oceania 8.7. MEA (Middle East and Africa) 9. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 10. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 11. Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 12. South Asia Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 13. East Asia Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 14. Oceania Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 15. MEA Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 16. Key Countries Market Analysis 17. Market Structure Analysis 18. Competition Analysis 18.1. General Dynamics Corporation 18.2. Airbus S.A.S. 18.3. QinetiQ Group PLC 18.4. BAE Systems PLC 18.5. Northrop Grumman Corporation 18.6. Rockwell Collins Inc. 18.7. Lockheed Martin Corporation 18.8. Raytheon Company 18.9. Thales Group 18.10. Harris Corporation 19. Assumptions & Acronyms Used 20. Research Methodology
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Defense Communication System Market
