The global military communications market garnered a value of USD 43.09 billion in 2023. The market is expected to surpass USD 116.96 billion at a CAGR of 10.5% during the forecast period.
The military sector continues to expand propelling the demand for advanced communication systems. As a result, the military communications industry is poised to witness high growth prospects.
The rapid pace of technological innovation in this space is creating new opportunities for companies to develop cutting-edge communication solutions that meet the evolving needs of the military sector. For investors and new entrants in the market, the future of military communications looks extremely promising.
Military Communications Market Drivers
The military industry has two basic needs: maintaining constant communication and safeguarding extremely sensitive information. Thus, in order to improve defense communication security, there is an increase in the procurement of modern communication systems.
Growing geopolitical tensions and emerging security threats necessitate advanced communication solutions. Military forces all over the world are investing in innovative communication technologies to ensure swift and secure information exchange.
Recent advancements in communication technology have significantly enhanced the capabilities of military communication systems. These advancements include satellite communication (SATCOM), safe data encryption, high-frequency radio systems, sophisticated networking protocols, ultra-high frequency communication, etc.
The demand for interoperable wireless networking systems also drives market growth. Military operations often involve collaboration between different branches and allied forces, which necessitates secure communication.
Ongoing breakthroughs in artificial intelligence, software-defined radios, 5G technology, and Internet of Things capabilities are set to transform military communication systems. These advancements promise faster data transfer, increased bandwidth, and enhanced cybersecurity.
Challenges:
Trends:
Investment Opportunities for Businesses
Since cyberattacks are becoming more frequent, companies explore opportunities to create strong cybersecurity solutions specifically for military communication networks.
There is a noticeable increase in the deployment of SATCOM technology to provide advanced communication solutions. This offers companies a profitable way to invest in and provide innovative solutions.
Deployable networking products, which can connect small reconnaissance drones, are becoming increasingly common in military operations. Businesses have the chance to make a difference by creating communication solutions, especially for use with drones.
How Interoperability Issues Create Obstacles for Military Communication Industry?
Communications interoperability and collaboration are key hurdles faced by players in the military communications market. Moreover, connectivity between different defense agencies or departments is a critical issue. Rapidly changing technologies, changing nature of operations, spectrum allocation, and inadequate funding add to the interoperability issues in military communications.
Using similar communication equipment globally may be a solution but is not feasible. The current operations in military communications require to be scalable to meet the increasing demands in communication services. This is achieved through adaptable communication that ensures the changing requirements of varied operating environments are met.
| Data Points | Key Statistics |
|---|---|
| Expected Market Value (2023) | USD 43.09 billion |
| Anticipated Forecast Value (2033) | USD 116.96 billion |
| Projected Growth Rate (2023 to 2033) | 10.5% CAGR |
Exclusive Offer: 30% Off on Regional Reports
Get a free sample report and customize your regions for a 30% discount on your regional report!
As per the FMI analysis, the BPS values interpreted in the military communications market in H1,2022-(O) (Outlook) over H1,2022 (P) are projected to show a growth of +140 units. The reason for the growth of BPS values is the increasing adoption of satellite communication (SATCOM) technology to offer advanced communication solutions.
The SATCOM solutions are installed across a wide range of defense applications comprising vessels, military aircraft, vehicles, and portable terminals. Thus, the benefits offered by advanced military communications are driving the market demand.
The BPS change: H1, 2022 (O) over H1, 2021 (A) shows growth of +160 units. A crucial reason for this growth of BPS values is, the increasing adoption of Ka-band satellites for communication services. It further increases the market development because Ka-band satellites permit armed forces to better lead, plan, and execute complicated operations. Hence, the growing adoption of advanced military communication systems is driving the market growth positively.
The global demand for electric guitars is projected to increase at a CAGR of 10.5% during the forecast period between 2023 and 2033, reaching a total of USD 116.96 billion in 2033, according to a report from Future Market Insights (FMI). From 2018 to 2022, sales witnessed significant growth, registering a CAGR of 6%.
Governments in various countries are increasing their focus on advanced communication technologies to improve operational efficiency for better security and digital communication. The growing adoption of smart devices and sensors in the defense sector is expected to create opportunities for the growth of market players.
The ongoing expansion of the military sector in various countries is spurring demand for effective command devices for disaster relief centers to deliver a timely response. Besides this, the growth of the semiconductor industry has downscaled the costs of chemicals and materials, facilitating the development of radar & sonar, and radio systems.
The growing demand for aerial imaging vehicles upgraded communication systems, and battle space management systems are spurring demand for C4ISR (Control, Command, Communication, Computer, Intelligence, Surveillance, and Reconnaissance) systems.
Another driver of the market's growth is the deployment of Intelligent IoT devices in the military. These tools efficiently enhance military surveillance, reconnaissance, and intelligence operations. During the forecast period, technological developments in low-power computing, radio frequency identification, miniaturisation, and M2M communication are anticipated to continue accelerating the market's growth.
The United States is expected to possess a 50% market share in the military communication market in 2023. As per FMI, the United States is likely to continue dominating North America military communications market, with sales expected to grow at a considerable pace over the assessment period.
The introduction of 5G in the country, coupled with growing government expenditure in the military sector is expected to boost the market during the forecast period.
The 5G technology offers great potential within the military sector, facilitating man-portable radio sets communication in the hard-to-reach environment with enhanced spectrum. This is expected to encourage product development by manufacturers in the United States
The United States is home to one of the world’s biggest military bases, with government expenditure rising by the year. As per the Stockholm International Peace Research Institute, in 2020, the United States military expenditure reached USD 778 billion. These investments are being made to avail technologically advanced military equipment to the personnel.
Such developments are indicative of lucrative prospects in the United States market over the assessment period.
The United Kingdom is expected to possess 45% of the military communications industry in 2023. Increasing focus on improving connectivity among military personnel in the United Kingdomis expected to drive sales in the market over the forecast period. Growing demand for connective technology-based surveillance and reconnaissance equipment is further anticipated to boost the market during the forecast period.
As per statistics, the United Kingdom is the fifth largest spender on the military in the world. Ongoing technological advancements in security and surveillance systems, such as sensor-based gates and automated equipment tracking are anticipated to continue pushing sales in the United Kingdom market during the forecast period.
India is expected to procure a 37% market share for the military communications market in 2023. India is expected to emerge as a lucrative market in Asia Pacific over the forecast period, owing to increasing demand for effective radar & sonar systems for deployment in the air force and land force.
The rapid replacement of conventional military equipment and technologies is spurring demand for technologically advanced surveillance systems. This is expected to drive sales of military communication systems for situational awareness during the forecast period.
The introduction of connective technology and data management technologies in India is anticipated to continue augmenting the growth of the market over the assessment period.
By component, systems are expected to possess 51.5% of the military communication market in 2023. The demand for the military communications systems segment is expected to gain traction at a considerable pace over the forecast period. These services include satellite communication, radar & sonar, and radio systems.
Growing demand for effective communication and security systems in land, air, and naval forces is expected to drive sales in this segment. Technological advancements such as 5G, the integration of IoT and artificial intelligence, and satellite connectivity are likely to continue boosting the growth of the market during the forecast period.
Sensor-based Cameras and Connected Network Interface Augmenting the Growth of Situational Awareness
The situational awareness segment is expected to hold a 42% market share of the military communication market. The sales in the situational awareness segment are expected to gain momentum over the forecast period. Situational awareness is an important aspect of the military during wartime and in general.
The significant deployment of IoT sensors is further aiding the development of bestsituational awareness systems. Deployment of sensor-based cameras connected through a centralized network interface can significantly improve surveillance and communication in land force. Owing to these factors, demand in this segment is expected to remain high over the assessment period.
Based on end users, sales in the land force segment are projected to increase at a considerable pace during the forecast period. The land force segment is expected to hold a 45% share of the military communication market in 2023. Expansion of the military sector in various countries is expected to augment growth in this segment over the assessment period.
Technological advancements in radio frequency identification, satellite communication, and M2M communication are likely to continue boosting sales in this segment, thereby augmenting the growth of the market.
Check Free Sample Report & Save 40%!
Select your niche segments and personalize your insights for smart savings. Cut costs now!
Key start-up players in the military communication market are Anduril, Epirus, Shield AI, Rebellion Defense, Roboteam and Dedrone
The global military communications market is highly competitive with several well-established players and numerous emerging players. The market is characterized by strong competition and rapid technological advancements, which makes it difficult for new entrants to establish themselves. However, there are still investment opportunities for companies looking to enter the market or expand their presence.
Leading players operating in the global military communications market are focusing on research and development to incorporate connective technology such as artificial intelligence (AI) and the Internet of Things (IoT) to diversify their product portfolios.
The military communications market is dominated by a few key players that have established themselves as leaders in the industry. These include:
These companies have a strong presence in the market and offer a wide range of products and services, from satellite communication systems to cybersecurity solutions.
How Businesses Can Expand in the Market?
Recent Developments in the Industry:
The global military communications market could reach almost USD 116.96 billion by 2033.
The United States is projected to remain the leading country with more than 50% market share through 2033.
The demand for military communication systems in the United Kingdom to constitute 45% of Europe market.
The military communications system segment currently holds more than 50% of the global market share.
India currently accounts for 37% of the Asia Pacific military communications market.
| Market Share (2023) | USD 4,699.2 million |
|---|---|
| Market Share (2033) | USD 10,082.5 million |
| Market CAGR (2023 to 2033) | 7.9% |
Explore Telecommunication Insights
View Reports
Military Communications Market
Thank you!
You will receive an email from our Business Development Manager. Please be sure to check your SPAM/JUNK folder too.
