Military Communication Industry Growth, Size, Share and Outlook, 2024–2032
- Rishika Chavan
- 1 day ago
- 3 min read
According to Fortune Business Insights™, the global military communication industry size was valued at USD 33.12 billion in 2023 and is projected to grow from USD 34.74 billion in 2024 to USD 60.40 billion by 2032, exhibiting a CAGR of 7.2% during the forecast period.
Market growth is driven by the rising demand for secure, real-time, and multi-domain communication systems, the integration of wireless tactical networks, and the growing adoption of SATCOM (Satellite Communication) to enhance battlefield situational awareness.
North America Leads with 31.49% Market Share
In 2023, North America accounted for 31.49% of the global share, supported by high defense budgets, advanced technological infrastructure, and the presence of leading contractors such as Lockheed Martin, Northrop Grumman, and L3Harris Technologies.
The U.S. military continues to prioritize SATCOM-based systems, encrypted tactical radios, and secure communication protocols to ensure seamless coordination between commanders, deployed forces, and allied partners. Furthermore, programs like Joint All-Domain Command and Control (JADC2) and Warfighter Information Network-Tactical (WIN-T) are reinforcing wireless, real-time communication capabilities across all domains.
Market Dynamics
Growth Factors
1. Increasing Procurement of Advanced Communication SystemsThe defense sector places a premium on confidential and accurate communication, critical for surveillance, command, and control. Rising geopolitical disputes are driving defense investments in advanced communication systems with enhanced security and privacy features to safeguard sensitive information.
2. Adoption of Wireless Communication TechnologiesEvolving wireless technologies such as SATCOM, VHF/UHF communication, and 5G-enabled networks are replacing traditional wired systems. The U.S. military’s JADC2 program, which unifies sensors across the Army, Navy, Air Force, Marine Corps, and Space Force, highlights the growing adoption of next-generation wireless tactical communication.
3. IoT and Next-Gen TechnologiesThe integration of IoT-based communication, Ka-band technology, and 5G is enhancing interoperability, situational awareness, and network resilience, creating multiple growth opportunities for the market.
Restraining Factor
High Development and Infrastructure CostsDeveloping advanced communication satellites requires investments of around USD 1 billion, while launch costs range from USD 55 million to USD 90 million per satellite. The high cost of infrastructure, installation, and maintenance remains a key challenge for market expansion.
Market Trends
Growing Adoption of SATCOM SystemsAs modern battlefields become increasingly network-centric, military satellite communication systems (Military SATCOM) are emerging as a cornerstone of defense infrastructure. These systems provide secure, global, and high-bandwidth connectivity, ensuring reliable information sharing across air, ground, naval, and space domains.
Naval forces, in particular, rely heavily on SATCOM for network-centric warfare, enabling seamless connectivity between sensors, platforms, and weapons systems.
Information Source:
Segmentation Overview
By Component
Hardware – Dominated the market in 2023 and is expected to grow fastest, driven by rising adoption of tactical radios, handheld and man-portable systems, antennas, and transceivers.
Software – Expected to witness significant growth due to rising adoption of software-defined radios (SDRs).
By Hardware
Antennas – Accounted for the largest share in 2023, fueled by applications in surveillance, SATCOM, electronic warfare, and navigation.
Receivers – Ranked second, supported by next-gen upgrades such as advanced multiband GPS-enabled radios supplied under contracts by L3Harris and others.
By Technology
SATCOM – Dominated the market in 2023 due to its role in ISR and combat operations.
VHF/UHF/L-Band – Accounted for 26.08% share in 2023.
Data Link – Expected to expand significantly, supported by programs like Link 16 for real-time tactical data exchange.
By Platform
Ground – Held the largest share in 2023 due to extensive use of ground antennas and secure communication systems.
Airborne – Expected to record notable growth with next-generation avionics integration in fighter aircraft, including SATCOM systems by Viasat.
Naval and Space – Anticipated to witness steady demand, supported by network-centric warfare applications.
Regional Insights
North America – Largest market in 2023, supported by U.S. defense spending and leading OEMs.
Europe – Fastest-growing region, driven by increased defense modernization amid the Russia-Ukraine conflict.
Asia Pacific – Second-largest market, led by rising military budgets in China and India.
Middle East & Africa – Moderate growth fueled by defense investments in Saudi Arabia, Israel, and the UAE.
Latin America – Gradual growth driven by Brazil and Mexico’s defense upgrades.
Competitive Landscape
The market is highly competitive, with leading players focusing on R&D investments, strategic acquisitions, and long-term defense contracts to expand their portfolios.
Top Companies in the Military Communication Market:
ASELSAN A.S. (Turkiye)
General Dynamics Corporation (U.S.)
L3Harris Technologies, Inc. (U.S.)
Viasat Inc. (U.S.)
Cobham PLC (U.K.)
BAE Systems PLC (U.K.)
Elbit Systems Ltd. (Israel)
Lockheed Martin Corporation (U.S.)
Northrop Grumman Corporation (U.S.)
RTX Corporation (U.S.)
Recent Developments
March 2024 – The U.S. Space Force awarded Boeing a USD 439.6 million contract to develop the WGS-12 military communications satellite, part of the Wideband Global SATCOM constellation.
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