Market Trends of Tactical Communication Industry
Land Segment to Dominate Market Share
Land-based communication systems are rapidly evolving, allowing ground forces to leverage advanced wireless technologies and smartphones, whether moving in vehicles or operating as dismounted infantry. This heightened demand for secure, mobile communication has spurred the development of compact solutions, like manpack radios, with a strong emphasis on mobility.
Recognizing the significance of land-based missions, militaries worldwide are enhancing their capabilities, given that these forces typically have the largest personnel numbers and operate the most vehicles. Current 5G networks and the promise of emerging 6G networks are set to transform tactical communication for ground forces, delivering superior data bandwidth, speed, and connectivity.
For example, in March 2024, Ricardo Defense Inc., in partnership with the National Center for Manufacturing Sciences (NCMS), clinched a contract to advance its Dismounted Soldier Communication System (DSCS) in collaboration with the US Army. Under this agreement, Ricardo Defense will outfit three brigades of M88 vehicles with the DSCS solution to gather data and feedback from soldiers. Such feedback will be crucial for evaluating and validating the system's performance and effectiveness from the user's perspective.
Land forces are integrating software-defined radios into infantry soldiers and armored vehicles to modernize, ensuring secure communication. Furthermore, armies are upgrading their infrastructure to SDRs, facilitating more secure communication channels between ground-to-air and ground-to-ground platforms.
Initiatives aimed at bolstering situational awareness are driving the growing demand for land-based tactical communication systems. These include advancements in geospatial intelligence, unmanned ground vehicles (UGVs), land-based command and control (C2) systems, and intelligence, surveillance, and reconnaissance (ISR) systems.
North America to Dominate Market Share During the Forecast Period
In 2023, North America dominated the market, holding the largest share among all regions. The US, recognized as the world's top military spender, saw its military expenditure rise 2.3% in 2023, reaching a staggering USD 916 billion. This figure represented a significant 37% of the global military expenditure, as reported by SIPRI. The US plans to boost its funding for communications, sensors, and electronics by approximately 20% in real terms over the next two years.
According to a 2019 US DoD document, the country's Handheld, Manpack, and Small Form Fit (HMS) program, which focuses on acquiring software-reprogrammable radios for tactical voice and data communications, is poised to drive substantial demand for Leader and Manpack radios during the forecast period.
The US Army's current acquisition targets include 100,000 Leader Radios, 65,622 Manpack Radios, 21,579 Rifleman Radios, and 104,496 Single Channel Data Radios. In September 2022, a delivery order for the Manpack Radio FRP2 was awarded, covering 5,444 units (3,264 from L3Harris and 2,180 from Collins). By December 2022, 893 units had been delivered. Similarly, Leader Radio FRP2 saw an order of 6,968 units in September 2022 (4,188 from THALES and 2,780 from L3Harris), with 255 units delivered by December 2022.
Plans to procure naval vessels in the region are set to drive growth in the tactical communication market. For example, the FY24 version of the National Defense Authorization Act (NDAA) bill, recently passed by the US Senate, outlines the US Navy's procurement of ten battleforce ships. This includes a Columbia-class ballistic-missile submarine (SSBN), two Virginia-class attack submarines (SSN), two Arleigh Burke-class destroyers (DDG), two Constellation-class frigates (FFG), a John Lewis-class fleet oiler (T-AO), a submarine tender (AS), and a San Antonio-class amphibious transport dock (LPD). These vessels will be equipped with various advanced tactical communication systems.
