Tactical Communication Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2021-2031

The Global Tactical Communication Market is projected to expand from USD 20.11 Billion in 2025 to USD 28.48 Billion by 2031, registering a CAGR of 5.97%. These systems consist of specialized, military-grade hardware and software engineered to support secure and reliable voice, data, and video transmission in dynamic operational settings. The market's growth is primarily fuelled by the urgent need to modernize aging command and control infrastructures and the rising demand for interoperable network-centric warfare capabilities among allied nations. This strong industrial momentum is highlighted by data from the Aerospace, Security and Defence Industries Association of Europe, which reported a 13.8 percent increase in defense sector turnover to €183.4 billion in 2024, emphasizing the priority placed on asset recapitalization.

Despite these positive growth indicators, the market faces a substantial obstacle regarding the scarcity of available radio frequency spectrum. As modern military strategies increasingly depend on bandwidth-intensive applications, spectrum congestion introduces risks of interference and restricts the rollout of high-throughput communication networks. This scarcity complicates the integration of next-generation tactical systems, creating a significant bottleneck for market expansion despite the robust demand drivers present in the global defense landscape.

Market Drivers

Heightened geopolitical instability and the rise of asymmetric security threats serve as the primary catalysts for acquiring advanced tactical communication assets. Faced with volatile security conditions, defense ministries are prioritizing the replacement of legacy infrastructure with resilient systems designed to operate effectively within contested electromagnetic spectrums. This drive for modernization is reflected in significant budget increases across major alliances to address capability gaps; according to NATO, defense expenditure by European Allies and Canada rose by 17.9 percent in real terms in 2024. Such financial commitments directly support the procurement of high-bandwidth radios and satellite terminals essential for command superiority in multi-domain operations.

Simultaneously, the strategic shift toward network-centric warfare and the integration of 5G capabilities are redefining technical standards, with modern doctrines requiring seamless connectivity for C4ISR operations powered by artificial intelligence and edge computing. To support these technological shifts, governments are allocating substantial funds toward digital dominance; the U.S. Department of Defense requested $14.5 billion specifically for C4I systems in its Fiscal Year 2025 Budget Request. This focus on networked lethality is driving record industry demand, as evidenced by Elbit Systems reporting a backlog of $22.1 billion in 2024, demonstrating the sustained global appetite for advanced defense electronics.

Market Challenges

The limited availability of radio frequency spectrum presents a tangible barrier to the expansion of the global tactical communication market. As military forces increasingly adopt data-heavy applications for situational awareness and real-time coordination, the demand for bandwidth frequently exceeds the available supply. This congestion creates significant interference risks and restricts the operational capacity of modern devices, as high-speed transmission relies on clear spectral pathways that are becoming unavailable in crowded theaters. Consequently, the inability to guarantee interference-free connections limits the deployment of high-throughput networks and delays the integration of newer systems.

This challenge is further intensified by the rapid accumulation of defense assets, which increases the density of the electromagnetic environment. According to the North Atlantic Treaty Organization, defense spending by European Allies and Canada increased by 17.9 percent in 2024, translating into a higher concentration of electronic emitters that further strains limited frequency resources. These physical spectrum limitations compel manufacturers to moderate the release of bandwidth-dependent features, effectively slowing the market's revenue growth as end-users struggle to fully utilize the capacity of modern tactical networks.

Market Trends

The deployment of Low Earth Orbit (LEO) satellite constellations marks a structural shift in battlefield connectivity, moving from vulnerable geostationary assets to proliferated, resilient mesh networks. This architecture reduces signal latency and ensures continuous data transport even if individual nodes are compromised by kinetic or electronic attacks. By leveraging dense constellations, defense agencies are securing communication backbones against sophisticated anti-satellite capabilities, ensuring reliable links for distributed operations. Highlighting this trend, SatNews reported in December 2025 that the Fiscal Year 2026 National Defense Authorization Act allocated $500 million specifically for the Space Development Agency's Tranche 3 Transport Layer to support this expanding orbital infrastructure.

Concurrently, the advancement of Next-Generation Software-Defined Radios (SDR) is prioritizing adaptability, allowing operators to modify waveforms and encryption protocols via software updates rather than hardware replacement. This trend addresses the operational need for rapid field reconfiguration, enabling seamless interoperability between coalition forces and the swift implementation of counter-jamming measures without procuring new devices. Manufacturers are increasingly delivering multi-channel systems that support diverse spectral requirements within a single unit, as evidenced by L3Harris Technologies receiving production orders totaling nearly $300 million in early 2025 for software-defined manpack and handheld radios designed to provide resilient, interoperable connectivity.

Key Players Profiled in the Tactical Communication Market

• Thales SA
• L3Harris Technologies Inc.
• Northrop Grumman Corporation
• RTX Corporation
• General Dynamics Corporation
• BAE Systems PLC
• Ultra Electronics Holdings Ltd.
• Terma A/S
• Rafael Advanced Defense Systems Ltd.
• Lockheed Martin Corporation

Report Scope

In this report, the Global Tactical Communication Market has been segmented into the following categories:

Tactical Communication Market, by Platform:

• Airborne
• Shipborne
• Land

Tactical Communication Market, by Type:

• Soldier Rad
• Manpack Radio
• Vehicular Intercommunication Radio (VIC)
• High Capacity Data Radio (HCDR)
• Others

Tactical Communication Market, by Technology:

• Time-Division Multiplexing (TDM)
• Next Generation Network (NGN)

Tactical Communication Market, by Region:

• North America
• Europe
• Asia-Pacific
• South America
• Middle East & Africa

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Tactical Communication Market.

Available Customization

The analyst offers customization according to your specific needs. The following customization options are available for the report:

• Detailed analysis and profiling of additional market players (up to five).

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