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.
Growth Factors
1. Increasing Procurement of Advanced Communication Systems
The 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 Technologies
Evolving 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 Technologies
The 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 Costs
Developing 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 Systems