Tactical Data Link Global Market Opportunities and Strategies to 2033

This report describes and explains the tactical data link market and covers 2018-2023, termed the historic period and 2023-2028, 2033F termed the forecast period. The report evaluates the market across each region and for the major economies within each region.

The global tactical data link market reached a value of nearly $4.45 billion in 2023, having grown at a compound annual growth rate (CAGR) of 3.88% since 2018. The market is expected to grow from $4.45 billion in 2023 to $5.99 billion in 2028 at a rate of 6.11%. The market is then expected to grow at a CAGR of 6.60% from 2028 and reach $8.25 billion in 2033.

Growth in the historic period resulted from strong economic growth in emerging markets, the increasing spending on military equipment and the growing demand for enhanced interoperability. Factors that negatively affected growth in the historic period was complexity of integrating tactical data links.

Going forward, the increasing government investments in defense, the rising airspace modernization programs, the increasing geopolitical tensions or conflicts and the growing cyber threats in military operations will drive the growth. Factor that could hinder the growth of the tactical data link market in the future include constraints in available frequency spectrum for military communication.

The tactical data link market is segmented by solution into hardware and software. The hardware market was the largest segment of the tactical data link market segmented by solution, accounting for 64.92% or $2.89 billion of the total in 2023. Going forward, the software segment is expected to be the fastest growing segment in the tactical data link market segmented by solution, at a CAGR of 6.80% during 2023-2028.

The tactical data link market is segmented by application into command and control, intelligence, surveillance and reconnaissance (ISR), electronic warfare, radio communication and situational awareness. The command-and-control market was the largest segment of the tactical data link market segmented by application, accounting for 47.48% or $2.11 billion of the total in 2023. Going forward, the intelligence, surveillance and reconnaissance (ISR) segment is expected to be the fastest growing segment in the tactical data link market segmented by application, at a CAGR of 6.89% during 2023-2028.

The tactical data link market is segmented by data link type into link 11, link 16, link 22 and other data link types. The link 16 market was the largest segment of the tactical data link market segmented by data link type, accounting for 52.40% or $2.33 billion of the total in 2023. Going forward, it is expected to be the fastest growing segment in the tactical data link market segmented by data link type, at a CAGR of 6.46% during 2023-2028.

North America was the largest region in the tactical data link market, accounting for 50.88% or $2.26 billion of the total in 2023. It was followed by Asia Pacific, Western Europe and then the other regions. Going forward, the fastest-growing regions in the tactical data link market will be Western Europe and South America where growth will be at CAGRs of 8.02% and 7.70% respectively. These will be followed by Africa and North America where the markets are expected to grow at CAGRs of 5.95% and 5.88% respectively.

The global tactical data link market is highly concentrated, with large players operating in the market. The top ten competitors in the market made up to 72.30% of the total market in 2022. BAE Systems Plc was the largest competitor with a 17.53% share of the market, followed by Raytheon Technologies Corporation with 14.76%, Leonardo S.p.A with 9.56%, General Dynamics Corporation with 7.46%, Thales SA with 5.95%, Northrop Grumman Corporation with 4.97%, Honeywell International Inc with 4.24%, Viasat Inc with 3.50%, L3Harris Technologies, Inc. with 2.53% and Elbit Systems Ltd with 1.81%.

The top opportunities in the tactical data link market segmented by solution will arise in the hardware segment, which will gain $930.62 million of global annual sales by 2028. The top opportunities in the tactical data link market segmented by data link type will arise in the link 16 segment, which will gain $857.75 million of global annual sales by 2028. The top opportunities in the tactical data link market segmented by application will arise in the command-and-control segment, which will gain $737.8 million of global annual sales by 2028. The tactical data link market size will gain the most in the USA at $741.73 million.

Market-trend-based strategies for the tactical data link market include launch of new tactical data link communication systems to extend the reach of tactical data link technologies, development of combined maritime tactical data link (link 22) to meet evolving defense communication needs, adoption of latest technologies to enhance interoperability, efficiency and user experience, introduction of directional sector antenna to improve antenna designs, focus on advancements to improve tactical data link services and integration of artificial intelligence to elevate the efficiency and capabilities of tactical data link systems.

Player-adopted strategies in the tactical data link market include focus on expanding operational capabilities through new data link developments, enhancing operational capabilities through new product launches, enhancing business operations through strategic partnerships, enhancing business operations through new contracts, enhancing business operations through new product developments and enhancing operational capabilities through new mergers and acquisitions.

To take advantage of the opportunities, the analyst recommends the tactical data link companies to focus on spaceborne tactical data links, focus on advanced tactical data links for market expansion, focus on technological advancements, focus on advanced directional sector antennas for enhanced connectivity, focus on modernizing tactical data link services for enhanced military capabilities, focus on link 16 and link 22 segments for optimal growth, expand in emerging markets, continue to focus on developed markets, provide competitively priced offerings, focus on strategic pricing for tactical data link solutions, participate in trade shows and events, continue to use B2B promotions, focus on strategic promotion to elevate market presence, focus on intelligence, surveillance and reconnaissance (ISR) and command and control segments and focus on targeting military and defense end-users.