Tactical Radio Market Size, Share, Trend, Forecast, Competitive Analysis, and Growth Opportunity: 2024-2030

The tactical radio market is estimated to grow at a CAGR of 6.0% over the next six years to reach US$ 11.2 billion in 2030.

Market Highlights

Tactical radios enable voice and data communication for the armed forces. Over the past few years, tactical communications have gained importance as several militaries across the globe are focused on their respective soldier modernization objectives. In modern warfare, all elements of the armed forces including the ground-based dismounted soldiers, military vehicles, aircraft, helicopters, and naval forces, work in close cooperation with each other. Not only do these forces rely on clear and secure voice communications, but they are also dependent on shared data services, creating a vast information network, where all the elements have access to vital intelligence.

In the modern-day battlefield, effective tactical communication has become one of the most powerful weapons. An wee-organized and coordinated response to a static or mobile threat would involve the role of ground personnel, marine forces, and military aircraft, particularly in 21st-century warfare. This necessitates better communication and support devices for these military assets, which would result in safe and efficient results. As a result, there has been a growing focus on the development of advanced tactical radios.

As a result of the growing terrorism threats and border disputes, several countries are engaged in the strengthening of the defense and offense capabilities of their airborne, ground-based, and naval forces. Concurrently, the defense authorities are also focused on the development and deployment of proper communication networks among different platforms to ensure battlefield supremacy. Thus, the deployment and usage of tactical radios have rapidly been gaining momentum in recent years.

The long-term contracts and agreements between the suppliers and the DoD form the crux of the tactical radio market growth. With the increasing number of global military operations, the quality of the radios has witnessed a colossal improvement over the years. Also, there has been a large procurement of advanced tactical radios from the ground, airborne, and naval forces across the globe, which provide better communication among the different military platforms and result in effective cross-platform interoperability and support. Consequently, the overall tactical radio market is estimated to grow at a decent CAGR of 6.0% during the forecast period to reach a value of US$ 11.2 billion in 2030.

Recent Contracts and Agreements

Moreover, there have been several investments in the defense industry directed at tactical radios in recent years, which would boost the overall market. Some of them are:

In June 2024, Thales awarded the contract to provide over 3,500 SquadNet tactical radios and around 2,500 radios from the SYNAPS product family by the Irish defense forces.

In June 2024, Rohde & Schwarz was awarded the contract to deliver multiple VHF/UHF R&S M3SR Series4400 software-defined radio stations of the SOVERON family for air traffic control by the Polish Armaments Agency.

In Feb 2024, General Dynamics Mission Systems, Inc., was awarded a two-year contract worth US$ 22.2 million by the Air Force Life Cycle Management Center, for the Next Generation Survivor Radio (NGSR) program.

In October 2023, L3Harris Technologies, Inc., was awarded a contract worth more than US$ 247 million by the US Army for the Manpack and Leader radio production under the Handheld, Manpack & Small Form Fit (HMS) program.

In May 2023, L3Harris Technologies, Inc., received an order worth $160 million from the Marine Corps for multi-channel handheld and vehicular radio systems under a 10-year, competitively awarded $750 million IDIQ contract for L3Harris Falcon IV® manpack and handheld radios.

In November 2022, L3Harris Technologies, Inc. was awarded a contract worth US$ 110.5 million (£90 million) by the British MoD, for the supply of 1,300 new multi-mode radios (MMR) by 2023. These radios would be fielded as both man-portable and vehicle-mounted product types.

In October 2022, the company was also awarded a contract worth US$ 235 million with the US Army, for the production of manpack radios such as AN/PRC-163 leader and AN/PRC-158 manpack radios.

During the same period, Thales was awarded a contract worth over US$ 100 million by the US Army, to deliver 4,000 handheld AN/PRC-148D Improved Multiband Inter/Intra Team Radios (IMBITRs).

Similarly, in March 2022, BAE Systems signed a five-year contract worth US$ 176 million with the US Air Force to provide software-defined radios, offering a secure alternative to satellite communications, in support of the Air Force’s Airborne High-Frequency Radio Modernization program.

Recent Market JVs and Acquisitions:

Over the past few years, there have been a fair number of strategic alliances, including M&As, JVs, etc., across the globe. Some of them have been mentioned below:

In January 2023, L3Harris Technologies, Inc. completed the strategic acquisition of the Tactical Data Links (TDL) business unit of Viasat, Inc. which would lead to an increase in the company’s annual sales.

In September 2023, Cyberlux Corporation acquired Datron World Communications to expand its tactical communication product offerings.

In May 2021, CODAN Limited acquired Domo Tactical Communications (DTC), a technology provider for high-bandwidth wireless communications in next-generation software-defined radios. This acquisition would help CODAN Limited to expand its presence inside the USA.

In May 2020, BAE Systems completed the acquisition of the airborne tactical radios business division from Raytheon Technologies Corporation at US$ 275 million. As a result of this acquisition, BAE Systems is poised to become the market leader for airborne tactical radios.

In April 2020, Raytheon Corporation merged with United Technologies Corporation, to form Raytheon Technologies Corporation. Collins Aerospace, a part of the newly formed aerospace and defense giant, is among the major manufacturers and distributors of tactical radios, across the globe.

In June 2019, L3Harris Technologies, Inc. announced an all-stock merger of L3 Technologies and Harris Corporation.

By Platform Type

Ground-based platform is expected to remain dominant whereas airborne platform will be the fastest-growing platform of the market during the forecast period

Based on the platform type, the market is bifurcated into ground-based, naval-based, and airborne platforms.

Moreover, with the increasing terror threats and border disputes, the demand for ground tactical radios is expected to intensify. For example, in the ongoing Russia-Ukraine war, the Russian military was reportedly using the Chinese-manufactured BaoFeng UV-82HP tactical radios for communication with their military personnel, who were stationed in Ukraine.

By Frequency Type

VHF/UHF is likely to remain the dominant and fastest-growing frequency of the market during the forecast period

Based on the frequency type, the market is segmented into HF, VHF/UHF, and VHF/UHF with SATCOM.

They serve as a reliable source of two-way communication. Similarly, HF tactical radios are generally used for long-range communication, but due to the limited availability of frequency and low bandwidth capacity, they are not used as broadly as their VHF/UHF counterparts. Also, the demand for VHF/UHF radios with SATCOM is quite low as compared to that of HF and VHF/UHF radios as they are quite expensive.

By Product Type

Deployed Radio is expected to remain the dominant and fastest-growing product during the forecast period

Based on the product type, the market is classified as fixed tactical radios and deployed tactical radios.

With the increasing demand for effective communication for military personnel (armed forces, air forces, and naval forces) on the move, the deployed tactical radios have gained prominence.

The air-to-ground tactical radios, in particular, have witnessed a large demand in recent years to ensure proper multi-domain interoperability.

Regional Analysis

North America is expected to remain the largest market during the forecast period

In terms of regions, North America is likely to maintain its supremacy in the tactical radio market throughout the forecast period.

This is mostly due to the large investments made by the US DoD in tactical radios with the companies: L3 Harris Technologies, Inc., Collins Aerospace, BAE Systems, and Elbit Systems Ltd. Moreover, the US is the largest military spender globally, accounting for more than 1/3rd of the total share.

In addition, major players in the market have their presence or are headquartered in the US.

Concurrently, Asia-Pacific is expected to witness the fastest growth in the global tactical radio market during the forecast period.

The key factors responsible for the swift growth are increased demand for tactical radios by the military forces and a rise in overall military expenditure (especially in China and India).

Key Players

There is stiff competition in the tactical radio market. The growth of the companies is directly dependent on industry conditions and government support. The companies differentiate their tactical radio offerings on the basis of their quality and their penetration in the target and emerging markets. These companies have an excellent brand identity, exceptional product development capabilities, vast product offerings, a large customer base, and a wide geographical reach. These companies strive for the formation of long-term agreements with different governments and defense authorities, globally.

In recent years, several acquisitions increased the overall consolidation level of the market. As a result, inorganic growth is the key growth strategy of the companies in the market. There have been several mergers and acquisitions (such as the all-stock merger of L3 Technologies and Harris Corporation, the purchase of the tactical radio business of Harris Corporation by Elbit Systems Ltd., and the purchase of the airborne radio business unit of Collins Aerospace by BAE Systems) in the tactical radio market space, which have resulted in some substantial changes in the overall competitive landscape.

The following are the major players in the tactical radio market:

• L3Harris Technologies, Inc.
• Collins Aerospace
• Thales Group
• BAE Systems
• Rohde & Schwarz
• Elbit Systems Ltd.
• General Dynamics Corporation
• Leonardo DRS
• Northrop Grumman
• ASELSAN

Note: The above list does not necessarily include all the top players in the market.

Research Methodology

This strategic assessment report, from this Research, provides a comprehensive analysis that reflects today’s tactical radio market realities and future market possibilities for the forecast period of 2024 to 2030. The report segments and analyzes the market in the most detailed manner in order to provide a panoramic view of the market. The vital data/information provided in the report can play a crucial role for the market participants as well as investors in the identification of the low-hanging fruits available in the market as well as to formulate the growth strategies to expedite their growth process.

This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with this Research’s internal database and statistical tools. More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data. We conducted more than 15 detailed primary interviews with the market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights

Report Features

This report provides market intelligence most comprehensively. The report structure has been kept such that it offers maximum business value. It provides critical insights into market dynamics and will enable strategic decision-making for existing market players as well as those willing to enter the market. The following are the key features of the report:

• Market structure: Overview, industry life cycle analysis, supply chain analysis
• Market environment analysis: Growth drivers and constraints, Porter’s five forces analysis, SWOT analysis
• Market trend and forecast analysis
• Market segment trend and forecast
• Competitive landscape and dynamics: Market share, Product portfolio, New Product Launches, etc.
• COVID-19 impact and its recovery curve
• Attractive market segments and associated growth opportunities
• Emerging trends
• Strategic growth opportunities for existing and new players
• Key success factors

The tactical radio market is segmented into the following categories:

Tactical Radio Market, by Platform Type

• Ground-based Platform (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
• Naval-based Platform (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
• Airborne Platform (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)

Tactical Radio Market, by Frequency Type

• HF (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
• VHF/UHF (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
• VHF/UHF with SATCOM (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)

Tactical Radio Market, by Product Type

• Fixed Radio (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
• Deployed Radio (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
• Vehicle-Mounted Radio (Trend and Forecast)
• Man-Portable Radio (Trend and Forecast)
• Handheld Radio (Trend and Forecast)
• Manpack Radio (Trend and Forecast)

Tactical Radio Market, by Region

• North America (Country Analysis: The USA, Canada, and Mexico)
• Europe (Country Analysis: Germany, France, The UK, Russia, and Rest of Europe)
• Asia-Pacific (Country Analysis: Japan, China, India, South Korea, and Rest of Asia-Pacific)
• Rest of the World (Country Analysis: Brazil, Saudi Arabia, Israel, and Others)