The global military communications market is booming, with growth of USD 8.5 billion by 2028, driven by AI and advanced systems.
The military communications market is booming, with a compound annual growth rate (CAGR) of 4.34% forecast between 2024 and 2028. This growth is driven by the increased adoption of artificial intelligence (AI) and machine learning (ML) in military communication systems. These technologies improve communications security and optimize real-time decision-making on the battlefield. The market, although fragmented, is seeing massive investment in satellite communication systems, advanced data encryption, as well as emerging technologies such as 5G networks and quantum cryptography.
The impact of artificial intelligence on military communications
The introduction of artificial intelligence (AI) and machine learning (ML) into military communication systems is radically transforming this sector. These technologies play a key role in optimizing communications, enhancing security and improving operational efficiency. Indeed, AI enables real-time analysis of vast data sets from a variety of sources, such as satellites, sensors, and radio communications.
For example, AI systems improve situational awareness by providing commanders with critical information on potential threats or enemy movements. ML algorithms are able to detect threats before they materialize, offering a strategic advantage. The US armed forces are already using these systems to anticipate enemy actions by analyzing movement patterns.
AI also contributes to resource allocation, optimizing the use of soldiers, equipment and support services. For example, in a cybersecurity context, AI can identify vulnerabilities and deploy automatic countermeasures, ensuring that sensitive communications remain protected. This technological evolution is largely responsible for the forecast growth of 8.5 billion USD between 2024 and 2028.
Advanced military communication systems: a booming market
Increasing demand for secure military communications systems is another key driver of market growth. Modern armies need to exchange information in real time, while ensuring data confidentiality. As a result, investment in technologies such as satellite communications and high-frequency radio systems is booming.
Satellite communication, in particular, has become a mainstay of military communications systems. It enables real-time data transmission over vast distances, an essential feature for international military operations. For example, NATO’s armed forces rely heavily on satellites to coordinate troop movements and share strategic information.
Emerging technologies such as 5G networks, software-defined radios and quantum cryptography further strengthen these communication systems. Quantum cryptography enables unbreakable encryption, which is crucial for protecting sensitive data from cyberattacks. This technology is already being studied in countries such as China, which is investing heavily in these solutions for its own defense systems.
Communications systems must also be interoperable, i.e. capable of operating between different branches of the armed forces and with allied forces. This interoperability is essential to ensure coordination of efforts on the battlefield and maximize the effectiveness of joint missions.
Technical challenges facing military communications systems
One of the main challenges facing the military communications market is the obsolescence of the radar systems and analog infrastructures still in use in many countries. These systems, often based on technologies such as SAW (Surface Acoustic Wave), are becoming less and less effective in the face of the modern demands of technological warfare.
Air navigation service providers are faced with a dilemma: either to replace these costly systems completely, or to modernize them partially. One compromise solution is to retrofit certain subsystems with modern digital technologies. For example, Rakon offers a digital pulse compression subsystem that improves radar detection without requiring complete system replacement.
However, although this solution is technically viable, its high cost and the complexities of customization are holding back its adoption. Replacing analog systems with more scalable digital solutions is therefore a key issue for armed forces seeking to modernize their communications infrastructures while keeping budgets under control.
What’s more, the introduction of new technologies, such as 5G networks and SATCOM (Satellite Communications), means that challenges have to be met in terms of cybersecurity, system redundancy, and the management of real-time updates. These technical challenges, while important, do not slow down innovation in military communications, where the priority remains the reliability and security of data in wartime.
Opportunities and segmentation of the military communications market
The military communications market is highly segmented into hardware and software components. Military communication devices include handheld radios, digital wireless intercoms, and vehicle-mounted tactical communication systems. The hardware segment is set for significant growth, particularly with increased investment in wearable and mobile technologies.
For example, in October 2022, the UK Space Agency invested USD 18.74 million in satellite communication technologies to boost its military capabilities. These devices play an essential role in the security and reliability of military communications. The British Army, along with other allied forces, is increasingly adopting these technologies to ensure that communications in the field are secure and uninterrupted.
The software segment, meanwhile, is dominated by AI and ML systems that enable advanced data management and proactive monitoring. These software products are designed to process massive volumes of information in real time and provide critical analysis to commanders in the field.
Segmentation by end-user shows that the army remains the main consumer of these technologies, followed by the air force and navy. However, the air force is likely to see an increase in demand for advanced communications systems due to fleet modernization and the integration of drones and other unmanned aircraft into their operational strategies.
War Wings Daily is an independant magazine.