Military Communications & COTS market is projected to grow at a CAGR of 5.5% by 2034: Visiongain

Visiongain has published a new report entitled Military Communications & COTS Market Report 2024-2034: Forecasts by System (Military Satcom Systems, Military Radar Systems, Military Radio Systems, Military intercom Network Systems, Military Communication Management Systems, Others), by Applications (Command and Control, Situational Awareness, Routine Operations, Other), by Type (Air-based Communication, Ship-based Communication, Air-ground Based Communication, Underwater Based Communication, Ground-based Communication), by End-users (Air Forces, Land Forces, Naval Forces) AND Regional and Leading National Market Analysis PLUS Analysis of Leading Companies AND COVID-19 Impact and Recovery Pattern Analysis.

The military communications & COTS market is estimated at US$41.27 billion in 2024 and is projected to grow at a CAGR of 5.5% during the forecast period 2024-2034.

Increasing Complexity of Warfare Driving Industry Growth

The commercial off-the-shelf (COTS) market is expanding significantly because to the complexity of modern warfare and the need for creative solutions by militaries worldwide to meet changing threats and difficulties. The rapid development of technology, which has resulted in the spread of advanced weaponry, cyberthreats, and unconventional warfare strategies, is one of the main causes of this expansion. Military organisations are under pressure to quickly adapt and acquire cutting-edge technologies in order to preserve a competitive edge on the battlefield as opponents build arsenals that are more capable and diverse. This is the beauty of commercial off-the-shelf (COTS) products: they provide easily obtained, off-the-shelf solutions that can be quickly incorporated into current military platforms and systems to improve their capabilities and efficacy.

In addition, the character of contemporary warfare is become more asymmetrical as non-state actors and unconventional enemies employ non-traditional strategies including cyberattacks, IEDs, and hybrid warfare methods. In order to fight these threats and safeguard its personnel and property, armed forces are investing in a wide range of commercial off-the-shelf (COTS) technology, such as cybersecurity solutions, counter-IED gear, and intelligence, surveillance, and reconnaissance (ISR) systems. COTS solutions are especially well-suited to handle asymmetric difficulties because of their agility and flexibility, which allow them to be quickly deployed and modified to meet changing operating requirements in dynamic contexts.

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How has COVID-19 had a Significant Impact on the Military Communications & COTS Market?

The COVID-19 pandemic has significantly transformed the military communications and commercial off-the-shelf (COTS) market, impacting production, procurement, and operational strategies in the defence industry. Disruptions to the global supply chain have led to delays in the delivery of COTS products, affecting military modernization efforts and operational preparedness. The transition to telecommuting in sectors like the defence industry has presented challenges for companies involved in developing and implementing military communication systems.

The pandemic has highlighted the importance of reliable communication systems in military operations, with the growing need for secure and uninterrupted connectivity among geographically dispersed forces. This has led to an increased preference for investing in commercial off-the-shelf (COTS) solutions that improve communication resilience and interoperability across various operational contexts. However, financial constraints and a need to reassess priorities have led governments to re-evaluate their defence spending priorities, potentially causing delays or modifications to military modernization initiatives.

The global health crisis has also raised cybersecurity concerns within military communication strategies. As digital communication channels become more important, there is a growing recognition of cybersecurity weaknesses in military networks. The exploitation of these vulnerabilities by adversaries can disrupt operations and illicitly acquire sensitive information, emphasizing the need for strong cybersecurity measures. Resource allocation is now directed towards commercial off-the-shelf (COTS) solutions that provide sophisticated encryption, authentication, and intrusion detection functionalities to reduce cyber threats and protect vital resources.

How will this Report Benefit you?

Visiongain’s 345-page report provides 135 tables and 179 charts/graphs. Our new study is suitable for anyone requiring commercial, in-depth analyses for the military communications & COTS market, along with detailed segment analysis in the market. Our new study will help you evaluate the overall global and regional market for Military Communications & COTS. Get financial analysis of the overall market and different segments including system, applications, type, end-users and capture higher market share. We believe that there are strong opportunities in this fast-growing military communications & COTS market. See how to use the existing and upcoming opportunities in this market to gain revenue benefits in the near future. Moreover, the report will help you to improve your strategic decision-making, allowing you to frame growth strategies, reinforce the analysis of other market players, and maximise the productivity of the company.

What are the Current Market Drivers?

Rising Adoption of New Technologies in Military Communications

Modern combat operations require integrated tactical communication systems to fend off new threats and safeguard personnel. The rapid advancement of technology and digitalization has led to the development of smart communication solutions, providing clearer and more reliable channels for troops. Digital systems are more susceptible to cyberattacks and require stronger encryption due to their vulnerability. National defence forces are investing in command, control, communications, computers, intelligence, surveillance, and reconnaissance (C4ISR) technologies and command and control (C2).

The British Army commissioned L3Harris to manufacture and supply 1,300 Multi-Mode Radios (MMR) for US$109 million to increase interoperability between armed forces and allies. Machine learning and artificial intelligence (AI) are expected to change military communications in the future, with the US Army spending over $9.8 billion on network modernization and $200 million on AI and machine learning. AI's ability to quickly assess large amounts of data and forecast possibilities in seconds makes it useful for military communications.

AI, intelligent systems, and lethal autonomous weapons are key components of military capabilities, both offensive and defensive. 5G and blockchain's hyper-converged connectivity make military communication secure and reliable. Defence companies are creating dual-use technology and military modernization solutions that benefit both the military and civilian world. Viasat Inc. introduced its Black ICE Software Defined Radio (SDR) family of modem solutions for mission-critical applications, enhancing U.S. Government resources for land, sea, and air communications globally.

Growing Demand for Network-centric Warfare and Focus on Interoperability

The rise of voice and data networks presents a unique opportunity to combine decision makers, sensors, and shooters into a lethal combination of combat troops. The twenty-first century armed forces will be faster, stealthier, and more efficient than ever before, using an enormous amount of firepower against active war fighter forces. Network-centric warfare (NCW) is a key aspect of this process, involving sensors, communications, data processing, and management. Military data networks are crucial for coordinating attacks, electronic and information warfare operations, and integrating logistics for timely supply and medical care.

NCW is heavily reliant on commercial off-the-shelf (COTS) equipment, which allows defence authorities to benefit from economies of scale and research budgets. However, experts warn that using COTS components makes a significant portion of the technology accessible to potential enemies. The U.S. is concerned about information warfare activities in China, but military planners believe it can maintain information supremacy due to better weaponry and superior sensor input.

The increasing importance of NCW systems in contemporary or fourth-generation warfare is expected to drive a strong increase in global spending on NCW components in areas such as computers, command, control, communications, intelligence, surveillance, and reconnaissance systems. The market for NCW systems is expected to benefit from factors such as asymmetric warfare and the need for interoperability and integrated solutions for modern force restructuring.

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Where are the Market Opportunities?

Leveraging Cloud-based Solutions Amid Cyber-attacks to Offer Lucrative Growth Opportunities

Contemporary military operations necessitate the expeditious and continuous exchange of data, which can be readily leveraged by military forces to attain a strategic edge over adversaries. The cloud facilitates the interconnection of sensors, services, and agencies, providing forces with the essential advantage and functioning as a force multiplier. In order to maintain physical surveillance and control, military organisations frequently rely on their proprietary cloud infrastructure. One additional rationale for investing in proprietary infrastructure was the limited geographical distribution of data centres managed by service providers. Service providers have made significant investments in the construction of data centres, thereby facilitating the growth of cloud computing within military organisations. The safeguarding of such infrastructure against cyber-attacks and the establishment of robust military cloud security continue to pose significant challenges, given the escalating prevalence of cyber threats within the sector.

The selection of Leonardo, an Italian state-owned aerospace company, for the study of a space-based cloud project for the Italian military took place on February 21, 2024. The MILSCA project aims to offer the government and armed forces advanced computing capabilities, cloud services, artificial intelligence, and storage capacity in space through a network of satellites.

Use of Unmanned Systems and Autonomous Communications

Autonomous systems were increasingly being favoured by nations worldwide in the context of the Order of Battle. The military's utilisation of autonomous vehicles and weaponry is projected to experience substantial growth, primarily driven by financial support from the Department of Defence (DOD) in recent times. The FY 2024 Pacific Deterrence Initiative (PDI) budget request of $9.1 billion consists of targeted investments that enhance U.S. force posture, infrastructure, presence, and readiness as well as the capacity and capabilities of U.S. Allies and partners, specifically in the Indo-Pacific region. Military Construction, including planning and design for enhancing resilience and communications in operating locations primarily west of the International Date Line, is also part of PDI.

These innovations are beneficial in enabling the United States to align with the military progress of other global powers, such as Russia and China. However, it is important to acknowledge that they carry substantial risks to national security if the supporting communication infrastructure is inadequate. These factors are anticipated to offer lucrative growth opportunities for market players.

Competitive Landscape

The major players operating in the military communications & COTS market are AvTechTyee, BAE Systems Plc, Boeing Defence, Space & Security (BDS), Cassidian DRS (Airbus), Cobham Plc, Elbit Systems Ltd., Elistair, Fortem Technologies, General Dynamics, Gilat Satellite Networks, Honeywell International, Inc., Inmarsat Global Ltd., Japan Radio Co., Kongsberg Defence & Aerospace, Leonardo, Lockheed Martin Corporation, L3Harris Technologies Inc., Northrop Grumman Corporation, Raytheon Technologies Corporation, Rockwell Collins, Inc., and Viasat Inc. These major players operating in this market have adopted various strategies comprising M&A, investment in R&D, collaborations, partnerships, regional business expansion, and new product launch.

Recent Developments

  • On 15th March 2024, Lockheed Martin extended its collaboration agreement with Navantia, Spain’s national defence and shipbuilding company and naval Combat System Integration agent.
  • On 14th March 2024, The U.S. Navy awarded BAE Systems a contract worth approximately $86 million to continue supporting its Mobile Deployable Command, Control, Communications, Computers, Combat Systems, Intelligence, Surveillance, and Reconnaissance (MDC5ISR) programs.
  • On 7th March 2024, Northrop Grumman Corporation partnered with Palantir USG, Inc. on the newly awarded Tactical Intelligence Targeting Access Node (TITAN) ground system for the U.S. Army.
  • On 26th February 2024, Elbit Systems Ltd. was awarded a contract worth approximately $600 million to supply systems to Hanwha Defence Australia for the Australian Land 400 Phase 3 Project. This project aims to deliver advanced protection, fighting capabilities and sensors suite to the Redback Infantry Fighting Vehicles (IFV) for the Australian Army. The contract will be performed over a period of five years
  • On 8th February 2024, Gilat Satellite Networks Ltd. announced that the US Department of Defence awarded a $10 million follow-on order to one of the company’s US-based subsidiaries, DataPath. This additional order is for DKET 3421 terminals, transportable satcom hubs that deliver the operational flexibility, capacity, connectivity, and control required to ensure success anywhere in the world.

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Visiongain is one of the fastest-growing and most innovative independent market intelligence providers around, the company publishes hundreds of market research reports which it adds to its extensive portfolio each year. These reports offer in-depth analysis across 18 industries worldwide. The reports, which cover 10-year forecasts, are hundreds of pages long, with in-depth market analysis and valuable competitive intelligence data. Visiongain works across a range of vertical markets with a lot of synergies. These markets include automotive, aviation, chemicals, cyber, defence, energy, food & drink, materials, packaging, pharmaceutical and utilities sectors. Our customised and syndicated market research reports offer a bespoke piece of market intelligence customised to your very own business needs.


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