Military Communications Market Quadruples with Extensive M&A Activities | Military Communications Market Study in Detail by Product type and Platform

Market Highlights:

Military communication includes electronic systems, products and devices that are used for the transmission and reception of video, voice and data signals, essential in military operations. The facilitation of communication has become an effective means for defense authorities to enhance the capabilities of their units. Also, the defense industry is embracing the new communication technologies, shifting to a new generation of sophisticated systems that enables faster, secure, less costly and more flexible communications.

Access to broadband and internet services while airborne is one of the crucial elements for effective mobile command and control of the aircraft, beyond ISR. New developments in antenna and satellite technology, along with the nimble and high-capacity global networks, has brought military air force on the forefront of technology and capability.

The antennas that are used for the military aircraft had its origin in the commercial aircraft. For example, in 2013, ViaSat signed a contract with Boeing, to provide broadband services to 15 C-17 Globemaster III, their military transport aircraft. When the air forces fly to places like Afghanistan they often use a C-17 aircraft because they are equipped with the high-speed broadband capability, which offers them intelligence and communications en route. Small military airplanes are equipped with small antennas whereas, large aircraft are provided with low-profile antennas for data extraction, surveillance and reconnaissance purposes.

The internet and broadband technologies allow en route communications, mission planning, and gathering of last-minute intelligence and downloading it to the aircraft en route. The broadband system is protected by various layers of security that prevents unauthorized access or to extract intelligence information.

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Military Communications Market competition by top manufacturers, with production, price, revenue (value) and market share for each manufacturer; the top players including

Northrop Grumman Corporation (U.S.), Lockheed Martin Corporation (U.S.), BAE Systems (U.K.),  Thales (France), Alcatel (France), Raytheon (U.S.), Rockwell Collins (U.S.), General Dynamics (U.S.), Harries corporation (U.S.), and Airbus Group (Netherlands) are some of the leading players operating in this market.

Industry/ Innovation/ Related News:

2015:- Northrop Grumman signed a contract with the US Air Force, worth $145 million, to provide additional Battlefield Airborne Communication Node (BACN) communications capabilities to military aircraft, by 2016.

2013:- EADS Innovation Works had carried out test flights for the wireless sensors on an Airbus aircraft, which provided promising results. Research is currently ongoing for finalizing the appropriate strategies in case of extreme situations, such as flight routes in freezing regions.

Military Communications Market – Competitive Analysis

The global Military Communication Market is highly competitive, and vendors compete on the basis of cost, product quality, reliability, and aftermarket service. In order to survive and succeed in such an intensely competitive environment, it is crucial for vendors to provide cost-effective and high-quality communication systems with latest technology and materials.

Among the companies, BAE Systems and Northrop Grumman are the two leading vendors in the market. Their focus is primarily on the implementation of light-weight materials, more electric technologies, and robust systems.

Mergers and acquisitions, along with increased collaboration with alliance partners around the world, would drive the global military communication market, in the forecast period. In 2015, Data Link Solutions LLC was formed, as a result of the joint venture of BAE Systems and Rockwell Collins to provide support to the military assets globally. The joint venture would enhance the company's position in the market and enable direct access to the local customers.

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Military Communications Market – Regional Analysis

North America leads in global military expenditure and technological advancements, and thus generates a very high demand for military communication systems. Although, Canada makes some investments in the development of such systems, yet the market is primarily dependent on the U.S. The region accounted for the largest share in the global market in 2016, primarily due to the presence of major manufacturers such as Lockheed Martin and Northrop Grumman in this region.

Europe, on the other hand, is currently facing a challenging security situation on many fronts. The economic and political crisis in European countries such as Portugal, Greece, Ireland, Cyprus, and Ukraine and violence in the Middle East and North African countries display multiple challenges for the respective countries. Also, the growing influx of illegal immigrants from countries such as Syria, Iraq, and Libya into the European countries is escalating the risk of internal instability. These challenges fuel the demand for advanced military communication systems in this region. With the deployment of such advanced systems by the European Union (EU) and other government bodies, the European countries such as France, Germany, Russia, Turkey, and the UK would have greater control over these turbulent and unrest situations.

In 2015, Elbit Systems Ltd. signed a contract with a European country, worth $45 million, to provide military communications systems, for two years. Under the contract, the vendor would provide CNR-9000 and HF-6000 mobile communications systems to the defense units, in dismounted and mounted configurations, for both medium and long-range communication. In addition, in 2014, Aselsan, a Turkish military electronics vendor, signed a contract with the Turkish government, worth $153.9 million, to develop and provide integrated communication and information systems for the Turkish Gendarmerie Force, by 2018.

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