Tactical Communication Systems Market (2026-2036)

The growth of this market is mainly driven by rising global defense expenditure, large-scale programs to digitize land forces, the need for jam-resistant and secure communications under electronic warfare, the proliferation of drones and unmanned systems that require resilient data links, and the shift toward data-centric command and control. In addition, the adoption of software-defined radios, mobile ad hoc networking, and low Earth orbit satellite communications is further supporting the growth of this market.

The Tactical Communication Systems Market, also referred to as the military tactical communications, tactical radio, or battlefield communications market, comprises the equipment, networks, and software that allow military and security forces to exchange voice, data, and video securely in the field. The market includes handheld, manpack, vehicular, airborne, and shipborne tactical radios, most of which are now software-defined; tactical satellite communication (SATCOM) terminals, including on-the-move and man-portable terminals; tactical data links; mobile ad hoc network (MANET) and mesh radios; tactical networking equipment such as routers, gateways, and tactical LTE and 5G nodes; and command, control, and network management software, along with integration, training, and support services. The market ecosystem extends from RF component and cryptographic module suppliers to radio and terminal manufacturers, systems integrators and defense primes, satellite operators, and armed forces and homeland security agencies.

Tactical communication systems are the backbone of modern military operations, linking soldiers, vehicles, aircraft, ships, sensors, and weapons. Rising defense budgets are increasing investment in these systems. According to the Stockholm International Peace Research Institute (SIPRI), global military expenditure reached a record USD 2,887 billion in 2025, an increase of 2.9% in real terms, with spending in Europe rising 14% to USD 864 billion and spending across Asia and Oceania rising 8.1% to USD 681 billion. Armed forces are modernizing legacy analog radios with software-defined radios that can run multiple waveforms, receive software updates, and provide encrypted, jam-resistant communications, and are building networks that connect all units and platforms.

Land force digitization programs are among the largest drivers of the market. Germany is executing the Digitalisierung Landbasierter Operationen (D-LBO) program, costed at around EUR 11.5 billion, to digitize more than 10,000 vehicles and platforms. In June 2026, the Bundestag budget committee approved a contract amendment worth around EUR 2.4 billion for about 32,000 additional Rohde & Schwarz Soveron software-defined radios, with equipping due to finish by the end of 2027, and Germany has also placed orders worth USD 214 million with L3Harris, reported in May 2025. In the U.S., the Army awarded L3Harris nearly USD 300 million in January 2025 for full-rate production of AN/PRC-158 manpack and AN/PRC-163 leader radios under the Handheld, Manpack and Small Form Fit (HMS) program.

The war in Ukraine and other recent conflicts have shown the importance of resilient communications under intense electronic warfare. Jamming, direction finding, and cyberattacks threaten radio links and can expose units to attack, while the widespread use of drones and unmanned systems has increased the volume of data that must be transmitted. Armed forces are responding with frequency-hopping and low-probability-of-detection waveforms, mesh networks, multi-path communications that combine radio, satellite, and cellular links, and the use of low Earth orbit satellite services. Motorola Solutions expects its Silvus Technologies MANET radio business to generate around USD 850 million in revenue in 2026, and Codan reported 22% growth in its communications segment in FY2026, supported by demand for unmanned radio systems.

Command and control is shifting toward data-centric architectures. In September 2026, the U.S. Army awarded Anduril a contract worth up to USD 1.8 billion over five years, with an initial award of USD 162.8 million, to field Next Generation Command and Control (NGC2) software, beginning with I Corps after a prototype built for the 4th Infantry Division. A May 2026 deployment at Fort Carson and Pinon Canyon used more than 160 tactical edge computers, more than 2,500 devices, and 40 applications. These architectures depend on reliable tactical networks to connect sensors, weapons, and applications, increasing demand for networking equipment and software.

At the same time, international demand is expanding. L3Harris reported Communication Systems segment revenue of USD 5.67 billion in 2025, driven mainly by international deliveries of software-defined resilient communications products, and Thales announced in April 2026 that it will set up a SYNAPS radio assembly facility in Malaysia, expected to produce more than 1,000 radios over six years. India placed its first order for fully indigenous software-defined radios with Bharat Electronics Limited in October 2025. Together, these developments are expected to support steady growth of the market throughout the forecast period.

Unmanned systems are adding a new layer of demand. Ukraine produced more than 4 million drones in 2025 and plans to contract 25,000 ground robotic systems in the first half of 2026, and each of these systems requires a data link and must be integrated into tactical networks. Armed forces are therefore expanding their networks from connecting soldiers and vehicles to connecting large numbers of unmanned nodes, which increases the number of radios, the volume of data, and the complexity of network management. The U.S. Drone Dominance Program, which plans to procure around 340,000 small drones over two years, illustrates how quickly the number of networked devices is growing.

Supplier results reflect these trends. L3Harris reported full-year 2025 revenue of USD 21.9 billion and record orders of USD 27.5 billion, and guided to revenue of USD 23.0 billion to USD 23.5 billion in 2026, with its Communication & Spectrum Dominance segment expected to generate around USD 8.0 billion at a segment operating margin of about 25%. Codan reported FY2026 revenue of AUD 875 million, up 30%, with its communications order book rising 50% to AUD 380 million. These indicators point to strong and sustained demand for tactical communication systems.

Homeland security and public safety agencies are also important users of tactical communication technologies, particularly for border security, counter-terrorism, and disaster response, where interoperable, secure, and deployable networks are required. Suppliers such as Motorola Solutions and Codan serve both defense and public safety customers, and technologies developed for military use, such as MANET and deployable broadband, are increasingly adopted by civil agencies.

This indicates that low detectability, resilience, and data capacity are key requirements for tactical networks.

This points to the growing importance of localization and interoperability in Asia-Pacific procurement.