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Tactical Radio Market Maintains Momentum Through 2022

by Stephen Entwistle | Jul 10, 2013

Despite pressures on global defense expenditure, there will be continued investment in communications capabilities with overall expenditure across land, air, naval and space domains approaching $29 billion. The Strategy Analytics Advanced Defense Systems (ADS) service report, “Ground Communications Systems and Components Forecast 2012-2022,” forecasts that the market for land-based tactical radios will grow at a compound annual growth rate (CAGR) of 7.2 percent to reach almost $4.5 billion in 2022.

Overall spending on land-based tactical radio hardware will continue to be led by North America, representing between 37 to 39 percent of the tactical radio market, over the 2012 to 2022 timeframe. Demand from emerging markets in the Central and Latin America (CALA) and Asia-Pacific (APAC) regions will also dictate high grow rates with collective demand accounting for over 46% of the market for tactical radio hardware in 2022.

Handheld radios will represent the bulk of the market, accounting for as much as 94 percent of shipment volumes in 2022 and just over 49 percent of market value. Manpack radio shipments will also show significant growth, while portable radio shipments will remain essentially flat despite some healthy activity in the early half of the forecast.

While there will still be a market for single-band radio capabilities, the multi-band sector will be the fastest growing segment across all form factors. This in turn will drive opportunities for technologies such as gallium nitride (GaN) with the total market for electronic components predicted to grow at a CAGR of almost 14 percent, reaching $721 million by 2022.

The “Ground Communications Systems and Components Forecast 2012-2022” datamodel projects system and associated component demand from ground communications systems, focusing on tactical radios, with market size and shipment segmentation in terms of:

 ·         Regional demand

 ·         Form factors

 ·         Power output

 ·         Frequency

 ·         Electronic components

 ·         Semiconductor technologies

See the ADS service for more details of Strategy Analytics defense research.

Clients of the ADS service can access the full datamodel, Ground Communications Systems and Components Forecast 2012-2022

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Steve Entwistle

 

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