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Rising Military Expenditure Fuels Growth In Tactical Data Link Market: A Leading Driver Behind Tactical data link Market Expansion in 2025
Tactical data link
What Will the Tactical data link Industry Market Size Be by 2025?
The tactical data link market size has grown strongly in recent years. It will grow from $8.2 billion in 2024 to $8.62 billion in 2025 at a compound annual growth rate (CAGR) of 5.2%. The growth in the historic period can be attributed to military modernization and network-centric warfare, enhanced command and control capabilities, interoperability requirements among allied forces, situational awareness and information sharing, defense budget allocations and procurement.
What's the Long-Term Growth Forecast for the Tactical data link Market Size Through 2029?
The tactical data link market size is expected to see strong growth in the next few years. It will grow to $11.57 billion in 2029 at a compound annual growth rate (CAGR) of 7.6%. The growth in the forecast period can be attributed to evolution of multi-domain operations, cybersecurity and electronic warfare concerns, integration with unmanned systems and platforms, global military alliances and cooperation, increasing threats and contingency preparedness. Major trends in the forecast period include multi-domain operations, advanced encryption and security protocols, reduced size, weight, and power (swap), real-time data analytics, satellite communication integration.
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What Are the Key Growth Drivers Fueling the Tactical data link Market Expansion?
The increasing military expenditure is expected to propel the growth of the tactical data link market going forward. Military expenditure is the government's money to provide its military with personnel, weapons, and equipment. Tactical data connections secure military communication protocols that allow platforms and missions to share tactical data. For instance, in April 2024, according to Stockholm International Peace Research Institute a Sweden-based an independent, non-profit international institute, global military expenditure reached $2443 billion in 2023, an increase of 6.8 per cent in real terms from 2022.. Therefore, the increasing military expenditure is driving the growth of the tactical data link market.
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What Are the Key Trends Driving Tactical data link Market Growth?
Technological innovations are a key trend gaining popularity in the tactical data link market. Major companies operating in the tactical data link market are adopting new technologies to sustain their position in the market. For instance, in November 2022, Curtiss-Wright Defense Solutions, a US-based defense and space manufacturing company specializing in tactical data link products and services, introduced Link 22 support for its established range of tactical data link (TDL) solutions to enhance interoperability and capabilities for the US military and coalition partners. Curtiss-Wright Defense Solutions has integrated the new Link 22 capability into its TCG product line, which includes the LinkPRO Tactical Data Link Processing Software, the Ground Tactical Data Link System, and the Battlefield Operations Support System TDL testing and platform integration solution. Link 22 is a secure digital radio system used by NATO to provide beyond-line-of-sight communications in the HF and UHF bands. This integration allows customers to streamline their TDL certification program and avoid the need for maintaining separate systems, as well as the requirement to learn multiple user interfaces.
How Is the Tactical data link Market Segmented?
The tactical data link market covered in this report is segmented -
1) By Solution: Hardware, Software
2) By Data Link Type: Link 11, Link 16, Link 22, Other Data Link Types
3) By Platform: Air, Ground, Sea
4) By Application: Command And Control, Intelligence, Surveillance And Reconnaissance (ISR), Electronic Warfare, Radio Communication, Situational Awareness
Subsegments:
1) By Hardware: Data Link Terminals, Communication Processors, Antennas, Modems
2) By Software: Data Link Management Software, Simulation And Testing Software, Network Management Systems, Security And Encryption Software
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Which Companies Are Leading the Charge in Tactical data link Market Innovation?
Major companies operating in the tactical data link market include General Dynamics Corporation, Northrop Grumman Corporation, BAE Systems plc, Thales Group, Leonardo SpA, RTX Corporation, L3Harris Technologies Inc., Saab AB, Tactical Communications Corporation, Science Applications International Corporation, Aselsan AS, Elbit Systems Deutschland GmbH & Co. KG, ViaSat Inc., Lockheed Martin Corporation, Curtiss-Wright Corporation, Calian Group Ltd., Comtech Telecommunications Corp., Datron World Communications Inc., DRS Technologies Inc., Echodyne Corporation, Inmarsat plc, Kratos Defense & Security Solutions Inc., Speedcast International Limited, Singapore Technologies Engineering Ltd.
Which Regions Are Leading the Global Tactical data link Market in Revenue?
North America was the largest region in the tactical data link market in 2024 and is expected to be the fastest-growing region in the tactical data link market report during the forecast period. The regions covered in the tactical data link market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
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