Tactical Data Link Market Size, Share, Growth, and Industry Analysis, Segmentation By Type (Hardware and Software), By Platform (Air-Based, Sea-Based and Land-Based) and Regional Forecast to 2032

Updated On: 06 May 2024

TACTICAL DATA LINK MARKET REPORT OVERVIEW

global tactical data link market size was USD 5592.3 million in 2020 and market is projected to touch USD 8268.2 million by 2027 at CAGR 5.9% during the forecast period.

Military systems employ tactical data links, or TDLs, for the sharing of tactical data, including command and control, situational awareness, and targeting information. These data linkages facilitate coordination and interoperability between different military units, such as ships, planes, ground troops, and other platforms. Because they enable real-time information sharing between various military units, tactical data connections are essential to contemporary combat. Target coordinates, sensor data, mission plans, and other pertinent information that improves the overall efficacy and coordination of military operations can be included in this data.

COVID-19 Impact: Pandemic Declared Lockdowns and Government Restrictions Public Gatherings to Disrupt the Market Growth

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to market’s growth and demand returning to pre-pandemic levels.

LATEST TRENDS

Strategic Initiative and Development By Key Players to Double Up the Market Shares

The primary players in the industry are attempting to increase their market share through a variety of strategies, including expansions, mergers and acquisitions, and product development. For example, in December 2022, Hanwha Systems declared that it will begin working on Link-22, a system of tactical data links that the United States and the United Kingdom and other countries of the North Atlantic Treaty Organization (NATO) are now implementing. The purpose of Link-22 is to enhance the joint operational capacities of Korea and the United States in advance of potential network-centric warfare (NCW.

Furthermore, in January 2023, the well-known leader in the satellite communications industry, Viasat Inc., completed the sale of its Link 16 Tactical Data Links (TDL) division to L3Harris Technologies for an estimated financial consideration of USD 1.96 billion. Net profits to Viasat are expected to be around USD 1.8 billion after estimated taxes, fees, and other costs are taken into consideration. The principal aim of Viasat is to employ the proceeds in order to reduce net debt and improve liquidity. It is anticipated that these activities would create chances for market expansion.

TACTICAL DATA LINK MARKET SEGMENTATION

• By Type

Based on type the global market can be categorized into hardware and software.

Hardware: Platforms that are capable of Link 16 are outfitted with certain transceivers, cryptographic tools, and antennas to facilitate communication via the Link 16 network. Specialized communication devices, such as modems and antennae, built to handle the Link 11 protocol, make up Link 11 hardware. Platforms that support Link 22 are equipped with specialized radios and antennas for communication. Communication equipment that supports the VMF protocol is found on systems that are VMF-capable. Systems that are JREAP-capable have JREAP-compliant communication hardware. Platforms that are SADL-equipped have communication gear that supports the protocol.

Software: The information processing and exchange are governed by protocols and algorithms included in the program. Link 16 data management often involves the use of Tactical Data Link Processor (TDP) software. Data exchange protocols and algorithms are examples of software components. Link 11 communications are managed by software called Tactical Data Link Processor (TDP). Implementing Link 22 protocols and related data processing methods is done using software. Link 22 software standards include the Link 22 Messaging Standard (L22MS). Algorithms for VMF encoding and decoding are software components. VMF is frequently included into communication systems or TDL processors. Encoding, decoding, and processing of messages in accordance with the JREAP protocol are handled by JREAP software. Using the SADL protocol, SADL software controls the sharing of tactical information.

• By Platform

Based on application the global market can be air-based platform, sea-based platform and land-based platform.

Air-Based Platforms: In military aircraft, tactical data links are widely utilized for real-time tactical information exchange, coordination, and communication. Fighter jets, bombers, reconnaissance planes, and airborne early warning and control (AEW&C) aircraft are a few examples.

Sea-Based Platforms: Because they enable information sharing between many ships in a task force or fleet, TDLs are essential to naval operations. Surface combatants, aircraft carriers, amphibious assault ships, and other types of warships are included in this. TDL capabilities are another option for submarines, giving them the ability to communicate with surface vessels or other submarines as needed.

Land-Based Platforms: Tanks, armored personnel carriers, and command and control vehicles are just a few examples of the land-based military vehicles that can include TDLs. TDLs can be used by ground-based communication nodes and command centers to exchange tactical information with aerial and naval forces and coordinate actions.

DRIVING FACTORS

Military Modernization Programs to Level Up the Market Growth

Because they enable immediate data transfer among many platforms, such as aircraft, ground vehicles, and naval vessels, tactical data links, or TDLs, are essential in modern combat. Many countries are now devoting funds to improving their military might, which includes modernizing their communication systems. For example, the Defense Acquisition Program Administration (DAPA) of South Korea decided in August 2023 at the 156th Defense Project Promotion Committee meeting to allot an estimated amount of 595.68 million USD toward a comprehensive upgrade of the operational KSS-II Son Won-il class submarines. In addition, as part of the Maritime Tactical Data Link plan, an extra 320.17 million USD will be invested in the Link-22 improvement.

Rising Geopolitical Tensions to Step up the Market Growth

Risks of terrorism and political violence are expected to increase as a result of growing geopolitical tensions and a deterioration of liberal democratic government. In a similar vein, the effects of protracted hostilities are increasingly recognized as a major cause behind the global escalation of political violence. Sub-Saharan Africa, the Middle East, and North Africa have recently seen the highest rates of political violence and terrorism. Over seventy-five percent of all terrorist-related deaths in 2016 occurred in five countries: Nigeria, Pakistan, Afghanistan, Iraq, and Syria.

With 2,800 more terrorist deaths in Iraq than the previous year, this was the worst increase in terrorism since 2015. As a result, in order to combat terrorism and protect their borders from escalating geopolitical competition, the majority of countries have started to enhance their military capabilities. It is projected that these developments will fuel the need for improved defensive capabilities. In order to guarantee efficient military reaction and coordination during times of war, this entails investments in communication and data-sharing technologies. As a result, the market for tactical data links is growing globally due to escalating geopolitical tensions.

RESTRAINING FACTOR

High Implementation Costs to Challenge and Hold Back the Market Growth

TACTICAL DATA LINK MARKET REGIONAL INSIGHTS

The market is primarily segregated into North America, Latin America, Europe, Asia Pacific, and the Middle East & Africa.

North America Market Growth is Bolstered by the Augmentation of Developing Sophisticated Military Security Systems

North America is anticipated to have the biggest tactical data link market share over the projection period. The main reason for the dominance of the North American market is the US's large defense expenditure, which is more than any other country's. The United States committed 877 billion dollars to the military industry in 2022. This represented around 40% of the 2.2 trillion U.S. dollars in worldwide military spending for that specific year. This amounted to 3.5% of the GDP (gross domestic product) of the United States. Moreover, it is projected by the U.S. Congressional Budget Office that defense spending would reach 1.1 trillion dollars by 2033. The increase in spending on creating advanced military security systems and the region's profusion of hardware and software developers both support the market's growth.In addition, the United States has access to a number of tactical data connection capabilities through its membership in the North Atlantic Treaty Organization (NATO), including links 1, 2, 11, 16, and 22. Furthermore, the U.S. government is increasing its expenditure on tactical data connection systems.

KEY INDUSTRY PLAYERS

Major Industry Players Using Ingenuity and Strategic Alliances towards Market Expansion

Significant market participants have a significant effect on the market and are essential in identifying consumer preferences and market dynamics. These large companies' extensive retail networks and online platforms give customers simple access to a wide variety of apparel options. Due to their strong global presence and well-known brand, which have also strengthened consumer confidence and loyalty, product adoption has risen. Along with continuously funding R&D, these giants of industry also introduce cutting-edge designs, materials, and ingenious features to  tactical data link in response to shifting consumer tastes and expectations. The combined efforts of these large companies have a significant influence on the future course and degree of competition in the market.

List of Market Players Profiled

• Raytheon Technologies (Collins Aerospace) (U.S.)
• Northrop Grumman (U.S.)
• General Dynamics (U.S.)
• BAE Systems (U.K.)
• L3Harris Technologies (U.S.)
• Viasat (U.S.)
• Thales Group (France)
• Saab Group (Sweden)
• Curtiss-Wright (Tactical Communications) (U.S.)
• Leonardo (U.S.)
• Leidos (U.S.)
• Aselsan (Turkey).

INDUSTRIAL DEVELOPMENT

• September 2023: The Defense Solutions Division of Curtiss-Wright was given a contract by the Air National Guard (ANG) to offer training and testing solutions for the Tactical Data Link (TDL) in support of the Department of Defense's Joint All Domain Command and Control (JADC2) program.

REPORT COVERAGE

The report includes a thorough SWOT analysis and offers predictions for market growth in the future. It explores a broad range of market categories and possible applications that might have an impact on the market's trajectory in the upcoming years, as well as key aspects that contribute to the market's growth. The research provides a comprehensive overview of the market's components and identifies possible growth opportunities by taking into account both historical turning points and present trends.