Tactical Data Link Market Research Report Information, By Component (Hardware and Software), Platform (Airborne, Sea-Based and Land), Application (Intelligence, Surveillance Reconnaissance (ISR), Electronic Warfare, Command Control, and Radio Communication) and Region (North America, Europe, Asia-Pacific, Middle East & Africa and Latin America) - Forecast till 2030

Global Tactical Data Link Market Overview 

Tactical Data Link Market Is Projected to Reach USD 923 Billion By 2022-2030 At A CAGR Of 6.21% By 2022-2030.

The market is highly fragmented with the presence of a large number of players catering to the increasing demand. Armies of various countries such as the US are investing in modernizing and upgrading their communication technology to offer enhanced connectivity to the soldiers. In November 2019, the Australian Army signed a contract with Northrop Grumman Corporation to procure tactical data link systems and training. The contract enabled the Australian Army to provide enhanced and secure communication to its soldiers. 

Market Synopsis

The Tactical Data Link Market is expected to register significant growth during the forecast period owing to factors such as the rising security threats across the globe. Furthermore, the increasing demand for improved interoperability among the armed forces, the increasing defense expenditure of developing countries such as China and India, and the development of advanced military communication equipment are also expected to drive the market growth. However, stringent military standards and loss of data across data links might hamper the growth of the market.

Market USP

The growing demand for real-time information on the battlefield is expected to increase the adoption of tactical data link systems.

Tactical Data Link Market Drivers

• Increasing Military Expenditure: Increasing military expenditure of countries such as China and India owing to rising cross-border conflicts and territorial conflicts in the region is expected to increase the demand for the tactical data links market.

• Rising Security Threats Across the Globe

• Increasing Demand for Improved Interoperability among the Armed Forces

• Development of Advanced Military Communications Equipment

Market Restraints

• Stringent Military Standards

• Loss of Data across Data Links

Tactical Data Link Market Segmentation

By Component

• Hardware: The hardware segment dominated the Tactical Data Link Market in 2019. Tactical data link hardware offers benefits such as high data rate, secured communication, dependability, and high performance. Such benefits offered by hardware are expected to drive the market growth.

• Software: The software segment is expected to grow at higher CAGR during the forecast period from 2022 to 2030. Software assists in planning, managing, and troubleshooting tactical data link networks, real-time battlefield information, and fast communication. These features provided by the software are expected to drive market growth. However, issues related to cybersecurity might hamper the growth of the segment.

By Platform

• Airborne: The segment is expected to grow at the highest CAGR during the forecast period from 2020 to 2028, owing to the increasing investments by countries such as China and India in modernizing aircraft fleets and procuring new military aircraft. Furthermore, the growing development of unmanned aerial vehicles (UAVs) is also expected to drive the growth of the segment.

• Sea-Based: The increasing adoption of tactical data link systems by the navies of countries such as Sweden are also expected to drive the growth of the segment.

• Land: The segment dominated the global tactical data link market in 2019. Factors such as the growing demand for secured and enhanced communication on the battlefield is expected to drive the segment growth during the review period.

By Application

• Intelligence, Surveillance & Reconnaissance (ISR): The segment dominated the Tactical Data Link Market in 2019 due to the rising demand for enhanced surveillance for border protection against rising global terrorism.

• Electronic Warfare: The US Navy is adopting tactical data link systems for electronic warfare (EW) jamming of enemy communications and radars and to coordinate weapon firings.

• Command & Control: The segment is expected to grow at the highest CAGR during the review period from 2020 to 2028. The tactical data link enables the transmission of information on a near-real-time or real-time basis. This assists the military forces in effective decision making and planning missions.

• Radio Communication: The growing demand for enhanced and secured communications by land, naval, and airborne forces is expected to drive the growth of the segment.

By Region

• North America: North America dominated the global tactical data link market in 2019 due to the presence of prominent companies such as Northrop Grumman Corporation and Raytheon Company.

• Europe: Increasing adoption of tactical data link systems by the naval forces of countries such as Sweden and the UK is expected to drive the market growth in Europe.

• Asia-Pacific: The Tactical Data Link Market in this region is projected to register the highest CAGR during the forecast period. Increasing military expenditure and rising territorial conflicts in the region are encouraging the army agencies to invest in tactical data link systems.

• Middle East & Africa: Increasing initiatives undertaken by the governments of countries such as Turkey to provide enhanced communication to the armed forces is expected to drive the market growth in the region.

• Latin America: Increasing procurement of advanced military equipment by the Brazilian Army for enhanced border surveillance is expected to drive the market growth in the region.

Tactical Data Link Market Key Players

• Honeywell International, Inc. (US)

• United Technologies Corporation (US)

• Thales Group (France)

• Raytheon Company (US)

• BAE Systems (UK)

• Elbit Systems Ltd. (Israel)

• General Dynamics Corporation (US)

• Northrop Martin Corporation (US)

• L3Harris Technologies, Inc. (US)

• Leonardo SpA (Italy)

Other Prominent Players

• Saab AB (Sweden)

• Curtiss-Wright (US)

• Tactical Communications Inc (US)

• Bharat Electronics Limited (India)

• Viasat, Inc. (US)

• Aselsan AS (Turkey)

• Leidos (US)

• thyssenkrupp AG (Germany)

• TERMA (Denmark)

• IBM (US)

Tactical Data Link Market Industry Developments

• Q2 2024: Collins Aerospace awarded $271 million contract to upgrade U.S. Air Force Tactical Data Link systems Collins Aerospace announced it secured a $271 million contract from the U.S. Air Force to modernize and upgrade tactical data link communications on multiple platforms, enhancing secure, real-time data sharing capabilities across the fleet.
• Q2 2024: L3Harris Technologies launches new Falcon IV® Multi-channel Tactical Data Link Radio L3Harris Technologies unveiled its Falcon IV® multi-channel tactical data link radio, designed to provide secure, high-speed data and voice communications for military operations, supporting interoperability across allied forces.
• Q3 2024: Thales and Leonardo partner to deliver next-generation tactical data link solutions for European defense programs Thales and Leonardo announced a strategic partnership to co-develop and supply advanced tactical data link systems for European defense initiatives, aiming to improve interoperability and secure communications among NATO allies.
• Q3 2024: BAE Systems secures contract to provide tactical data link integration for Royal Navy Type 26 frigates BAE Systems confirmed a new contract to integrate advanced tactical data link capabilities into the Royal Navy's Type 26 frigates, enhancing real-time situational awareness and secure information exchange at sea.
• Q4 2024: Elbit Systems wins $50 million contract to supply tactical data link systems to Asia-Pacific customer Elbit Systems announced a $50 million contract to deliver its latest tactical data link solutions to an undisclosed Asia-Pacific defense customer, supporting network-centric operations and secure battlefield communications.
• Q1 2025: Northrop Grumman launches new software-defined tactical data link gateway Northrop Grumman introduced a next-generation software-defined gateway for tactical data links, enabling seamless integration of legacy and modern communication protocols for multi-domain operations.
• Q1 2025: Saab awarded contract to upgrade Swedish Armed Forces’ tactical data link infrastructure Saab announced it has been selected to modernize the Swedish Armed Forces’ tactical data link infrastructure, providing enhanced interoperability and secure data exchange across air, land, and sea domains.
• Q2 2025: General Dynamics wins U.S. Army contract for next-generation tactical data link terminals General Dynamics was awarded a contract by the U.S. Army to supply next-generation tactical data link terminals, supporting improved command and control capabilities for ground forces.
• Q2 2025: Rohde & Schwarz opens new tactical communications R&D center in Germany Rohde & Schwarz inaugurated a new research and development center focused on tactical data link and secure communications technologies, aiming to accelerate innovation for European defense customers.
• Q2 2025: Lockheed Martin and NATO sign agreement to enhance tactical data link interoperability Lockheed Martin signed a cooperation agreement with NATO to develop and implement enhanced tactical data link interoperability standards, supporting joint operations and secure coalition communications.
• Q3 2025: Israeli Ministry of Defense approves deployment of new tactical data link system for IDF The Israeli Ministry of Defense announced the approval and initial deployment of a new tactical data link system for the Israel Defense Forces, aimed at improving real-time battlefield connectivity and operational effectiveness.
• Q3 2025: Airbus Defence and Space launches secure tactical data link solution for unmanned aerial systems Airbus Defence and Space introduced a new secure tactical data link product tailored for unmanned aerial systems, enabling encrypted, high-bandwidth communications for intelligence, surveillance, and reconnaissance missions.

Company Developments

During the Eurosatory 2022 defense exhibition held in June 2022, Elbit Systems Ltd., an Israeli defense electronics company, introduced its latest tactical data link solution, Falcon-4G. This innovation addresses the increasing need for secure and dependable data exchange capabilities in battlefield scenarios.

In July 2023, Leonardo S.p.A., an Italian multinational corporation, reported the successful conclusion of flight trials for its SAGE tactical data link system. Engineered to elevate situational awareness and promote interoperability among coalition forces, this system marks a significant advancement in military technology.