Market Insights
“The naval communication market size was US$ 3.47 billion in 2024 and is likely to grow at a decent CAGR of 5.3 % in the long run to reach US$ 5.45 billion in 2034”.
Market Dynamics
Introduction
The naval communication market refers to the industry that develops, manufactures, and supplies advanced communication systems used by naval forces for secure and efficient information exchange. These systems facilitate communication between ships, submarines, aircraft, and shore-based command centers, ensuring seamless coordination in defense and maritime operations. Naval communication technologies include radio systems, satellite communication (SATCOM), underwater acoustic systems, and cyber-secure data networks, all of which are essential for modern naval warfare, surveillance, and strategic decision-making. The market is driven by increasing defense budgets, geopolitical tensions, and technological advancements such as AI, 5G, blockchain, and cybersecurity solutions. As global navies modernize their fleets, the demand for secure, real-time, and resilient naval communication continues to grow, making this a crucial industry in the defense and maritime industries.
Recent Market JVs and Acquisitions:
The naval communication market is witnessing a surge in strategic joint ventures and mergers & acquisitions (M&A) aimed at modernizing naval fleets and enhancing secure communication capabilities. Defense companies and shipbuilders are increasingly forming partnerships to integrate advanced technologies such as AI-driven analytics, cybersecurity, and encrypted communication networks. A key trend is the rising M&A activity in cybersecurity and satellite communication (SATCOM), reflecting the growing need for secure, real-time data transmission in naval operations. Additionally, investments in underwater acoustic communication and autonomous naval systems are expanding, driven by the adoption of unmanned surface and underwater vehicles (USVs & UUVs). Cross-border collaborations among defense firms are also increasing, fostering the development of interoperable communication solutions to strengthen global maritime security. These trends highlight the industry’s focus on technological innovation, enhanced cybersecurity, and strategic defense partnerships to ensure efficient and secure naval operations.
A considerable number of strategic alliances, including M&As, JVs, etc., have been performed over the past few years:
- In March 2025, the United Arab Emirates' EDGE Group partnered with French shipbuilder CMN Naval to establish a joint venture named AD Naval (ADN).
- In February 2025, Airbus Defence and Space, in collaboration with Naval Group, secured a contract worth up to €480 million to construct a communications network for the French air and naval forces.
- In December 2024, French maritime data analytics platform Kpler announced a $241 million deal to acquire ship tracking company Spire Maritime.
Segment Analysis
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Segmentations
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List of Sub-Segments
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Segments with High-Growth Opportunity
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Platform-Type Analysis
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Ships, Submarines, Unmanned Systems
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Ships are expected to dominate the market throughout the forecast period.
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System Technology-Type Analysis
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Naval Satcom Systems, Naval Radio Systems, Naval Security Systems, and Communication Management Systems
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The naval satcom systems segment is expected to both dominate the market and exhibit the highest CAGR during the forecast period.
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Application-Type Analysis
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Command & Control, Situational Awareness, Routine Operations, Intelligence Gathering, Emergency Communications, Navigation & Safety, and Combat Operations
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The Command & Control segment is expected to continue its dominance in the market during the forecast period due to its critical role in facilitating effective coordination, real-time situational awareness, and streamlined decision-making in naval operations.
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Communication-Type Analysis
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Ship-to-Ship Communication, Ship-to-Shore Communication, Underwater Communication, Ship-to-Air Communication and Intra-vessel Communication
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Ship-to-shore communication segment is expected to dominate the market due to its critical role in enabling seamless communication between naval vessels and shore-based command centers, which is essential for coordinating military operations, logistics, and decision-making.
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Regional Analysis
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North America, Europe, Asia-Pacific, and The Rest of the World
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Asia Pacific is expected to grow at the highest CAGR.
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By Platform Type
“The ships segment is expected to dominate the market during the forecast period.”
Based on the platform, the market is segmented into ships, submarines, and unmanned systems. In the naval communication market, the ships segment is expected to dominate in terms of market share and is also expected to experience the highest compound annual growth rate (CAGR) during the forecast period. This dominance is driven by the increasing focus on maritime security, naval modernization programs, and the need for enhanced operational capabilities, all of which amplify the demand for advanced communication solutions aboard naval vessels.
By System Technology Type
“The naval satcom systems segment is expected to exhibit the highest growth rate throughout the forecast period.”
Based on the system technology, the market is segmented into naval satcom systems, naval radio systems, naval security systems, and communication management systems. The naval satcom systems segment is expected to both dominate the market and exhibit the highest CAGR during the forecast period. Naval Satellite Communication (Satcom) systems are essential for secure, long-range, and beyond-line-of-sight communications, enabling real-time data exchange and coordination among naval assets. The increasing demand for maritime surveillance, remote sensing, and intelligence gathering drives the need for enhanced Satcom capabilities. These systems facilitate secure and reliable communication, data exchange, and real-time information sharing for naval forces, making them indispensable for modern naval operations.
By Application Type
“The command and control segment is expected to continue its dominance throughout the forecast period.”
Based on the application, the market is segmented into command & control, situational awareness, routine operations, intelligence gathering, emergency communications, navigation & safety and combat operations. The command and control segment is expected to dominate due to its critical role in facilitating effective coordination, real-time situational awareness, and streamlined decision-making in naval operations.
By Communication Type
“The underwater communication segment is expected to exhibit the highest growth rate throughout the forecast period.”
Based on the communication, the market is segmented into ship-to-ship communication, ship-to-shore communication, underwater communication, ship-to-air communication, and intra-vessel communication. Ship-to-shore communication is expected to dominate the market due to its critical role in enabling seamless communication between naval vessels and shore-based command centers, which is essential for coordinating military operations, logistics, and decision-making. Underwater communication is expected to grow at the highest CAGR. With the increasing use of submarines, underwater drones, and autonomous vehicles in naval operations, the demand for reliable underwater communication technologies is rising.
Regional Analysis
“The North America region is expected to continue its dominance in the market during the forecast period.”
North America is expected to dominate the market, primarily driven by the presence of leading defense contractors like Lockheed Martin, Raytheon Technologies, and General Dynamics in the region. Additionally, the U.S. Navy, one of the largest and most advanced naval forces globally, invests heavily in naval communication systems, contributing significantly to the growth of the market in North America.
Asia Pacific is expected to grow at the highest CAGR. This region is seeing rapid naval modernization, with countries like China, India, and Japan significantly increasing their naval defense budgets and focusing on improving their naval capabilities, including communication systems. The growing maritime security concerns, expansion of naval fleets, and adoption of advanced technologies in the Asia Pacific are driving the high growth potential in this region.
Key Players
The market consists of a considerable number of players, featuring several key players renowned for their expertise and contributions. The following are the key players in the naval communication market.
Here is the list of the Top Players (Based on Dominance)
- Lockheed Martin Corporation
- General Dynamics Corporation
- Raytheon Technologies Corporation
- Northrop Grumman Corporation
- Thales Group
- BAE Systems plc
- Leonardo S.p.A.
- Elbit Systems Ltd.
- L3Harris Technologies, Inc.
- Kongsberg Gruppen ASA
Note: The above list does not necessarily include all the top players in the market.
Are you the leading player in this market? We would love to include your name. Please write to us at [email protected]
Report Features
This report provides market intelligence most comprehensively. The report structure has been kept so that it offers maximum business value. It provides critical insights into market dynamics and will enable strategic decision-making for existing market players as well as those willing to enter the market. The following are the key features of the report:
- Market structure: Overview, industry life cycle analysis, supply chain analysis.
- Market environment analysis: Growth drivers and constraints, Porter’s five forces analysis, SWOT analysis.
- Market trend and forecast analysis.
- Market segment trend and forecast.
- Competitive landscape and dynamics: Market share, Service portfolio, New Product Launches, etc.
- COVID-19 impact and its recovery curve
- Attractive market segments and associated growth opportunities.
- Emerging trends.
- Strategic growth opportunities for the existing and new players.
- Key success factors.
The global naval communication market is segmented into the following categories.
Naval Communication Market, by Platform Type
- Ships (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
- Submarines (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
- Unmanned Systems (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
Naval Communication Market, by System Technology Type
- Naval Satcom Systems (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
- Naval Radio Systems (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
- Naval Security Systems (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
- Communication Management Systems (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
Naval Communication Market, by Application Type
- Command & Control (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
- Situational Awareness (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
- Routine Operations (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
- Intelligence Gathering (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
- Emergency Communications (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
- Navigation & Safety and Combat Operations (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
Naval Communication Market, by Communication Type
- Ship-to-Ship Communication (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
- Ship-to-Shore Communication (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
- Underwater Communication (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
- Ship-to-Air Communication (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
- Intra-vessel Communication (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
Naval Communication Market, by Region
- North America (Country Analysis: The USA, Canada, and Mexico)
- Europe (Country Analysis: Germany, France, The UK, Russia, and the Rest of Europe)
- Asia-Pacific (Country Analysis: Japan, China, India, and Rest of Asia-Pacific)
- Rest of the World (Country Analysis: Brazil, Saudi Arabia, and Others)
Research Methodology
- This strategic assessment report from Stratview Research provides a comprehensive analysis that reflects today’s naval communication market realities and future market possibilities for the forecast period.
- The report segments and analyzes the market in the most detailed manner in order to provide a panoramic view of the market.
- The vital data/information provided in the report can play a crucial role for market participants and investors in identifying the low-hanging fruit available in the market and formulating growth strategies to expedite their growth process.
- This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools.
- More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data.
- We conducted more than 15 detailed primary interviews with market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.
Customization Options
With this detailed report, Stratview Research offers one of the following free customization options to our respected clients:
Company Profiling
- Detailed profiling of additional market players (up to three players)
- SWOT analysis of key players (up to three players)
Competitive Benchmarking
- Benchmarking of key players on the following parameters: Service portfolio, geographical reach, regional presence, and strategic alliances
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