Naval Communication Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Application (Command and Control, Intelligence Surveillance and Reconnaissance (ISR), Routine Operations and Others), By Platform (Ships, Submarines, Unmanned System), By System Technology (Naval Satcom System, Naval Radio Systems, Naval Security Systems and Communication Management Systems), By Region & Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 5.68 Billion
CAGR (2026-2031)	6.51%
Fastest Growing Segment	Intelligence Surveillance and Reconnaissance (ISR)
Largest Market	North America
Market Size (2031)	USD 8.29 Billion

Market Overview

The Global Naval Communication Market will grow from USD 5.68 Billion in 2025 to USD 8.29 Billion by 2031 at a 6.51% CAGR. The Global Naval Communication Market is defined as the sector responsible for providing secure transmission technologies, including satellite links, tactical radios, and underwater acoustic networks, which enable command and control across maritime forces. The primary drivers supporting market growth include the escalating demand for enhanced situational awareness, the integration of high-bandwidth unmanned systems, and the strategic necessity for interoperability among allied fleets. These structural imperatives are reinforced by increased capital allocation toward updating legacy C4ISR capabilities. According to the AeroSpace and Defence Industries Association of Europe, defense industry turnover rose by 13.8% in 2024, reflecting the critical prioritization of defense readiness and modernization programs that underpins this sector's expansion.

Despite this positive trajectory, the market encounters a significant challenge in the form of electromagnetic spectrum congestion. As naval operations become increasingly data-centric, the simultaneous operation of multiple communication and radar systems within limited frequency bands creates severe interference issues. This technical bottleneck, compounded by the rigorous requirement for cybersecurity within contested environments, complicates the seamless integration of new technologies and may impede the pace at which advanced communication architectures are operationalized globally.

Key Market Drivers

Rising Global Defense Budgets and Naval Expenditure fundamentally underpin the market's expansion as nations allocate substantial capital to fortify maritime command capabilities against evolving geopolitical threats. This fiscal growth allows naval forces to procure advanced satellite links and tactical radios essential for maintaining information superiority in contested waters. High-level spending ensures that funding is available not just for hull construction but for the digital backbones that connect these assets. According to the Stockholm International Peace Research Institute, April 2025, global military expenditure rose to $2,718 billion in 2024, reflecting a significant 9.4% year-on-year increase. Such elevated spending creates a robust procurement environment for communication vendors. Furthermore, according to the North Atlantic Treaty Organization, April 2025, defense investments by European Allies and Canada totaled $486 billion in 2024, demonstrating a 19.4% real-term growth that directly supports allied interoperability initiatives.

Modernization of Aging Naval Fleets and Communication Infrastructure serves as a parallel driver, compelling navies to replace obsolete analog systems with resilient, high-bandwidth digital architectures. As maritime operations increasingly rely on real-time data exchange for situational awareness, the retrofit of legacy vessels with modern C4ISR suites becomes a strategic priority to ensure fleet readiness and effective coordination. This trend is exemplified by major fleet upgrades; according to Thales, February 2025, the company was awarded a £250 million contract to enhance and maintain the communication systems across the Royal Navy’s surface ships and submarines over the next ten years. This modernization effort underscores the critical industry focus on bridging the technological gap between aging platforms and next-generation network-centric warfare requirements.

Download Free Sample Report

Key Market Challenges

Electromagnetic spectrum congestion constitutes a formidable barrier to the expansion of the Global Naval Communication Market. As naval forces transition toward data-centric operations, the density of active devices transmitting within finite frequency bands has reached critical levels. Modern fleets simultaneously employ high-definition surveillance radars, unmanned aerial systems, and satellite uplinks, all of which compete for available bandwidth. This saturation results in unintentional signal degradation and cross-system interference, which severely limits the operational reliability of newly acquired communication architectures and complicates the deployment of high-bandwidth capabilities.

The impact of this congestion directly impedes market momentum by forcing defense procurers to prioritize interference mitigation over capacity expansion. According to the International Telecommunication Union, in 2024, the organization's Radiocommunication Sector formally addressed over 1,100 reports of harmful interference globally, illustrating the escalating scale of this operational friction. Such an environment creates a technical bottleneck where standard communication upgrades cannot be seamlessly integrated without risking command and control stability. Consequently, the market experiences a deceleration as stakeholders are compelled to delay procurement cycles to develop complex, custom spectrum-management protocols rather than rapidly fielding off-the-shelf communication solutions.

Key Market Trends

Development of Communications for Unmanned Surface and Underwater Vehicles is emerging as a critical market trajectory as navies operationalize autonomous platforms to extend their sensor horizons. Unlike traditional fleet assets, uncrewed systems require specialized, resilient data links capable of maintaining command and control in high-latency or contested environments without risking personnel. This requirement is driving rapid procurement of bespoke communication nodes that allow autonomous vessels to function as forward-deployed intelligence relays. Highlighting this targeted expansion, according to WorkBoat, December 2025, in the 'Saronic awarded $392 million Navy contract' article, the U.S. Navy finalized a $392 million production contract with Saronic for Corsair autonomous surface vessels, which are engineered with independent communication suites to support distributed maritime operations and enhance fleet-wide situational awareness.

Transition to Software-Defined Radio (SDR) Architectures is simultaneously revolutionizing naval interoperability by replacing static hardware capabilities with flexible, programmable waveforms. This technological shift allows maritime forces to instantly reconfigure network protocols to counter emerging electronic warfare threats and ensure seamless communication with allied units, a capability that legacy analog systems cannot provide. The industry is witnessing a definitive move toward these adaptable architectures to future-proof fleet connectivity. Exemplifying this trend, according to Naval Today, December 2024, in the 'Data Link Solutions nets US Navy MIDS JTRS contract worth up to $1 billion' report, the U.S. Navy awarded a $1 billion contract to Data Link Solutions to deliver and modernize MIDS JTRS terminals, which utilize software-defined technology to guarantee secure, jam-resistant Link 16 connectivity across air and maritime domains.

Segmental Insights

Intelligence Surveillance and Reconnaissance represents the fastest growing segment in the Global Naval Communication Market due to the heightened requirement for maritime situational awareness. Defense ministries and naval commands prioritize these systems to facilitate real-time data transmission for effective threat assessment and border security. The expansion is further propelled by fleet modernization initiatives that demand reliable connectivity for unmanned systems and patrol vessels. Consequently, the ability to gather and disseminate critical information securely remains a primary driver for investment in this sector, supporting complex operations across international waters.

Regional Insights

North America maintains a leading position in the global naval communication market, driven largely by substantial defense budget allocations within the United States. The region benefits from the strong presence of established defense contractors and continuous modernization initiatives led by the United States Department of Defense. These initiatives prioritize the replacement of legacy systems with secure, high-bandwidth satellite and underwater communication networks to ensure operational efficiency. Consequently, the sustained focus on enhancing maritime situational awareness and fleet interoperability solidifies North America’s status as the primary contributor to global market expansion.

Recent Developments

• In February 2025, Thales UK was awarded a major contract by Defence Equipment & Support to maintain the Royal Navy's fleet communications for the next decade. Valued at approximately £250 million, the Maritime Communications Capability Support project is designed to sustain internal and external communication systems across warships and submarines. The agreement focuses on delivering global, round-the-clock support operations while managing inventory and equipment obsolescence. This long-term initiative aims to ensure resilient operational capability for the fleet and is expected to generate significant lifecycle cost savings through enhanced collaboration.
• In November 2024, L3Harris Technologies received an indefinite delivery, indefinite quantity award from the U.S. Navy with a potential value of $999 million. Under this five-year contract, the company was tasked with supplying the Multifunctional Information Distribution System Joint Tactical Radio System Terminals to U.S. and coalition forces. These software-defined radio systems are engineered to provide resilient, interoperable communications, situational awareness, and command and control capabilities across maritime, air, and ground platforms. The deal reinforces the company's role in delivering critical data link technology to allied defense networks.
• In November 2024, Rohde & Schwarz was selected by the Dutch Materiel and IT Command to supply a turnkey integrated communications system for the Anti-Submarine Warfare frigates of the Royal Netherlands Navy and the Belgian Navy. The company will deliver its NAVICS solution, which facilitates secure internal and external communications across multiple security domains. The system incorporates advanced cybersecurity capabilities to ensure the safe exchange of sensitive information and is tailored to meet specific operational requirements, including integration with mission management systems. This collaboration highlights the company's position as a key provider of secure naval communication infrastructures.
• In August 2024, Orbit Communication Systems announced that it had secured a $6 million contract with a prominent Asian integrator to provide advanced satellite communication systems for new naval military platforms. The agreement involves the delivery of OceanTRx 7MIL maritime satellite communication terminals between 2025 and 2030. These systems are designed to ensure continuous connectivity across multiple frequencies, including X, Ku, Ka, and C bands, for a global fleet. The company's leadership emphasized that the dual-band capability of the terminals would support rigorous military operations in complex maritime environments.

Key Market Players

• Danelec Marine A/S
• Furuno Electric Co. Ltd
• General Dynamics Corporation
• Northrop Grumman Corporation
• Wärtsilä Corporation
• RTX Corporation
• Teledyne Technologies Incorporated
• Safran SA
• Honeywell International Inc.
• Kongsberg Gruppen ASA

By Application	By Platform	By System Technology	By Region
Command and Control Intelligence Surveillance and Reconnaissance (ISR) Routine Operations and Others	Ships Submarines Unmanned System	Naval Satcom System Naval Radio Systems Naval Security Systems and Communication Management Systems	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Naval Communication Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Naval Communication Market, By Application:

• Command and Control
• Intelligence Surveillance and Reconnaissance (ISR)
• Routine Operations and Others

• Naval Communication Market, By Platform:

• Ships
• Submarines
• Unmanned System

• Naval Communication Market, By System Technology:

• Naval Satcom System
• Naval Radio Systems
• Naval Security Systems and Communication Management Systems

• Naval Communication Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE