Global Naval Navigation And Communication System Market Size, Share, Trends and Forecasts 2031

Key Findings

• The naval navigation and communication system market focuses on integrated solutions that provide position, timing, situational awareness, voice, and data connectivity for naval surface ships and submarines.

• Modern fleets rely on a mix of satellite navigation, inertial systems, radar, ECDIS, AIS, and secure communication networks to operate effectively in blue-water and littoral environments.

• Growing complexity of multi-domain operations is driving demand for interoperable, cyber-resilient, and network-centric navigation and communication architectures.

• Integrated bridge systems and combat management system (CMS) connectivity are becoming standard in new-build and upgraded platforms.

• Rising use of unmanned surface and underwater vehicles requires robust, low-latency communication and precise navigation links.

• Navies are investing in resilient PNT (Positioning, Navigation, and Timing) solutions to operate in GPS-denied and contested electromagnetic environments.

• IP-based, software-defined, and modular communication systems are gaining ground over legacy analog and stovepiped architectures.

• Asia-Pacific, the Middle East, and parts of Europe are key growth regions as they expand and modernize their naval fleets.

• Long-term support, software upgrades, and obsolescence management represent a major share of lifecycle spending in this market.

• Strategic partnerships between prime contractors, radio and sensor OEMs, and local shipyards enable localization, technology transfer, and through-life support.

Naval Navigation And Communication System Market Size and Forecast

The global naval navigation and communication system market was valued at USD 7.4 billion in 2024 and is projected to reach USD 13.9 billion by 2031, registering a CAGR of 9.1%. Growth is driven by continuous modernization of surface and subsurface fleets, expansion of blue-water capabilities among emerging maritime powers, and rising emphasis on network-centric warfare. New-build frigates, corvettes, offshore patrol vessels, and submarines are being fitted with fully integrated navigation and communication suites, while legacy platforms undergo mid-life upgrades to replace obsolete sensors, radars, and radios. Over the forecast period, software-defined, IP-based, and cyber-secure solutions will become increasingly central to procurement decisions as navies seek flexible platforms that can be upgraded in line with evolving threat and technology landscapes.

Market Overview

Naval navigation and communication systems form the digital backbone of maritime operations, enabling ships and submarines to safely navigate, exchange mission-critical data, and coordinate with joint and coalition forces. On the navigation side, system portfolios typically include GNSS/GPS receivers, inertial navigation systems (INS), gyrocompasses, log and sonar sensors, radar, electronic chart display and information systems (ECDIS), and automatic identification systems (AIS). On the communication side, they encompass HF/VHF/UHF radios, satellite communication terminals, internal communication networks, tactical data links, and integrated voice and data management systems. Market demand is shaped by several factors: the need for enhanced situational awareness, increasing data volumes from sensors and unmanned systems, and the imperative to maintain secure and resilient communications in contested electromagnetic environments. Vendors are responding by offering modular, standards-based solutions that integrate seamlessly with combat management and bridge systems, while providing robust cybersecurity and redundancy.

Future Outlook

Going forward, the naval navigation and communication system market will increasingly revolve around resilience, interoperability, and digital transformation. Navies will invest heavily in assured PNT capabilities that combine GNSS, INS, celestial, and alternative navigation techniques to mitigate jamming and spoofing threats. At the same time, communication systems will shift further toward software-defined, IP-centric architectures that support high-bandwidth data, video, and collaborative planning applications. Integration with space-based assets, unmanned platforms, and joint networks will become a baseline requirement rather than a premium feature. Artificial intelligence and data analytics will enhance sensor fusion, route optimization, and automated watch-keeping, while digital twins and remote diagnostics improve lifecycle management. By 2031, fleets with modern, integrated navigation and communication suites will enjoy significant operational advantages in terms of tempo, situational awareness, and coalition interoperability.

Naval Navigation And Communication System Market Trends

• Shift Toward Integrated Bridge and Mission Systems
  Navies are increasingly procuring integrated bridge systems where navigation sensors, displays, and control interfaces are unified into a single, ergonomic solution. This integration reduces crew workload, enhances safety, and improves information sharing between the bridge and the combat information center. Vendors are designing systems that seamlessly connect to combat management, weapons control, and platform management systems using common data buses and open architectures. As a result, navigation, ship control, and mission execution become more tightly coordinated across the vessel. This trend also simplifies training and maintenance, leading to lower lifecycle costs and more consistent human-machine interfaces across different ship classes.

• Adoption of IP-Based and Software-Defined Communication Architectures
  Naval communication systems are progressively transitioning from legacy circuit-switched and analog designs to IP-based, software-defined architectures. This shift allows voice, video, and data traffic to be carried on common networks, improving flexibility and bandwidth utilization. Software-defined radios enable multi-band, multi-waveform capability within a single hardware platform, reducing the number of discrete radios required on board. These architectures also support over-the-air reconfiguration and rapid deployment of new waveforms or crypto standards. As navies adopt these technologies, they gain improved interoperability with joint and coalition partners, as well as simplified integration with onboard IT systems. The trend is expected to accelerate as digitalization strategies and cyber-hardened IP networks become standard across modern fleets.

• Growing Focus on Assured PNT and GNSS-Denied Navigation
  Concern over GNSS jamming and spoofing is prompting strong interest in resilient navigation solutions that combine multiple technologies. Navies are exploring hybrid navigation suites that fuse GNSS, INS, Doppler logs, radar-based navigation, and even celestial navigation aids to maintain accurate PNT in contested environments. Advanced algorithms and sensor fusion engines help reconcile inputs and manage uncertainties across diverse sources. This approach is especially critical for submarines, mine countermeasure vessels, and high-value surface combatants operating near adversary shorelines. As a result, demand is rising for high-grade inertial systems, anti-jam antennas, and alternative navigation references. Over time, assured PNT capabilities will be viewed as a core element of naval readiness and mission assurance.

• Integration with Unmanned and Distributed Maritime Assets
  The increasing deployment of unmanned surface vessels (USVs) and unmanned underwater vehicles (UUVs) is reshaping requirements for navigation and communication systems. Motherships must coordinate with multiple unmanned assets, requiring robust data links and common navigation reference frameworks. Communication architectures are being designed to handle mesh networking, remote control, and autonomous coordination among manned and unmanned platforms. Navigation systems must support precise station-keeping, formation maneuvering, and cooperative sensing. This trend encourages open standards, scalable bandwidth management, and new concepts of operations built around distributed maritime presence. As unmanned fleets grow, integrated navigation and communication ecosystems will be essential to unlock their full operational potential.

• Enhanced Cybersecurity and Information Assurance Requirements
  With navigation and communication systems increasingly interconnected and IP-based, cybersecurity has become a top priority for naval customers. Systems must be designed with secure architectures, hardened operating systems, and robust encryption for both data at rest and data in transit. Navies are demanding compliance with stringent information assurance standards and continuous vulnerability management throughout the system lifecycle. This requires secure software development practices, patch management frameworks, and real-time monitoring of networks for anomalies. Vendors that can demonstrate strong cyber engineering credentials and provide sustained cyber support gain a competitive advantage. Over the forecast period, cybersecurity will remain a defining feature of system specifications and procurement decisions.

• Use of Advanced Analytics, AI, and Automation in Navigation and Comms
  Artificial intelligence and advanced analytics are beginning to influence how navigation and communication systems are used and managed onboard. Intelligent route planning tools can factor in threats, weather, fuel consumption, and restricted areas to optimize mission plans. Automated collision avoidance and decision-support systems assist bridge teams in high-traffic or degraded-visibility environments. In communications, AI-driven network management can prioritize traffic, mitigate interference, and adapt routing in real time. Predictive maintenance analytics help identify emerging faults in radars, radios, and sensors before they impact operations. As these capabilities mature, they will reduce crew workload, enhance safety, and improve operational tempo, further driving demand for smart, upgradeable systems.

Market Growth Drivers

• Global Naval Modernization and Fleet Expansion Programs
  Numerous navies are undertaking comprehensive fleet renewal programs that include new frigates, corvettes, OPVs, submarines, and auxiliary vessels. Each new platform requires a full suite of navigation sensors, integrated bridge systems, and communication equipment. Modernization of older ships often includes replacement of obsolete radars, ECDIS, radios, and internal communication networks with digital, integrated solutions. These activities generate consistent demand for both new hardware and systems integration services. As nations seek to project power, protect sea lines of communication, and secure offshore resources, investments in capable and well-networked fleets continue to rise. This macro trend underpins long-term growth for naval navigation and communication suppliers worldwide.

• Increasing Demand for Situational Awareness and Network-Centric Operations
  Modern naval operations rely on timely, accurate information sharing between ships, aircraft, submarines, and shore-based command centers. Enhanced situational awareness requires high-resolution sensors, precise navigation, and robust, secure datalinks. Navigation systems provide the geospatial backbone that underpins tactical pictures and common operational pictures across the fleet. Communication systems enable real-time exchange of tracks, intelligence, and mission instructions. As navies move toward network-centric concepts of operation, investment in these enabling systems becomes essential rather than optional. The resulting demand for interoperable and scalable solutions is a major driver for market expansion.

• Growth in Littoral and Multi-Mission Operations
  Many navies are shifting focus toward littoral operations, maritime security, and multi-mission roles that demand versatile navigation and communication capabilities. Coastal environments present challenges such as cluttered radar returns, dense traffic, and complex geography, requiring sophisticated navigation displays and decision-support tools. Multi-mission vessels must switch rapidly between tasks such as anti-piracy, humanitarian assistance, and high-end warfare, relying on flexible communication suites to adapt to different networks and partners. These operational realities drive procurement of advanced bridge systems, multi-band radios, and satellite communication terminals. As missions diversify, the need for adaptable and integrated navigation and communication suites grows accordingly.

• Advances in Satellite Communications and Broadband at Sea
  Improvements in naval satellite communications, including use of military and commercial constellations, are enabling higher bandwidth and more reliable connectivity at sea. Ships can now support video conferencing, real-time ISR feeds, and cloud-based applications that were previously impractical. This expanded connectivity creates new requirements for onboard network infrastructure, integrated communication management systems, and secure gateways. Navigation data can be shared more widely and combined with off-board intelligence for improved tactical decision-making. As broadband at sea becomes more common, navies will continue to upgrade communication hardware, antennas, and onboard IT to take full advantage of these capabilities.

• Rising Emphasis on Safety, Regulatory Compliance, and E-Navigation
  International maritime regulations and safety standards are influencing naval adoption of modern navigation technologies such as ECDIS, AIS, and standardized digital charting. Even though navies are not bound by all civilian rules, many choose to align with or exceed them to ensure safe operations and interoperability in shared waters. E-navigation initiatives encourage harmonized use of electronic charts, automated reporting, and standardized bridge systems. Compliance with safety norms also reduces the risk of accidents and environmental incidents that can have strategic and political consequences. This regulatory and safety environment thus supports continued investment in updated navigation systems and associated training.

• Need for Lifecycle Upgrades, Obsolescence Management, and Support
  Navigation and communication systems are long-lived assets, but their electronic components and software can become obsolete well before the end of a ship’s hull life. Navies therefore budget for periodic mid-life upgrades and continuous obsolescence management to keep systems reliable and secure. These activities include replacing displays, processors, radios, and sensors with modern equivalents while retaining as much cabling and infrastructure as practical. Vendors benefit from recurring revenue streams through spares, repairs, software patches, and incremental capability updates. As fleets age and technology cycles quicken, the importance of such lifecycle services as a growth driver will only increase.

Challenges in the Market

• Complex Integration with Legacy Platforms and Combat Systems
  Integrating new navigation and communication systems into existing ships and submarines is technically challenging and often costly. Legacy platforms may have limited space, power, and cooling margins, making installation of modern, higher-power equipment difficult. Compatibility with older combat management and platform management systems requires custom interfaces and extensive testing. These integration complexities can extend project timelines and introduce technical risk for both navies and suppliers. As a result, some operators delay upgrades or limit their scope, which can slow market uptake for new systems. Successful vendors must therefore offer flexible, modular solutions and strong integration support capabilities.

• High Acquisition Costs and Budget Constraints
  Advanced navigation sensors, integrated bridge systems, and multi-band, secure communication suites represent significant capital investments. Smaller or budget-constrained navies may struggle to finance comprehensive modernization programs, particularly when faced with competing priorities such as shipbuilding or weapons procurement. Even wealthier navies must balance investment across multiple domains, sometimes delaying planned upgrades to navigation and communication systems. Cost pressures encourage demand for standardized, off-the-shelf solutions and multi-ship procurement packages, but they can still limit overall market growth. Vendors must carefully manage cost-performance trade-offs and propose financing or phased implementation options to remain competitive.

• Rapid Technological Change and Obsolescence Risks
  Electronics, software, and communication standards evolve quickly compared to the long service life of naval platforms. Systems procured today may face obsolescence in processors, operating systems, or communication protocols within a decade. This dynamic increases the risk that navies will operate outdated systems or incur additional costs for mid-cycle refreshes. It also complicates long-term planning for both customers and suppliers, who must account for technology roadmaps and secure upgrade paths. To address this challenge, systems must be designed with modularity, open architectures, and clear migration strategies, but implementing these features effectively can be difficult and expensive.

• Cybersecurity Threats to Networked Navigation and Communication Assets
  As navigation and communication equipment becomes more networked and IP-based, it becomes a potential attack surface for cyber adversaries. Compromised navigation data can mislead crews, while disrupted communications can degrade command and control. Implementing robust cybersecurity protections, including encryption, segmentation, intrusion detection, and secure software practices, adds complexity and cost to system design and operation. Navies must invest not only in technology but also in training and procedures to manage cyber risk effectively. Maintaining cybersecurity over decades, as systems evolve and threats change, is an ongoing challenge that requires continuous vigilance and resourcing.

• Regulatory, Export Control, and Interoperability Constraints
  Many navigation and communication systems incorporate sensitive technologies subject to export controls and national security restrictions. These regulations can limit market access, particularly in regions where political relationships are complex or unstable. In addition, differing national standards and preferred suppliers can complicate multinational programs or coalition interoperability. Achieving technical harmonization across fleets that use different systems and standards requires extra effort in testing and integration. These factors may slow down procurement processes or restrict the pool of potential suppliers in certain markets, posing strategic and commercial challenges for industry participants.

• Environmental and Operational Challenges in Harsh Maritime Conditions
  Naval navigation and communication systems must operate reliably under severe conditions, including saltwater corrosion, shock and vibration, extreme temperatures, and electromagnetic interference. Designing and qualifying equipment to meet these demands increases development and production costs. Failure to perform in such environments can have serious operational consequences, including loss of situational awareness or communication blackout at critical moments. Sustaining high reliability over many years in harsh conditions requires rigorous maintenance regimes and high-quality components. These environmental and operational challenges thus add engineering complexity and influence total cost of ownership for navies and suppliers alike.

Naval Navigation And Communication System Market Segmentation

By System Type

• Navigation Systems (GNSS, INS, Gyrocompasses, Logs)

• Radar and ECDIS Systems

• Internal Communication Systems

• External Radio Communication Systems (HF/VHF/UHF)

• Satellite Communication (SATCOM) Systems

• Tactical Data Link and Network Systems

By Platform

• Surface Combatants (Destroyers, Frigates, Corvettes)

• Offshore Patrol Vessels and Patrol Craft

• Amphibious and Support Vessels

• Submarines

• Unmanned Surface and Underwater Vessels

By Technology

• Conventional / Legacy Systems

• IP-Based and Software-Defined Systems

• Integrated Bridge and Combat Networked Systems

By End User

• Naval Forces (Blue-Water Navies)

• Coast Guards and Maritime Security Agencies

• Shipyards and System Integrators

By Region

• North America

• Europe

• Asia-Pacific

• Latin America

• Middle East & Africa

Leading Key Players

• Thales Group

• Raytheon Technologies Corporation

• BAE Systems plc

• Leonardo S.p.A.

• Saab AB

• Northrop Grumman Corporation

• Kongsberg Gruppen ASA

• Rohde & Schwarz GmbH & Co. KG

• HENSOLDT AG

• Elbit Systems Ltd.

Recent Developments

• Thales Group introduced an upgraded integrated bridge and navigation suite with enhanced cyber protection and improved user interfaces for next-generation surface combatants.

• Raytheon Technologies rolled out a new family of resilient PNT solutions that combine GNSS, anti-jam technologies, and high-grade inertial navigation for naval platforms.

• Saab AB expanded its naval communication portfolio with IP-based, software-defined radios designed to support multi-band, multi-waveform operations and secure data networking.

• Rohde & Schwarz announced successful sea trials of an integrated naval communications system enabling unified management of HF, VHF, UHF, and SATCOM resources.

• Kongsberg Gruppen partnered with European shipyards to deliver integrated navigation and bridge systems for a series of new OPVs and multi-role vessels, emphasizing modularity and lifecycle support.

This Market Report Will Answer the Following Questions

• What is the projected global market size and growth rate for naval navigation and communication systems through 2031?

• Which system types and technologies are expected to see the strongest demand across different naval platforms?

• How are network-centric operations and multi-domain concepts influencing system design and procurement?

• What role do assured PNT and GNSS-denied navigation solutions play in future naval capability planning?

• How are IP-based and software-defined communication architectures reshaping shipboard networks?

• Which regions are driving the highest levels of fleet modernization and associated system spending?

• What are the primary integration, cost, and obsolescence challenges facing navies and suppliers?

• How is cybersecurity being addressed in modern navigation and communication architectures?

• Who are the leading industry players and what strategies are they using to maintain competitiveness?

• What technology trends—such as AI, analytics, and unmanned integration—will most significantly impact this market over the next decade?