Defense Tactical Radio Market Outlook – 2030
The global defense tactical radio market size was valued at $9.46 billion in 2020, and is projected to reach $26.59 billion by 2030, registering a CAGR of 10.5% from 2021 to 2030.
Defense tactical radio is an emerging technology, which features superior sound quality, emergency tracking, and geofencing. In addition, advancements in technology used in defense tactical radio is making them more lightweight, less expensive, and smaller in size. Furthermore, in thefuture the chancesof traditional projectors to get abandoned are more if defense tactical radio keeps on getting more useful.
In the military and defense sector, tactical radio communication is majorly used to convey command over the battlefield from person to person. The increase in the significance of effective communication operations majorly drives market growth. In addition, wider application in various sectors of government and public safety, majorly in construction & manufacturing industries where long-distance communication is needed. The rise in demand for wireless communication drives the defense tactical radio market growth. Secured and noise-free information provided to the end-user is the major factor that propels the demand for the defense tactical radio market. The rise in the need for lightweight and small military handheld radios is identified as one of the key trends that boost defense tactical radio market growth. However, a shortage of spectrum and limited channel capability restricts the defense tactical radio market forecast. Moreover, the rise in demand for tactical radios in emerging markets and the positive approach of governments by investing in the telecommunication sector are expected to offer lucrative opportunities for defense tactical radio market growth in the future.
The value chain of the defense tactical radio industry includes various stakeholders such as manufacturers of components, semiconductor manufacturers, original equipment manufacturers, and service providers. Each of these players shares a specific value at their point of operation, which, in turn, contributes toward the competitive value of the product. R&D activities, innovations, marketing strategies, and aesthetic concerns enhance the overall value associated with end-deliverables by each of the defense tactical radio market players.
Segment Overview
The defense tactical radio industry is segmented based on type, application, and region. Based on type, it is categorized into handheld and vehicle-mounted. By application, it is divided into special operation force (SOF), army, navy, and air force. Region-wise, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. The key players mentioned in the report are BAE Systems, BK Technologies, General Dynamic Corporation, Hytera Communications, ICOM Inc., L3 Harris, Leonardo S.P.A., MCS Digital, Motorola Solutions, and Thales Group. These key players have adopted strategies, such as product portfolio expansion, mergers & acquisitions, agreements, geographical expansion, and collaborations to enhance their market penetration.
Covid-19 Impact Analysis
The COVID-19 pandemic has adversely impacted the defense tactical radio market as the huge workforce of enterprises across the globe is working from home. This has led to a decline in tourism, which, in turn, reduced the demand for defense tactical radio. Although the COVID-19 pandemic has forced field work of several major projects to halt temporarily, hence the market is expected to remain robust with a cumulative number of shipments being marginally unaffected in the next three-year period from 2020. The defense tactical radio market has been impacted by the COVID-19 outbreak. New projects throughout the world have been stalled, which, in turn, has affected the demand in several industries, including manufacturing, industrial, and retail. Although market players faced minimal impact on procuring raw materials, time and shipping costs are still major concerns. Moreover, the rise in investments in the development of smart cities has gained importance during the pandemic. Subsequently, demand for defense tactical radio is anticipated to gain momentum post-pandemic. Key market players focus on positioning their companies for a strong recovery post-pandemic.
Market players have meticulously planned to strengthen their supply chain to benefit from post-pandemic opportunities. They further focus on availing additional opportunities with expanded market usage of defense tactical radio technology, owing to price considerations and additional display offerings using micro-lenses. Hence, market players are anticipated to boost the market growth from various opportunities generated post-pandemic. Although COVID-19 has a major negative impact on the growth of the market, the outbreak of COVID-19 is expected to provide numerous opportunities for market growth during the forecast period. These defense tactical radio market trends include a surge in digitization and a rise in applications of semiconductors across the globe.
By Type
Handheld Radio is expected to secure leading position during forecast period.
Top Impacting Factors
Significant factors impacting the defense tactical radio market include the rise in insignificance of efficient mission-critical communication operations and the application of tactical radio in diverse industries. The market is also influenced by a shortage of spectrum and limited channel capacities, a rise in demand for tactical radio devices among emerging economies, and an increase in government investments.
Growth In Significance Of Efficient Mission Critical Communication Operations
Effective communication plays an important role for public safety personnel to collaborate with the workforce, gain situational awareness, ensure security, and enhance safety measures. The responsiveness of public safety organizations depends on maintaining emergency communication and gaining access to sensitive information. With the increase in security threats, there is a rise in demand for quick and efficient communication channels. Thus, modernization of public safety communication networks has become a priority for many public safety agencies. The need for evolved technologies such as IP-based voice, video, and data systems has increased significantly for mission-critical communication. A lot of public safety communication networks are migrating to broadband solutions, which implement IP WAN for first-responder radio networks, video surveillance, and LTE.
By Application
Special Operation Forces will gain a leading position during the forecast period.
Shortage Of Spectrum And Limited Channel Capabilities
Growth of the global defense tactical radio market is limited, owing to a shortage of spectrum that can be distributed among users. In addition, operators find it difficult to get approval from regulatory bodies, which restricts communication. Agencies, jurisdictions, and commercial organizations are needed to secure licenses to operate their communication systems on radio spectrum; whereas, public safety agencies are assigned spectrum by the Federal Communications Commission (FCC) based on their needs and use.
Increase In Demand For Tactical Radio Devices Among Emerging Economies
Tactical radio devices are increasingly being used by emerging economies of Asia-Pacific and LAMEA by defense, public safety, and law enforcement sectors. An increase in demand from commercial industries such as manufacturing, transportation, construction, healthcare, and hospitality is also anticipated to provide numerous growth opportunities for the defense tactical radio market. A rise in the occurrence of natural disasters and an increase in terrorist activities are also expected to encourage emergency response teams to use tactical radio devices to reduce causalities and ensure the safety of citizens.
By Region
Asia-Pacific would exhibit the highest CAGR of 12.2% during 2020-2030
Key Benefits For Stakeholders
- This study comprises an analytical depiction of the defense tactical radio market opportunity, current trends, and future estimations to depict imminent investment pockets.
- Overall the defense tactical radio market analysis is determined to understand profitable trends to gain a stronger foothold.
- The report presents information related to key drivers, restraints, and opportunities with a detailed impact analysis.
- The defense tactical radio market outlook forecast is quantitatively analyzed from 2020 to 2030 to benchmark the financial competency.
- Porter’s five forces analysis illustrates the potency of buyers and the market share of key vendors.
- The report includes the market trends and the defense tactical radio market share of key vendors.
Defense Tactical Radio Market Report Highlights
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Analyst Review
According to insights of CXOs of leading companies, the defense tactical radio market holds high potential for the defense industry. Current business scenario is witnessing an increase in demand for defense tactical radio, particularly in developing regions such as China and India. Companies in this industry are adopting various innovative techniques to provide customers with advanced and innovative product offerings.
Significance of effective communication during an operation and wide applications in various sectors are major drivers of this market. In spite of such advantages, shortage of spectrum and limited channel capability of defense tactical radio impedes growth of this market. However, rise in demand for tactical radio and increase in government investments are expected to create lucrative opportunities for key players operating in the defense tactical radio market.
Among the analyzed regions, Asia-Pacific is expected to account for the highest revenue in the global market throughout the forecast period, followed by North America, Europe, and LAMEA. However, LAMEA is expected to grow at a high rate, predicting a lucrative market growth for defense tactical radio market.
The defense tactical radio market is estimated to grow at a CAGR of 10.5% from 2021 to 2030.
The defense tactical radio market is projected to reach $26.59 billion by 2030.
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Rise in demand for wireless communication drives & Rise in need for lightweight and small military handheld radio is identified.
The key players profiled in the report include BAE Systems, BK Technologies, General Dynamic Corporation, Hytera Communications, ICOM Inc, and many more.
On the basis of top growing big corporations, we select top 10 players.
The defense tactical radio market is segmented on the basis of type, application, and region.
The key growth strategies of the market players include product portfolio expansion, mergers & acquisitions, agreements, geographical expansion, and collaborations.
Vehicle Mounted Radio segment would grow at a highest CAGR of 11.5% during the forecast period.
Asia-Pacific region will dominate the market by the end of 2030.
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