Defense Tactical Radio Market is Expected to Reach $26.59 Billion by 2030-Allied Market Research

According to a recent report published by Allied Market Research, titled, “Defense Tactical Radio Market by Type and Application: Global Opportunity Analysis and Industry Forecast, 2021–2030”. 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.

The global defense tactical radio market is characterized by the presence a lot of local and international market players. The analysis illustrates the share of the prominent companies operating in the market. These companies tend to expand their market presence by adopting strategies such as acquisitions, partnerships, and product launches.

Tactical radio devices are primarily used in government, defense, public safety, and law enforcement organizations for effective communication services. Tactical radio devices are also increasingly being used in construction, manufacturing, transportation, and other commercial sectors for collaboration of workforce and to monitor assets as well as personnel. Rapid development in the commercial sector is progressively using low-cost digital medium of tactical radio driving the defense tactical radio market growth.

Europe is expected to exhibit moderate growth during the forecast period, owing to increasing demand for tactical radio from defense and public safety sectors. Use of tactical radio is gradually increasing in sectors such as transportation, construction, and hospitality. It is widely used for effective communication and provides enhanced services to users. The players in the market are developing high-quality and low-cost tactical radios to cater to small industries in the region. Europe primarily uses tactical radio in its defense and public safety sectors. These sectors use tactical radio for effective communication in times of terrorist attacks, fire, as well as during natural disasters, such as earthquakes, cyclones, and other calamities. Use of tactical radio enables first responders to provide safety to citizens and maintain peace in the region.

COVID-19 Impact Analysis

COVID-19 has caused the overall semiconductor industry to mobilize quickly and make short-term decisions with long-term implications. Semiconductor companies operate in a complex ecosystem, working across the value chain with numerous raw materials, assembly, test, package, and equipment suppliers & partners across the globe.

Demand from the IT & telecommunication segment is expected to increase, owing to factors such as rise in broadband usage, higher demand for cloud services, and video streaming. In addition, in the medium to long term, COVID-19 is expected to further propel the need for digital transformation and technologies, such as 5G, IoT, AI, and intelligent edge computing for future optimization.

The manufacturing sector witnessed severe loss; thus, no new orders have been placed during the pandemic. In addition, this impact is estimated to continue till 2021. Moreover, international consumers in defense tactical radio industry are in a very weak state, owing to lockdown imposed to tackle the pandemic. Although the defense tactical radio market trends in the U.S. and Europe witnessed mild recovery in the second half of 2020, they are still significantly down on pre-crisis levels. Therefore, the defense tactical radio market growth is facing major obstacles after emergence of the COVID-19 pandemic.

The pandemic is impacting production process of several industries, including semiconductor and electronics. Trade barriers are further constraining demand and supply outlook. The overall production process is adversely affected as governments of different countries have already announced total lockdown and temporary shutdown of industries.

Key Findings of the Study

• The handheld radio segment is expected to generate the highest revenue during the defense tactical radio market forecast period.
• The special operation forces segment is expected to generate the highest revenue during the forecast period.
• North America is expected to register the highest revenue during the forecast period.

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 several strategies, such as new product launch & development, acquisition, partnership & collaboration, and business expansion, to increase their footprint in the defense tactical radio industry during the forecast period