Digital Mobile Radio Market Expected to Reach $11.49 Billion By 2030

According to a new report published by Allied Market Research, titled, “Digital Mobile Radio Market By Tier, Product Type, Frequency, and Industry Vertical: Global Opportunity Analysis and Industry Forecast, 2021–2030”, The global digital mobile radio market size was valued at $4.15 billion in 2020, and is projected to reach $11.49 billion by 2030, growing at a CAGR of 11.1% from 2021 to 2030. Tier 3 and Tier 2 segments accounted more market share in 2020 and is expected to maintain this trend during the forecast period.

Digital mobile radio is largely used in the defense sector for emergency response applications in GPS, supervisory control & data acquisition (SCADA), telemetry, and text messaging, as it protects privacy, provides better coverage, enhanced integrated voice, and superior data capabilities as well as exhibits higher energy efficiency as compared to analog systems.

In addition, this compact, lightweight, rugged device is used in construction sites for effective communication over large distances, as it offers crisp, clear audio with less distortion by converting voice signal to digital data and can work in both digital and analog mode. Enhanced efficiency of radio communication facilitating less bandwidth consumption implies that the digital mobile radio market opportunity would undergo ample growth in the coming years.

Region wise, the digital mobile radio market trends have been analyzed across North America, Europe, Asia-Pacific, and LAMEA. North America accounted for a significant share of the global market in 2020, and is garner significant revenue during the digital mobile radio market forecast period. This is attributed to high adoption of technologically advanced digital mobile radios along with the significant presence of major regulatory bodies, companies, and research institutes in the region.

Europe is the second largest region, in terms of revenue generation, in the global DMR market, due to higher adoption rate of digital mobile radio. Ongoing demand for the critical communications to across transportation, public safety, and large business enterprises in Europe primarily drives the Europe digital mobile radio market growth.

COVID-19 Impact Analysis

The outbreak of coronavirus has led to halt in production process, owing to the global lockdown scenario causing disruption in the overall supply chain of electronic components. COVID-19 outbreak has caused lag in meeting requirements of end users, as the epicenter of virus outbreak Wuhan, China accounts for the largest manufacturing items of electronic components. On January 30, 2020, the outbreak of this disease on a global scale was acknowledged as a Public Health Emergency of International Concern.

China is certain to create a demand lapse as China is the largest consumer and supplier of electronic goods driving around 33% of the global semiconductor market. Prices of components of recent digital technology will tend to flatten due to shortage of products caused by the halt in manufacturing during the lockdown scenario. This disruption in demand–supply chain will cause the digital mobile radio market share to fall abruptly, owing to travel restrictions on a global basis.

COVID-19 has impacted both consumers and the economy. Electronics manufacturing hubs have been temporarily shut down to limit the COVID-19 spread among individuals. This has majorly affected the supply chain of the digital mobile radio (DMR) market by creating shortage of materials, components, and finished goods. Lack of business continuity has ensured significant negative impact on revenue and shareholder returns, which further result in financial disruptions in the market.

In addition, sudden decline in infrastructure development and installation projects is expected to hamper the digital mobile radio industry. However, the demand for the market has increased during the pandemic.

Key Findings of the Study

• The commercial segment is projected to be the major end user, followed by aerospace & defense.
• Europe and North America collectively accounted for more than 59% of the testing, inspection and certification market share in 2020.
• Asia-Pacific is anticipated to witness highest growth rate during the forecast period.
• U.S. was the major shareholder in the North America digital mobile radio market analysis, accounting for approximately 56.7% share in 2020.
• Depending on product type, the hand portable segment generated the highest revenue in 2020. However, the in-vehicle is expected to witness the highest growth rate in the future.
• Region wise, the global market was dominated by North America. However, LAMEA is expected to witness significant growth in the coming years.

The key players profiled in the report include Harris Corp., Motorola Solutions Inc., Hytera Communications Corp. Ltd., Icom Inc., Leonardo SpA, Thales Group, Raytheon Company, RELM Wireless Corp., MCS Digital, and Radiodata GmbH. These players have adopted various strategies such as acquisitions, mergers, and product launch to strengthen their foothold in the industry.