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The software-defined radios market size is estimated to grow at a CAGR of 8% between 2022 and 2027. The market size is forecast to increase by USD 12,894.6 million. The growth of the market depends on several factors, including the increased need for cost-effective solutions for smart connected devices, the rising need for stable connections and higher data speed, and the growing demand for Software-defined radios (SDRs) in the defense sector.
This software-defined radios market report extensively covers market segmentation by application (defense, homeland security, and commercial), type (joint tactical radio system, cognitive radio, general purpose radio, and terrestrial trunked radio), and geography (North America, Europe, APAC, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The increasing need for cost-effective solutions for smart connected devices is notably driving the market growth, although the complexity of software-defined radio (SDR) technology in integration with systems may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The increasing need for cost-effective solutions for smart connected devices is notably driving the software-defined radio (SDR) market growth. The need for cost-effective solutions is a major driver of the market. SDR technology enables efficient use of spectrum and reduces the cost of deploying and maintaining communication networks. Additionally, SDRs are modular and can be easily upgraded or reconfigured, helping to reduce the total cost of ownership.
Recently, the adoption of Software-defined radio (SDR) in the Internet of Things (IoT) has increased. The IoT market requires low-cost, low-power communication solutions to connect various devices. SDRs are well suited to this market as they can be easily reconfigured to support different communication protocols and frequencies. For example, SDRs are used in smart homes to connect devices such as thermostats, security cameras, and smart speakers. Hence, the growing need for cost-effective solutions is driving the software-defined radio (SDR) market during the forecast period.
The rising adoption of advanced communication technologies is a key trend influencing the SDR market growth. Software-defined radio (SDR) technology is highly flexible and reconfigurable, making it suitable for use in advanced communication systems such as LTE and 5G. SDR technology for LTE and 5G communication systems is the ability to support multiple communication standards and frequencies. SDRs can quickly adapt to changing communication needs and can be reprogrammed to support new communication standards such as the 5G spectrum which includes low-band (below 1 GHz), mid-band (e.g. 3.3-5 GHz), and high-band (e.g. 24.25-29.5 GHz and 37-43.5 GHz) radio frequency ranges, they grow very large. In addition, to flexibility and reconfigurability, SDR offers improved performance and lower cost compared to traditional wireless systems. SDR technology enables communication systems to achieve higher data rates and improve signal quality while reducing the need for expensive and specialized hardware components such as filters, amplifiers, modulators, and demodulators. LTE technology currently operates in the range of 450 MHz to 3.8 GHz and is expected to reach 5 GHz in the next few years.
The adoption of LTE and 5G technology is especially important for industries such as public safety, defense, and transportation, where reliable and fast communication is essential. Therefore, the increasing commercialization of commercial LTE cellular technology and the emergence of 5G technology is expected to increase the demand for SDR, which is expected to boost the growth of the market during the forecast period.
The complexity of software-defined radio (SDR) technology in integration with systems is challenging the software-defined radio market growth. The complexity of SDR technology has greatly hindered its growth. SDR technology is highly complex and requires specific skills and knowledge to develop and deploy, making market entry difficult for new companies and governments adopting this technology. SDR must be interoperable with legacy wireless systems, which can pose challenges due to differences in protocols, modulation schemes, and other technical specifications. Interoperability testing may be required to ensure that the SDR can communicate effectively with existing systems. Also, for SDR to work effectively, additional antennas, amplifiers, or other components are required. This increases the overall complexity of the wireless system and can make management and troubleshooting difficult.
One of the biggest challenges of SDR technology is the need for extensive software development and testing. SDRs are highly configurable and require significant software development to meet communication requirements. This can be time-consuming, expensive, and a barrier to entry for companies that lack the necessary expertise and resources. SDRs require specialized hardware components such as digital signal processors and field programmable gate arrays, which can be expensive and difficult to obtain. Therefore, the complexity of SDR technology will challenge the growth of the market during the forecast period.
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Software-Defined Radios Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
BAE Systems Plc: The company offers different types of software-defined radios (SDR) especially AN ARC231A SDR Radio Communications Systems under its subsidiary Fire Series.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the defense segment will be significant during the forecast period. The defense segment includes the use of Software-defined radio (SDR) technology in various defense applications such as communications, electronic warfare, and military reconnaissance. SDR is widely used in defense communication systems due to its flexibility, reconfigurability, and compatibility with multiple communication standards. They enable secure and reliable communications between military units on land and in the air.
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The defense segment was valued at USD 17,306.81 million in 2017 and continued to grow until 2021. In defense, SDRs are used in a variety of applications such as tactical communications, surveillance, and reconnaissance. The US Army has implemented its SDR technology in its Joint Tactical Radio System (JTRS). A program that allows different military units to communicate effectively in different environments. The US Navy also uses SDR for ship communication systems to improve communication between ships. Additionally, SDR technology is used in electronic warfare, which uses the electromagnetic spectrum to attack or defend enemy forces. SDRs aid electronic warfare by detecting and jamming enemy signals while maintaining secure communications between allied forces. Owing to the widespread use of SDR in military communication systems, this segment will contribute significantly to the growth of the market during the forecast period due to the increasing demand for SDR.
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North America is estimated to contribute 35% to the growth of the global SDR market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
North America holds the largest market share in the market. The rapid adoption of advanced technology and heavy military spending are expected to dominate the market. A primary reason for this is the Joint Tactical Network Center (JTNC) program, which provides technical support for wireless communications systems to the US Department of Defense. Defense departments use software-defined radios(SDRs) systems for research projects and for the integration of all communication systems in state and federal agencies across North America. Additionally, in coming years the U.S. government will increase funding for next-generation wireless communication systems capable of processing X-band frequencies that can be reused to meet the needs of advanced technology and the growing demand for U.S. wireless devices. This will drive demand for SDRs in this region.
The COVID-19 outbreak negatively impacted the growth of the market. The pandemic disrupted global supply chains, impacting SDR production and supply. This caused delays in SDR deliveries and increased production costs, impacting the growth of the market. Additionally, the pandemic also reduced demand for SDRs in commercial spaces. This reduced the demand for SDRs in applications such as aerospace, marine, and public safety, negatively impacting the growth of the market in 2020. However, in 2021, the mass vaccination push restarted some business and industrial activities, such as the manufacturing of SDRs and related components. Moreover, rising demand for SDR-embedded air traffic control towers is expected to boost the growth of the market during the forecast period.
The SDR market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Technavio categorizes the global SDR market as a part of the global IT consulting and other services market within the global IT services market. The parent global IT services market covers companies providing IT consulting and systems integration services, application services, electronic data processing services, business process outsourcing services, infrastructure services, and internet services. The global IT consulting and other services market includes companies that provide information technology consulting and management services.
Software-Defined Radios Market Scope |
|
Report Coverage |
Details |
Page number |
168 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 8% |
Market growth 2023-2027 |
USD 12,894.6 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
7.23 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 35% |
Key countries |
US, China, Japan, UK, and France |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
ASELSAN AS, BAE Systems Plc, Bharat Electronics Ltd., Elbit Systems Ltd., General Dynamics Corp., Huawei Technologies Co. Ltd., Indra Sistemas SA, L3Harris Technologies Inc., Leonardo Spa, Mercury Systems Inc., Northrop Grumman Systems Corp., NXP Semiconductors NV, Rafael Advanced Defense Systems Ltd., Raytheon Technologies Corp., Rohde and Schwarz GmbH and Co. KG, Rolta India Ltd., Thales Group, Ultra Electronics Holdings Plc, Viasat Inc., and ZTE Corp. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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