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The communication relay market size is projected to increase by USD 144.3 million, at a CAGR of 5.28% between 2023 and 2028. The growth rate of the market depends on several factors, including the miniaturization of electronic components, the growing number of pre-commercial 5G trials, and the increasing demand for wireless communication networks. Communication relay refers to the process of transferring information from a source to a destination through an intermediary or a series of intermediaries, ensuring efficient and reliable transmission. This involves the use of various technologies such as satellites, networks, and infrastructure to facilitate the exchange of data, voice, or video signals.
The report includes a comprehensive outlook on the Communication Relay Market, offering forecasts for the industry segmented by Application, which comprises telecom switching systems, mobile base stations, broadband equipment, and broadcasting studios. Additionally, it categorizes End-user into automotive industry, broadcast industry, aerospace industry, and others, and covers Regions, including APAC, North America, Europe, Middle East and Africa, and South America. The report provides market size, historical data spanning from 2018 to 2022, and future projections, all presented in terms of value in USD million for each of the mentioned segments.
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Growing number of pre-commercial 5G trials is the key factor driving market growth. The growing demand for 5G networks has been in line with the increase in the number of 5G trials across the world. Market players across the globe are conducting pilot tests and 5G trials to establish a base for the development and deployment of 5G networks. These trials involve the incorporation of 5G networks into applications such as transportation, entertainment, and industrial sectors. 5G equipment manufacturers partner with telecommunication companies to conduct 5G trials.
As a result, the increasing number of trials for 5G networks will drive the demand for test equipment across the globe. Besides, Anritsu, Keysight Technologies, National Instruments, Rohde and Schwarz, Astronics, Spirent, and Tektronix are among the leading market players offering instruments, software, and services for testing 5G or 5G-related components. Thus, the abovementioned factors are expected to increase the demand for communication relay equipment, which will drive the growth of the market during the forecast period.
The growing number of investments in smart city projects is the primary trend shaping market growth. A telecommunication network is a core part of any smart city project. To develop a smart city, market players need to work in collaboration to develop interoperable products and services and build network infrastructure to provide high-speed connectivity. A smart city is an urban development project in which a city's infrastructure has been equipped with various information and communication technologies.
For example, in October 2022, Siemens AG (Siemens) announced to invest USD5.41 billion in India to support the country's rapid urbanization and energy transformation. Furthermore, as most of these smart city projects are greenfield projects, their development will lead to the deployment of telecommunication networks, especially core networks and radio access network infrastructure, through which other access networks can be connected. Telecom equipment and base stations are installed to increase the drive the growth of the market during the forecast period.
Increasing pricing pressure for market players due to LTE and 5G deployments is a challenge that affects market growth. Many operators are deploying 5G network equipment in their existing 4G base stations and are conducting trials on the deployment of 5G infrastructure. 5G infrastructure includes small cells as well as more antennas, transmitters, and receivers than that of 4G infrastructure, which increases the number of high-power communication relay equipment in new base station equipment. In addition, the base station equipment in the deployment of 4G networks needs to be upgraded, and the commercialization of 5G will increase power consumption.
Consequently, the existing power setup of many operators cannot support the deployment of 5G networks, which makes market players spend a significant amount of money on the commercialization of 5G networks. Such pressure is influencing market players to introduce advanced communication relay equipment without increasing the price. Thus, such factors are expected to impede the growth of the global communication relay market during the forecast period.
The market share growth by the telecom switching systems segment will be significant during the forecast period. The telecom switching systems segment plays a key role in the global communication relay market, serving as the backbone for seamless and efficient transfer of voice, data, and multimedia content. These systems enable the connection and routing of calls and data across various communication networks, ensuring that messages reach their intended recipients accurately and without delay.
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The telecom switching systems segment showed a gradual increase in the market share of USD 154.72 million in 2018. The telecom switching systems segment continues to evolve with the integration of advanced technologies such as artificial intelligence, machine learning, and software-defined networking. These advancements aim to enhance network efficiency, optimize resource utilization, and enable rapid service provisioning in response to dynamic communication demands. furthermore, some of the companies providing telecom switching systems are Cisco Systems, Inc. (Cisco Systems) and Huawei Technologies Co. Ltd (Huawei Technologies). Consequently, such advantages are expected to propel the growth of the telecom switching systems segment in the global communication relay market during the forecast period.
The automotive industry constitutes a vital segment of the global communication relay market, leveraging advanced technologies to help connected vehicle solutions, vehicle-to-everything (V2X) communication, and telematics services. This industry plays a key role in integrating communication relay systems into vehicles, enhancing safety, mobility, and infotainment capabilities. Furthermore, initiatives such as V2X communication and sensor fusion technologies exemplify the automotive industry's commitment to leveraging communication relay systems for the advancement of autonomous and connected vehicle capabilities. Thus, such factors are expected to increase the demand for communication relays in the automotive industry during the forecast period.
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APAC is estimated to contribute 44% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. APAC is the major market for telecommunication companies, owing to the large penetration of smartphones along with an increasing number of unique mobile subscribers in the region. In addition, different enterprises in countries such as South Korea and China are investing in this technology, as it will help them gain a competitive advantage over their rivals. Furthermore, countries adopting this technology at the earliest will have broader macroeconomic benefits. Thus, it is encouraging various enterprises to invest in this technology.
Furthermore, the adoption of a 5G network will enable the development of various technologies, such as self-driving automobiles and smart city initiatives. Hence, an increasing number of initiatives are undertaken for the development of 5G networks in APAC. Thus, such development is expected to increase the demand for telecom switching equipment, broadband equipment, and mobile base stations in the region. This will drive the growth of the communication relay market in the region during the forecast period.
The Communication Relay Market 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 Communication Relay Market Customer Landscape
Companies 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.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies 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 companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The communication relay market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018-2028
Communication Relay Market Scope |
|
Report Coverage |
Details |
Page number |
179 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.28% |
Market Growth 2024-2028 |
USD 144.3 million |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
4.78 |
Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
Performing market contribution |
APAC at 44% |
Key countries |
US, China, Japan, South Korea, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
American Electronic Components Inc., Cisco Systems Inc., Fujitsu Ltd., GoTenna, HONGFA, Huawei Technologies Co. Ltd., IDEC Corp., OMRON Corp., Ororatech GmbH, Panasonic Holdings Corp., Phoenix Contact GmbH and Co. KG, Rao Electromechanical Relays Pvt. Ltd., RJS Electronics Ltd., Schneider Electric SE, Siemens AG, Song Chuan Precision Co. Ltd., TE Connectivity Ltd., Teledyne Technologies Inc., Yageo Corp., Zettler Group, Zhejiang CHINT Electrics Co. Ltd., and ABB Ltd. |
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, and Market condition analysis for the 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. |
We can help! Our analysts can customize this market research report to meet your requirements.
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