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The walkie talkie market size is estimated to grow at a CAGR of 6.92% between 2022 and 2027 and the size of the market is forecast to increase by USD 2,648.45 million. The growth of the market depends on several factors, such as the shift to digital walkie talkies, the use of LTE in walkie talkies, and the increased demand for IoT-based walkie talkies
This report extensively covers market segmentation by product (digital and analog), application (industry and commerce, government and utility, and defense), and geography (APAC, North America, Europe, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges.
Walkie Talkie Market Forecast 2023-2027
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Our researchers studied the data for years, with 2022 as the base year and 2023 as the estimated year, and presented the market's key drivers, trends, and challenges. Although there has been a disruption in the growth of the market during the COVID-19 pandemic, a holistic analysis of drivers, trends, and challenges will help companies refine marketing strategies to gain a competitive advantage.
There are several advantages of digital walkie talkies over analog counterparts, including the ability to recognize background noise and not transmit it and much clearer voice transmission. As a result, Digital radios are replacing walkie-talkies because they are more cost-effective and efficient. Digital radios come with features like GPS, data tracking, multiple conversations simultaneously, text messaging, and emergency alarms. Digital walkie talkies are mainly used in a broader area because they are more efficient
Moreover, because of these advantages, the users of walkie talkies are shifting to digital radios as they are beneficial both in terms of economy and efficiency. Some vendors sell walkie-talkies that have both simple and computerized capacities to increase the sales of their products. For example, Motorola Solutions Inc. launched the MOTOTRBO DP540 two-way radio through which they targeted cost-conscious businesses which were looking to shift to digital technology for communications. Hence, these advantages are expected to drive market growth during the forecast period.
Because of the bandwidth limitations of traditional LMR networks, which are voice-centric, emergency services are interested in leveraging LTE networks to support rising data requirements. Long-term evolution (LTE) is the most preferred mobile broadband network due to its flourishing ecosystem, flexibility of spectrum, and metrics of performance. Also, the Third Generation Partnership Project (3GPP) has been working together for the past few years to implement the necessary changes to the LTE standard to meet public safety requirements.
Furthermore, raised need for broadband data applications is the major reason for adopting LTE in the LMR industry. These devices can only record events and cannot stream video in real-time. With the need for real-time situational updates, LTE-enabled recording devices can relay live video streams to the command center where the commander maintains real-time tactical situational awareness. Some vendors are also developing applications to support the integration of LMRs with smart devices. Hence, such factors are expected to positively impact the growth of the market during the forecast period.
Data congestion can be described as the degradation of service quality that happens when a network node sends more data than it can ideally handle. Effects of data congestion include packet loss, blocking of new connections, and queue delays. Data congestion results in a gradual increase in the offered load of data, eventually resulting in a small increase or decrease in network throughput.
Congestion generally occurs due to insufficient Bandwidth and network data traffic exceeding the capacity. Loss of packets, blocking of new connections, and queueing delays are consequences of data congestion. Thus, it results in an incremental increase in the offered load of data which finally results in a marginal increase or decrease in the network. Hence, these factors are expected to impede the growth of the market during the forecast period.
The digital segment will account for a major share of the market's growth during the forecast period.?Digital radios have the ability to detect background noise and avoid its transmission. Moreover, these radios are more efficient to deploy digital radio over a wider area. Digital radios are suitable for situations where there is a lot of background noise and need to be used over large areas such as factories, factories, and construction sites. Digital walkie talkies are steadily replacing traditional analog radios.
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The consumer goods segment was valued at USD 4,492.67 million in 2017 and continued to grow until 2021.? Digital radios also come with several features like data tracking, multiple conversations at once, text messaging, and emergency alarm. With digital walkie talkies multiple conversations are possible on one channel and they help to reduce bandwidth consumption. Enhanced text messages, unit IDs, and status buttons can be embedded into a digital radio channel. Owing to advanced algorithms, background noise is significantly reduced. Digital walkie talkies new software applications are available from time to time. Thus, such advantages of digital radios will drive market growth during the forecast period.
Based on application, the market has been segmented into industry and commerce, government and utility, and defense. The industry and commerce segment will account for the largest share of this segment.?Businesses across various industries have different purposes and utilities for two-way radios. For instance, factory floors come up with some communication challenges in the manufacturing sector. By programming digital radios, instant alerts can be sent to managers, engineering, and maintenance officers, when there are production line interruptions. Furthermore, through apps, walkie-talkies evolve into full-featured digital devices that help businesses reach their efficiency, security, and productivity goals. DMR apps offer many features for users to communicate with each other. With the increasing demand for increased productivity and reduced downtime, remote software update delivery for digital radios has proven to be an important innovation. Though industrial and commercial applications of walkie talkies are growing, it is expected to fuel the market growth during the forecast period.
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APAC is estimated to contribute 49% to the growth by 2027. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period. The increasing demand for walkie talkies from the military forces due to the geopolitical tensions of different countries will facilitate the rapid procurement of walkie-talkies in this region. Countries such as China, South Korea, India, and Japan are rising their defense budgets to ensure national security. Walkie talkies provide secured two-way radio communications in military applications. Another key factor expected to drive the walkie talkie market in the region is the rapid growth of the warehouse management industry in the region. The industry's rapid growth is driven by factors such as rapid urbanization, strong growth in the e-commerce sector, and high disposable income in the region. Warehouses in the region are increasingly using rugged mobile computers, scanners, and smartphones.
Moreover, various industries in the region are increasingly adopting newer technologies to improve operational efficiency. The increase in sectoral maturity, the rise of small and medium-scale enterprises (SMEs), and the rising competition are factors that will drive the growth of the regional market during the forecast period. Rising demand for smartphones and increased investment in LTE networks are likely to slow down market growth. APAC is an important market for telecommunications companies due to the proliferation of smartphones and the growing number of unique mobile subscribers during the forecast period.
The outbreak of COVID-19 had adversely impacted the regional market. However, the initiation of vaccination drives in H2 2020 led to a decline in the number of COVID-19 cases in the region. This has resulted in lifting COVID-19-related restrictions and reopening retail stores and manufacturing facilities, increasing the demand for walkie talkies from end-user industries during the forecast period.
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.
Cedar Electronics Corp.: The company offers walkie talkies under the brand, Cobra Electronics.
Entel UK Ltd.: The company offers walkie talkies such as SAVOX C C550, CHP450D and DX, and CHP450HS single ear cup
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market vendors, including:
Fujian Baofeng Electronics Co. Ltd., Fujian BelFone Communications Technology Co. Ltd., Garmin Ltd., Hytera Communications Corp. Ltd., Icom Inc., JVCKENWOOD Corp., Kirisun Communication Co. Ltd., Midland Radio Corp., Motorola Solutions Inc., Quansheng Electronics Co. Ltd., Quanzhou Senhaixun Electronic Technology Co. Ltd., Shenzhen HQT Science and Technology Co. Ltd., SWIFTCOM TECHNOLOGY PTE LTD., Tait International Ltd., TALKPRO, Uniden America Corp., VITAI Electronics Co. Ltd., and Wintec Co. Ltd.
Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies vendors into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Based on their quantitative data analysis, vendors are specially categorized into dominant, leading, strong, tentative, and weak.
The walkie talkie 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.
Walkie Talkie Market Scope |
|
Report Coverage |
Details |
Page number |
161 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.92% |
Market growth 2023-2027 |
USD 2,648.45 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
5.18 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 49% |
Key countries |
US, China, Japan, Germany, and UK |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Cedar Electronics Corp., Entel UK Ltd., Fujian Baofeng Electronics Co. Ltd., Fujian BelFone Communications Technology Co. Ltd., Garmin Ltd., Hytera Communications Corp. Ltd., Icom Inc., JVCKENWOOD Corp., Kirisun Communication Co. Ltd., Midland Radio Corp., Motorola Solutions Inc., Quansheng Electronics Co. Ltd., Quanzhou Senhaixun Electronic Technology Co. Ltd., Shenzhen HQT Science and Technology Co. Ltd., SWIFTCOM TECHNOLOGY PTE LTD., Tait International Ltd., TALKPRO, Uniden America Corp., VITAI Electronics Co. Ltd., and Wintec Co. 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. |
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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 Product
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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