Enjoy complimentary customisation on priority with our Enterprise License!
The software-defined radios market size is estimated to grow by USD 14.01 billion at a CAGR of 8.09% between 2023 and 2028. Market growth hinges on several factors, including the increased demand for cost-effective solutions for smart connected devices, the rising need for stable connections and higher data speeds, and the growing demand for Software-defined Radios (SDRs) in the defense sector. These factors collectively drive market expansion, with the need for cost-effective solutions driving the development of innovative technologies for smart devices. Additionally, the demand for stable connections and higher data speeds underscores the importance of reliable communication networks. Moreover, the increasing adoption of SDRs in the defense sector highlights the need for flexible and adaptable communication systems. As these trends continue to evolve, the market is poised for significant growth in the coming years.
To learn more about this report, View Report Sample
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.
Get a glance at the market contribution of various segments View the PDF Sample
The defense segment was valued at USD 18.26 billion in 2018. 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.
For more insights on the market share of various regions Download PDF Sample now!
APAC is estimated to contribute 34% to the growth of the market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
Another region significantly contributing to the market growth is North America. 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. Hence, such factors are driving the market in North America during the forecast period.
The market is experiencing growth driven by the increasing adoption by defense agencies worldwide. SDR technology enables flexible and efficient use of defense budgets by offering reconfigurability across various bands such as S-band, L-band, and UHF bands. It leverages next-generation software to provide enhanced security features, addressing security concerns prevalent in traditional radios. SDRs incorporate cognitive radio technology, utilizing components like general-purpose processors and field-programmable gate arrays for increased flexibility. They also utilize analog-to-digital converters and digital-to-analog converters for signal processing, along with antennae for wireless capabilities. DARPA plays a significant role in advancing SDR technology, promoting the use of modifiable software and firmware for adaptable radios. 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 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, Software Defined Radios (SDRs) are modular and can be easily upgraded or reconfigured, helping to reduce the total cost of ownership. These radios also address security concerns and often incorporate next-generation software and wireless capabilities, enhancing their flexibility and functionality.
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 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 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.
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.
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 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 market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
You may also interested in below market reports:
Software-defined Wide Area Network (SD-WAN) Market Analysis North America, APAC, Europe, South America, Middle East and Africa - US, China, Japan, UK, Germany - Size and Forecast
Terrestrial Trunked Radio (TETRA) System Market Analysis North America, Europe, APAC, South America, Middle East and Africa - US, China, Japan, UK, France - Size and Forecast
Radio Frequency Components (RFC) Market for Consumer Electronics Analysis APAC, North America, Europe, South America, Middle East and Africa - US, China, Japan, South Korea, Germany - Size and Forecast
The market is pivotal in providing secure, dependable, and interoperable communication solutions, particularly in modern warfare scenarios. SDRs offer rapid communication solutions that enhance operational efficiency and provide a strategic edge. They replace traditional analog radio systems with digital alternatives, ensuring voice clarity and reducing noise. SDRs use various digital modulation schemes for General purpose processors, achieve spectral efficiency, software defined radio, and are integral to the telecommunications sector for network efficiency. They are adaptable for mission-critical operations and find applications in healthcare, including remote patient monitoring. Despite facing regulatory scrutiny, SDRs offer spectrum flexibility and are crucial in aerospace and defense sectors for their secure communication capabilities and AI-driven technologies, facilitating 5G cellular solutions and tactical communication applications.
Market Scope |
|
Report Coverage |
Details |
Page number |
175 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 8.09% |
Market growth 2024-2028 |
USD 14.01 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
7.32 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
APAC at 34% |
Key countries |
US, UK, China, France, and Japan |
Competitive landscape |
Leading Companies, Market Positioning of Companies, 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 Corp., NXP Semiconductors NV, Rafael Advanced Defense Systems Ltd., Rohde and Schwarz GmbH and Co. KG, Rolta India Ltd., RTX Corp., Thales Group, Ultra Electronics Holdings Plc, Viasat Inc., and ZTE Corp. |
Market dynamics |
Parent market analysis, Market forecasting , market report , market forecast , Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, 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. |
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
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 Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
Get the report (PDF) sent to your email within minutes.
Get lifetime access to our
Technavio Insights
Quick Report Overview:
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.