Software Defined Radio Market by Frequency Band (High Frequency, Very High Frequency, and Ultra-high Frequency), Component (Transmitter, Receiver, Software, and Auxiliary System), Platform (Land, Airborne, Naval, and Space), End User (Defense and Commercial), and Regional Analysis (North America, Europe, Asia-Pacific, and LAMEA): Global Opportunity Analysis and Industry Forecast, 2020–2027

Global Software Defined Radio Market Analysis

The global software defined radio (SDR) market predicted to generate $16,455.8 million in the 2020–2027 timeframe, growing from $11,750.6 million in 2019 at a healthy CAGR of 4.4%.

Market Synopsis

There has been a surge in utilization of advanced military communication system along with increasing need for upgradation of existing communication devices, as the global armed forces have started using the software defined radios for more secure and effective way of communication. In addition to this in commercial sectors such as telecommunication and aviation, the utilization of SDR technology is more effective as compared to the traditional hardware communication systems. These factors are expected to accelerate the growth of the software defined radio market. 

However, possibility of breach of security during installation and operation is a growth-restricting factor for the market.

According to the regional analysis of the market, the Asia-Pacific software defined radio market is anticipated to grow at a CAGR of 5.0% by generating a revenue of $4,299.9 million during the review period.

Software Defined Radio Overview

A software-defined radio (SDR) system is a radio communication system which utilizes software for the modulation and demodulation of radio waves. It uses software and operates on computer instead of the hardware used in traditional radio systems.

Impact Analysis of COVID-19 on the Global Software Defined Radio Market

The novel coronavirus pandemic has had a negative effect on the software-defined radio market as it hampered the industrial production, as production plants and offices experienced temporary restrictions on working to maintain social distancing. The sectors such as commercial aviation, shipping, and others were also affected by the COVID-19. Software defined radios are utilized in commercial aviation and maritime communication in radio communications, and the reduction in travel has led to a decline in the utilization of the software defined radios.

However, several key companies are adopting strategies to recover from the chaotic situation of the COVID-19 with their strategic steps.  For instance, in 2020, British defense technology firm BAE Systems launched “Geospatial eXploitation products" (GXP) software. It is an efficient line of communication for all the frontline forces such as police, healthcare, homeland security, and others for integration of data to respond against the COVID-19 pandemic. Software-defined radio is also utilized for efficient communication at the time of emergency such as COVID-19 pandemic. Such initiatives and company developments may generate substantial investment opportunities in the market, amid the COVID-19 crisis.

Increasing Demand for Advanced Military Communication System to Surge the Market Growth

The global software defined radio industry is expected to witness a significant growth mainly due to the surging demand for protected and secure transmission of confidential information for the armed forces globally. In addition to this, the growing military expenditure for advanced communication systems globally is anticipated to aid the growth of this market in the forecast period.

To know more about global software defined radio market drivers, get in touch with our analysts here.

The Possibility of Security Breach in Software Defined Radios is Predicted to Restrain the Market Growth

Software defined radios are majorly utilized for defense purposes in tactical communication such as encrypted communication. The chances of security breach during the installation of software defined radio, or tracking of the SDR device, can result in unwanted consequences of data breach for the organization using the software defined radio. These factors can hamper the growth of the software defined radio market.

Utilization of Software Defined Radios in Commercial Sector to Create Massive Investment Opportunities 

The global software defined radio market is expected to grow at a healthy rate due to increasing adoption of software-enabled radio communication in the commercial sector. The implementation of SDRs in sectors such as oil & gas sector, mining, cargo transportation in shipping, commercial aviation, navigation, and other domains is increasing due to its wide uses and advantages. Such utilization of software defined radio is expected to open new scope of opportunities for this market in the forecast period.
To know more about global software defined Radio market opportunities, get in touch with our analysts here.

Global Software Defined Radio Market, by Frequency Band

Based on frequency band, the market has been divided into high frequency, very high frequency, and ultra-high frequency of which the high frequency sub-segment is projected to generate the maximum revenue and very high frequency sub-segment is predicted to show the fastest growth.

Source: Research Dive Analysis

The high frequency sub-segment is predicted to have a dominating market share in the global market and is expected to register a revenue of $7,785.5 million during the forecast period in 2027 from $5,618.8 million in 2019 and is expected to grow with healthy CAGR of 4.2% in the forecast period. The increasing demand for communication systems in the naval forces is expected to grow the high frequency range sub-segment. The benefits of high frequency waves such as very long-distance transmission capability, is expected to increase its utilization in naval communication systems and contribute in the growth of the sub-segment.

The very high frequency sub-segment is anticipated to have the fastest market growth and generate a revenue of $ 5,454.0 million by 2027, growing from $3,752.4 million in 2019 and is expected to grow with a CAGR of 4.9% The growth of the very high frequency sub-segment is attributed to the increase in passengers in aviation as the increase has demanded more number of aircrafts  and has resulted in a surge in  the utilization of air traffic control systems for establishing communication with aircrafts utilizing the software defined radios. The increase in the number air traffic control systems is expected to contribute to the expansion of the sub-segment.

Global Software Defined Radio, by Component

On the basis of component, this market has been sub-segmented into transmitter, receiver, software, and auxiliary system. Among the mentioned sub-segments, the software sub-segment is predicted to show the fastest growth, whereas the transmitter sub-segment is projected to gain a dominant market share.

Source: Research Dive Analysis

The software sub-segment of the global software defined radio market is projected to have the fastest growth and surpass $3,903.0 million by 2027, with an increase from $2,681.1 million in 2019 and is growing with a CAGR of 4.9%. The growing demand of digitization in diverse industries such as defense, banking, telecommunications, government, healthcare, manufacturing, and retail to perform specific domain related operations is expected to grow the software sub-segment globally.

The transmitter sub-segment is anticipated to have a dominating market share in the global market and register a revenue of $4,827.1 million in 2027 rising from $3,529.9 million in 2019 during the forecast period and is growing with a CAGR of 4.1%. The growth in the demand of transmitters in industries such as telecommunication, automobile communication systems, satellite communication, and others in anticipated to propel the demand of transmitters globally.

Global Software Defined Radio Market, by Platform

Based on platform, the market has been sub-categorized into land, airborne, naval, space. Out of these, the airborne sub-segment is predicted to have the fastest growth and land sub-segment is anticipated to have maximum revenue share in the global market.

Source: Research Dive Analysis

The airborne sub-segment of the global software defined radio market is predicted to have a rapid growth and is expected to surpass $4,765.4 million by 2027, with an increase from $3,298.2 million in 2019 and is growing with CAGR of 4.8% in the forecast period. The increased demand in commercial and defense aviation sector for communication systems globally is expected to contribute in the growth of this sub-segment. 

The land sub-segment of the global software defined radio market is predicted to have the maximum market share and is expected to surpass $5,276.7 million by 2027, with an increase from $3,710.1 million in 2019 and is expected to grow with a CAGR of 4.6% in the forecast period. The increasing number of cargo and passenger ships for transportation has propelled the growth in vessel traffic services globally. The vessel traffic control centers are situated in different ports across the globe and utilize communication devices such as software defined radio for monitoring of the vessels. The growth in the demand of vessel services is expected to contribute to the growth of this subsegment. 

Global Software Defined Radio Market, by End User

Based on end user, the analysis has been divided into defense and commercial use. Out of these, defense sub-segment is predicted to have the fastest growth, and commercial sub-segment is anticipated to gain the maximum revenue share in the global market.

Source: Research Dive Analysis

The commercial sub-segment is predicted to have a dominating market share in the global market and is expected to register a revenue of $10,165.6 million by 2027, growing from $7,610.7 million in 2019 with a CAGR of 3.8% during the forecast timeframe. The growth in the sectors such as aviation and shipping coupled with increasing industrial utilization of communication systems in industries such as mining, oil & gas, infrastructure is expected to grow the commercial subsegment in the forecast period.

The defense sub-segment is predicted to have the fastest growth rate in this segment and register a revenue of $6,290.1 million by 2027, growing from $4,139.9 million in 2019 with a CAGR of 5.4% during the forecast timeframe. The growing expenditure by the developed countries on modernization of the armed forces for development and utilization of battle management and communication systems is aiding the expansion of defense subsegment. For instance, as per the “Stockholm “International Peace Research Institute (SIPRI)” an independent international organization for research into conflict, armaments, and disarmament the global military expenditure increased to $1981 billion in 2020. These factors are expected contribute to the growth of the defense subsegment in the forecast period.

                    Global Software Defined Radio Market, Regional Insights:

The software defined radio market was investigated across North America, Europe, Asia-Pacific, and LAMEA.

Source: Research Dive Analysis

The Market for Software Defined Radio in North America to be the Most Dominant

The North America software defined radio market reported $ 3,733.2 million in 2019 and is projected to register a revenue of $4,981.2 million by 2027. The market in the region is predicted to grow with a healthy growth rate of 3.7%.  The well-established defense industry and presence of countries such as U.S. with highest military expenditure, for instance, as per the "Stockholm "International Peace Research Institute (SIPRI)" an independent international organization for research into conflict, armaments and disarmament the US military expenditure increased to $732 billion in 2019. These factors are aiding the growth of software defined radio market in the region.

The Market for Software Defined Radio in Asia-Pacific to be the Fastest Growing

The market of Asia-Pacific is growing at a significant rate in the software defined radio market is anticipated to grow at a CAGR of 5.0% by registering a revenue of $4,299.9 million by 2027, with an increase from $2,929.5 million in 2019. The extensive growth of the Asia-Pacific software defined radio market is mainly driven by the substantial emphasis on areas such as industrial investment, well developed electronics industry in major countries of the region such as China, which is one of the major electronic manufacturing hubs in the world. In addition to this, the growing demand of radio communication different sectors such as oil & gas industry, construction in the region is aiding the growth of the software defined radio market in the Asia-Pacific region. 

Competitive Scenario in the Global Software Defined Radio Market

Product development and agreements are common strategies followed by major market players.

Source: Research Dive Analysis

Some of the leading software defined radio market players are Northrop Grumman., L3Harris Technologies, INC., General Dynamics Corporation, BAE Systems., Thales Group, Leonardo S.p.A., Elbit Systems Ltd., Rohde & Schwarz, Texas Instruments Incorporated., NXP Semiconductors.

Porter’s Five Forces Analysis for the Global Software Defined Radio Market:

• Bargaining Power of Suppliers: The suppliers in the software defined radio market are high in number. Moreover, several companies are working on new product technologies to avoid changing the supplier if the there is a hike in the price of a particular component. 
  Thus, the bargaining power suppliers is moderate.
• Bargaining Power of Buyers: Buyers have moderate bargaining power as they expect quality services as per the price. This enforces the software defined radio providers to offer the best service in a cost-effective way. Thus, buyers have the option to opt for the products that best fits their preference. 
  Thus, the bargaining power of the buyers is moderate.
• Threat of New Entrants: The demand in the software defined radio market is high because it is a highly lucrative market. But the research and development cost required is high as it requires very high software knowledge.
  Thus, the threat of the new entrants is moderate.
• Threat of Substitutes: There are limited number of alternative products such as the existing radio communication systems for software defined radio solutions, which can be utilized at the scale of software Defined Radio. 
  Thus, the threat of substitutes is low.
• Competitive Rivalry in the Market: The competitive rivalry among industry leaders is high, majorly between the global players including BAE Systems., Thales Group, Leonardo S.p.A., Elbit Systems Ltd., Rohde & Schwarz. These companies are launching their new products in the international market and strengthening the position worldwide. 
  Therefore, competitive rivalry in the market is high.