The Terrestrial Trunked Radio Market is estimated to be valued at US$ 5.25 Bn in 2023 and is expected to exhibit a CAGR of 9.3% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Terrestrial Trunked Radio (TTR) is a two-way wireless communication system that uses digital technology. It offers advantages like enhanced security, data services, and efficient license spectrum usage for applications in commercial, public safety and government sectors. TTR provides benefits such as enhanced voice communication, IP packet data transfer, and location services for industries requiring reliable and secure communication infrastructure.
Market key trends:
One of the key trends fueling growth in the terrestrial trunked radio market is the increasing demand for reliable communication solutions from public safety organizations. terrestrial trunked radio systems provide robust and proven communication platforms for critical emergency response operations. They enable efficient coordination between first responders through functions like push-to-talk and ability to establish communication with several users simultaneously. Furthermore, terrestrial trunked radio solutions comply with stringent security protocols and offer encryption capabilities to ensure sensitive information is securely transmitted. Growing investments by governments worldwide in upgrading existing communication infrastructures of public safety agencies is propelling demand in this market.
Porter's Analysis
Threat of new entrants: Low-capital requirement and well-established customers pose low threat of new entrants. However, brand loyalty and network effects create entry barriers.
Bargaining power of buyers: Buyers have moderate to high bargaining power due to the availability of substitutes and their ability to play competitors against each other.
Bargaining power of suppliers: Suppliers have low to moderate bargaining power as there are many component suppliers and switching costs are low.
Threat of new substitutes: New communication technologies pose threat of substitution in the long run.
Competitive rivalry: High due to presence of many global and regional players targeting similar customers.
SWOT Analysis
Strengths: Established brands, global presence, diverse product portfolio and R&D capabilities.
Weaknesses: High capital investment requirement, technology obsolescence and susceptibility to economic cycles.
Opportunities: Growth in commercial networks, IoT adoption and opportunities in developing regions.
Threats: Intense competition, pressure on pricing from alternatives and declining spending during economic downturns.
Key Takeaways
The Global Terrestrial Trunked Radio Market Size is expected to witness high growth, exhibiting CAGR of 9.3% over the forecast period, due to increasing demand for reliable and secured communication networks from enterprises.
Regional analysis - North America dominated the market in 2023 due to strong presence of communication technology providers and early adoption across industries. However, Asia Pacific is expected to grow at the fastest pace owing to rapid industrialization and infrastructure development in China and India.
Key players operating in the Terrestrial Trunked Radio market are Motorola Solutions, JVCKENWOOD, Hytera Communications, Sepura, Simoco Wireless Solutions, Tait Communications, Codan Radio Communications, Cisco Systems, Harris Corporation, PowerTrunk.
