Software Defined Radio Industry Overview
The global software-defined radio market size was estimated at USD 20.4 billion in 2019 and is expected to reach USD 39.6 billion by 2027, registering a CAGR of 8.7% over the forecast period. An increase in defense expenditure to improve defense communication systems is a major factor driving the demand for software-defined radio systems. In addition, the market for global software defined radio (SDR) has witnessed considerable growth owing to the increasing need for communication devices to be more flexible and software configurable. Moreover, SDR is widely adopted in space communication as improves the performance of the satellite and can operate across several frequency bands in a precise manner.
SDR enables users to receive signals from multiple mobile standards such as WiMAX and GSM. To fulfill the growing demand for higher data speed that require additional hardware expenses on the core network, mobile operators are adopting SDRs.Software-defined radio systems help improve connectivity solutions by eliminating hardware constraints. Moreover, SDR and Network Function Virtualization (NFV) are expected to play a major role in the integration of different communication technologies. The 5G radio access is based on SDR/NFV infrastructure, which is another factor driving the market for software-defined radio systems.
Gather more insights about the market drivers, restrains and growth of the Global Software Defined Radio Market
The increasing penetration of IoT and wireless devices positively impacts the market for software-defined radio. In 2017, there were around 30 commercial deployments of NB-IoT and LTE-M in 20 countries, including the U.S., China, and Europe. The GSM Association estimates that by 2025, the number of IoT-connected devices would reach 3.1 billion globally, amounting to 12.0% of the total IoT connections globally. In addition, the growing popularity of wireless sensor networks is anticipated to drive the demand for SDRs.
An increase in spectrum range for wireless communications is a major trend observed in recent years. The inception of the 3rd Generation Partnership Project (3GPP) under the telecommunications organizational partnership calls for rapid deployment of LTE and LTE-Advanced commercial wireless technology, subsequently driving the demand for SDRs. While LTE technology is currently used between 450 MHz to 3.8 GHz, it is expected to cross 5 GHz in the near future. Moreover, software-defined radio is used in applications such as radio frequency spectrum analyzers and global positioning systems.
Advancements in cellular infrastructure technology have undergone developments such as changes in RF amplifier technology. For instance, smartphone designs have the potential for the implementation of technologies such as surface acoustic wave (SAW) and bulk acoustic wave (BAW). The pricing factor for these has also been relatively narrowed due to low power filter requirements and confined fractional bandwidth. A disadvantage of using software-defined radio technology is the development of a software-defined radio with hardware and software platform, which is expensive. The conversion of analog to digital may also limit the top frequencies present in the digital section.
Software Defined Radio Market Segmentation
Based on the Type Insights, the market is segmented into General Purpose Radio, Joint Tactical Radio System, Cognitive Radio, and TETRA.
- The JTRS segment dominated the market for software-defined radio in 2019. The technology is widely adopted in the defense sector since it comprises multi-mode/multi-band pre-emptive radio sets that enable simultaneous voice and data communication capacities to the warfighter.
- Terrestrial trunked radio (TETRA) is an open digital private mobile radio standard in the international market. It contains high functionality for emergency services and is suitable for commercial trunked radio users.
Based on the Component Insights, the market is segmented into Hardware, Software, and Service.
- The hardware segment dominated the market for software-defined radio in 2019 owing to the rising popularity of portable SDRs. The hardware segment is driven by the combination of analog and digital technology on a single chip, which is a major factor contributing to the reduction in weight and size.
- The software component segment is expected to witness significant growth owing to increasing use in commercial applications. The software in SDR is used to define its specifications and functions.
Based on the Frequency Band Insights, the market is segmented into HF Band, HF Band, UHF Band, and Others.
- High-frequency SDR systems are used for tactical communication with the help of IP systems. IP systems provide benefits such as reduced transaction costs and enhanced end-user experience, subsequently driving the demand for next-generation IP systems with the integrated software-defined radio systems.
- Ultra High Frequency (UHF) bands are used for commercial applications such as cellular systems and 5G networks. Owing to the need for wide area coverage, UHF SDRs are used to provide uninterrupted services to customers.
Based on the Platform Insights, the market is segmented into Ground, Naval, Airborne, and Space.
- Ground-based SDR systems dominated the market for software-defined radio in 2019 as they find a wide range of applications for tactical military communication in space and military sectors.
- Airborne SDR is a high-rate data communication system, which is widely used for military and civil applications. Various companies such as Collins Aerospace and L3 Harris Technologies are integrating SDR technology solutions with existing airborne applications, making them cost-effective, secure, and mission critical.
Based on the End-Use Insights, the market is segmented into Aerospace & Defense, Telecommunication, Public Safety, Commercial, and Others.
- The SDR market has been segmented into aerospace and defense, telecommunication, public safety, commercial, and others. SDR is widely used in the defense sector owing to its greater functional scope.
- The commercial segment is estimated to register the highest growth rate over the forecast period owing to the rising adoption of SDR across industries such as automotive and transportation.
Based on the Software Defined Radio Regional Insights, the market is segmented into North America, Europe, Asia Pacific, Latin America, and MEA.
- North America dominated the software-defined radio market in 2019, mainly owing to the Joint Tactical Networking Center (JTNC) program, which provides technical support for wireless communication systems to the U.S. Department of Defense.
- The Asia Pacific market for software-defined radio systems is projected to witness the highest growth over the forecast period owing to the rise in terrorism in Asian countries such as Bangladesh, Pakistan, and Afghanistan.
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Market Share Insights:
- April 2019: L3 Technologies, Inc. merged with Harris Corporation to create L3 Harris Technologies, Inc., a global defense technology company for emphasizes on developing mission-critical solutions.
- April 2019: BAE Systems launched its SDR assembly for space applications that cater to the requirement of the U.S. Department of Defense.
Key Companies Profile:
Space Research Organizations such as the National Aeronautics and Space Administration (NASA) and European Space Agency (ESA) focus on the development of radiation hardened electronic components that can withstand high radiations, which are used for space signal transmission in software-defined radio systems.
Some of the prominent players in the global software defined radio market are:
- Collins Aerospace Systems
- Harris Corporation
- Elbit Systems Ltd.
- L3 Technologies, Inc.
- BAE Systems
- Huawei Technologies Co., Ltd.
- Datasoft Corporation
- Raytheon Company
- Northrop Grumman Corporation
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