TERRESTRIAL TRUNKED RADIO MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2023 - 2030)

The global Terrestrial Trunked Radio market size was valued at US$ 5.25 billion in 2023 and is expected to reach US$ 9.78 billion by 2030, grow at a compound annual growth rate (CAGR) of 9.3% from 2023 to 2030.

Terrestrial Trunked Radio (TETRA) is a professional mobile radio and two-way transceiver specification designed for use by government agencies, emergency services, (police forces, fire departments, ambulance) for public safety networks, rail transportation staff for train radios, transport services and the military. TETRA provides secure, high-availability communications that allow users to communicate directly without relying on an operator or fixed infrastructure. Key drivers include increasing demand for seamless critical communication operations and growing adoption in the military and defense sector.

The Terrestrial Trunked Radio Market is segmented by technology, application, component, frequency and region. By technology, the market is segmented into digital, analog, professional mobile radio system and trunked radio system. The digital technology segment is expected to dominate the market over the forecast period due to advantages such as enhanced capacity, improved audio quality, and increased security.

Terrestrial Trunked Radio Market Regional Insights

• North America is expected to be the largest market for Terrestrial Trunked Radio Market during the forecast period, accounting for over 37.5% of the market share in 2022. The growth of the market in North America is attributed to high adoption in military and public safety agencies.
• The Europe market is expected to be the second-largest market for Terrestrial Trunked Radio Market, accounting for over 32.1% of the market share in 2022. The growth of the market in is attributed to stringent safety regulations for critical communications.
• The Asia Pacific market is expected to be the fastest-growing market for Terrestrial Trunked Radio Market, with a CAGR of over 22.3% during the forecast period. The growth of the market in Asia Pacific is attributed to increasing demand from transportation and utility sectors.

Figure 1. Global Terrestrial Trunked Radio Market Share (%), by Region, 2023

Terrestrial Trunked Radio Market Drivers:

• Enhanced Capabilities for Critical Communications: Critical communication capabilities are being enhanced with the integration of TETRA networks and next-generation LTE networks. This allows high-speed data and multicast services to be delivered alongside secure and reliable voice services on a single platform. The hybrid networks support new applications such as video streaming, database lookup and dispatch consoles to improve situational awareness and incident management. Agencies are adopting TETRA technologies due to its ability to provide resilient, always-available communications.
• High Adoption in Public Safety and Transportation Sectors: TETRA networks play a vital role in ensuring connectivity for first responders and public safety organizations. Rapidly evolving smart city infrastructure is also contributing to increased adoption in the transportation sector. Rail networks, airports and seaports are deploying TETRA systems to enable communications across geographically dispersed locations and enhance safety and security through group communication and status messaging features. The critical nature of operations in these sectors will continue to drive investments in technologically advanced TETRA systems.
• Favorable Government Regulations and Initiatives: Supportive regulatory policies for public safety network adoption along with government funding for critical communication upgrades is contributing to market growth. National laws enforcing the implementation of TETRA networks for emergency services ensure standardization and interoperability. Government programs aimed at spectrum allocation and establishment of dedicated broadband networks also enable long-term development of advanced TETRA ecosystems. Ongoing investments to enhance capabilities is driving innovation and new product launches.
• Increased Demand for Secure and Reliable Networks: The rapidly evolving threat landscape has led to greater demand for highly secure and resilient networks. TETRA’s security architecture providing end-to-end encryption and authentication ensures confidentiality of sensitive communications. Network availability in case of disasters is also critical. TETRA’s direct mode operation provides uninterrupted services during network disruptions along with mechanisms for priority and pre-emptive access. Such mission-critical capabilities will continue to sustain market growth.

Terrestrial Trunked Radio Market Opportunities:

• Development of 5G-Ready TETRA systems: Migration to 5G-Ready TETRA systems will enable delivery of high-bandwidth applications such as real-time video and imaging. This will expand the capabilities of traditional narrowband networks while retaining critical voice services. Several advancements are underway to develop multi-mode TETRA radios capable of 5G service coverage leveraging edge computing and network slicing techniques. This convergence will support next-generation use cases across public safety and enterprise markets.
• Growing Adoption in Emerging Economies: Emerging economies are undertaking large-scale critical communication transformation projects which provide significant opportunities for TETRA vendors. Investments in technologies such as TETRA for modernizing public safety and defense networks has gained momentum. Expanding urban metro rail networks in these regions has also fueled adoption in the transportation vertical. Tailored solutions catering to limited financial resources can boost penetration in cost-sensitive markets.
• Expansion into Commercial Applications: Historically served public safety and government users, TETRA is gaining traction in commercial domains such as utilities, oil & gas, transport and hospitality sectors. Enterprises are leveraging benefits such as group communications, messaging services and integration with dispatch console solutions provided by TETRA networks. This diversification across verticals will be a key growth driver. New market players and startups adopting TETRA for small-scale deployments also offer expansion possibilities.
• Innovations in Software-Defined Radio: The evolution of software-defined radio (SDR) and platforms with in-built intelligence are transforming TETRA networks. SDR-based TETRA enables upgrading to new standards through software enhancements without replacing hardware. Cognitive features such as dynamic frequency selection and transmit power adjustment also help optimize spectrum utilization. Such innovations significantly improve network resilience, flexibility and efficiency leading to increased uptake.

Terrestrial Trunked Radio Market Trends:

• Adoption of IoT and Big Data Solutions: Integration of sensors, IoT connectivity and big data analytics is enabling intelligence enhancements across TETRA networks. Capturing health, location and situational data from network infrastructure and connected devices facilitates predictive maintenance, automation and data-driven decision making. AI-enabled analytics help derive actionable insights from the massive amount of data. Such smart networks deliver greater value and help justify investments for public safety organizations.
• Development of Multi-technology Devices: Vendors are introducing multi-technology devices capable of supporting multiple network technologies such as TETRA, LTE, WiFi within a single portable device. This allows users to take advantage of both broadband high-speed data and the reliability of TETRA networks. Dynamic switching between networks ensure access to critical voice services in all situations. Demand for such hybrid devices is expected to rise with mission-critical users looking to enhance capabilities.
• Emergence of Cloud-based Solutions: Migration of critical communications platforms to private and public cloud infrastructure is a noticeable trend. Cloud-based TETRA enables scalable solutions accessed through web-based portals without extensive hardware deployment. Features such as virtual networks, cloud-managed services, over-the-air programming reduces costs. As cloud platforms mature in terms of cybersecurity and resilience, adoption of cloud-supported TETRA will accelerate.
• Development of TETRA Direct Mode Repeaters: Repeater systems are being increasingly deployed to provide coverage across challenging environments such as underground tunnels, remote rural areas through extended TETRA radio coverage. Direct mode repeaters allow user-to-user communications without network infrastructure. Such solutions are gaining prominence to expand networks and enhance reliability of radio communications in difficult terrains.

Terrestrial Trunked Radio Market Restraints:

• High Infrastructure and Operational Costs: While TETRA provides Mission-critical capabilities, the complexity of the technology leads to substantial costs for network rollout and maintenance. Procurement, installation and management requires significant technical expertise. Upgrading existing legacy narrowband networks also involves added costs limiting adoption for organizations with budget constraints. This acts as a key challenge, especially in emerging economies.
• Interoperability Concerns: Interoperability between different vendor equipment and between TETRA networks of different public safety organizations continues to pose issues. This hinders information exchange and coordinated response during major incidents. Developing standards-based solutions through industry collaboration can help overcome these challenges and drive uptake.
• Spectrum and Frequency Allocation: Obtaining sufficient spectrum for TETRA deployment remains difficult in densely populated urban regions. Lack of globally harmonized frequency bands allocated for public safety agencies also leads to interoperability and roaming issues. Allocation of additional targeted spectrum by governments and standardization of frequencies can help address these limitations.

Recent Developments

New product launches

• In September 2022, Motorola Solutions launched MOTOTRBO Ion smart radio with enhanced capabilities for SMEs. This provides improved voice communications, location tracking and analytics.
• In January 2021, Hytera Communications launched multi-mode advanced radios H-Series for hybrid analog and digital operations. This allows smooth migration to digital technology.
• In March 2020, Sepura launched SC20 series TETRA radios with 40% smaller footprint and 30% reduced power consumption. It ensures optimized performance across all radio systems.

Acquisition and partnerships

• In May 2022, Motorola Solutions acquired Calipsa, a video analytics and AI software provider for expanding video security offerings. This enhances real-time monitoring capabilities.
• In March 2021, Hytera Communications partnered with Infocomm Media Development Authority of Singapore for developing advanced TETRA radios with LTE capabilities. This allows high-speed data transmission.
• In December 2020, Sepura acquired Fylde Micro, a RF signal processing specialist. This strengthens Sepura's position in software defined radio market.

Figure 2. Global Terrestrial Trunked Radio Market Share (%), by Frequency, 2023

Top companies in Terrestrial Trunked Radio Market

• Motorola Solutions
• JVCKENWOOD
• Hytera Communications
• Sepura
• Simoco Wireless Solutions
• Tait Communications
• Codan Radio Communications
• Cisco Systems
• Harris Corporation
• PowerTrunk

Definition: Terrestrial Trunked Radio (TETRA) refers to a professional mobile radio standard developed specifically for mission critical communications usage by government organizations. It provides secure, encrypted and reliable wireless communication services to teams working in challenging environments through the use of radio systems.

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