Terrestrial Trunked Radio Market Share, Size & Trends Analysis Report By Modes of Operation (TMO, DMO), By Component, By Device (Vehicular, Portable), By Application, And Segment Forecasts, 2018 - 2025

Industry Outlook

The global terrestrial trunked radio market size was valued at USD 1.51 billion in 2016. It is expected to expand at a CAGR of 17.8% over the forecast period. Growing demand for secure communication and safety is one of the key trends escalating market growth. Additionally, influx of smartphone applications for public safety is further fueling demand for terrestrial trunked radio (TETRA) approved equipment.

Equipment that comply with TETRA standards offer advanced features such as integrated GPS and navigator to enable users to receive precise target location. It also aids in storing and sharing data with other users via wired and wireless connection for enhancing communication. Additionally, they enable users to experience greater audio quality by offering noise-canceling chip.

The European Telecommunications Standards Institute (ETSI) developed a set of standards for infrastructure for common mobile radio communication across Europe. This set of standards is known as TETRA. These standards are primarily focused on public safety groups and voice & data communications service providers. TETRA is a two-way transceiver specification. It is designed to provide secure and highly scalable safety to government agencies, public safety networks, and others against external manipulation. Some of the major features offered by TETRA radios are multi-organization interoperability, built-in Bluetooth & GPS, authentication & encryption functionality, and others.

Technological advancements and surging demand for secured communication and public safety are prompting radio manufacturers to incorporate applications in their devices. Some of the features offered by these applications are GIS, fingerprint scanning, combined call attendance, call recording, alarms, and events & call priority management in critical situations. Inclusion of these applications is estimated to boost the growth of the market.

High cost of development and maintenance of communication equipment is projected to inhibit the growth of the market. Infrastructure development requires high capital investments. Incorporating capabilities to co-exist with other services require further hardware integration, which leads to more complexities. These factors, along with stringent requirements to obtain TETRA license, are poised to hinder market growth.

Modes of Operation Insights

The direct mode operation segment is anticipated to be the fastest-growing segment over the forecast period. Enhanced network coverage and air interface encryption offered by this mode are bolstering the growth of the segment. However, trunked mode operation provides features such as call authorization, call forwarding, and call recording. These features enable users to experience enhanced communication.

Additionally, there is a rising need for seamlessly connected infrastructure to increase efficiency of devices, which is a challenge for providers. TETRA-approved equipment providers focus on developing features that do not require a connected infrastructure to overcome the challenge. The trunked mode operation (TMO) segment is likely to remain at the forefront throughout the forecast period.

Component Insights

TETRA software offers numerous benefits. For instance, they enable users to create and edit profiles of subscribers. Additionally, benefits such as image transmission offered by the software are encouraging consumers to opt for this component type. Therefore, the software segment is expected to expand at the highest CAGR of 18.7% during the forecast period.

TETRA hardware also offers several advantages; for instance, they provide alerts to users in case of an emergency. Furthermore, they also offer durability and man-down functionalities. These benefits are estimated to fuel the adoption of this component over the forecast period. Hardware will continue to be the most prominent segment throughout the same period.

Device Insights

On the basis of device, the terrestrial trunked radio market has been segmented into portable and vehicular. Portable TETRA-approved equipment are acknowledged for their merits such as emergency call feature to users and Bluetooth connectivity. These merits are encouraging consumers to opt for this device type. Therefore, the segment is poised to exhibit a noteworthy CAGR during the forecast period.

Vehicular TETRA-approved equipment also offer various benefits; for instance, they provide night mode that enables users to view the console under challenging lighting conditions. Besides this, they offer call priority and user authentication functionalities. These benefits are augmenting the adoption of vehicular TETRA-approved devices.

Application Insights

TETRA-approved equipment offer functionalities such as multi-organization interoperability, alert management, network monitoring, and enhanced battery life, which are ideal for public safety & government, transportation & logistics, and other sectors. These functions enable users to experience enhanced communication. The equipment also support connectivity with various mobile applications that assist users in receiving real-time location information.

They feature OLED displays that display information pertaining to battery consumption. This feature allows users to manage the device usage. Furthermore, TETRA-approved equipment enable users to share data from a device via wired and wireless connections, thereby, enhancing communication.

Regional Insights

Europe held the largest share in 2016, owing to various projects undertaken by governments to encourage adoption of TETRA-approved equipment. However, Asia Pacific is projected to exhibit a higher CAGR during the forecast period due to growing demand for public safety and developed IT infrastructure. Soaring adoption of these devices by sectors such as utilities is further driving the regional market.

In the RoW region, burgeoning use of TETRA-approved equipment by the public safety & government sectors is propelling the regional market. For instance, the Federal Police of Brazil uses TETRA-approved equipment to receive enhanced network coverage.

Terrestrial Trunked Radio (TETRA) Market Share Insights

Some of the prominent companies operating in the market are Thales Group; Airbus Defence and Space oy; Simoco Wireless Solutions; JVCKENWOOD Corporation; and Motorola Solutions, Inc. The key players in the market are focusing on collaborating with other players. Moreover, they are making huge investments in R&D to develop innovative solutions and gain a competitive edge over others.

Various companies undertake mergers & acquisitions to gain a competitive edge. For instance, in 2016, Motorola Solutions, Inc. acquired Airwave Solutions Limited, a public safety network provider, for approximately USD 1.2 billion to expand its Managed & Support Services business and regional presence in the U.K. communication markets.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and analyzes the industry trends in each of the sub-segments from 2014 to 2025. For this study, Grand View Research has segmented the global terrestrial trunked radio (TETRA) market report based on modes of operation, components, devices, applications, and regions:

• Modes of Operation Outlook (Revenue, USD Million, 2014 - 2025)

  • Trunked Mode Operation (TMO)

  • Direct Mode Operation (DMO)

• Component Outlook (Revenue, USD Million, 2014 - 2025)

  • Hardware

  • Software

• Device Outlook (Revenue, USD Million, 2014 - 2025)

  • Portable

  • Vehicular

• Application Outlook (Revenue, USD Million, 2014 - 2025)

  • Transportation & Logistics

  • Public Safety & Government

  • Utilities

  • Defense

  • Commercial & Industry

  • Others

• Regional Outlook (Revenue, USD Million, 2014 - 2025)

  • North America

    • The U.S.

    • Canada

  • Europe

    • The U.K.

    • Germany

  • Asia Pacific

    • China

    • Japan

  • RoW