Press release
Rising Defense Spending Enhances Software-Defined Radio Market Strengthening Defense Communication Systems Driver: Leading Transformation in the Software Defined Radio Market in 2025
The anticipated growth in the software-defined radio market is likely to be spurred by heightened defense expenditures towards advancing defense communication systems. The defense industry equips soldiers with innovative technology that delivers tactical advantages during conflicts, improving aspects such as data transmission proficiency, audible voice quality, and exactness in data transmission mechanisms. These progressive communication systems play a crucial role in the preservation of classified data within the defense sector. Coupled with the rising instances of cross-border altercations and acts of terrorism, defense communication investments are on an upward trajectory. This will probably result in heightened utilization of state-of-the-art communication systems for improved security and safety measures. For illustration, in the fiscal year 2023/24, the UK Parliament and the UK-based government reported defense outlays totaling £54.2 billion. This expenditure is forecasted to rise to £57.1 billion in 2024/25, indicating a 4.5% surge in real terms. Hence, the escalation in defense expenditures on communication systems is set to bolster the growth of the software-defined radio market.
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How will the growth rate of the software defined radio market shape industry trends by 2034?
In recent times, there has been significant growth in the size of the software defined radio market. It is projected to expand from $23.35 billion in 2024 to $24.84 billion in 2025, marking a compound annual growth rate (CAGR) of 6.4%. The expansion witnessed in the historical period is credited to the progression of digital signal processing technologies, the proliferation of wireless communication standards, the increasing demand for adaptable and reconfigurable radio systems, and advancements in software-defined radio (SDR) hardware, along with the escalating applications in the military and defense sectors.
The market size for software defined radio is predicted to witness a substantial expansion in the upcoming years, ballooning to $36.58 billion by 2029 with a compound annual growth rate (CAGR) of 10.2%. This anticipated growth during the forecast period can be linked to the embracing of 5g technology and beyond, artificial intelligence's integration into SDR, its growing use in public safety and emergency communication, the propagation of SDR in internet of things (IoT) devices, and a focus on spectrum efficiency and dynamic spectrum access. Significant trends projected for the forecast period encompass the use of software-defined radio in cognitive radio networks, the creation of open-source software for SDR, the deployment of SDR in satellite communication systems, the creation of portable and handheld SDR solutions, and the integration of SDR with edge computing for low latency.
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What trends are poised to drive the future success of the software defined radio market?
The rise of technological innovation is a predominant trend observed in the software-defined radio market sphere. The growth and maturation of software-defined radio technology, paired with hardware advancements have led to cost reductions and performance enhancements. These radios, offering a marked edge over conventional hardware-based radio designs, find their applications in sectors requiring software-defined radio processing. Prominent players in the market are driving innovation for smooth communication processes. To elaborate, Elta Systems, an Israel-based defense and aerospace firm, launched the ARC 840 SDR - Network Centric Operations (SDR-NCO) airborne communication system, in March 2023. Compliant with the newest SCA 4.1 standard from the US Joint Tactical Networking Centre, this software-defined radio delivers capabilities for voice, video, and data communications. The ARC 840 operates across VHF, UHF, and L-band ranges, enabling interoperability with a range of military and commercial radios and fostering communication between air, ground, and sea forces. The system's modular blueprint offers two interchangeable RF modules for mission-specific customization and includes advanced security features like frequency hopping and low probability of intercept (LPI) techniques, thus ensuring safe communications.
Which primary segments of the software defined radio market are driving growth and industry transformations?
The software defined radio market covered in this report is segmented -
1) By Type: Joint Tactical Radio System (JTRS), Cognitive Radio, General Purpose Radio, Terrestrial Trunked Radio (TETRA), Other Types
2) By Component: Hardware, Software, Service
3) By Platform: Airborne, Naval, Land, Space
4) By Frequency Band: High Frequency (HF), Very High Frequency (VHF), Ultra-High Frequency (UHF), Other Bands
5) By End-Users: Aerospace And Defense, Telecommunication, Public Safety, Commercial, Other End-Users
Subsegments:
1) By Joint Tactical Radio System (JTRS): Handheld Radios, Vehicular Radios, Base Station Radios
2) By Cognitive Radio: Spectrum Sensing, Dynamic Spectrum Access, Network Management
3) By General Purpose Radio: VHF Radio, UHF Radio, HF Radio
4) By Terrestrial Trunked Radio (TETRA): Mobile TETRA Radios, Portable TETRA Radios, Infrastructure Equipment
5) By Other Types: Satellite Radios, Mesh Network Radios, Commercial Off-The-Shelf (COTS) Radios
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Which geographical regions are pioneering growth in the software defined radio market?
North America was the largest region in the modular data center market in 2024.Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the software defined radio market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
Who are the influential players reshaping the software defined radio market landscape?
Major companies operating in the software defined radio market include Elbit Systems Ltd., L3Harris Technologies Inc., BAE Systems plc, General Dynamics Corporation, Leonardo S. p. A., Aselsan A. S., Bharat Electronics Limited, Cobham plc, Collins Aerospace, Curtiss-Wright Corporation, Data Link Solutions LLC, Epiq Solutions, FlexRadio Systems, Giga-tronics Inc., L3Harris Technologies Inc., Huawei Technologies Co. Ltd., Indra Sistemas S. A., Israel Aerospace Industries Ltd., LIG Nex1 Co. Ltd., Microtelecom S. r. l., NXP Semiconductors N. V., Pentek Inc., Rafael Advanced Defense Systems Ltd., Raytheon Technologies Corporation, Rockwell Collins Inc., Rohde & Schwarz GmbH & Co. KG, Rolta India Limited., SDRplay Limited., Signal Hound, Silvus Technologies Inc., Thales Group, Ultra Electronics Holdings, VectorNav Technologies, ViaSat Inc., Wind River Systems Inc.
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What Is Covered In The Software Defined Radio Global Market Report?
•Market Size Forecast: Examine the software defined radio market size across key regions, countries, product categories, and applications.
•Segmentation Insights: Identify and classify subsegments within the software defined radio market for a structured understanding.
•Key Players Overview: Analyze major players in the software defined radio market, including their market value, share, and competitive positioning.
•Growth Trends Exploration: Assess individual growth patterns and future opportunities in the software defined radio market.
•Segment Contributions: Evaluate how different segments drive overall growth in the software defined radio market.
•Growth Factors: Highlight key drivers and opportunities influencing the expansion of the software defined radio market.
•Industry Challenges: Identify potential risks and obstacles affecting the software defined radio market.
•Competitive Landscape: Review strategic developments in the software defined radio market, including expansions, agreements, and new product launches.
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