TETRA was specifically designed for use by government agencies, emergency services, transport services, defense and commercial companies requiring reliable communications. TETRA addresses the need for interoperability between different organizations and in hazardous situations. It offers enhancements over previous standards such as enhanced security, priority call handling, group communications and support for data applications. TETRA networks are used by police departments, fire services, ambulance services, and other security organizations around the world who require robust and reliable communications.
The global Terrestrial Trunked Radio (TETRA) Market is estimated to be valued at US$ 4.9 billion in 2023 and is expected to exhibit a CAGR of 4.8% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity:
Wide application in public safety networks is estimated to drive the growth of the Terrestrial Trunked Radio Market. Public safety organizations require secure, resilient communication systems that provide reliable group and individual communication. TETRA technology fulfills this need with features such as priority call handling, pre-emption and security functionalities. Transition from aging analog systems to digital TETRA networks by police, fire and ambulance services in developed as well as developing regions is expected to create significant demand over the forecast period.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate as the terrestrial trunked radio market requires massive investments in network infrastructure and equipment. However, new digital technologies can help new firms enter this market.
Bargaining power of buyers: The bargaining power of buyers is high due to the presence of a large number of terrestrial trunked radio solution providers in the market. Buyers can negotiate on price and demand additional services.
Bargaining power of suppliers: The bargaining power of suppliers is low given the presence of many component manufacturers and solution providers. Suppliers do not have pricing leverage.
Threat of new substitutes: The threat of substitutes is moderate as push to talk over cellular and other wireless communication technologies can be used for similar applications as terrestrial trunked radios.
Competitive rivalry: The competitive rivalry is high among the key players to gain market share through product innovation, partnerships, and geographic expansions.
SWOT Analysis
Strength: Terrestrial trunked radios offer two-way communication solutions for applications demanding instant & reliable connectivity. New digital technologies offer high quality audio/video communication.
Weakness: High initial investments and maintenance costs of terrestrial trunked radio networks limit their adoption. Analog radio networks face obsolescence risks due to migration to digital technologies.
Opportunity: Growing demand for industrial grade communication from utilities, transport, public safety sectors boosts market revenues. Adoption in developing regions lacking communication infrastructure presents opportunities.
Threats: Substitution by cellular networks and IP-based communication poses key threat. Regulations regarding spectrum allocation and licensing policies affect terrestrial trunked radio adoption.
Key Takeaways
The global terrestrial trunked radio market is expected to witness high growth during the forecast period. North America dominates the market currently due to wide adoption across various industries. Growing infrastructure development activities are driving demand.
Europe is the second largest regional market for terrestrial trunked radios led by countries such as the U.K., Germany, and France. Increasing investments to enhance public safety communication networks support the market growth.
Key players operating in the terrestrial trunked radio market are Motorola Solutions, Hytera Communications Corporation Ltd., Sepura, Simoco, DAMM Cellular Systems A/S, Rohill Engineering B.V., Bitea Limited, and Rolta India Limited.
Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it