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Software Defined Radio - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)

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  • 110 Pages
  • February 2024
  • Region: Global
  • Mordor Intelligence
  • ID: 5332877
UP TO OFF until Mar 31st 2024
The Software Defined Radio Market size is estimated at USD 20.19 billion in 2024, and is expected to reach USD 27.64 billion by 2029, growing at a CAGR of 6.49% during the forecast period (2024-2029).

The increasing investments toward modernization of C4ISR and battle management systems as well as enhancement of situational awareness of the armed forces, fuelled by the increase in defense spending by major economies, is expected to drive the growth of the SDR market.

The inherent versatility of SDR, allowing for dynamic reprogramming and adaptation to different communication standards, is a key driver. This adaptability fosters interoperability between disparate communication systems, making SDR an attractive solution for military applications. Military modernization programs worldwide contribute significantly to the growth of the SDR market. The adaptability of SDR aligns with the evolving communication needs of modern armed forces, allowing for secure and agile communication in diverse operational scenarios.

The common platform architecture of the software-defined radios (SDRs) reduces development costs dramatically and simplifies the process of developing new products. Due to such advantages, the adoption of SDRs for dismounted military personnel as well as vehicular platforms is expected to accelerate the growth of the market during the forecast period.

Software Defined Radio Market Trends

The Land Segment Accounted for a Major Share of Revenue in 2023

The land segment currently dominates the market and is expected to continue its dominance during the forecast period. The land segment exhibits a substantial demand for SDR due to tactical communication requirements. SDR's adaptability is crucial in military operations, providing troops with flexible and secure communication capabilities tailored to specific mission needs. The land segment's market share is augmented by the imperative for efficient and interoperable communication in emergency response scenarios. SDR's programmability ensures seamless coordination among various platoons during crises, making it an essential component for land-based communication networks.

Moreover, the increased demand is majorly due to the integration of software-defined radios into infantry soldiers and armored vehicles for secured communication. Currently, the various armies are replacing their existing infrastructure with SDRs for more secure communication channels between ground-to-air and ground-to-ground platforms. In February 2021, Ultra Electronics was awarded a delivery order for the procurement and deployment of ORION radio systems to the US Army. This contract was worth USD 26.7 million and is a part of the USD 497 million indefinite award/indefinite-quantity (IDIQ) contract provided to the company in 2019, under the TRILOS Radio Program of the US Army. Ultra Electronics has delivered more than 500 ORION SDR systems since the inception of the program. Such plans of the armed forces will drive the growth of this segment during the forecast period.

Asia-Pacific Expected to Witness Highest Growth During the Forecast Period

The Asia-Pacific region is expected to generate demand for SDRs primarily due to the growing tension among major economies, which has resulted in higher defense spending on enhancing situational awareness. Military modernization initiatives prioritize adaptable communication systems, aligning with SDR's capabilities. The majority of the investments are in the modernization of the land, air, and sea platforms. In addition, the investments are directed toward the procurement of advanced communication systems that will enhance their battlefield capabilities and situational awareness of the military personnel in complex terrain. For instance, India has been rapidly investing in the replacement of existing radio systems with indigenously developed SDR systems into various platforms of the armed forces. In this regard, in February 2021, the Indian Ministry of Defense (MoD) selected Bharat Electronics Limited (BEL) for the acquisition of Software Defined Radio Tactical (SDR-Tac) over a period of three years. The contract was worth USD 136.9 million (USD 1,000 crore). Such investments into the deployment of SDR are expected to propel the growth of the market in the Asia-Pacific region during the forecast period.

Software Defined Radio Industry Overview

Despite the presence of many regional and international players in the market, a few players accounted for a majority share in the software-defined radio market. Some of the prominent players in the market include L3Harris Technologies Inc., General Dynamics Corporation, Leonardo S.p.A., Elbit Systems Ltd, and Ultra Electronics. The market is witnessing huge investment and technological enhancement due to the future potential of software-based communication and high-volume data-sharing technology in the defence industry. In addition to this, the companies are partnering with armed forces to supply and deliver advanced SDRs for their infantry troops and vehicle platforms. For instance, Elbit Systems Ltd partnered with various armed forces across North American, European, and Asia-Pacific regions. In April 2021, Leonardo was selected by Boeing to provide SWave Airborne SDR SRT-800 radios for the E-3A Airborne Warning and Control System (AWACS) aircraft fleet for the NATO countries. The contract was awarded under the Final Lifetime Extension Programme (FLEP) to extend its operational viability through 2035. The SRT-800 radios can replace several avionic units that have traditionally been separate units, including UHF/VHF radio, SATCOM, SINCGARS, and a crypto device. Such partnerships are anticipated to further enhance the geographical footprint of the companies in the market.

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Table of Contents

1.1 Study Assumptions
1.2 Scope of the Study
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 Porter's Five Forces Analysis
4.4.1 Bargaining Power of Buyers/Consumers
4.4.2 Bargaining Power of Suppliers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
5.1 Platform
5.1.1 Land
5.1.2 Sea
5.1.3 Air
5.2 Geography
5.2.1 North America United States Canada
5.2.2 Europe United Kingdom France Germany Russia Rest of Europe
5.2.3 Asia-Pacific China India Japan Australia Rest of Asia-Pacific
5.2.4 Latin America Brazil Mexico Rest of Latin America
5.2.5 Middle-East and Africa Saudi Arabia Israel Turkey South Africa Rest of Middle-East and Africa
6.1 Vendor Market Share
6.2 Company Profiles
6.2.1 Northrop Grumman Corporation
6.2.2 Elbit Systems Ltd.
6.2.3 BAE Systems plc
6.2.4 THALES
6.2.5 General Dynamics Corporation
6.2.6 RTX Corporation
6.2.7 L3Harris Technologies Inc.
6.2.8 Leonardo S.p.A.
6.2.9 Rafael Advanced Defense Systems Ltd.
6.2.10 ASELSAN A.S.
6.2.11 Israel Aerospace Industries Ltd.
6.2.12 Ultra Electronics

Companies Mentioned

A selection of companies mentioned in this report includes:

  • Northrop Grumman Corporation
  • Elbit Systems Ltd
  • BAE Systems PLC
  • Thales Group
  • General Dynamics Corporation
  • Raytheon Technologies Corporation
  • L3Harris Technologies Inc.
  • Leonardo SpA
  • Rafael Advanced Defense Systems Ltd
  • Israel Aerospace Industries Ltd
  • Ultra Electronics Holdings