Software Defined Radio (SDR) Market Size, Share & Trends Report

Software Defined Radio (SDR) Market Size, Share & Trends Analysis Report By Type, By Component (Hardware, Software), By Application (Telecommunication, Aerospace & Defense), And Segment Forecasts, 2019 - 2025

  • Published Date: Nov, 2019
  • Base Year for Estimate: 2018
  • Report ID: GVR-3-68038-911-1
  • Format: Electronic (PDF)
  • Historical Data: 2014 - 2017
  • Number of Pages: 252

Industry Insights

The global software defined radio (SDR) market size was estimated at USD 18.8 billion in 2018 and it is anticipated to exhibit a CAGR of 8.6% during the forecast period. Increase in defense spending and focus on improving defense communication systems is a major factor driving the market. In addition, the market has witnessed considerable growth owing to increasing need for communication devices to be more flexible and software configurable.

Software defined radio is enabling users to receive signals from multiple mobile standards such as WiMAX and GSM. To fulfill the growing demand for higher data speed that requires additional hardware expenses on core network, mobile operators are increasingly adopting SDRs.The advantages offered by SDR systems that enable improvement in connectivity solutions by eliminating hardware constraints are expected to drive the market. Moreover, SDR and Network Function Virtualization (NFV) are expected to play a major role in the integration of different communication technologies.The 5G radio access is based on SDR/NFV infrastructure, which is another factor propelling the market.

U.S. software defined radio market

Growth in the penetration of IoT and wireless devices bodes well for the growth of the market.In 2017, there were around 30 commercial deployments of NB-IoT and LTE-M in 20 countries, including U.S., China, and countries across the Europe. The GSM association predicts that till 2025, the number of IoT-connected devices would reach 3.1 billion globally, amounting to 12% of the total IoT connections. In addition, rising popularity of wireless sensor networks is anticipated to propel demand for SDRs.

Increase in spectrum range for wireless communications is a prominent trend observed in recent years. The inception of 3rd Generation Partnership Project (3GPP) under a telecommunications organizational partnership calls for rapid deployment of LTE and LTE Advanced commercial wireless technology. While LTE technology is used between 450 MHz and 3.8 GHz at present, the market could witness the crossing of 5 GHz in the near future. Besides, SDR is used in applications such as radio frequency spectrum analyzers and global positioning systems.

Developments in cellular infrastructure technology has undergone developments such as changes in RF amplifier technology. For instance, smartphone designs have foreseen the implementation of technologies such as Surface Acoustic Wave (SAW) and Bulk Acoustic Wave (BAW). The pricing factor for these has also relatively narrowed due to low power filter requirements and confined fractional bandwidth. On the contrary, the disadvantages of using SDR technology include development of an SDR with hardware and software platform, which is expensive. The conversion of analog to digital may also limit the top frequencies present in the digital section.

Type Insights

Based on type, the market has been segmented into General Purpose Radio, Joint Tactical Radio System (JTRS), Cognitive Radio, and TETRA. The JTRS segment dominated the market in 2018. The technology is majorly used in the defense forces since it comprises multi-mode/multi-band pre-emptive radio sets that enable simultaneous voice and data communication capacities to the warfighter. Based on Software Communications Architecture 4.0 (SCA), an open systems architecture forms an essential component of JTRS. The U.S. Department of Defense’s JTSR program is a driving force behind the growth of this segment.

Terrestrial Trunked Radio (TETRA) is the fastest growing segment and is an open digital private mobile radio standard in the international market. It contains high functionality for emergency services and is suitable for commercial trunked radio users. TETRA specifies certain interfaces such as air interface, terminal equipment, direct mode operation, and inter-system interface to function effectively in the multivendor market. TETRA is the largest land mobile radio standard that provides good spectrum efficiency and critical communication features such as short call set-up time, security, high-speed data services, and voice calls feature set on direct mode and site trunking.

Component Insights

Based on component, the software defined radio market has been segmented into hardware, software, and service. Hardware maintains a lead position in the market and accounted for the largest revenue share in 2018 owing to rising popularity of portable SDR. The growth of the hardware segment can be attributed to the combination of analog and digital technology of a single chip, which is a major factor contributing to the reduction in weight and size. In addition, growing popularity of field-programmable gate array (FPGA) with integrated analog-to-digital converters (ADCs) and digital-to-analog converters (DACs) is a significant factor driving the hardware segment.

Software components are expected to form the fastest growing segment through 2025 owing to increasing use in commercial applications. The software in SDR is used to define specifications and its functions. Software provides better flexibility for network load balancing and eliminating capacity bottlenecks for packet-switched core backhaul. On altering the software within the SDR, performance and function may change. Algorithms within SDR are downloadable and adaptable in the entire lifespan of the SDR. This enables the SDR to maintain flexibility and is ideal for commercial and defense applications. The implementation of software for applications such as global positioning system, text messaging, remote radio monitoring, accessing voice, and data information is a prominent factor driving the software segment.

Application Insights

Based on application, the SDR market has been segmented into aerospace and defense, telecommunication, public safety, commercial, and others. Software defined radio finds a major application in the defense sector owing to greater functional scope. The device offers high adaptability, interoperability, precision, clarity, and high speed. Falcon Radios, a leading player, enables wider deployment of SDR devices backed with SCA 4.0 for the defense sector. In recent years, countries are focusing on increasing the expenditure on defense, which is a major factor attributable to the growth of the aerospace and defense segment.

Europe software defined radio market

The commercial end-use segment is expected to exhibit the fastest growth over the forecast period. The major factor attributed to the growth of the commercial segment is rising adoption of SDR from industries such as automotive and transportation. Growing demand for car radios that support traditional analog systems and digital systems is expected to drive demand for commercial applications of SDR. SDR makes car radios compatible with different digital radio broadcast standards such as Digital Radio Mondiale (DRM), Digital Audio Broadcasting (DAB), and HD Radio in India, U.K., and U.K. respectively.

Regional Insights

North America accounted for the largest share in the global market in 2018, which can be attributed to the JTNC program, earlier known as JTRS. The Joint Tactical Networking Center (JTNC) provides technical support for wireless communication systems to the U.S. Department of Defense, which is likely to boost market growth. The defense sector is a major application in North America owing to research programs conducted and integration of all communication systems on the state and federal agencies. In addition, increasing funds by the U.S. government for the development of next-generation radio communication systems that are capable of accommodating X-band frequencies are supporting the regional market.

Asia Pacific is projected to emerge as the fastest growing regional market over the forecast period, owing to factors such as rise in terrorism in Southeast Asian countries and technological developments pertaining to tactical communication programs in South Korea. Other factors, such as need for communication by law enforcement during times of natural calamities and government funding for the development of SDR in countries such as Australia and China, are expected to keep the growth prospects upbeat for Asia Pacific.

Software Defined Radio (SDR) Market Share Insights

Key players in the market include Collins Aerospace Systems; Harris Corporation; Elbit Systems Ltd.; L3 Technologies, Inc.; BAE Systems; Huawei Technologies Co., Ltd.; Datasoft Corporation; Raytheon Company; and Northrop Grumman Corporation. Mergers and acquisitions, product launches, and collaboration are some of the strategies adopted by prominent players for business expansion. Moreover, space research organizations such as the National Aeronautics and Space Administration (NASA) and the European Space Agency (ESA) are focusing on development of radiation hardened electronic components that can withstand high radiations, which are used for space signal transmission in software defined radio. For instance, NASA, in partnership with the U.S. Department of Defense (DoD), developed a radiation hardened general purpose processor for SDR in December 2016.

In April 2019, L3 Technologies, Inc. merged with Harris Corporation to create L3 Harris Technologies, Inc., a global defense technology company to emphasize the development of mission-critical solutions for worldwide customers. In addition, other prominent companies have adopted new product launch as their growth strategy. For instance, in April 2019, BAE Systems launched its software defined radio assembly for space applications that satisfies the requirement of the U.S. Department of Defense.

Report Scope

Attribute

Details

Base year for estimation

2018

Actual estimates/Historical data

2014 - 2017

Forecast period

2019 - 2025

Market representation

Revenue in USD Billion and CAGR from 2019 to 2025

Regional scope

North America, Europe, Asia Pacific, Latin America, and MEA

Country scope

U.S., Canada, U.K., Germany, Australia, India, China, Japan, Brazil, Mexico

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

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Segments Covered under the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis on latest industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global software defined radio (SDR) market report based on type, component, application, and region:

  • Type Outlook (Revenue, USD Billion, 2014 - 2025)

    • General Purpose Radio

    • Joint Tactical Radio System

    • Cognitive Radio

    • TETRA

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

    • Hardware

    • Software

    • Service

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

    • Aerospace & Defense

      • Space

      • Military

    • Telecommunication

    • Public Safety

    • Commercial

    • Others

  • Region Outlook (Revenue, USD Billion, 2014 - 2025)

    • North America

      • U.S.

      • Canada

    • Europe

      • U.K.

      • Germany

    • Asia Pacific

      • India

      • China

      • Japan

      • Australia

    • Latin America

      • Brazil

      • Mexico      

    • MEA

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