The Global Terrestrial Trunked Radio Market size is expected to reach $11.89 billion by 2031, rising at a market growth of 14.6% CAGR during the forecast period.
The expanding adoption of trunked radios in industrial settings, alongside technological advancements offering more integrated solutions, suggests a continued upward trajectory for this segment in the coming years. Thus, the commercial & industry segment held 15% revenue share in the market in 2023. This segment includes manufacturing, construction, and energy sectors, where effective communication is crucial for coordinating large teams, monitoring activities, and ensuring safety. Industries in this segment rely on trunked radio systems to enhance operational efficiency, improve worker safety, and manage logistics.
The need for highly reliable communication systems in critical sectors such as public safety, emergency services, and defense is significantly driving the growth of the market. Traditional communication networks, such as GSM and LTE, often fail to provide the security, reliability, and real-time response required during emergencies. Thus, increasing demand for mission-critical communication systems drives the market's growth.
The transportation and logistics industry requires real-time communication to manage operations effectively and ensure passenger safety. With the growing complexity of transportation networks, particularly in railways, airports, and seaports—there is an increasing demand for reliable communication solutions like TETRA that support voice, data, and fleet management functionalities. In conclusion, expanding the rising transportation and logistics sector is propelling the market's growth.
However, while TETRA systems offer numerous benefits, their high initial deployment costs present a significant barrier, especially for small and medium-sized enterprises (SMEs). Setting up a TETRA network includes infrastructure expenses, such as base stations, dispatch centers, and specialized handsets, making it more expensive than traditional communication technologies. This restricts many smaller organizations from adopting TETRA systems. Therefore, high initial investment and operational costs limit adoption among SMEs.
Operation Outlook
Based on operation, the market is characterized by trunked mode operation (TMO) and direct mode operation (DMO). The direct mode operation (DMO) segment procured 45% revenue share in the market in 2023. DMO allows direct communication between two or more radios without needing a centralized base station or infrastructure, providing greater flexibility and independence.
Component Outlook
On the basis of component, the market is classified into hardware and software. The hardware segment acquired 53% revenue share in the market in 2023. The dominance of this segment is driven by the high demand for physical devices such as radios, antennas, repeaters, and base stations that form the backbone of the trunked radio communication system. These hardware components are essential for maintaining reliable, wide-area communication networks, particularly in public safety, transportation, and utilities.
Application Outlook
By application, the market is divided into public safety & government, defense, commercial & industry, transportation & logistics, utilities, and other applications. The public safety & government segment witnessed 33% revenue share in the market in 2023. This sector’s dominant market share is largely attributed to the critical need for reliable and secure communication systems in police, fire, emergency medical services, and government agencies.
Device Outlook
Based on device, the market is segmented into portable and vehicular. The vehicular segment acquired 43% revenue share in the market in 2023. Vehicular radios are commonly used in police cars, ambulances, fire trucks, and service vehicles, providing reliable communication while on the move. These devices have advanced features that ensure continuous and secure communication, even in remote or mobile environments.
Regional Outlook
Region-wise, the market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The Asia Pacific segment witnessed 28% revenue share in the market in 2023. The growing adoption of trunked radio technology in countries like Japan, China, India, and South Korea, driven by the need for reliable communication across various industries, has fueled this region’s market expansion.
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