Market Trends of Software Defined Radio Industry
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 imperative for efficient and interoperable communication in emergency response scenarios augments the land segment's market share. 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 due to the integration of software-defined radios into infantry soldiers and armored vehicles for secured communication. 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 to procure and deploy 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. Most of the investments are in modernizing the land, air, and sea platforms. In addition, the investments are directed toward procuring 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 replacing existing radio systems with indigenously developed SDR systems in 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 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 market's growth in the Asia-Pacific region during the forecast period.
