Software Defined Radio (SDR) Market - Trends Forecast Till 2028

Market Overview

Global Software Defined Radio Market value is anticipated to reach USD 5.7 billion in 2021 growing at a CAGR of 7.8% during the forecasting period, 2021-2028. 

An SDR radio or software-defined radio system is a radio design where all the components are joined together with the help of software and not by the conventional method of hardware. These softwares are embedded on a personal computer or a system. An SDR has properties of signal bandwidth, modulation, etc. With advancing technology a modern SDR can easily contrivance other features of forwarding error correction coding, source coding of voice, data, software all of them. SDRs are assisting engineers in solving numerous difficulties in the T&M business due to their flexibility, programmability, intrinsic capacity of dealing with many channels, and high performance. Capturing enormous instantaneous bandwidths, for example, is required in numerous T&M applications, but it is extremely difficult to execute in traditional RF systems, particularly when working with high frequencies (e.g., millimeter-wave). SDRs outperform conventional systems in bandwidth capturing because to their software-based signal processing and low latency, while also enabling more flexibility due to their large tuning range.

Government officials are involved in strategic investments and partnerships with corporations to supply fresh SDRs. For example, Collins Aerospace, a Raytheon Technologies Corporation firm, obtained a contract for about USD 406 million from the US Army in February 2019 for the acquisition of the ARC-231A radio system. Contracts and agreements of this nature will encourage the use of new SDR products in the communication system industry. Growing use of software-defined radios in telecommunications, as well as different technological advancements in SDRs Because of the increased need for more flexible and software-programmable communication equipment, the software-defined radio (SDR) industry has grown worldwide significantly.

Rising trends for software-defined radios in essential communication systems used for important missions in the space and aerospace industries will drive market expansion. Because it improves satellite performance and permits accurate operation across several frequency bands, SDR is widely utilised in space communication.

Also Check Report on 5G in Aviation Market

As per software defined radio market report, the primary applications demonstrating increased demand for various types of software-defined radios are military communication and homeland security and emergency management. According to a new analysis from the Stockholm International Peace Research Institute, global military spending would reach USD 1981 billion in 2020, up 2.6% from 2019. Law enforcement agencies are collaborating with extra troops to ensure proper law and order, which is supporting the growth of global demand for software-defined radios in military applications. Earlier radios were bulky and large (in weight and size), and hence did not match the mobility needs of troops stationed in rough terrain. These mobility-related requirements, as well as the implementation of communication concepts, have contributed to the demand for lighter and more agile SDR systems.

Also Check Report on 5G in Defense Market

In our software-defined radio market analysis, we find that the increased usage of IoT and wireless devices favours the software-defined radio business. Furthermore, as wireless sensor networks become mainstream, demand for SDRs is projected to surge. In recent years, there has been a noticeable rise in the spectrum range accessible for wireless communications. The introduction of the telecommunications organisation partnership's 3rd Generation Partnership Project (3GPP) calls for the quick adoption of commercial cellular technologies such as LTE and LTE-Advanced, which stimulates demand for SDRs. LTE is now utilised at frequencies ranging from 450 MHz to 3.8 GHz, although it is expected to reach 5 GHz in the near future. Furthermore, radio frequency spectrum analyzers and global positioning systems use software-defined radio.

Also Check Report on 5G Market

The pandemic has also had an influence on the production of software defined radio systems, subsystems, and components. Although the production of software defined radios for military purposes is critical, supply chain issues have temporarily halted production. Some enterprises in non-hotspot nations have resumed limited operations in accordance with official safety recommendations.

When installing or loading new software in an SDR unit through an over-the-air update, the risk of a security compromise is considerable.  Unauthorized and potentially harmful software is very likely to be installed on the selected platform.  Concerns about unlicensed codes limit market expansion due to the risk of compromising the security of users' assets as well as dangers to the communication capabilities of the devices.

Companies are working on expanding their profitability by providing consumers with a diverse selection of modern IP radio systems, owing to their growing global demand. Sales of such goods will also deliver new or improved services to the networking sector while lowering transaction costs and improving the end-user experience.

The use of different technologies, including time-division multiplexing (TDM), voice over internet protocol (VoIP), satellite communications, cryptographic devices, tactical radios, cellular, SCIP, Wi-Fi, and WiMAX, has resulted in a number of compatibility problems. The installation of multiple types of modems in a communication network has also resulted in interoperability challenges due to protocol variations when suppliers add their particular value-added protocols based on mission requirements. Several Army Warfighter Information Network-Tactical (WIN-T) units and combat support divisions purchase such modems and related items to match their platforms or architectures. Variability in network infrastructure can also be a hindrance due to the difficulty of distinct protocols communicating with one another.

Key Findings

Global Software Defined Radio Market is segmented into Platform, Application, Type, Frequency Band, Component, and geography.

Platform segment is segmented into Land, Airborne, Naval, and Space

Application segment is segmented into Defence, Commercial

Type segment is segmented into General Purpose Radios, Cognitive/Intelligent Radio, and Terrestrial Trunked Radio

Frequency segment is segmented High Frequency (HF), Very High Frequency (VHF), Ultra High Frequency (VHF), and Others

Component segment is segmented into Hardware, Software & Services

Geographically, Global Software Defined Radio Market is sub-segmented into North America, Europe, Asia-Pacific, Middle East and Africa, and, South America and insights are provided for each region and major countries within the regions

Competitive Landscape

Key players in Global Software Defined Radio Market are L3harris Technologies, Inc. (US), Raytheon Technologies Corporation (US), BAE Systems (UK), Northrop Grumman Corporation (US), Thales (France), and Elbit Systems (Israel) Ltd among others. 

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Report Scope