TERRESTRIAL TRUNKED RADIO MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2023 - 2030)

The global terrestrial trunked radio market size is estimated to be valued at US$ 5.25 Billion in 2023 and is expected to reach US$ 9.78 billion by 2030, grow at a compound annual growth rate (CAGR) of 9.3% from 2023 to 2030.

Terrestrial trunked radio (TETRA) is a professional mobile radio and two-way transceiver specification designed for use by government agencies, emergency services (police forces, fire departments, ambulances) for public safety networks, rail transportation staff for train radios, transport services, and the military. TETRA provides secure, high-availability communications that allow users to communicate directly without relying on an operator or fixed infrastructure. Key drivers include increasing demand for seamless critical communication operations and growing adoption in the military and defense sectors.

The terrestrial trunked radio market is segmented by technology, application, component, frequency, and region. By technology, the market is segmented into digital, analog, professional mobile radio system, and trunked radio system. The digital technology segment is expected to dominate the market over the forecast period due to advantages such as enhanced capacity, improved audio quality, and increased security.

Terrestrial Trunked Radio Market Regional Insights

• North America is expected to be the largest market for terrestrial trunked radio during the forecast period, accounting for over 37.0% of the market share in 2023. The growth of the market in North America is attributed to high adoption in military and public safety agencies.
• Europe market is expected to be the second-largest market for terrestrial trunked radio, accounting for over 32.1% of the market share in 2023. The growth of the market in is attributed to stringent safety regulations for critical communications.
• Asia Pacific market is expected to be the fastest-growing market for terrestrial trunked radio, with a CAGR of over 22.3% during the forecast period. The growth of the market in Asia Pacific is attributed to increasing demand from transportation and utility sectors.

Figure 1. Global Terrestrial Trunked Radio Market Share (%), by Region, 2023

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Terrestrial Trunked Radio Market: Analyst Viewpoint

The global terrestrial trunked radio market appears poised for steady growth over the next five years. Major drivers of demand include the need for cost-effective and highly reliable communication solutions among public safety and commercial organizations. TTR solutions enable seamless communication between groups and offer interoperability between different networks. Their use is expanding beyond public safety into utilities, transportation, and various industries where workforce communication is critical. However, competition from alternative technologies like cellular push to talk could hamper TTR adoption in some markets. Further, the high installation and infrastructure costs associated with TTR network rollout remain a key restraint in price-sensitive regions. Also, the need for standard harmonization between equipment of different vendors sometimes poses connectivity issues. Main opportunities lie in upgrading aging analog systems to digital TTR networks with greater capacity. Demand is expected to remain strong from North American and European public safety networks. The Asia Pacific region is anticipated to emerge as the fastest-growing market, driven by infrastructure development and modernization initiatives across countries. Within APAC, China and India will potentially generate significant opportunities due to their large economies and government focus on public safety communication upgrades.

Terrestrial Trunked Radio Market Drivers:

• Enhanced Capabilities for Critical Communications: Critical communication capabilities are being enhanced with the integration of TETRA networks and next-generation Long-Term Evolution (LTE) networks. This allows high-speed data and multicast services to be delivered alongside secure and reliable voice services on a single platform. The hybrid networks support new applications such as video streaming, database lookups, and dispatch consoles to improve situational awareness and incident management. Agencies are adopting TETRA technologies due to their ability to provide resilient, always-available communications. For instance, in June 2022, Sepura, a radio manufacturer, introduced its inaugural TETRA radio, designed to function in the very high frequency (VHF) range.
• High Adoption in Public Safety and Transportation Sectors: TETRA networks play a vital role in ensuring connectivity for first responders and public safety organizations. Rapidly evolving smart city infrastructure is also contributing to increased adoption in the transportation sector. Rail networks, airports, and seaports are deploying TETRA systems to enable communications across geographically dispersed locations and enhance safety and security through group communication and status messaging features. The critical nature of operations in these sectors will continue to drive investments in technologically advanced TETRA systems.
• Favorable Government Regulations and Initiatives: Supportive regulatory policies for public safety network adoption, along with government funding for critical communication upgrades, are contributing to market growth. National laws enforcing the implementation of TETRA networks for emergency services ensure standardization and interoperability. Government programs aimed at spectrum allocation and the establishment of dedicated broadband networks also enable long-term development of advanced TETRA ecosystems. Ongoing investments to enhance capabilities are driving innovation and new product launches.
• Increased Demand for Secure and Reliable Networks: The rapidly evolving threat landscape has led to greater demand for highly secure and resilient networks. TETRA's security framework, incorporating end-to-end encryption and authentication, guarantees the privacy of sensitive communications. Network availability in case of disasters is also critical. TETRA’s direct mode operation provides uninterrupted services during network disruptions along with mechanisms for priority and pre-emptive access. Such mission-critical capabilities will continue to sustain market growth.

Terrestrial Trunked Radio Market Opportunities:

• Development of 5G-Ready TETRA systems: Migration to 5G-Ready TETRA systems will enable delivery of high-bandwidth applications such as real-time video and imaging. This will expand the capabilities of traditional narrowband networks while retaining critical voice services. Several advancements are underway to develop multi-mode TETRA radios capable of 5G service coverage leveraging edge computing and network slicing techniques. This convergence will support next-generation use cases across public safety and enterprise markets. In May 2022, NTT created a unified push-to-talk (PTT) application designed for airport personnel, allowing seamless switching between private 5G and terrestrial trunked radio (TETRA) communications.
• Growing Adoption in Emerging Economies: Emerging economies are undertaking large-scale critical communication transformation projects, which provide significant opportunities for TETRA vendors. Investments in technologies such as TETRA for modernizing public safety and defense networks have gained momentum. Expanding urban metro rail networks in these regions has also fueled adoption in the transportation vertical. Tailored solutions catering to limited financial resources can boost penetration in cost-sensitive markets.
• Expansion into Commercial Applications: Historically serving public safety and government users, TETRA is gaining traction in commercial domains such as utilities, oil & gas, transport, and hospitality sectors. Enterprises are leveraging benefits such as group communications, messaging services and integration with dispatch console solutions provided by TETRA networks. This diversification across verticals will be a key growth driver. New market players and startups adopting TETRA for small-scale deployments also offer expansion possibilities.
• Innovations in Software-Defined Radio: The evolution of software-defined radio (SDR) and platforms with in-built intelligence are transforming TETRA networks. SDR-based TETRA enables upgrading to new standards through software enhancements without replacing hardware. Cognitive features such as dynamic frequency selection and transmit power adjustment also help optimize spectrum utilization. Such innovations significantly improve network resilience, flexibility, and efficiency, leading to increased uptake.

Terrestrial Trunked Radio Market Trends:

• Adoption of IoT and Big Data Solutions: Integration of sensors, IoT (Internet of Things) connectivity, and big data analytics is enabling intelligence enhancements across TETRA networks. Capturing health, location, and situational data from network infrastructure and connected devices facilitates predictive maintenance, automation and data-driven decision making. AI-enabled analytics help derive actionable insights from the massive amount of data. Such smart networks deliver greater value and help justify investments for public safety organizations.
• Development of Multi-technology Devices: Vendors are introducing multi-technology devices capable of supporting multiple network technologies such as TETRA, LTE, and WiFi within a single portable device. This allows users to take advantage of both broadband high-speed data and the reliability of TETRA networks. Dynamic switching between networks ensures access to critical voice services in all situations. Demand for such hybrid devices is expected to rise with mission-critical users looking to enhance capabilities.
• Emergence of Cloud-based Solutions: The migration of critical communications platforms to private and public cloud infrastructure is a noticeable trend. Cloud-based TETRA enables scalable solutions to be accessed through web-based portals without extensive hardware deployment. Features such as virtual networks, cloud-managed services, and over-the-air programming reduces costs. As cloud platforms mature in terms of cybersecurity and resilience, adoption of cloud-supported TETRA will accelerate.
• Development of TETRA Direct Mode Repeaters: Repeater systems are being increasingly deployed to provide coverage across challenging environments such as underground tunnels and remote rural areas through extended TETRA radio coverage. Direct-mode repeaters allow user-to-user communications without network infrastructure. Such solutions are gaining prominence to expand networks and enhance reliability of radio communications in difficult terrain.

Terrestrial Trunked Radio Market Restraints:

• High Infrastructure and Operational Costs: While TETRA provides mission-critical capabilities, the complexity of the technology leads to substantial costs for network rollout and maintenance. Procurement, installation, and management require significant technical expertise. Upgrading existing legacy narrowband networks also involves added costs limiting adoption for organizations with budget constraints. This acts as a key challenge, especially in emerging economies. While the initial investment might be substantial, the long-term benefits often outweigh the upfront costs. TETRA's robust and proven track record in facilitating seamless communication for critical operations, such as public safety, transportation, and utilities, offers a high return on investment.
• Interoperability Concerns: Interoperability between different vendor equipment and between TETRA networks of different public safety organizations continues to pose issues. This hinders information exchange and coordinated response during major incidents. Developing standards-based solutions through industry collaboration can help overcome these challenges and drive uptake. By establishing and adhering to common industry standards, organizations and vendors can work collaboratively to bridge interoperability gaps. These standardized solutions foster compatibility between different systems and equipment, enabling smooth communication exchanges among various TETRA networks.
• Spectrum and Frequency Allocation: Obtaining sufficient spectrum for TETRA deployment remains difficult in densely populated urban regions. Lack of globally harmonized frequency bands allocated for public safety agencies also leads to interoperability and roaming issues. Allocation of additional targeted spectrum by governments and standardization of frequencies can help address these limitations. However, initiatives aimed at resolving these limitations are gaining traction. Governments are increasingly recognizing the critical need for dedicated spectrum for public safety communications and are actively considering additional spectrum allocations.

Recent Developments

New product launches

• In May 2023, Sepura is a leading provider of critical communications solutions, specializing in the design, development, and manufacturing of radio communication devices and systems for public safety, industrial, and commercial applications introduced a simplified TETRA handheld device.
• In April 2023, Hytera Communications, a prominent global supplier of professional communication technologies, broadened its TETRA radio lineup with the launch of PT590. This portable TETRA radio is built to deliver exceptional coverage, superior audio, and enhanced safety and productivity features. It aims to empower frontline workers with the capabilities needed for prompt and effective responses at all times.
• In October 2020, Motorola Solutions introduced the MXP600, its advanced Terrestrial Trunked Radio (TETRA) device, designed to address the evolving requirements of public safety professionals both now and in the long term. This durable yet lightweight radio elevates the established features of critical voice communication to unprecedented standards and supports seamless collaboration with additional solutions.

Acquisition and partnerships

• In July 2022, Epiris is a private equity investment firm that specializes in investing in mid-market businesses completed the acquisition of Sepura.
• In March 2022, Motorola Solutions is a global leader in mission-critical communication solutions and technology purchased TETRA Ireland Communications, the provider responsible for Ireland’s National Digital Radio Service.
• In March 2021, Hytera Communications is a global provider of professional communication solutions, specializing in the design and manufacturing of two-way radios, systems, and applications for various industries finalized the acquisition of Sepura.

Figure 2. Global Terrestrial Trunked Radio Market Share (%), by Frequency, 2023

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Top companies in Terrestrial Trunked Radio Market

• Motorola Solutions
• JVCKENWOOD
• Hytera Communications
• Sepura
• Simoco Wireless Solutions
• Tait Communications
• Codan Radio Communications
• Cisco Systems
• Harris Corporation
• PowerTrunk

Definition: Terrestrial trunked Radio (TETRA) refers to a professional mobile radio standard developed specifically for mission critical communications usage by government organizations. It provides secure, encrypted and reliable wireless communication services to teams working in challenging environments through the use of radio systems.