Software Defined Radio Market - By Component, By Radio (Adaptive Radio, Cognitive Radio/ Intelligent Radio, Terrestrial Trunked Radio (TETRA) System, Joint Tactical Radio Systems), By Frequency Band, By Platform, By End-users & Forecast, 2024 – 2032

Software Defined Radio Market Size

Software Defined Radio Market was valued at USD 16.2 billion in 2023 and is estimated to register a CAGR of over 6% between 2024 & 2032. Estimated growth is attributed to companies providing comprehensive supporting services. With the evolving SDR (software defined radio) technology, businesses are increasingly seeking specialized services encompassing system integration, customization, training, and maintenance. For instance, in March 2024, Omni Design Technologies, a prominent supplier of high-performance, low-power mixed-signal intellectual property (IP), introduced its silicon IP solutions tailored for cutting-edge FinFET nodes for targeting advanced SDR applications.
 

The increasing contracts from prominent companies for catering to military requirements is another factor driving the market growth. As defense agencies worldwide seek advanced communication solutions, SDR technology is emerging as a vital component in modernizing military communication systems. Leading companies supplying to military demands are securing contracts to deliver SDR solutions tailored to meet the stringent requirements of defense applications. These contracts often entail the development of specialized SDR platforms equipped with encryption capabilities, wideband communication support, and robust signal processing features. For instance, in July 2023, Indian Alpha Design Technologies Limited (ADTL), secured an order to deliver 400 domestically produced Software-Defined Radios for installation on armored vehicles deployed by the Indian Army in frontline regions.
 

The market, despite its remarkable growth and potential, faces several restraints that impede its full realization. Firstly, interoperability challenges arise due to the diversity of protocols and standards across different regions and industries, hindering seamless communication. Secondly, security concerns are looming large, as the flexibility of SDR makes it susceptible to cyber threats and vulnerabilities, necessitating robust encryption and authentication measures. Additionally, high initial deployment costs are deterring widespread adoption, particularly among smaller organizations and developing regions.
 

Software Defined Radio Market Trends

The surge in deployments, driven by technological advancements and evolving communication standards will also contribute to the industry growth. With the increasing demand for flexible and adaptable radio systems, SDR solutions are becoming indispensable across various industries, including telecommunications, defense, and public safety. Companies like Ettus Research, Elbit Systems, and Harris Corporation are also pioneering the development of SDR technologies, pushing the boundaries of software-defined communications. Rising applications in IoT, 5G, and autonomous vehicles, and with companies capitalizing on emerging opportunities, the SDR industry will record significant momentum. To cite an instance, in February 2024, Inntot Technologies, a pioneering provider of software-defined radio and in-cabin audio technology solutions, celebrated a significant milestone of surpassing half a million deployments within the automotive sector.
 

Service providers are also offering expertise in software development, waveform design, and hardware optimization for enabling seamless integration of SDR solutions into existing infrastructure. Moreover, tailored consulting services aid in identifying optimal SDR configurations to meet specific operational requirements, fostering efficiency and performance. The strong emphasis on post-sales support, including troubleshooting and upgrades is also enhancing customer satisfaction and ensuring long-term reliability, adding to the market growth.
 

Software Defined Radio Market Analysis

Based on type, the market is divided into adaptive radio, cognitive radio/ intelligent radio, Terrestrial Trunked Radio (TETRA) System, joint tactical radio systems. In 2023, the cognitive radio/ intelligent radio segment is growing at a fastest rate and is expected to cross USD 7 billion by 2032. The segment is anticipated to experience substantial growth due to its ability to dynamically adapt to changing radio frequency environments. These intelligent radios leverage cognitive technologies to autonomously sense, analyze, and adjust transmission parameters, maximizing spectrum efficiency and mitigating interference. As demand for spectrum optimization and enhanced communication reliability rises, particularly in sectors like telecommunications and defense, the adoption of cognitive radio is expected to surge.
 

Based on platform, the market is categorized into land, airborne, naval, space. The airborne segment accounted for 27.7% of the market share in 2023. Airborne segment is projected to witness substantial growth due to increasing demand for advanced communication systems in military and commercial aircraft. SDRs offer flexibility and interoperability, enabling seamless communication across diverse platforms and networks. As aerospace technology continues to evolve, there's a growing emphasis on upgrading aircraft with SDR solutions to enhance communication capabilities, support mission-critical operations, and ensure interoperability with ground-based and satellite communication systems. This trend is expected to drive significant growth in the airborne segment of the SDR market.
 

North America is the fastest-growing region in the global software defined radio market with a major share of around 34% in 2023. The robust defense sector, coupled with advancements in communication technologies, is propelling the adoption of SDR solutions. In the defense domain, the need for agile, interoperable communication systems is critical for maintaining strategic superiority and operational efficiency. Moreover, the proliferation of wireless communication networks and the growing demand for spectrum efficiency are further fueling the regional demand for SDRs in commercial sectors, such as telecommunications and public safety.
 

Software Defined Radio Market Share

Thales Group and Harris Corporation held significant market share of over 11% market share in 2023. Thales Group invests significantly in innovation and R&D to develop cutting-edge technologies for defense & security, aerospace. The company concentrates on developing advanced solutions for secure communications, cybersecurity, air traffic management, satellite systems, and defense electronics. By leveraging innovation, Thales aims to address evolving challenges and meet the complex needs of its diverse clientele effectively.
 

Harris Corporation has emphasis on innovation and research to drive advancements in the software-defined radio (SDR) market. Leveraging its expertise in radio communications, Harris develops state-of-the-art SDR solutions that offer enhanced flexibility, interoperability, and performance for military and commercial applications. Through continuous investment in SDR technology, Harris contributes to shaping the future of wireless communications.
 

Software Defined Radio Market Companies

Major players operating in the market are:

• Harris Corporation
• Rohde & Schwarz
• Thales Group
• Collins Aerospace
• BAE Systems
• General Dynamics Mission Systems
• Elbit Systems
• Leonardo S.p.A.
• Northrop Grumman Corporation
• RTX Corporation
• Ultra Electronics      
   

Software Defined Radio Industry News

• In August 2023, in partnership with the Ministry of Defense and supported by the General Authority of Military Industry (GAMI), SAMI, a subsidiary of the Public Investment Fund (PIF), launched a new production line for software-defined multi-band radio systems (SDRs). Collaborating with L3Harris Technologies, this venture aims to strengthen Saudi Arabia's defense industry locally.
   
• In August 2023, Viasat introduced the Black ICE Software Defined Radio Platform, offering customers flexible waveform integration capabilities and secure transmission of large data volumes. This platform empowers users with adaptable solutions for enhanced communication efficiency and data security across various applications and industries.
   

The software defined radio market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue (USD Billion) from 2018 to 2032, for the following segments:

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Market, By Component

• Hardware
  • Converters
  • Integrated circuits
  • Digital signal processors
• Software
• Services
  • Professional services
  • Managed services
  • Consulting services

Market, By Radio

• Adaptive radio
• Cognitive radio/ intelligent radio
• Terrestrial Trunked Radio (TETRA) System
• Joint tactical radio systems
• Others

Market, By Frequency Band

• HF (High Frequency)
• VHF (Very High Frequency)
• UHF (Ultra High Frequency)
• SHF (Super High Frequency)
• EHF (Extremely High Frequency)

Market, By Platform

• Land
• Airborne
• Naval
• Space

Market, By End-users

• Military & Defense
• Transportation
• Government
• Aerospace & aviation
• Telecommunication
• Others

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
  • Nordics
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ
  • Southeast Asia
  • Rest of Asia Pacific 
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Rest of Latin America 
• MEA
  • South Africa
  • UAE
  • Saudi Arabia
  • Rest of MEA