Two-Way Radio Equipment Market is expected to reach US$ 12,034.52 Million by 2028

Growing Expenditure on Military & Defense Sector to Provide Growth Opportunities for Two-Way Radio Equipment Market during 2021–2028

According to our latest market study on “Two-Way Radio Equipment Market Forecast to 2028 – COVID-19 Impact and Global Analysis – by Type, Signal Frequency, End-Use Industry, and Geography”, the market is expected to grow from US$ 7,883.32 million in 2021 and is projected to reach US$ 12,034.52 million by 2028; it is estimated to grow at a CAGR of 6.2% from 2021 to 2028.

The global two-way radio equipment market is segmented into five major regions North America, Europe, Asia Pacific, the Middle East and Africa, and South and Central America. In 2020, North America led the two-way radio equipment market with a substantial revenue share, followed by Europe and Asia Pacific. Military expenditure is rising worldwide due to various factors such as rising warfare, increasing government initiatives to strengthen the military & defense sector, and growing terrorism. The global expenditure on the military & defense sector increased by 2.6% in 2020, according to the data published by Stockholm International Peace Research Institute (SIPRI). A few of the highest spenders in 2020 are the US, China, India, Saudi Arabia, and Russia. Due to rising military expenditure across countries, the military & defense bodies are increasingly acquiring efficient communication systems. For instance, with increased expenditure for acquisition and development in military communications, electronics, telecommunications, and intelligence (CET&I) technology, the US military is spending a significant amount on the acquisition of communication electronics in 2019. Thus, in 2019, the US invested US$ 351.6 million in the procurement of handheld manpack small form fit (HMS) radios. These factors are expected to create lucrative opportunities for the growth of the global two-way radio equipment market during the forecast period.

The two-way radio equipment market in South America is further segmented into Brazil, Argentina, and the Rest of South America. Due to the increasing movement of flights, governments of respective countries are planning to expand the existing airport. Thus, the expansion of airports drives the two-way radio equipment market in the region.

Very high-frequency two-way radio equipment is normally used across outdoor operations in rural areas. The major industries that utilize this kind of two-way radio include farming & agriculture, road & bridge construction, volunteer public safety, paging systems, and long-haul trucking services. Motorola Solution., Inc.; Midland Radio Corporation; Wintec Co., Ltd are companies offering very high frequency two-way radio equipment.

The global two-way radio equipment market is segmented on the basis of type, signal frequency, end-use industry, and geography. The two-way radio equipment market, based on type, is bifurcated into digital and analog. On the basis of signal frequency, the market is bifurcated into very high frequency (VHF) and ultra-high frequency (UHF). The two-way radio equipment market, based on end-use industry, is segmented into government & public safety, manufacturing, utilities, transportation & logistics, education, hospitality, and others. On the basis of geography, the market is segmented into North America (the US, Canada, and Mexico); Europe (France, Germany, Italy, the UK, Russia, and the Rest of Europe); Asia Pacific (China, India, South Korea, Japan, Australia, and the Rest of APAC); Middle East & Africa (South Africa, Saudi Arabia, the UAE, and the Rest of the MEA); and South America (Brazil, Argentina, and the Rest of SAM).

Impact of COVID-19 Pandemic on Two-Way Radio Equipment Market in Europe

The overall European economy was severely impacted by various limitations and restrictions due to the onset of the COVID-19 pandemic. According to the Federal Statistical Office of Europe, the retail sector in Europe was severely impacted due to the pandemic. According to the organization, Germany reported a decline of 9% in total retail turnover in February 2021 due to the closure of numerous retail stores during lockdown amid the second COVID-19 outbreak. The scenario declined the demand for two-way radio equipment, which adversely impacted the two-way radio equipment market growth. Europe has always been a tourist destination with flourishing hospitality industry. However, due to the spread of the virus, the hospitality industry was negatively impacted, which hindered the growth of the two-way radio equipment market. On the other side, as the European government reopened its border for tourists from Quarter 3 of 2021, the demand for two-way radio equipment started to normalize from the sector. Similarly, due to increasing vaccination drives and reducing COVID-19 cases, the retail and manufacturing sectors began to reopen from Q3 of 2020, thereby creating the demand for two-way radio equipment in Europe.

BK Technologies Inc.; Hytera Communications Corporation Ltd; Icom America Inc.; Midland Radio Corporation; Motorola Solutions Inc.; Tait Communications; Wintec Co., Ltd; Uniden America Corporation; JVCKENWOOD Corporation; and Ritron Inc are among the major companies operating in the two-way radio equipment market.

Two-Way Radio Equipment Market - by Geography, 2020 and 2028 (%)