Land Mobile Radio (LMR) Systems Market Outlook
The Land Mobile Radio (LMR) systems market is expected to reach a valuation of USD 82.08 billion by 2032, growing at a compound annual growth rate (CAGR) of 12.00% during the forecast period from 2024 to 2032. This growth is driven by the increasing demand for LMR systems among private security agencies, fueled by rapid urban development and the necessity for manned security services to protect citizens.
Heightened defense spending is another major factor propelling the growth of the LMR market. According to the Stockholm International Peace Research Institute (SIPRI), global military expenditure reached USD 1.7 trillion in 2017. This rise in defense budgets, coupled with the need to modernize outdated equipment and ongoing geopolitical tensions, is anticipated to boost the demand for LMR systems through 2023. Additionally, sectors such as oil & gas, logistics, transportation, and utilities present new opportunities for LMR vendors to expand their market presence.
However, the increasing use of unmanned aerial vehicles (UAVs) and drones for long-distance communication poses a potential threat to the LMR market. The emergence of automated security systems also presents a significant challenge to the growth of LMR systems.
Market Segmentation
The LMR systems market is segmented by type, application, and technology.
- By Type: Portable LMRs are expected to grow at a CAGR of 11.08% during the forecast period, generating approximately USD 7,081 million by 2023, largely due to their extensive use by military and government agencies. Vehicle-mounted LMRs, on the other hand, are projected to grow at a CAGR of 10.03%, reaching a market size of USD 4,018.7 million by 2023.
- By Application: In 2017, public safety accounted for around 75.61% of the market share and is expected to grow at a robust CAGR of 10.76% over the assessment period, driven by the increasing demand from public safety agencies such as fire departments, police, and other emergency response organizations. The commercial sector is projected to generate approximately USD 2,675.4 million by 2023.
- By Technology: The digital segment dominated the market in 2017, holding a 56.75% share, and is expected to continue its dominance with a CAGR of 11.84%, reaching USD 6,706.4 million by 2023. The growth of the digital segment is attributed to the durability and advanced communication capabilities of digital LMRs. Analog LMRs, holding a 43.25% share in 2017, are expected to reach USD 4,393.5 million by 2023, remaining a trusted source for radio communication.
Regional Analysis
The LMR systems market is divided into regions: North America, Europe, Asia Pacific (APAC), and the Rest of the World (RoW).
- North America led the market in 2017 with a 31.84% share and is projected to grow at a CAGR of 10.93%, reaching a valuation of USD 3,580.5 million by 2023. The region's growth is supported by the establishment of standards like Project-25, which facilitates communication for public safety agencies, and the presence of major manufacturers such as Motorola, Harris, and RELM.
- Asia Pacific (APAC) is anticipated to experience significant growth due to the rapid economic development in countries like India, China, and South Korea. The region is expected to grow at a CAGR of 17.50%, achieving a market size of USD 3,213.2 million by 2023, driven by new standards for digital radio communication for public safety agencies.
- Europe is projected to reach USD 3,085.6 million by 2023, with a CAGR of 10.08%. Countries like France and the UK are expected to contribute significantly to the regional market, driven by the demand for digital LMRs by their public safety agencies and the introduction of technologies like LTE4PMR for first responder communication.
Competitive Analysis
Key players in the global LMR systems market companies include Motorola Solutions, Inc. (U.S.), Thales Group (France), Simoco Wireless Solutions Limited (U.K.), Tait Ltd. (New Zealand), Hytera Communications Corporation Ltd. (China), ICOM Inc. (Japan), RELM Wireless Corporation (U.S.), Leonardo S.p.A. (Italy), JVCKenwood Corporation (Japan), and Harris Corporation (U.S.). The market features a mix of international and local companies competing for dominance, with Motorola and Kenwood together accounting for over 50% of the market in 2017. Strategies such as new product launches and ventures, like Harris Corporation's introduction of dual-mode radios in its TP3000 series, which facilitate safe communication and migration from analog to digital systems, are key to maintaining market leadership.
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