Software Defined Radio Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 20.19 Billion |
| Market Size (2029) | USD 27.64 Billion |
| CAGR (2024 - 2029) | 6.49 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Software Defined Radio Market Analysis
The Software Defined Radio Market size is estimated at USD 20.19 billion in 2024, and is expected to reach USD 27.64 billion by 2029, growing at a CAGR of 6.49% during the forecast period (2024-2029).
The increasing investments toward modernizing C4ISR and battle management systems, as well as enhancement of the armed forces' situational awareness, fuelled by the increase in defense spending by major economies, are expected to drive the growth of the SDR market.
The inherent versatility of SDR, allowing for dynamic reprogramming and adaptation to different communication standards, is a key driver. This adaptability fosters interoperability between disparate communication systems, making SDR an attractive solution for military applications. Military modernization programs worldwide contribute significantly to the growth of the SDR market. The adaptability of SDR aligns with the evolving communication needs of modern armed forces, allowing for secure and agile communication in diverse operational scenarios.
The common platform architecture of software-defined radios (SDRs) dramatically reduces development costs and simplifies the process of developing new products. Due to these advantages, the adoption of SDRs for dismounted military personnel and vehicular platforms is expected to accelerate the market's growth during the forecast period.
Software Defined Radio Market Trends
The Land Segment Accounted for a Major Share of Revenue in 2023
The land segment currently dominates the market and is expected to continue its dominance during the forecast period. The land segment exhibits a substantial demand for SDR due to tactical communication requirements. SDR's adaptability is crucial in military operations, providing troops with flexible and secure communication capabilities tailored to specific mission needs. The imperative for efficient and interoperable communication in emergency response scenarios augments the land segment's market share. SDR's programmability ensures seamless coordination among various platoons during crises, making it an essential component for land-based communication networks.
Moreover, the increased demand is due to the integration of software-defined radios into infantry soldiers and armored vehicles for secured communication. The various armies are replacing their existing infrastructure with SDRs for more secure communication channels between ground-to-air and ground-to-ground platforms. In February 2021, Ultra Electronics was awarded a delivery order to procure and deploy ORION radio systems to the US Army. This contract was worth USD 26.7 million and is a part of the USD 497 million indefinite award/indefinite-quantity (IDIQ) contract provided to the company in 2019, under the TRILOS Radio Program of the US Army. Ultra Electronics has delivered more than 500 ORION SDR systems since the inception of the program. Such plans of the armed forces will drive the growth of this segment during the forecast period.
Asia-Pacific Expected to Witness Highest Growth During the Forecast Period
The Asia-Pacific region is expected to generate demand for SDRs primarily due to the growing tension among major economies, which has resulted in higher defense spending on enhancing situational awareness. Military modernization initiatives prioritize adaptable communication systems, aligning with SDR's capabilities. Most of the investments are in modernizing the land, air, and sea platforms. In addition, the investments are directed toward procuring advanced communication systems that will enhance their battlefield capabilities and situational awareness of the military personnel in complex terrain.
For instance, India has been rapidly investing in replacing existing radio systems with indigenously developed SDR systems in various platforms of the armed forces. In this regard, in February 2021, the Indian Ministry of Defense (MoD) selected Bharat Electronics Limited (BEL) for the acquisition of Software Defined Radio Tactical (SDR-Tac) over three years. The contract was worth USD 136.9 million (USD 1,000 crore). Such investments into the deployment of SDR are expected to propel the market's growth in the Asia-Pacific region during the forecast period.
Software Defined Radio Industry Overview
Despite many regional and international players in the market, a few players accounted for a majority share in the software-defined radio market. Some prominent players in the market include L3Harris Technologies Inc., General Dynamics Corporation, Leonardo S.p.A., Elbit Systems Ltd, and Ultra Electronics. The market is witnessing huge investment and technological enhancement due to the future potential of software-based communication and high-volume data-sharing technology in the defense industry.
In addition to this, the companies are partnering with armed forces to supply and deliver advanced SDRs for their infantry troops and vehicle platforms. For instance, Elbit Systems Ltd partnered with various armed forces across North American, European, and Asia-Pacific regions. In April 2021, Leonardo S.p.A. was selected by Boeing to provide SWave Airborne SDR SRT-800 radios for the E-3A Airborne Warning and Control System (AWACS) aircraft fleet for the NATO countries. The contract was awarded under the Final Lifetime Extension Programme (FLEP) to extend its operational viability through 2035. The SRT-800 radios can replace several avionic units that have traditionally been separate units, including UHF/VHF radio, SATCOM, SINCGARS, and a crypto device. Such partnerships are anticipated to further enhance the geographical footprint of the companies in the market.
Software Defined Radio Market Leaders
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Elbit Systems Ltd.
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L3Harris Technologies, Inc.
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General Dynamics Corporation
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Leonardo S.p.A.
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Ultra Electronics
*Disclaimer: Major Players sorted in no particular order
Software Defined Radio Market News
- In October 2023, THALES received a supply order from the US Army for an additional 7,000 RT-2129 Combat Net Radios (CNR) based on the Improved Multiband Inter/Intra Team Radio (IMBITR) technology. These Combat Net Radios (CNR) are cryptographically modernized radio drop-ins allowing the US Army to replace the legacy RT-1523 fleet of mounted and dismounted radios, forming a critical element of the US Army’s modernization.
- In March 2023, the Indian Ministry of Defense (MoD) awarded a supply contract to Bharat Electronics Limited (BEL) for 1,265 indigenously developed Software Defined Radio (SDR) Portables for the Indian Navy. The SDR portables are being developed in three configurations - SDR Fixed Pack, SDR Manpack, and SDR handheld. These new generation software-defined radios support multi-band, multi-channel, multi-role/mission operation with voice/data to meet the needs of network-centric warfare of the Indian Navy.
Software Defined Radio (SDR) Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 Porter's Five Forces Analysis
4.4.1 Bargaining Power of Buyers/Consumers
4.4.2 Bargaining Power of Suppliers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 Platform
5.1.1 Land
5.1.2 Sea
5.1.3 Air
5.2 Geography
5.2.1 North America
5.2.1.1 United States
5.2.1.2 Canada
5.2.2 Europe
5.2.2.1 United Kingdom
5.2.2.2 France
5.2.2.3 Germany
5.2.2.4 Russia
5.2.2.5 Rest of Europe
5.2.3 Asia-Pacific
5.2.3.1 China
5.2.3.2 India
5.2.3.3 Japan
5.2.3.4 Australia
5.2.3.5 Rest of Asia-Pacific
5.2.4 Latin America
5.2.4.1 Brazil
5.2.4.2 Mexico
5.2.4.3 Rest of Latin America
5.2.5 Middle-East and Africa
5.2.5.1 Saudi Arabia
5.2.5.2 Israel
5.2.5.3 Turkey
5.2.5.4 South Africa
5.2.5.5 Rest of Middle-East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Vendor Market Share
6.2 Company Profiles
6.2.1 Northrop Grumman Corporation
6.2.2 Elbit Systems Ltd.
6.2.3 BAE Systems plc
6.2.4 THALES
6.2.5 General Dynamics Corporation
6.2.6 RTX Corporation
6.2.7 L3Harris Technologies Inc.
6.2.8 Leonardo S.p.A.
6.2.9 Rafael Advanced Defense Systems Ltd.
6.2.10 ASELSAN A.S.
6.2.11 Israel Aerospace Industries Ltd.
6.2.12 Ultra Electronics
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Software Defined Radio Industry Segmentation
Software-defined radios (SDRs) utilize software installed on a desktop computer for signal processing. The SDRs have a receiver, transmitter, software applications, and various other auxiliary systems, which perform the functions of mixers, amplifiers, modulators/demodulators, filters, and detectors. The market's scope is limited to military applications and does not include SDR demand for commercial applications like the telecommunication industry.
The software-defined radio market is segmented by platform and geography. By platform, the market is divided into land, sea, and air. The report also covers the market sizes and forecasts in major countries across major regions. For each segment, the market size has been calculated in terms of value (USD).
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Software Defined Radio (SDR) Market Research FAQs
How big is the Software Defined Radio Market?
The Software Defined Radio Market size is expected to reach USD 20.19 billion in 2024 and grow at a CAGR of 6.49% to reach USD 27.64 billion by 2029.
What is the current Software Defined Radio Market size?
In 2024, the Software Defined Radio Market size is expected to reach USD 20.19 billion.
Who are the key players in Software Defined Radio Market?
Elbit Systems Ltd., L3Harris Technologies, Inc., General Dynamics Corporation, Leonardo S.p.A. and Ultra Electronics are the major companies operating in the Software Defined Radio Market.
Which is the fastest growing region in Software Defined Radio Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Software Defined Radio Market?
In 2024, the North America accounts for the largest market share in Software Defined Radio Market.
What years does this Software Defined Radio Market cover, and what was the market size in 2023?
In 2023, the Software Defined Radio Market size was estimated at USD 18.88 billion. The report covers the Software Defined Radio Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Software Defined Radio Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Software Defined Radio Industry Report
Statistics for the 2024 Software Defined Radio market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Software Defined Radio analysis includes a market forecast outlook for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
