The primary market growth driving element will increasingly be the deployment of cutting-edge technology to develop the aspects of essential communication. The market value will be made even worse by the growing digitisation of emerging economies like China and India and the growing need to update antiquated communication technology. Increased government support for digital technology through programmes and laws, an increase in the frequency of terrorist attacks, and increased commercial use of land mobile radio (LMR) will all contribute to the market's expansion. However, the market's growth will be constrained by the low acceptance rate caused by the expensive expenses and complicated systems and networks.
RECESSION IMPACT
The critical communication market will be significantly impacted by the recession. Despite the fact that it is predicted that price inflation will decrease in 2023, a rise in interest rates will surely lead the pace of economic expansion to drastically slow down. For a while, raw materials and electricity will be expensive. Inflation is also influenced by the partial reversal of globalisation, labour shortages that increase manufacturing costs in many Western nations, and the shift to a shared economy in response to the greatest threat to our species.
DRIVING FACTORS
Rising Security Concerns to Drive Market Growth
The market for critical communication is anticipated to develop in the future due to the rise in security concerns and incidences of cyberattacks. Attacks against computers, computing systems, and computer networks are known as cyber-attacks. Real-time cybersecurity features and cybersecurity compliance against cyberattacks are provided by the critical communications systems. The data security on these systems is very high. For instance, the number of cyberattacks increased by 17% in Q1 2021 compared to Q1 2020 and by 1.2% compared to Q4 2020, according to the cybersecurity threat landscape report by Positive Technologies, a Russian cybersecurity business. As a result, the market for critical communication is expanding due to the rise in security concerns and incidences of hacking.
RESTRAINING FACTORS
High Installation Cost of Critical communication to Limit Market Growth
The high installation costs of safety and security communication systems are one of the main issues the critical communication market faces globally. Applications for public protection and disaster relief, such as critical communications applications, are essential and must be supported. For big enterprises and Public Safety Agencies, PPDR offers ubiquitous mobile broadband connection (PSAs). Any attempts to use a portion of the downlink or uplink channels in the 700 MHz band for PPDR would decrease the number of channels available for mobile services, which could have a detrimental effect on the price, communication range, and data capacity of mobile broadband. This has been a significant obstacle for the worldwide critical communication market's expansion.
SEGMENTATION
By Technology
Based on technology, the critical communication market is segmented into land mobile radio (LMR) and long-term evolution (LTE). The long-term evolution (LTE) category dominated the market in 2022. Compared to other network technologies, the LTE network offers a more effective and rapid means of communication. As a result of the introduction of remote surveillance, broadband-based multimedia applications, and robotic technologies like unmanned aerial vehicles, the requirements for public safety communications are evolving quickly during the projection period (UAVs). Narrow-band public safety networks are being replaced by LTE-based networks as a result of these requests from public safety agencies. Hence, LTE network technology adoption is encouraged.
By Offering
Based on offering, the critical communication market is segmented into hardware (command and control systems, infrastructure equipment, end-use devices) and services (consulting services, integration services and maintenance and support services). The hardware category dominated the market in 2022. The demand for hardware is rising as more and more critical communication networks are being deployed in a variety of industries, including utilities, aviation, community security, mining, and others. A vital communications system is composed of end-user devices, control systems, and logistics and network equipment.
By End-Use Vertical
Based on end-use vertical, the critical communication market is segmented into public safety, transportation, utilities, mining and others. The public safety category dominated the market in 2022 which includes both public and industrial security organisations, is dominated by this segment. Increase in government efforts is one of the main drivers behind the adoption of critical communication for public safety at governmental organisations and industrial sites. Crucial communication has been implemented to ensure public safety and security in every setting, including workplaces across a variety of industries and the transportation industry, including airports.
REGIONAL INSIGHTS
North America is projected to hold the largest share of the critical communication market over the forecast period. The economies of the United States, Canada, and Mexico are the main drivers of market expansion in this region. The market expansion in this region is boosted by ongoing technological advancements that increase communication flexibility, wide coverage, high capacity, high security, high data rate, and low latency communications. On the other hand, the Asia Pacific critical communication market is anticipated to grow significantly. Due to the expansion of projects involving metro and rail connections in these regions, demand is anticipated to come from nations like China, South Korea, and India. It is also anticipated that the continued advancement of technology and infrastructure will promote regional growth. Additionally, it is anticipated that government and other organisations will spend in crucial communication for overcoming issues like natural disasters and terrorist acts.
LIST OF KEY COMPANIES PROFILED:
- Ascom (Holding) AG
- AT&T, Inc.
- Cobham Wireless
- Ericsson AB
- Harris Corporation
- Huawei Technologies Co. Ltd.
- Hytera Communications Corporation Ltd.
- Inmarsat plc
- Leonardo Company, S.p.A
- Mentura Group Oy
- Motorola Mobility LLC
- Nokia Corporation
- Telstra Corporation Ltd.
- Zenitel Group
- ZTE Corporation
- Airbus Group
- Cisco Systems Inc.
- Siemens
- Honeywell
- Tait Communications
- In November 2020, to launch Estonia's first commercial 5G network, Telia and Ericsson joined forces. Using hardware made in Estonia and Ericsson 5G technology, including Ericsson Radio System products and solutions, Telia will be the first carrier to introduce 5G in the nation, enabling high-speed connections for its customers and fostering innovation for businesses.
| Attributes | Details |
| Market Size in 2022 | USD 14.8 Billion |
| Market Forecast in 2030 | USD 22.8 Billion |
| Compound Annual Growth Rate | 7.50 % |
| Unit | Revenue (USD Million) and Volume (Kilo Tons) |
| Segmentation | By Technology, By Offering, By End-Use Vertical and By Geography |
| By Technology |
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| By Offering |
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| By End-Use Vertical |
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| By Region |
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| Base Year | 2022 |
| Historical Year | 2016-2021 |
| Forecast Year | 2023-2030 |
