No one knows what’s going to happen in the future. After all, we were supposed to have flying cars by now, right? The future is very uncertain but by looking at analysis, trends, and forecasts, we can predict what might happen.
We wanted to know what the future of two-way radios is going to look like. For years, two-way radios have remained a constant and standout solution in the public safety sector. Are new ways of communication going to take over or will they continue to be here in the long run?
After much research, we found a few recent studies that talk about what we can expect from professional two-way radios in the following years.
Background
The basis of the information in this article came from a 2022 study titled, Global Two-Way Radio Equipment Market Size by Product Type (Digital and Analog), conducted by The Brainy Insights, a market research company providing insights through data analytics.
It’s important to note we are in no way affiliated with The Brainy Insights. Some information may be an opinion with the facts of the study in mind.
What the Research Says
The study suggests the two-way radio equipment market is expected to grow at a compound annual growth rate (CAGR) of 5.9% from 2022 to 2030. This shows two-way radios are trending upwards and will continue to grow at least until 2030. With the rise in other forms of communication, like Push to Talk over Cellular, analog, and digital radios will still be the primary.
Why is it Expected to Grow?
With everything, external factors can determine if something has the potential to grow or decline. The driving factor in the expected rise of the two-way radio equipment market is the rise in business opportunities. Within these business opportunities, there is an increase in the need for real-time communication.
Real-time communication has always been a need. That’s why two-way radios were made in the first place, to make communication possible from both ends no matter the distance. People rely on two-way radios for fast response times during emergencies and real-time updates, something other devices won’t be able to do.
Opportunities for Growth
Transformation to Digital/ Increased Features
For years, analog radios have been used, and they’ve been proven to work well. However, analog has ultimately reached its limits when it comes to innovation, according to a white paper done by Motorola Solutions. Everything that can be done to an analog radio has already been done.
Their findings suggest organizations are needing more from their analog radios. Whether that’s increased channels or a better voice. Digital two-way radios can support more than analog functionality wise.
The improved features of digital two-way radios are why we’re seeing growth in two-way radios in the next coming years. Just as the Brainy Insights study suggests, digital radios have more channels to support larger enterprises, GPS tracking for the location of users, better voice for clearer speech, a longer range for longer distances, and longer battery life.
In addition to these sought after features newer digital radios like the Harris XL-200 handheld radio are able to provide enhanced coverage with the use of built in LTE. The radio will automatically switch over to LTE once the user is out of the radio systems network providing extended coverage by leveraging the cellular network.
Finally two way radios are typically used by public safety personnel in conjunction with two way radio accessories like speaker microphones, extend life two way radio batteries, leather holsters, and earpieces. These accessories are able to provide professional two way radio users with enhanced functionality like extended talk times, superior durability, as well as the ability to communicate covertly.
So, we're not only seeing growth of two-way radios but we’re also seeing a trend towards digital radios rather than analog.
Rise in Jobs
The Government and public safety sector CAGR are expected to grow at a fast rate of 6.8% from 2022 to 2030. Within this sector is where we see the most use of two-way radios and increased funding is only helping the rise of radios.
Two-way radios provide government, hospitality, business, energy, education, manufacturing, .and many more with capabilities that any other mobile technology can’t provide.
We believe two-way radios will still be the preferred form of communication across these sectors, especially with the move towards digital.
Constraints of Growth
Internet of Things (IoT) may be a potential inhibitor to the growth of two-way radios. Significant development of this technology is used in developing many communication devices. Oracle defines IoT as “The Internet of Things (IoT) describes the network of physical objects—“things”—that are embedded with sensors, software, and other technologies to connect and exchange data with other devices and systems over the internet.”
Internet of Things has made the cloud, AI, machine learning, connectivity, and more, possible. While IoT is just starting out, we don’t expect this to change the way we use two-way radios in the near future.
Cell Phones and Their Effect
Alternatives such as cellular, push-to-talk over cellular, and voice-over devices, are certainly a factor in the growth of two-way radios. While these alternatives may make sense for some organizations, it's not the clear option for the vast majority of professionals such as law enforcement and firefighters.
These professionals require the customization of two-way radios, something cell phones can’t do. They need a solution that allows them to communicate to everyone at once though talk groups, and quickly.
Another limitation is the need for secure communication. Encryption is used in two-way radios to code data and communication safe from eavesdropping. Cell phones don’t have encryption and comply with FIPS (Federal Information Processing Standard), an accreditation that validates if an encryption solution meets the set of requirements designs to protect it from being cracked, altered, or tampered.
Although these alternatives may be cheaper than a two-way radio, there are no monthly fees and radios typically pay for themselves in around a year and a half. These alternatives also don’t compare to the level of fleet customization, coverage, and reliability that you’ll see with two-way radios.
While there are more alternatives to two-way radios now than before, we won’t be seeing them used in government and public sectors until significant improvements are to happen.
Conclusion
The data shows the two-way radio equipment market is expected to grow at a CAGR of 5.9% and reach USD 12200.9 million. from now until 2023. North America remains the largest market share with 41.3% of the market revenue. With factors like IoT and cellular alternatives, it's predicted that two-way radios will continue to be the preferred form of communication due to their reliability and durability, especially during emergencies.
