With global technological evolution, radio communication technologies have also evolved significantly over the past years. Components that have been implemented in hardware are now implemented by means of software. Radio system software has evolved from a theoretical solution for supporting multiple radio applications in mobile phones to a practical solution for radio access network infrastructure in commercial networks. Radio system software are mainly used for surveillance and emergency communication applications.
Multiple regulations such as the Federal Communications Commission (FCC) govern the radio system software market, affecting the market growth and trends. For instance, in 2005, the Federal Communications Commission (FCC) released rules for certification of devices whose power characteristics and radio frequency can be modified by software. The radio system software helps in the dynamic selection of the communication channel and enable operators to have the flexibility to design and offer differentiated solutions. The large-scale installation of new 4G towers and upgrading of older towers to support high-speed 4G LTE networks is driving technological advancements in the telecom sector and thus the radio system software market. As the mobile industry is evolving, the challenges in the industry are also increasing.
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Average revenue per user is declining and operators are struggling to remain competitive and are offering new services to existing customers without sacrificing their profitable revenue streams. In addition to deploying new services for served markets, there is also a need to serve the untapped markets. Radio system software solutions addresses these challenges by allowing upgrades to the next generation of wireless standards through software. Lower cost software based solutions have higher adoption in the market; further, the opportunity to share a single network across multiple operators is fueling the market growth. Military modernization programs carried out by countries such as the U.S., India, and Germany are the major driving factors for the radio system software market. Integration of the various sub systems is a challenge in the radio system software market. Further, the development of such software platforms and technologies is another significant challenge for the market.
Telecom Radio System Software Market: Segmentation
The global telecom radio system software market can be segmented based on component, frequency band, application area, and region. The telecom radio system software market is segmented based on component into software and hardware. The software segment is expected to expand at the highest CAGR over the forecast period. Based on frequency band, the telecom radio system software market can be classified into HF, UHF, VHF, and others. The UHF band sub-segment is estimated to create significant growth opportunities in commercial applications. In terms of application area, the telecom radio system software market can be categorized into government & defense, and commercial.
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Based on geography, the telecom radio system software market can be segmented into North America, Asia Pacific, Middle East & Africa, South America, and Europe. The telecom radio system software market is expected to be fueled by the increasing adoption of the systems in the Asia Pacific region over the forecast period. High adoption rate of 4G networks and increasing investments in the enhancement of communication capabilities is driving the telecom radio system software market in this region. North America dominates the telecom radio system software market due to high adoption of technology in the region.
Telecom Radio System Software Market: Key Players
Key players operating in the telecom radio system software market include Telefonaktiebolaget LM Ericsson, FlexRadio Systems, Rockwell Collins, L3 Communications Corporation, BAE Systems PLC, Harris Corporation, and Elbit Systems Ltd. Growing technological advancements across the commercial sector is expected to offer lucrative growth opportunities to these companies over the forecast period.
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