Surge of Growth In 2011
Jatinder Thandi, Research Analyst, Mobile Radio, IMS Research
Despite the global recession and a rocky second quarter, the TETRA terminals market showed its resilience in a difficult 2009. IMS Research’s latest report on the worldwide LMR market estimated 2009 TETRA shipments increased more than five per cent year-on-year.
Without any new nationwide contract tenders, European shipments were largely driven by three main markets: terminal refreshment cycles by police constabularies in the UK; initial shipments on the German BOS network; and the delivery of terminals for the Portuguese SIRESP network.
Looking longer term, the global TETRA market is forecast to grow with a CAGR of over 15 per cent over the four years. Significantly, as economic conditions improve over the next two years, IMS Research forecast another surge of growth in 2011, driven by a third wave of large contracts currently under consideration.
However, the growth of TETRA is likely to face competition from low cost digital technologies, such as DMR, NXDN, and dPMR. Another IMS Research report, “WW Market for DMR/dPMR”, illustrates the rapid uptake of these technologies across a range of markets, over a very short space of time. More importantly, success has not been limited to non-PSS markets. To give an example of the potential impact, many believe TETRA has a strong future in China, yet local LMR companies are committed to developing a Chinese standard for police, which could be in use as early as 2011.
Looking ahead, the TETRA market remains in very good shape. However, continued acceleration of Low Cost Digital radio adoption is likely to drive a new phase of technology competition, especially in emerging markets.
IMS Research analysts Patrick Connolly and Jatinder Thandi will be at the TETRA World Congress in Singapore and available to discuss TETRA market trends.