According to the new research report titled “Mission Critical Communication Market Forecast to 2028 - COVID-19 Impact and Global Analysis,” published by The Insight Partners, the market is expected to reach US$ 27,876.68 million by 2028, registering a CAGR of 8.6% from 2022 to 2028.
North America was the second-largest market for mission critical communication in 2021, driven by continuous technological advancements and increased adoption of digital land mobile radio (LMR) products in government and commercial sectors. The US government has implemented interoperability standards to ensure efficient use of LMR products, enabling seamless communication during disasters. The protection of critical infrastructure is considered a significant economic and national security challenge in North American countries, leading to a growing demand for mission critical communication products in the region and contributing to the overall market growth.
The Asia Pacific (APAC) region is expected to record the fastest growth rate in the mission critical communication market during the forecast period. This growth is attributed to the increasing number of industries in developing countries such as China, India, and Japan, which are investing in critical communication equipment for the betterment of their citizens. For example, Sepura and its partner, Consort Digital, provided a comprehensive communication solution to Mauritius, offering voice and data communications through Sepura TETRA radios for the new Mauritius Metro Express. These deployments are expected to boost the mission critical communication market share in APAC.
The North American mission critical communication market was positively impacted by the COVID-19 pandemic, as the region is known for its favorable government policies that promote innovation, a robust industrial base, and high purchasing power of its population, especially in countries like the US and Canada. The manufacturing and electronics sectors have been significant markets for mission critical communication solutions in the US.
In addition to manufacturing and electronics, government agencies, police forces, transportation, mining, military, and defense forces have emerged as major end users of mission critical communication products and solutions since Q4 of 2020. For instance, in July 2020, Ørsted, a global leader in offshore wind energy, selected Atos, a global digital transformation leader, to implement mission-critical communications solutions to achieve clean and reliable energy delivery to the East coast communities in the US, highlighting the growing demand for mission critical communication in various sectors.
This trend is expected to continue in the forecast period, as North America remains a crucial market for mission critical communication with its focus on technological advancements and adoption of new solutions to ensure efficient communication in critical situations. The presence of key industries, favorable government policies, and a strong industrial base are likely to drive the growth of the mission critical communication market in North America.
Moreover, the Canadian public safety agencies in 2022-2023 is making huge investment according to the public safety minister of the country. The funds are redirected to procure and adopt technologies for protecting Canadians from firearm violence, detecting the inflow of illegal firearms, and detecting drug trafficking amongst others. These initiatives are expected to offer lucrative growth opportunities for the Canadian mission critical communication market. Additionally, the country is also rapidly taking initiatives to reduce its carbon footprint. For instance, the Canadian government announced an investment of US$ 960 million in the development of renewable energy plants and grid improvements. These investments are further expected to positively impact the demand for MCX solutions across the country and creating snowball effect on mission critical communication market.
The mission critical communication market size has been segmented on the basis of component, technology, vertical, and geography. Based on component, the mission critical communication market size is segmented into hardware, software, and services. Based on technology, the mission critical communication market analysis is bifurcated into LTE and land mobile radio. Based on vertical, the mission critical communication market analysis is categorized into public safety and government agencies, transportation, energy and utilities, mining, and others. Based on geography, the mission critical communication market is primarily segmented into North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South America.
Key Findings of Study:
The global mission critical communication market is divided into five major regions: North America, Europe, Asia Pacific, the Middle East & Africa, and South America. In 2021, Europe held the largest market share, followed by North America and APAC. However, it is projected that the mission critical communication market in APAC will exhibit the highest compound annual growth rate (CAGR) during the forecast period of 2022-2028.
APAC has witnessed a significant increase in military expenditure due to growing government initiatives aimed at empowering military bases across the region. According to the reports published by Stockholm International Peace Research Institute (SIPRI) in 2021, the total military expenditure of APAC reached US$ 856 billion in 2021, showing a 3% increase compared to military spending in 2020. China and India together accounted for over 60% of the defense expenditure in the region. This rise in military expenditure is driving the procurement of advanced weapons and communication systems by these countries, which in turn is fueling the growth of the mission critical communication market in APAC. This indicates a positive trend for the market in the Asia Pacific region.
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