The global land mobile radio market is characterized by the presence of several global and regional vendors. The market is highly competitive with all the players competing to gain market share. Intense competition and frequent changes in government policies and regulations are key factors that impact market growth. The vendors compete based on cost, product quality, reliability, and aftermarket services. It is crucial for the vendors to provide cost-efficient and high-quality land mobile radios in order to survive and succeed in an intensely competitive market environment.
Market Share Analysis
The growth of market vendors is dependent on market conditions, government support, and industry development. Thus, they should focus on improving their products and expanding their regional presence. Motorola Solutions, Inc., L3Harris Technologies, Inc., JVCKENWOOD Corporation, Hytera Communications Corporation Ltd, and Thales Group are some of the key players operating in the global land mobile radio market.
Motorola Solutions, Inc., L3Harris Technologies, Inc., JVCKENWOOD Corporation, Hytera Communications Corporation Ltd, and Thales Group are the leading players and together accounted for over 74.55% of the market share in 2018. ICOM Inc., Leonardo SpA, RELM Wireless Corporation, Simoco Wireless Solutions Limited, Tait Ltd, Airbus SAS, Cobham PLC, and Raytheon Company are some of the other companies operating in the market.
Although the leading players, as mentioned above, are dominating the market due to their vast industry experience, wide service offering, and geographic reach, other companies are actively contributing to the market. These players may strengthen their presence worldwide through new product/service innovations during the forecast period. Vendors with access to better technologies can develop unique and innovative products, which could render the competitors’ offerings obsolete. The competitive environment in the market is likely to intensify due to the increasing number of product developments, business expansions, and mergers & acquisitions.
Major Growth Strategies In The Global Land Mobile Radio Market
Threat Of New Entrants
Although there is high growth potential in the market, factors such as the requirement of massive investments and the formation of a client base deter the entry of new vendors in the market to a certain extent. Moreover, the market has well-established players with a diverse geographic reach. It is difficult for new entrants to attain the economies of scale, which the leading players already possess. Furthermore, this solution is specifically developed for mission-critical communications and is not possible for any player to easily replicate. Therefore, the new entrants present a very low threat to the major stakeholders of the market.
Bargaining Power Of Suppliers
Suppliers include providers of electronic parts and other basic components. The offerings they provide must go through a stringent regulatory review and should be suitable for rugged military and commercial applications, which limits the number of key suppliers in the market. However, the suppliers have the edge over buyers regarding their product offering and pricing, which assist the companies in increasing their market presence, providing them higher leverage. Thus, the bargaining power of suppliers in the market is moderate.
Bargaining Power Of Buyers
Buyers can be broadly categorized as public safety & military organizations and commercial and industrial end-users. Although the number of potential buyers is high, they are highly reliant only on the successful and established companies that offer these solutions. However, the buyers dictate the specification and type of solution required, which makes their bargaining power moderate.
Threat Of Substitutes
In terms of different types of land mobile radios, the digital LMR can outweigh the analog ones, both in terms of data and voice communication solutions. However, there is no direct, cost-effective alternative to LMR as a system. New technologies such as LTE not totally replace but supplements the existing LMR network. Thus, the threat of substitutes in the market is low.
Intensity Of Rivalry
There is intense competition among the existing players in the market, with the vendors investing heavily and using extensive research and development approaches to develop high quality, advanced, and cost-effective LMR systems. Thus, the intensity of rivalry in the market is high.
