The MCX for critical communication market is characterized by the presence of many global, regional, and local mission-critical communication system, platform, and hardware providers.
According to Wantstats analysis, Motorola Solutions is currently leading the global MCX for critical communication market in terms of market share. The company has an extensive product and service portfolio which includes two-way radios, command center software suite, public safety analytics, and managed and support services. The company has strong reputation with partners and customers, technology leaders, and trusted brands. It is experiencing strong competition from growing number of new and existing competitors including large system integrators and manufacturers of public and private wireless network equipment and devices. The company has global presence in the regions including North America, Europe, Asia-Pacific, Latin America and the Middle East and Africa. The traditional LMR competitors include Hytera, Harris, Airbus, and others. Due to its strong patent portfolio, the company has gained a key competitive advantage in the market.
Harris Corporation has occupied the second position in the global MCX for critical communication market. The company provides a comprehensive product portfolio consisting of radios including LTE two radio and digital mobile radios and other products. The company is heavily investing to position itself for gaining the tactical radio modernization opportunity in the market. In order to remain competitive in the global market, the company enters into offset agreements or vendor financing agreements to facilitate sales to certain customers. It utilizes indirect sales channels including distributors, dealers, and sales representatives for the sale of its products domestically as well as internationally. The company invests significant resources in research and development, including acquisitions, to enhance its technology and existing products and services portfolio and introduce new products and services that customers can use effectively and easily.
Hytera Communication Corp Ltd has occupied the third position in the global MCX for critical communication market. The company offers a wide variety of products and solutions for mission-critical communications including digital radio and trunking system, LTE broadband trunking system, command and dispatch control products and others. The company maintains a healthy relationship with its channel partners to broaden its customer base and geographical presence. The company makes alliances and collaborations with other businesses to strengthen its competitive position. For instance, in May 2017, Hytera acquired Sepura to strengthen its TETRA portfolio by integrating Sepura’s TETRA terminals and infrastructure product lines.
Nokia has occupied the fourth position in the global MCX for critical communication market. The company provides WAN solutions and mission-critical transmission network for railways. The company has differentiated itself on the basis of its end-to-end network solutions that deliver various benefits for its customers in terms of the total cost of ownership, automation, and time-to-market. It is investing heavily to expand into public sector, transportation, energy, and other application areas by addressing the growing need for high-performance networks of these verticals. It hires and retains talented resources that are trained to develop products needed for the company to stay competitive in the market. The company has an extensive geographic presence with a focus on strategic growth initiatives for delivering superior value to its customers.
AT&T has occupied the fifth position in the global MCX for critical communication market. The company offers products such as switched Ethernet, wireless broadband, private LTE, enhanced Push-to-Talk devices and others. The company is heavily investing in research and development and actively involved in new product development to enhance the customer experience. It provides domestic wireless services which are subject to substantial government regulations that may hamper its market growth. It gains a key competitive advantage with the help of an industry-leading network cost structure. It operates the communication products and services through its subsidiaries that enable it to focus more on the separate product lines related to communication devices
Threat of new entrants
The mission-critical communication (MCX) for critical communication market is expected to witness moderate growth. High technological complexity in integrating computing algorithms is limiting the entry of new vendors in the market to a certain extent. Also, the requirement of technical expertise for public safety LTE is moderate. Moreover, the high capital requirement for the development of the infrastructure for communication networks limits the entry of the new entrants. Therefore, new entrants present a low to moderate threat to the major competitors in the market. Bargaining power of suppliers
Extensive application scope of MCX market, particularly in transportation, mining, public safety, and other industries allows solution providers to invest more in research and development for developing effective LTE communication networks. As a result, higher number of suppliers are assisting the companies which in turn enable them to increase their market share. Additionally, the development of this technology in the coming years is expected to open a number of growth prospects for the suppliers. Therefore, the bargaining power of suppliers is presumed to be high to moderate. Bargaining power of buyers
The major end-users of public safety LTE are law enforcement agencies, border control authorities, disaster management agencies, and fire departments. Law enforcement and border control authorities hold a major share in public safety LTE market. Additionally, extensive demand from the above-mentioned application areas plays a major role in determining the differentiation between offered services. Moreover, the increasing demand for critical networks from the end-users for efficient connectivity results in moderate bargaining power of buyers. Threat of substitute
Implementing MCX networks on a large scale incurs high installation cost with moderately skilled workforce making the MCX for critical communication market hard to substitute. Additionally, the adoption of new technologies in coming years is unlikely to impact the market. Public safety LTE is likely to evolve in terms of iterations in the existing framework or integration with newer and emerging technologies. Hence, the threat of any new substitutes is expected to be low. Moreover, various end-users are shifting towards the adoption of MCX networks due to their capability to offer communication networks during emergencies when conventional networks are unable to operate. Rivalry
The market is expected to witness high competition among the existing players. With vendors investing heavily in research and development for MCX solutions, integration with LTE-Advanced technology for public safety is likely to make the rivalry high. Moreover, the solutions offered by the companies are similar and do not vary much in terms of cost, which is expected to increase the rivalry among them.
