Radio Modem Market - By Frequency Band (License-free Frequency, Very High Frequency (VHF), Ultrahigh Frequency (UHF) & Wi-Fi), By Communication Channel (Point to Multi-point & Point to Point), By Operating Range (Short & Long), By Application (Vehicle to Infrastructure, Vehicle to Vehicle, Traffic Management Systems, Communication Systems, Emergency Management Systems, Electronic Toll Collection & Others), By Geography - Global Opportunity Analysis & Industry Forecast, 2023-2028

Radio Modem Market Overview

The Radio Modem Market size is estimated to reach $2 billion by 2028, growing at a CAGR of 4.5% from 2023 to 2028. Growing demand for privately-owned networks and lower infrastructural needs are propelling the growth of the Radio Modem Industry during the forecast period. Furthermore, an Intelligent Transport System requires wireless communications to optimize its operations. Thus, it is deploying wireless networks that are cost-effective, flexible and small in size, making radio modems the best choice for the applications involved. Technological advancements in the frequency bands such as License-free Frequency, Very High Frequency (VHF), Ultrahigh Frequency (UHF) and Wi-Fi are also creating growth opportunities for the Radio Modem Market. Due to the rising demand for wireless communication, the data transmission process has been revolutionized by radio modems as they are capable of faster data transfer through radio waves in comparison to wired data transfer. These aforementioned factors would positively influence the Radio Modem industry outlook during the forecast period.

Radio Modem Report Coverage

The “Radio Modem Market Report - Forecast (2023-2028)” by IndustryARC, covers an in-depth analysis of the following segments in the Radio Modem Industry.

Key Takeaways

• In the Radio Modem Market report, the Wi-Fi segment is expected to grow at a significant CAGR of 5.6%. This is due to factors such as growing demand for wireless communication and increased penetration of IoT-connected devices.
• The vehicle-to-infrastructure application segment is expected to grow at a significant CAGR of 5.9% due to the rising number of automobile thefts and rising technological advancements in the automotive industry.
• North America dominated the Radio Modem Market with a market share of 36%. This is due to the growing adoption of different frequency bands and growing investments in the IT and Telecommunication industry.

Radio Modem Market Value Share, by Region, 2022 (%)

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Radio Modem Market Segment Analysis- By Frequency Band

Based on frequency band, the Wi-Fi segment in the Radio Modem Market report is analyzed to grow at the highest CAGR of 5.6% during the forecast period 2023-2028. The growing demand for wireless communication, increasing penetration of IoT-connected devices and rising internet usage would drive the Wi-Fi segment in the Radio Modem Market. In September 2021, Coopeguanacaste launched the ‘Zii Wi-Fi Program’ with Sutel, a telecommunication regulator. This was a US$69 million development program intended to install access points across 515 public places in Costa Rica. These developments in wireless communication would boost the Wi-Fi segment and thereby increase the Radio Modem Market size.

Radio Modem Market Segment Analysis - by Application

Based on application, the vehicle-to-infrastructure application in the Radio Modem Market report is analyzed to grow at the highest CAGR of 5.9% during the forecast period 2023-2028. The growing number of automobile thefts, rising technological advancements in the automotive industry and increased use of internet of things (IoT) integrated systems, chips and sensors in the automotive sector are propelling the segment’s growth. These factors, in turn, boost the Radio Modem Market size. In September 2022, according to a report by National Insurance Crime Bureau, 932,329 vehicles were reported stolen to law enforcement in 2021 in the U.S. - a 6% increase over 2020 and a 17% increase since 2019. Such rising demand for vehicular safety would increase the demand for a vehicle-to-infrastructure application of Radio Modems.

Radio Modem Market Segment Analysis - by Geography

North America dominated the global market for Radio Modem Market with a market share of 36% in 2022. The region is also analyzed to have significant growth over the forecast period. Growing adoption of ultrahigh frequency, very high frequency bands in IT & Telecommunications and growing investments in the telecommunication industry, broadband speed improvement and deployment of 5G Network would be contributing to the market growth across the North American region. In April 2021, the U.S. Government proposed to invest US$100 billion over the span of 8 years to expand high-speed broadband access to the entire country, thus creating opportunities for the adoption of Radio Modems in this region.

Radio Modem Market Drivers

High demand for wireless communication infrastructure:

Wireless communication infrastructure is a collection of various connectivity standards, communication assets and connectivity solutions that work together to provide wireless networks to users. Radio Modems are key components to facilitate these solutions. This network prioritizes overall connectivity and connection performance while minimizing the need for wire connections between various devices and components. In June 2022, Qualcomm Technologies announced the launch of a radio frequency Front-end connectivity solution to amplify the route signal between the SOC and the antenna, thereby increasing the performance of the Wi-Fi and Bluetooth. These developments would positively influence the Radio Modem industry outlook during the forecast period.

Rising demand for Intelligent Transport Systems:

The eminent need to efficiently manage the traffic flow across city corridors and highways has triggered the demand for intelligent transport systems which in turn drives the Radio Modem industry. To effectively address traffic concerns, several economies are deploying new solutions that integrate electronic and communication technologies. Intelligent transport systems contribute significantly to lower greenhouse gas emissions and fuel consumption by reducing traffic congestion. For instance, in July 2021, Siemens Intelligent Traffic Systems launched its new brand ‘Yunex Traffic’. It is aimed at providing smart and comprehensive traffic management solutions. Such developments would effectively increase the Radio Modem Market size.

Radio Modem Market Challenge

Inability to transmit a large volume of data:

Radio waves' inability to simultaneously transmit large amounts of data is one of the major factors restraining the growth of the Radio Modem industry during the forecast period. Additionally, the initial investments in purchasing radio modems and related hardware are comparatively higher. Furthermore, due to the easy availability of license-free bands, there are chances of congestion on these channels which makes the use of radio modems redundant. These factors are hampering the growth of the Radio Modem Market over the forecast period.

Key Market Players

Product launches, collaborations and R&D activities are key strategies adopted by players in the Radio Modem Market. The top 10 companies in the Radio Modem Market include:

1. Digi International
2. Campbell Scientific
3. SATEL
4. RACOM
5. RF Data Tech
6. NEC Corporation
7. Warwick Wireless
8. Qualcomm Technologies
9. Radiometrix
10. ADEUNIS RF

Scope of the Report:

Recent Developments

• In June 2022, Qualcomm Technologies, Inc. announced the launch of RFFE modules aimed at providing best-in-class Wi-Fi and Bluetooth experiences. These modules were created for Bluetooth, Wi-Fi 6E and the next-generation Wi-Fi 7 standard and were capable of serving a wide range of Radio Modem applications.
• In November 2021, Digi International announced the acquisition of Ventus Holdings. This acquisition is aimed at simplifying the complexity of enterprise-wide area network (WAN) connectivity, which in turn boosts the Radio Modem industry.
• In January 2020, NEC Corporation developed an ultrahigh-frequency antenna radio unit for use in the 5G spectrum. This is poised to increase the company’s share in the Radio Modem Market.

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