Global Radio Modem Market Forecasts from 2023 to 2028

The global radio modem market is projected to witness a compound annual growth rate of 9.79% to grow to US$1,273.279 million by 2028, from US$662.327 million in 2021.

A radio modem is an electronic device that enables wireless data transfer, across tens of kilometers, depending upon its range. These modems operate through the transmission of data from one modem to another, via radiofrequency. The prime factors which are driving the market growth are the cost-effectiveness of the modem, booming Internet connectivity, and the low infrastructure environment. Furthermore, the rise in privately owned networks and emerging networking technology are forecasted to further expand the market prospectus during the forecast period.

Booming Internet Connectivity

One of the prime reasons supporting the market expansion is the booming internet connectivity worldwide. Technological advancement and the rise in connectivity coupled with the adoption of 5G technology have increased the market adoption of the radio modem. For instance, in 2022, the International Telecommunication Union (ITU) calculated that around 5.3 billion individuals, which accounts for approximately 66% of the global population were utilizing the Internet. This marks a growth of 24% compared to the statistics from 2019. Moreover, the shift of operations to virtual platforms and the adoption of the Internet across several economic sectors, including business, education, and more, notably expands the market dynamics, providing lucrative opportunities.

Expanding Adoption of 5G Services

The introduction and adoption of 5G technology are expected to further boost the market. Government initiatives to encourage 5G rollout throughout the world are boosting industry development. For instance, through the Horizon 2020 Program, the European Commission announced public funding of approximately USD 861 million to assist 5G rollout across Europe. Additionally, the UK government launched the Digital Connectivity Infrastructure Accelerator initiative, a £4 million competition, in September 2021. The goal of this project was to look at ways to make it easier for mobile carriers to use publicly owned buildings and infrastructure along the road, such as CCTV poles, for the installation of 5G radio equipment.

Expanding Application in Traffic Management System

The traffic management system market consists of signage, sensors, cameras, toll booths, models, and other traffic management types of equipment. With the growing adoption of technology and automation, the industry is expected to adopt more and more of such technology. By minimizing traffic congestion, intelligent transport systems drastically cut fuel usage and greenhouse gas emissions. For instance, Siemens Intelligent Traffic Systems introduced its new brand, "Yunex Traffic," in July 2021. It aims to offer sophisticated and all-encompassing traffic control solutions. The market size for radio modems would effectively grow as a result of these improvements. there will be a strong demand for wireless devices as a result of the Department of Transportation teams upgrading their infrastructure for traffic control to ensure smooth traffic flow, which is anticipated to boost the radio modem market over the course of the forecast year.

North America is Expected to Grow Significantly

The growing number of four-wheelers and heavy vehicles in North America is likely to fuel the expansion of the radio modem market in the region as countries have a high demand for an efficient transportation system. A few prominent participants in the US radio modem industry are Digi International, Pacific Crest, Advantech B+B SmartWorx, FreeWave Technologies, Intuicom, and Motorola Solutions. On the other hand, technological advancements and the continuing expansion of transportation networks are likely to fuel the growth of the ITS industry in the United States, propelling the radio modem market forward. Rising demand for vehicular safety would increase the demand for a vehicle-to-infrastructure application of radio modems. According to the data from the National Insurance Crime Bureau (NICB), the number of cars stolen in the U.S. was 9,32,329 in the year 2021 an increase of 6% over the previous year which is 2020.

Key Market Developments

• RACOM launched the new RipEX2e radio modem in September 2022 during the RACOM Partner Meeting in Prague. RipEX2e is fully compatible with the RipEX2 radio modem and its maximum channel width is 50 kHz with a maximum modulation of 64 QAM.
• In September 2021, Western Systems and Caltrans District 12 formed a joint venture to launch Yunex Traffic roadside units (RSUs), which can transmit data from roadside infrastructure to vehicle onboard units (OBUs).

Segmentation:

By Frequency

• HF
• UHF
• VHF

By Communication Channel

• Point to Point
• Point to Multi-Point

By Application

• Vehicle to Infrastructure Communication
• Traffic Management System
• Electronic Fee Collection
• Emergency Management System

By Geography

• North America
• United States
• Canada
• Mexico
• South America
• Argentina
• Brazil
• Others
• Europe
• Germany
• Spain
• United Kingdom
• Italy
• Others
• Middle East and Africa
• Israel
• Saudi Arabia
• Others
• Asia Pacific
• China
• Japan
• India
• Australia
• South Korea
• Taiwan
• Thailand
• Indonesia
• Others