The latest global report and analysis from critical communications industry specialists IHS shows a healthy market for TETRA technology, with growth predicted in all regions. The report was presented at Critical Communications World, Amsterdam, The Netherlands this week (31 May to 2 June 2016).
Eastern Europe in particular is projected to see rapid growth, with new terminal shipments in the Industrial sector expected to increase by almost 50%, and in Transport by nearly 27%.
Western Europe is forecast to remain the largest world market for TETRA. This prediction has been raised compared with the 2015 IHS report, as data from the IHS EMEA tracking service and ongoing conversations with industry experts indicated positivity on the future of TETRA in Europe.
“2015 has been an exceptional year for TETRA in Europe, with the completion of the nationwide networks in Germany and Norway,” said Phil Kidner, CEO of the TCCA, the critical communications sector representative. “We are also seeing re-investment in existing TETRA networks, with a huge amount of activity in renewing both infrastructure and terminals.”
Although Europe remains the largest market for TETRA in active radios with a 53% share of the installed base as at the end of 2015, it will be challenged by the end of 2020 as the installed base increases in other regions including Middle East and Africa (MEA), and the Americas.
The American installed base is forecast to be led by Latin America, although North America, where TETRA was only introduced in 2012, is also forecast to grow substantially.
Mission-critical applications continue to make up a major part of the TETRA market, with Public Safety and Security (PSS) representing more than 56% of the installed base. However, over the next five years, IHS predicts that business-critical applications will see the most growth, including sectors such as Utilities and Industrial.
The covert terminals market is forecast to grow by almost 19%, representing exciting opportunities for TETRA. “A mature network environment lends itself to users requiring more specialist radios,” said Thomas Lynch, Director, Security and Critical Communications at IHS (pictured).
“Sources suggest that covert users come late to a network; often after trust in the network has been well established. Maturity also develops a culture across agencies, so when a secure radio is required, TETRA will be the choice. The threat from terrorism, political instability and the needs of national security are the main drivers of the covert market.”
The availability of ATEX radios is predicted to help TETRA maintain its market share in the Oil and Gas sectors, although ATEX devices are forecast less growth than previously stated due to the drop in oil prices and consequent decrease in investment into these sectors.
This is the eighth edition of the IHS report dedicated to the TETRA terminals market. Although the European PSS sector remains the backbone of the TETRA market, TETRA has proven itself the technology of choice for many other users and it is seeing increasing success in a number of user areas and regions that were not considered traditional strongholds of the technology.
All figures relate to CAGR from 2015-2020 unless otherwise stated. Source for all information: TETRA Terminals – 2016 report from IHS Technology.