Software Defined Radio Market Report 2025

This Software Defined Radio report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market’s historic and forecast market growth by geography.

The software defined radio market size has grown strongly in recent years. It will grow from $23.35 billion in 2024 to $24.84 billion in 2025 at a compound annual growth rate (CAGR) of 6.4%. The growth in the historic period can be attributed to evolution of digital signal processing technologies, growth in wireless communication standards, demand for flexible and reconfigurable radio systems, advances in software-defined radio (SDR) hardware, increase in military and defense applications.

The software defined radio market size is expected to see rapid growth in the next few years. It will grow to $36.58 billion in 2029 at a compound annual growth rate (CAGR) of 10.2%. The growth in the forecast period can be attributed to adoption of 5g technology and beyond, integration of artificial intelligence in SDR, increased use in public safety and emergency communication, expansion of SDR in internet of things (IoT) devices, emphasis on spectrum efficiency and dynamic spectrum access. Major trends in the forecast period include software-defined radio in cognitive radio networks, open-source software development for SDR, use of SDR in satellite communication systems, development of portable and handheld SDR solutions, integration of SDR with edge computing for low latency.

The increase in defense spending aimed at upgrading defense communication systems is anticipated to drive the growth of the software-defined radio market. The defense sector equips soldiers with technological advantages that enhance their tactical capabilities during wartime by providing improved data transmission capabilities, voice clarity, and accuracy in data transfer. These advanced communication systems also play a critical role in safeguarding sensitive information within the defense sector. Additionally, as cross-border conflicts and terrorism become more frequent, investments in defense communication are rising. These factors are likely to boost the adoption of advanced communication systems for enhanced security and safety. For instance, in May 2024, the UK Parliament reported that the UK's defense spending for the 2023/24 financial year reached £54.2 billion, with projections indicating an increase to £57.1 billion in 2024/25, reflecting a 4.5% rise in real terms. Thus, the rise in defense spending on communication systems is expected to propel the growth of the software-defined radio market.

The software-defined radio market is expected to be driven by the demand for communication equipment. Communication equipment encompasses hardware devices and systems used for transmitting, receiving, processing, and managing information. Software-defined radios find application in space communication, enhancing satellite performance and enabling precise operation across multiple frequency bands. According to data from Dun & Bradstreet, around 50% of US industry revenue comes from communication systems and equipment, including GPS, followed by data communications equipment (about 15%) and wireless networking systems (about 10%). Therefore, the increasing demand for communication equipment is set to drive growth in the software-defined radio market.

Technological advancement is a significant trend gaining traction in the software-defined radio market. Software-defined radio technology has made considerable progress, resulting in hardware improvements that lower costs while enhancing performance. These technologies provide substantial benefits compared to traditional hardware-based radio designs and are utilized in various applications that leverage software-defined radio processing. Leading companies in the software-defined radio market are developing innovative technologies to facilitate seamless communications. For example, in March 2023, Elta Systems, an Israel-based aerospace and defense firm, introduced the ARC 840 SDR - Network Centric Operations (SDR-NCO) airborne communication system. Compliant with the latest SCA 4.1 standard from the US Joint Tactical Networking Centre, this software-defined radio enables voice, video, and data communications. Operating in the very high frequency (VHF), ultra-high frequency (UHF), and L-band ranges, the ARC 840 is interoperable with various military and commercial radios, supporting communication among air, ground, and naval forces. Its modular design incorporates two user-swappable radio frequency (RF) modules, allowing for customization to meet diverse mission needs. Additionally, the system includes transmission and communications security features, such as frequency hopping and low probability of intercept (LPI) techniques, to ensure secure communications.

Leading companies in the software-defined radio market are actively introducing innovative software solutions to maintain their market position. An example is the FLEX-6400M software-defined radio transceiver model developed by FlexRadio Systems, a US-based software company. Introduced in April 2022, this system features the latest direct sampling SDR technology, a high-resolution display, and ergonomic controls for the amateur radio market. The SmartSDR software from FlexRadio ensures compatibility across the entire FLEX-6000 Signature Series family, facilitating continuous software enhancements.

In April 2024, Epiq Solutions, a US-based technology firm specializing in the development of software-defined radio (SDR) platforms, acquired G3 Technologies' CyberRadio Solutions for an undisclosed sum. This acquisition aims to enhance Epiq's software-defined radio (SDR) and RF communication offerings, improve its cybersecurity capabilities, and expand its market presence, particularly in the defense and intelligence sectors. G3 Technologies is a US-based company focused on creating advanced software-defined radio (SDR) platforms and RF communication systems.

Major companies operating in the software defined radio market include Elbit Systems Ltd., L3Harris Technologies Inc., BAE Systems plc, General Dynamics Corporation, Leonardo S. p. A., Aselsan A. S., Bharat Electronics Limited, Cobham plc, Collins Aerospace, Curtiss-Wright Corporation, Data Link Solutions LLC, Epiq Solutions, FlexRadio Systems, Giga-tronics Inc., L3Harris Technologies Inc., Huawei Technologies Co. Ltd., Indra Sistemas S. A., Israel Aerospace Industries Ltd., LIG Nex1 Co. Ltd., Microtelecom S. r. l., NXP Semiconductors N. V., Pentek Inc., Rafael Advanced Defense Systems Ltd., Raytheon Technologies Corporation, Rockwell Collins Inc., Rohde & Schwarz GmbH & Co. KG, Rolta India Limited., SDRplay Limited., Signal Hound, Silvus Technologies Inc., Thales Group, Ultra Electronics Holdings, VectorNav Technologies, ViaSat Inc., Wind River Systems Inc.

North America was the largest region in the modular data center market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the software defined radio market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the software defined radio market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Canada, Spain.

Software-defined radio (SDR) is a radio communication system that employs reconfigurable software-based elements for digital signal processing and conversion. This system has the capability to tune to any frequency band, incorporate various modulation-demodulation schemes, and support multiple standards within the same device, utilizing reconfigurable hardware and robust software. The primary objective of SDR is to function as a programmable transceiver that accommodates various wireless technologies.

The key categories of software-defined radio include Joint Tactical Radio Systems (JTRS), cognitive radio, general-purpose radio, and Terrestrial Trunked Radio (TETRA). Joint Tactical Radio Systems (JTRS) specifically denote software-defined radios utilized for transmitting information in military and naval operations. JTRS comprises a collection of software-based radio systems employed in ground vehicles and military platforms. The components encompass hardware, software, and services, while the platforms include airborne, naval, land, and space for software-defined radio. Software-defined radio operates at various frequencies such as High Frequency (HF), Very High Frequency (VHF), and Ultra-High Frequency (UHF). End users of software-defined radio span across aerospace and defense, telecommunications, public safety, and commercial sectors.

The software defined radio market research report is one of a series of new reports that provides software defined radio market statistics, including software defined radio industry global market size, regional shares, competitors with a software defined radio market share, detailed software defined radio market segments, market trends and opportunities, and any further data you may need to thrive in the software defined radio industry. This software defined radio market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The software defined radio market consist of sales of transmitter, receiver, auxiliary systems, and antenna. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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