The global broadcast communications equipment market is expected to grow from $4.39 billion in 2020 to $4.54 billion in 2021 at a compound annual growth rate (CAGR) of 3.4%. The growth is mainly due to the companies rearranging their operations and recovering from the COVID-19 impact, which had earlier led to restrictive containment measures involving social distancing, remote working, and the closure of commercial activities that resulted in operational challenges. The market is expected to reach $5.28 billion in 2025 at a CAGR of 4%.
The broadcast communications equipment market consists of sales of broadcast communication equipment and related services. Broadcast communications equipment establishments make radio and television broadcast and wireless communications hardware. Products made by these establishments include transmitting and receiving antennas, cable television equipment, GPS equipment, cellular phones, mobile communications hardware, radio and television studios, and broadcasting hardware
Increase in disposable income is driving the broadcast communication equipment market.The disposable income is the total amount of household income available to spend and save after paying income tax.
The increase in disposable income increases the probability of consumers spending on entertainment and mobile communications, which leads to an increase in the sales of mobile communications such as cell phones.Cellular telephone is a broadcast communication equipment device, and the market has largely benefited from increased sales of cellular telephones.
Cellular telephones have now become a necessity in every household owing to advantages such as connectivity, productivity applications, entertainment and education and with increasing disposable income, individuals are increasingly buying smartphones, boosting the broadcast communication equipment market. For instance, in India, the per capita net disposable income increased to $ 1829.62 during 2019-2020 from $ 1712.51 during 2018-2019 showing a rise of 6.8%. Rise in disposable income coupled with affordability increased purchasing power of the individuals and in turn propelled the market for cellular telephone, driving the broadcast communication equipment market.
Security threats such as hacking of GPS tracking application is a major challenge in the broadcast communication equipment market.GPS is a broadcast communication equipment device, used to determine an object’s ground location.
Hackers can tamper GPS signals and exploit the vehicles. The signals could possibly be jammed during the transmission.
The vulnerability of GPS system will allow a hacker to track thousands of vehicle positions and even switch off the engines.The GPS system vulnerability.
For instance, in 2019, a hacker named L&M reportedly hacked into thousands of accounts belonging to users of the iTrack and ProTrack GPS tracker devices. The hacker claimed that he could track vehicles in a number of countries, including South Africa, Morocco, India and the Philippines. The vulnerabilities in GPS equipment is causing complications, restricting the growth of broadcast communication equipment market.
The broadcast communications equipment market covered in this report is segmented by product type into transmitting antennas, GPS equipment, transceivers, satellite communications equipment and others and by application into military and civilian
Adoption of internet television is an emerging trend in the broadcast communication equipment market. Customers in developed markets are adopting and showing signs of preferring internet TV. Internet TV, in general, is content distributed over the internet. Wireless service providers are offering online video streaming services and internet TV to compete with traditional pay-TV providers. These services are being offered to increase their subscriber base and revenues. For example, in the U.S, approximately 147.5 million people have adopted internet television to watch Netflix at least once a month, followed by Amazon Prime Video (88.7 million), Hulu (55 million), HBO Now (17.1 million) and Dish’s Sling TV (6.8 million).
In July 2019, Harris Corp., a USA-based technology company specialized in communication systems, electronic systems, space and intelligence, merged with L3 Technologies Inc., a USA-based aerospace and defense company. The merged company is called L3Harris Technologies Inc. The merger is expected to build sixth largest aerospace and defense company with diversified experience in the broadcasting communications equipment. Reportlinker