A market research report by MarketsandMarkets™ estimates that the Software Defined Radio (SDR) market size is projected to grow from USD 11.4 billion in 2020 to USD 14.5 billion by 2025, at a CAGR of 4.9% from 2020 to 2025. Growth is being driven by the rising adoption of SDRs in telecommunications as well as numerous advances ion SDR technology. The increasing demand for software defined radios in advanced communication systems utilized for important missions in the aerospace sector will further escalate the market growth.
Due to precautionary measures undertaken by many countries to stop the spread of COVID-19, several public/private development activities have been stopped, resulting in a drop in demand for software defined radios. The demand for software defined radios in Europe and the Asia Pacific has been affected by the pandemic owing to the stoppage of development activities.
In terms of application, the market is segregated into commercial and defense. The rising usage of SDRs in commercial applications including aviation communication, marine communication, transportation, telecommunication is supporting the segment growth. Software defined radios are predominantly used in Air Traffic Control (ATC), transportation, and telecommunication applications. They are easily upgradable and provide high data transmission rate that further enhances its usage for commercial segment.