P25 Expenditures to Reach $731M in 2014
Wednesday, October 27, 2010 | Comments
P25 Radio Expenditures
The U.S. state and local Project 25 (P25) device market will experience a 1 percent compound annual growth rate in expenditures between 2009 and 2014, according to market research firm Compass Intelligence. State and local organizations will spend an estimated $730.78 million on P25 devices by 2014 compared with $719.54 million in 2010, the company forecasted.
Overall, two-way radio device expenditures will increase 1.4 percent from 2010 to 2011 with state and local expenditures slightly increasing from $934.84 million in 2010 to $978.55 million by 2014. Expenditures for non-P25 devices in 2010 are forecasted at $215.30 and will increase 1.6 percent from 2010 to 2011 to reach $247.77 million by 2014.
“P25 compatibility has become a significant purchasing factor for users of state and local public-safety radio communications systems,” said Stephanie Atkinson, Compass Intelligence managing partner and principal analyst. “As state and local public-safety users have been upgrading their existing analog systems to comply with new FCC regulated bandwidths, demand for P25-compliant digital public-safety systems increases. One of the main drivers is partly because of the ability of P25 systems to be configured for compatibility with older analog mobile and portable radios, allowing adopters of the P25 standard to purchase new system equipment without replacing all of their subscriber radios.”
Several trends are developing in the LMR market, including increasing direct radio-to-radio operation, allowing short-range communications in the absence of network infrastructure, Atkinson said.
The integration of LMR and mobile satellite services (MSS) is another trend in the device market, Atkinson said. “The chipsets that enable this satellite capability are being adopted for applications and can be integrated into P25 radios to provide redundant communications within expanded areas nationwide.
“The convergence of two radios into a single device, such as LMR/satellite radios, is being used to increase convenience and to enable advanced data applications and services. A key benefit of encapsulating P25 data streams is allowing a user group to employ one-to-many communications without interfering with other groups using encrypted communications.” 
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