Market Research Report
Public Safety LTE
|Published by||Global Industry Analysts, Inc.||Product code||908837|
|Published||Content info||331 Pages
Delivery time: 1-2 business days
|Public Safety LTE|
|Published: September 1, 2020||Content info: 331 Pages||
A Mixed Bag Outlook for Public Safety LTE Amid the COVID-19 Outbreak
The global market for Public Safety LTE is projected to reach US$14.3 billion by the year 2027, trailing a CAGR of 24.2% over the analysis period 2020 through 2027. While applications in military/border control, law enforcement and firefighting services is expected to weaken, growth in emergency medical services and disaster management is already witnessing marked gains. A common impact however among all application areas ranging from law enforcement and border control; firefighting services; emergency medical services; disaster management will be unexpected delays in deployment of pure LTE networks for public safety communications. With no end-user, public or private, looking at big budgets right now to make any type of procurement, pure LTE will need to wait yet awhile. Hybrid networks in the meantime will witnesses faster growth as companies focus on leveraging their investments in radios that are LMR-LTE capable. Fighting a pandemic that refuses to recede has costed governments across the world billions of dollars in pandemic management. Strengthening healthcare systems, COVID-19 response infrastructure and systems, mass-scale disinfection and sanitization strategies, development of drugs, therapies, and vaccines for treatment of the disease; expanding hospital capacity, acquiring hospital beds, critical care ICU equipment like ventilators and P.P.E i.e. masks, gloves has costed billions of dollars in expenditures. Governments have opened up their war chest to fund the unexpected and unplanned expenditures. In addition to pandemic management, governments have also been forced to provide financial relief to rescue collapsing industries like aviation, construction, energy, automobile, hospitality all of which have been brought to the knees by the impact of lockdowns, travel restrictions, operational and supply chain disruptions. The world economy is expected to lose over US$4 trillion put millions into unemployment and poverty pushing the financial cost of humanitarian aids and polices for governments.
In short, a rolling disaster, the pandemic has knocked down vital economic fundamentals that support growth sending knock-on effects into every corner of the economy, society, markets and industry. Boxed in with economic recession, tumbling GDP rates, and spiraling expenditures, governments are becoming poorer and fiscal deficits are rapidly widening. Coronavirus vaccine research alone got US$8 billion in global pledges. In the U.K. public spending on the battle against coronavirus and economic rescue has risen to nearly £190 billion. Germany is on course to spending over €236 billion euros in crisis management. The French government has already spent €450 billion euros. Italy has increased its coronavirus stimulus spending and the total now stands at €750 billion which is nearly 50% of its GDP. The U.S. government has already thrown in over US$6 trillion in managing the pandemic. The country continues to be the worst affected in the world. The magnitude of the expenditure is historic and even eclipses the expenditure used to fund World War II. The country today stares at a massive national debt which is at an all-time high and a Federal Reserve's balance sheet that spells long-term financial pain and austerity. This rapidly depleting of fiscal coffers of governments worldwide has financial ramifications for the economy as a whole and for industries reliant on government budgets like military & defense. Defense spending in the midst of all this is expected to receive a major blow. Top countries until now who were the leading spenders on military & defense will now witness their budgets grow smaller. The United States, for instance, the world's largest spender on defense will acutely feel the crunch. The county's debt which averaged to nearly US$23.4 trillion before the pandemic will now grow even bigger, putting defense among the first government expenditures to be curtailed. The macroeconomic scenario discussed above means far lesser resources will be available for the department of defense (DoD). Against this backdrop, public safety LTE for border control, other military applications and law enforcement will feel the pinch. Although LTE is a superior technology, LMR will likely get a longer leash of life until financial conditions improve. State and local governments are already facing budget and operational constraints due to the pandemic and upgrade plans drawn up during the pre-virus period will likely get cancelled or postponed in these application areas.
However, market opportunities in disaster management and emergency medical services will remain largely unchanged. Disaster management, healthcare and emergency medical services are few of the industries that are witnessing increased investments amid the crisis. When the world plans for the next global threat, it will not be for war or national security but for healthcare given the disproportionately large expenditures governments had to make for testing and treatment in the ongoing pandemic. Undoubtedly there will be severe pressure to overhaul the world's healthcare system to prepare for future pandemics. A large portion of budgetary grants will be directed towards the healthcare system to improve surveillance systems, update diagnostic equipment, expand hospital capacities, train staff, and improve drug manufacturing capacities. The COVID-19 pandemic has pushed primary care to the brink of collapse, highlighting the need for strengthening the healthcare system. Significant funds during the pandemic and post pandemic will be mobilized for upgrading and developing hospital infrastructure. Given the current state of the global healthcare system, over 5.5 billion people will have no access to affordable healthcare by the year 2030. The world will need to double its healthcare coverage in the coming years. Countries worldwide will need to intensify efforts to expand healthcare services and increase spending to least an additional 1.5% to 2.0% of GDP on primary care than current spends to ensure universal health coverage by 2030. The scenario brings good news for the healthcare ecosystem including for mission critical emergency communications.
Competitors identified in this market include, among others,