In 2019, the VHF radio market was valued at approximately US$ 3,177.37 million and is anticipated to grow to around US$ 6,218.05 million by 2027, reflecting a compound annual growth rate (CAGR) of 8.9% from 2020 to 2027.
The maritime sector is increasingly adopting advanced systems to enhance safety and minimize operational expenses. Among these, VHF radio stands out as a highly economical communication tool, facilitating interactions with a wide array of entities, including commercial vessels, the US Coast Guard, the Rescue 21 network, bridge operators, race committees, and TowBoatUS. The effectiveness of VHF radio is significantly influenced by its antenna systems, which are ideally positioned at elevated heights. Given that VHF signals propagate primarily in a straight line, higher antennas can extend the reach of these signals to more distant stations. In emergency scenarios, VHF radio systems are extensively utilized by marine emergency services and search and rescue (SAR) teams operating both on land and at sea.
Within the maritime industry, VHF radio is recognized as a vital communication medium. However, challenging conditions at sea and onboard can hinder effective communication. Factors such as ambient noise and adverse weather, including rain, can adversely affect the transmission of radio messages. To address these challenges, various organizations are dedicated to improving communication systems. For example, in June 2020, the German Maritime Search and Rescue Association (DGzRS), in collaboration with Fraunhofer IAIS, Fraunhofer CML, and Rhothetha Elektronik GmbH, launched a research initiative focused on the Automated Transcription of Maritime VHF Radio Communication to enhance coordination during search and rescue missions.
Emerging markets in the Asia-Pacific (APAC) region are expected to present significant growth opportunities for VHF radio manufacturers from 2020 to 2027. Several key countries are showing a growing interest in recreational boating activities, such as sailing and boat racing. This rising enthusiasm for boating is contributing to an increase in recreational activities in developing economies across APAC. As disposable incomes rise, consumers in these regions are more inclined to invest in premium recreational experiences.
Beyond China and India, other Asian nations are also poised to experience growth in recreational boating. For instance, Sri Lanka is making strides in its recreational boating sector. According to the Boat Building Technology Improvement Institute, while the country is not yet a major player in the boating industry, there is a noticeable uptick in demand for recreational boating. Additionally, the Indonesian Marine Tourism Association is optimistic about the potential of the boating industry in Indonesia, suggesting that recreational boating activities will create numerous opportunities in the future. Consequently, the increasing popularity of recreational boating is likely to drive demand for VHF radio systems, which are favored by boaters for their reliability in marine communications and superior reception compared to mobile phones. Furthermore, the absence of licensing requirements for recreational boat use enhances their appeal. Thus, the growth of recreational boating is expected to yield substantial business prospects for VHF radio market participants during the forecast period.
The United States represents a significant market for VHF radios, particularly within the aviation and maritime sectors. The surge in COVID-19 cases and the associated rise in fatalities have adversely affected both the manufacturing and sales of VHF radio components. Factory closures and business shutdowns across the US, Canada, and Mexico have disrupted the VHF radio market. North America, being home to numerous manufacturing and technology firms, is likely to experience a pronounced impact from the COVID-19 pandemic, particularly in 2020 and potentially into 2021. As a result, the ongoing crisis and the challenging situation in the US are expected to negatively influence the growth of the VHF radio market in North America over the coming quarters.
The overall size of the VHF radio market has been determined through a combination of primary and secondary research methodologies. The research process commenced with extensive secondary research, utilizing both internal and external sources to gather qualitative and quantitative data relevant to the market. This approach also aimed to provide an overview and forecast for the VHF radio market across various segments and regions. Additionally, multiple primary interviews were conducted with industry stakeholders and experts to validate the data and gain deeper analytical insights. Participants in this process included industry professionals such as vice presidents, business development managers, market intelligence managers, and national sales managers, as well as external consultants, valuation experts, research analysts, and key opinion leaders specializing in the VHF radio sector. Notable players in the global VHF radio market include Jotron, Icom Inc., Raymarine (FLIR Systems), Sailor (SATCOM Global), Uniden America Corporation, Yaesu USA, Cedar Electronics, JVC Keywood Holdings Inc., Navico, and Entel UK Limited.