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ABI: First-Responder Terminal Market to Reach $3.5B by 2013

November 11, 2008 // Published as a news service by IHS

 
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The market for terminals used by emergency first responders looks set to grow significantly over the next five years, according to ABI Research, increasing from slightly more than $1 billion in 2007 to more than $3.6 billion in 2013.

This growth will occur as agencies standardize on digital technologies, such as the Association of Public Safety Communications Officials International (APCO)/ Telecommunications Industry Association (TIA) Project 25 (P25) and European Telecommunications Standardization Institute (ETSI) terrestrial trunked radio (TETRA).

Although something of a laggard compared to markets in other regions, the North American market looks set to be the largest global opportunity in the long term, as federal funding filters down through the system, analysts said.

"The public safety wireless communications market for technology and geographic location has solidified," said ABI Research vice president Stuart Carlaw.

"North America is dominated by P25, while the rest of the world seems set on the European-developed TETRA standard with isolated islands of P25 in the Asia-Pacific region and legacy TETRAPOL in France."

In the U.S., public safety agencies apply for funding grants to obtain the equipment and training they need. This decentralized procurement means that the funding mechanisms do not make coordination easy. In Europe, analysts said several blue light networks are funded on a nationwide basis. The European model is also largely privatized: rather than government being the provider of these services, it is private cellular operators.

"First-responder terminal vendors see the fragmented, but huge and less mature U.S. market as the greatest opportunity for the future, although it must be recognized that penetration into this market is difficult due to technology choice and to Motorola's preeminent market position," Carlaw said.

Source: ABI Research.


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