RF Transceiver Market Forecast 2023 - 2031

By Sales Channel :

Based on the sales channel, the market is bifurcated into direct sales and distributor sales. The distributor sales segment accounted for the largest revenue share in the year 2022. The distributor sales channel of RF transceivers comprises of both offline and online modes. In the online mode, the RF transceivers can be bought from e-commerce websites such as eBay, Amazon, Alibaba, and others. The offline mode includes the distribution of RF transceivers through retail stores, specialist stores, and others. In addition, buying from a distributor also benefits the consumer to select the best product available in the market.

For instance, Analog Devices Inc. and NXP Semiconductors are among few of the RF transceiver manufacturers that offer a range of RF transceivers through several regional distributors including Mouser Electronics Inc. Arrow Electronics Inc., and others. Therefore, the increasing availability of RF transceivers in distributor sales channel is a prime factor proliferating the growth of the segment.

The direct sales channel segment is anticipated to register the fastest CAGR growth during the forecast period. In direct sales channel, products are sold directly to customers by the means of various physical outlets such as company outlets, and others. Moreover, the direct sales channel also comprises of online mode, in which the manufacturers sell the products through its own company websites. Additionally, purchasing RF transceivers from direct sales channel offers various benefits such as faster response time, higher product quality, competitive pricing, competitive pricing, and higher return on investments, which are primary factors increasing the purchase of RF transceivers from direct sales channel.

For instance, Texas Instruments Incorporated is among few of the RF transceiver manufacturers that offer a broad range of RF transceivers for direct purchase through company website. Thus, the availability of RF transceivers in direct sales channels, attributing to its above benefits, is a key factor projected to drive the growth of the segment during the forecast period.

By End-User :

Based on the end-user, the market is segregated into telecommunication, automotive, consumer electronics, aerospace & defense, healthcare, and others. The telecommunication segment accounted for the largest revenue share of 31.6% in the year 2022. Factors including the growing deployments of 5G infrastructure, rising adoption of smartphones and advanced communication devices, and increasing demand for wireless communication are major prospects driving the growth of the telecommunication segment.

According to Viavi Solutions Inc., the overall number of cities globally with 5G deployments reached 1,947 as of January 2022, along with the addition of 635 new 5G cities in 2021. Therefore, the growth of telecommunication sector is driving the adoption of RF transceivers for utilization in base stations and network stations for communication and transmission of data over the wireless medium, in turn proliferating the growth of the market.

Aerospace & defense segment is expected to witness fastest CAGR growth during the forecast period. The growth of aerospace & defense segment is driven by multiple factors including rising investments in military & defense vehicles along with increasing production of air and maritime defense systems among others.

For instance, in April 2022, Huntington Ingalls Industries introduced its new Block IV Virginia-class attack submarine that is primarily developed for the U.S. navy. The submarine is designed for performing several coastal and open-water missions. Hence, the rising development of defense systems is increasing the adoption of RF transceivers for application in point-to-point communication and military radar systems, in turn proliferating the market growth during the forecast period.

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By Region :

The regional segment includes North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.

North America accounted for the largest revenue share of USD 5.21 Billion in 2022 and is expected to reach USD 14.50 Billion by 2031, registering a CAGR of 12.3% during the forecast period. Also, the market is projected to garner revenue of USD 5.74 Billion in the year 2023. In addition, in the region, the U.S. accounted for the maximum revenue share of 75.4% in the same year. The adoption of RF transceivers in the North American region is primarily driven by its usage in aerospace & defense, telecommunication, automotive, healthcare, and other industries. Additionally, the rising utilization of RF transceivers in telecommunication infrastructure including base stations and network stations for communication and transmission of data over the wireless medium as electromagnetic waves are among the significant factors driving the market growth in the region.

For instance, according to the GSM Association, the total 5G connection deployments across North America reached nearly 140 Billion as of 2022. Thus, the growing telecommunication industry is fostering the deployment of RF transceivers in base stations and network stations, attributing to its ability to support various frequency bands including 4G, 5G, and others, in turn driving market growth in the North American region. Further, factors including the increasing investment in aviation & defense and healthcare sectors are anticipated to foster opportunities for market growth in North America during the forecast period.

Asia-Pacific is expected to register the fastest CAGR growth of 12.5% during the forecast period. The growing pace of industrialization and development is creating lucrative growth prospects for the market in the region. Additionally, factors including the growth of multiple industries such as consumer electronics, telecommunication, aerospace & defense, and others are driving the market growth for RF transceivers in the Asia-Pacific region.

For instance, according to Invest India, the Government of India allocated USD 70.6 billion to the Ministry of Defense as the part of its Union Budget 2022-23. The primary focus of the budget allocation to the Indian Ministry of Defense is to help in the development of new unmanned aerial vehicles and systems, military ground vehicles, and other related systems. Hence, rising investment in aerospace & defense sector is anticipated to drive the utilization of RF transceivers for application in point-to-point communication system and military radar system, thereby, driving market growth in the Asia-Pacific region during the forecast period.