IHS Analyst Round-Up: Critical Communications World 2015

Accoding to IHS, the number of product launches and announcements from the key incumbents of the LMR market was exceptional, and the influx of companies providing LTE solutions was noticeable. IHS has identified some key themes from the floor set to shape IHS forecasts in 2015.

LTE and Hybrid Devices

IHS recognises in its report, Critical Communications Broadband, that there is a significant drive towards convergence for the PMR market. With the influx of LTE incumbents such as Huawei and ZTE at CCW this year, there seems to be a real need for ‘future proofing’ of existing PMR devices across all narrowband technologies. TETRA is the main focus for this hybridisation – Sepura announced the launch of the SC2020 terminal; according to the Company, the SC2020 is the first TETRA hand-portable device that is Wi-Fi and “other” data ready. However, Motorola struck a different chord with the market with the EMEA LEX L10 launch – one of the first dedicated cellular (LTE & 3G) devices available specifically for data usage.

The pattern of traditional LMR companies ‘future-proofing’ and aligning devices with the LTE future suggests some anxiety on the future of narrowband technologies. The vast majority of seminars during the plenary sessions were focused on the future of the critical communications market and the integration of broadband networks into traditional narrowband systems; the number of sessions on applications, roadmaps to broadband and the hybridisation of current networks was suggestive of the mind-set of the industry.

While existing LMR companies are future-proofing their devices for an LTE future, companies such as Huawei, Alcatel-Lucent and ZTE are streaking ahead with their LTE solutions. On display at the event, and further praised at the eLTE Summit just prior to CCW, Huawei’s solutions provide an interesting answer to some of the limitations in low-data, voice-centric narrowband networks. Essentially considered a part proprietary solution at the moment, eLTE is intended to become an open standard, aligning with the B-Trunk standard as well as 3GPP as this standard becomes more clear.

The Sepura-Teltronic acquisition completed not long after the show, and provided some interesting conversation points during the event. The combination of Sepura’s terminals portfolio and Teltronic’s broad infrastructure and terminals portfolio will enable the Group to offer a broader range of products for the LMR market. Undoubtedly, the acquisition of Teltronic also expands Sepura’s geographical footprint across Latin America, enhancing its existing presence in the US TETRA market, and may significantly impact the competitive environment for TETRA terminals on a global scale. There has been increased M&A activity in the LMR market recently, although this is one of the first acquisitions we have seen on such a large scale. Undoubtedly, there will be more in the future. There will always be smaller-scale acquisitions, but IHS believes that larger acquisitions may be on the cards within the next couple of years as the market moves towards an LTE future.

Smart Public Safety – Future Devices

Smart public safety and the future of connectivity and tech in the LMR industry was an intriguing one. The hype around LTE has raised the volume of end-user demands for high-speed data, applications and wearable devices to improve their situational awareness, and companies looking to improve their operational efficiencies. IHS conducts an end-user survey annually, to determine future requirements for end users. As was demonstrated so clearly with the hi-tech products on offer at this year’s CCW, the end-users surveyed by IHS advocated a need for real-time video, biometric data and personnel monitoring solutions, image and large data packet transfer and numerous other high-bandwidth functions.

Motorola has been the ring leader for hi-tech and future-looking solutions in the past couple of years, unveiling its Connected Police Officer at APCO 2014 and unveiling its Connected Fire Officer at CCW, on the back of numerous acquisitions in the hi-tech and wearable industries. Helmet cameras, bio-sensors, environmental sensors, indoor location trackers and heads up display masks all featured in Motorola’s latest concept. The wearables market has been on the increase over the last few years, with body worn cameras, smart glasses and other hi-tech devices gaining ground. IHS forecasts that the market for sensors – such as environmental, bio, and motion detectors will all see significant uplift over the next few years; the technology behind these devices will continue to develop and offer additional situational intelligence for police forces. IHS expects that the industry will see more and more of these wearable concepts gaining floorspace at future shows in EMEA and the Americas as operational efficiency for officers becomes more of a value proposition for public safety organizations.

For additional discussion, or for more information about any IHS Critical Communications forecasts, please reach out to Elizabeth Mead at Elizabeth.mead@ihs.com