Digital Mobile Radio (DMR)

2016

The largest consumers of the DMR systems in Russia

In Russia the professional digital radio communication of the DMR standard is used both in state, and in the private sector. The largest consumers of such systems are law enforcement agencies, banks, the airports, the housing and public utilities enterprises and power engineering specialists, railway transport, an oil and gas sector, etc. ^[1]:

The largest consumers of the DMR systems in Russia

Practically in all industries the equipment of the DMR standard is used along with the systems of others digital (TETRA, APCO P25, etc.) and analog standards of both the Russian, and foreign production. For example, at the enterprises entering into PJSC Gazprom the equipment of DMR of production of Motorola Solutions and Hytera companies and also radio stations of conditionally Russian production is used (Yermak, Erica, Clock period, etc.).

The largest DMR projects in Russia

Treat the largest projects in a segment of a professional radio communication of the DMR standard implemented in 2011-2016 in Russia:

• purchase of means of a radio communication for needs of Emercom of Russia in 2011-2013;
• deliveries of radio stations for needs of the Ministry of Internal Affairs of the Russian Federation;
• construction of network for service of collection of Sberbank in all regions of Russia;
• delivery of means of Special Communications and Information Service of military police of Russian Armed Forces for needs of the Russian Defense Ministry;
• creation of a system of a radio communication at Sheremetyevo Airport and Pulkovo;
• delivery of radio stations to SUE Vodokanal of St. Petersburg and to JSC Mosvodokanal;
• delivery of locomotive radio stations for the Russian Railway and subscriber radio stations for Moscow Aeroexpress;
• reconstruction of network of a radio communication of YuES MOESK;
• upgrade of the systems of a trunking radio communication of security services of the NPP of JSC Rosenergoatom Concern.

Main vendors

In Russia more than ten producers of the basic and subscriber hardware of the DMR standard, both foreign, and Russian are provided. The main deliveries of radio stations fell in 2015-2016 on several main vendors – Motorola Solutions, "The Ural radio stations" (Erica), "T-Helper" ("Clock period"), Golden eagle, Hytera Communications and Saga (Yermak).

Localization of production of the DMR equipment of foreign producers which, for example, can cover the following areas is generally manufactured in Russia: installation of printed circuit boards; production of case products; release of emergency devices, filters, power supplies, setup and acceptance, software development.

The cost of the equipment and import substitution policy are the most essential factors affecting the market in the conditions of an economic crisis and the international sanctions.

In a segment of the equipment of DMR the share of foreign producers in projects (generally it is Motorola and Hytera), by a preliminary estimate of J'son & Partners Consulting, at the end of 2015-2016 does not exceed 43%. The downward tendency of a share of foreign suppliers is especially noticeable in recent years: since 2014 deliveries of the foreign systems significantly decreased. So, according to preliminary data for 2016, the number of the imported radio stations in projects contains less than 1000 pieces, i.e. is about 2.5 times less in comparison with 2015. At the same time in 2016 deliveries of the systems of conditionally Russian production (Clock period, Erica, etc.) which use element base (and in certain cases – and the body) the Chinese Hytera models, despite almost double increase in prices in comparison with the prices of 2013 significantly grew.

Main drivers and restraining factors

On expert evaluations, up to 85% of users in Russia use an analog VHF radio communication and therefore transition to the systems of digital trunking will continue to remain the key driver of growth of the market of the DMR systems in the short-term and medium term. On the other hand, restriction of budget financing in a public sector and cost reduction in the commercial sector remain essential restraining factors of "digitalization" of the systems of a professional radio communication. Also it is necessary to refer import substitution policy which will demand certain time for adaptation of production and sales processes in the existing market conditions to barriers of the market of DMR. Besides, in general even large potential consumers of the equipment of DMR in Russia have no accurately formulated strategy for transition to a certain digital format or technology of a professional radio communication. At best vista shots on digitalization by years are designated or an assessment of annual average need for the equipment of DMR is given.

Market size and its dynamics

In general by the end of the 3rd sq. 2016 the total volume of deliveries of radio stations of the DMR standard to Russia, according to J'son & Partners Consulting based on the analysis of the implemented projects in Russia was about 70 thousand pieces. At the same time deliveries of base stations, repeaters and other infrastructure made not less than 1.5 thousand pieces.

According to FAIS, the number of the set base stations of DMR and other standards of the trunking networks other than TETRA, in 3 last years practically did not change and makes the few less than 3.7 thousand pieces. At the same time in relation to the middle of 2015 growth of this indicator in 3 sq. 2016 was 7.2%, and deliveries of DMR radio stations in quantitative expression, by a preliminary estimate of J'son & Partners Consulting, in 2016 increased by 68% in comparison with 2015. These facts demonstrate some improvement of the market of DMR in Russia after considerable decrease in 2015.

In general the annual size of the market of the DMR systems in piece expression (the number of radio stations of all types) during crisis (2014-2016) was reduced almost twice in comparison with indicators during the pre-crisis period (2011-2013):

Market size and its dynamics of the DMR market

Notes