Greater China's two-way radio market has been experiencing a transition for the last two years. In mainland China, the deregulation of the 400MHz low-power civilian transceivers or public two-way radios by the State Radio Regulation Committee (SRRC), has increased market demand at the consumer level. However, with deregulation came fierce competition among makers as new entrants flood into the industry due to the low threshold accorded two-way radio production.
Despite the increasing market demand, the handheld two-way radio technology is still at its development stage as compared to their counterparts in developed countries.
Active makers in mainland China and Taiwan are facing the challenges of brand recognition and narrower profit margins. Many of them choose to improve the quality and performances of their products rather than to take part in the price war.
Since the overseas markets are more mature and stable than the domestic markets, export is a major concern for most makers. Local companies are now exporting their products to Europe, the Americas, Africa, the Middle East and Southeast Asia.
The worldwide increase in market demand is expected to sustain all plans of possible output and export expansions in Greater China. However, the European Union's (EU) RoHS directive is posing a setback to most makers' operations. Many makers in the region have yet to comply with the requirements and are lagging behind schedule.
In Hong Kong, makers wallow in the impact of price dumping and overstocking. The market has become saturated in recent years, especially the analog segment. Digital models are expected to boost market demand due to its advantage of almost zero interference.
