Computer Aided Dispatch Market

Market Overview

The global computer aided dispatch market size was valued at USD 1.69 billion in 2021 and is projected to reach USD 4.41 billion by 2030 at a CAGR of 11.25% from 2022 to 2030.

911 operators and dispatchers use computer-aided dispatch solutions to record incident calls, organize the dispatch, dispatch responders accurately, and obtain updates on the location and status of responders in the field. Multiple law enforcement and other government agencies are increasingly adopting CAD solutions to manage emergency situations effectively. These organizations remain committed to ensuring a rapid response to threats posed by criminal activities and natural disasters.

Market Dynamics

Market Drivers

• Regulations Against Cybercrimes Are Driving the Market

Increases in cybercrime, natural disasters, national public safety initiatives, updated policies and regulations, as well as the introduction of connected devices are driving the market for computer-aided dispatch. During the COVID-19 pandemic, organizations used computer-aided dispatch systems to monitor employees' progress in remote working arrangements, and healthcare providers used these systems to monitor both patients and staff to prevent the spread of the infection.

As more businesses migrate to the virtual landscape, it is anticipated that future market demand will increase even further. This will necessitate an increase in the deployment of safety monitoring software and computer-assisted analytical tools.

• Public Safety Enforcement Agencies Are Driving The Market

The new and improved computer-aided dispatch systems enable public safety agencies to streamline their dispatch processes by automating location detection, caller identification, and number identification. The most recent innovations in cloud-based and wearable technologies have increased the global CAD market's growth prospects.

For instance, Apple recently announced a new walkie-talkie feature for the Apple Watch, which is accessible via the most recent software update. Although the concept of walkie-talkies on wearable technology is still in its early stages of development, it may have been utilized outside the consumer market. Modern computer-aided dispatch systems enable emergency services to respond quickly and effectively, which could reduce the number of avoidable deaths.

Administrative authorities are already shifting toward more integrated, enhanced CAD solutions in emergency services, with the US National Emergency Number Association announcing the NextGen 911 plan, which proposes the nationwide enhancement of the current computer-aided dispatch services by 2023.

Market Restraints

• Incompatibility And Interoperability Hinder The Market

Dispatch systems and the teams operating these systems are facing incompatibility and interoperability issues as a result of the introduction and adoption of various CAD solutions by various agencies. Public safety agencies, particularly in developed economies, are opting for a single point of contact in order to circumvent this issue. Such a strategy would address interoperability issues and reduce the PSAPs' overall operating expenses. Thus, increasing PSAP consolidation is anticipated to restrain the growth of the global market for computer-aided dispatch from 2022 to 2030.

Market Opportunities 

• Technologies Like IoT Will Bring In New Opportunities

Computer-aided dispatch solutions continue to gain momentum in the public transportation, safety, reporting, and emergency services industries. As network speeds increase and become more cost-effective, computer-aided dispatch (CAD) technology will expand, and systems will be able to share rich data, such as images and videos, with first responders end route to an incident in order to enhance their situational awareness.

Internet of Things (IoT) development continues to provide the necessary infrastructure for the expansion of the computer aided dispatch market. The exponentially increasing connectivity between objects has enabled the effective detection, monitoring, and management of resources and human life.

In addition, advancements in IoT and wearable technology are likely to boost CAD development, with these combined systems allowing operators to precisely locate people and consumers to use features such as text to voice to contact public safety agencies. The technology can automatically contact emergency services if the wearer is in distress.

Regional Analysis

In 2021, North America dominated the market with a revenue share of 41.7%. Increasing demand for public safety solutions, shifting regulations and policies, and the presence of advanced networking and communication infrastructure all contribute to this trend. In addition, the presence of large market participants and the federal government's emphasis on investing in emergency services applications are anticipated to increase the adoption of CAD solutions in the region. In addition, rising annual U.S. defense expenditures are anticipated to increase the adoption of CAD software for defense applications in the country.

The Asia-Pacific region is anticipated to be the market with the highest growth rate during the forecast period. Emerging economies are increasingly adopting emergency dispatch software as a result of continuing urbanization and changing government policies. In addition, the constant expansion of communication and networking infrastructure is anticipated to propel the market during the forecast period. In addition, local governments in developing nations, such as India, are expected to place a greater emphasis on and invest more in the deployment of public safety software between 2022 and 2030, thereby accelerating market growth.

Segmental Analysis

This market can be segmented on the basis of component outlook, vertical outlook, regional outlook, and competitors.

In 2021, the software segment dominated the CAD market in terms of revenue, holding a 65.0% share. This high proportion is attributable to the widespread preference for CAD solutions in a variety of public safety applications, such as emergency management and healthcare crises. Rapid growth is being observed in demand for computer-aided dispatch software among Fire, Police, and Emergency Medical Services (EMS) agencies. As a result, it is anticipated that the software segment will experience a rapid expansion over the forecast period.

The increasing adoption of CAD software solutions by private and public organizations has increased the demand for services associated with CAD software. These services include installation and integration, as well as training and support. In addition, governments in developing nations such as India, China, and Brazil are investing heavily in the deployment of CAD software to ensure a high level of public safety. Consequently, the demand for CAD-related services is anticipated to increase significantly over the next seven years due to the rising investments in CAD solution deployment.

The substantial increase in the implementation of on-premise CAD solutions by numerous public safety agencies in order to store and access data securely on-premises led to the on-premise segment's revenue share exceeding 70 percent in 2019. In addition, key players such as Hexagon Safety & Infrastructure offer CAD software with advanced capabilities that are compatible with legacy systems. Consequently, it is anticipated that technological innovation will continue to fuel economic expansion.

In contrast, cloud adoption and demand for Software as a Service (SaaS) have increased dramatically over the past few years. Also, demand for cloud-based computer-aided dispatch software is growing rapidly among small and medium-sized organizations. The demand can be attributed to the fact that cloud-based solutions offer numerous advantages, such as lower total costs compared to the use of internal data centers, faster software implementation, and greater accessibility. This trend is expected to propel the growth of the cloud-based market segment, which is gaining momentum in developing nations.

In 2020, the public safety segment dominated the market in terms of value, with a revenue share of 29.1 percent. Several public safety departments around the world have implemented computer-aided dispatch systems to achieve the highest level of dispatching efficiency. Increasing use of CAD technology to ensure efficient dispatch services in industries such as public safety, government, transportation, utilities, and healthcare is anticipated to drive the market's expansion. Due to the high adoption of computer-aided dispatch software for various public safety applications such as fire safety, crime control, and other critical applications, the public safety vertical achieved the largest market share among all vertical segments in the global market in 2019. In addition, an increase in the number of detectives and police officers is anticipated to contribute to the segment's growth from 2022 to 2030.

In addition, the demand for computer-aided dispatch solutions has increased significantly in other industries, including transportation, government and defense, energy and utilities, and healthcare. Due to the rising demand for efficient management of emergency medical services, it is anticipated that the healthcare segment will experience the highest CAGR during the forecast period. In addition, computer-aided dispatch solutions are used in other healthcare facilities to accurately track staff participation during incidents and to distribute work schedules to admitted and visiting patients. In addition, the transportation sector is anticipated to experience significant growth in the global market due to the rising demand for CAD solutions in airports and railway stations.

Recent Developments

• In November of 2020, Carbyne will form a partnership with Central Square Technologies to enhance CAD. The collaboration between a startup and a multinational corporation is a step toward more 911 callers being able to engage in live video chats, instant messaging, and data sharing with emergency dispatchers.
• In December 2021, Softil, the world's leading mission-critical communications (MCX) enabler, and Zetron, the global leader in integrated mission-critical communications technology, jointly announced that Zetron would use Softil's BEEHD MCX-enabling technology to enhance the LTE Push-To-Talk (PTT) integration capabilities of its dispatch solutions.