Market Outlook

(Updated August 5, 2022)

Bittium's customers operate in various industries, each of them having its industry-specific factors driving the demand. A common factor creating demand among the whole customer base is the growing need for higher quality and secure data transfer. Due to the technology competencies accrued over time and the long history of developing mobile communication solutions, Bittium is in a good position to offer customized solutions to its customers. Over thirty years of experience and extensive competence in measuring biosignals also act as a basis for medical technology solutions.

In 2020 and 2021, the global coronavirus pandemic has significantly affected the global economy and market situation, however, the market has slowly recovered from the effects of the pandemic.

The global shortage of components will affect product manufacturing and thus the ability to deliver products to customers on schedule. In addition, the world's geopolitical situation, problems with logistics chains, inflation and deteriorating economic development create uncertainty in the market outlook.

Read more information about other risks and uncertainties here.

The factors affecting the demand for Bittium´s products and services are described below:

Defense, Public Safety, and Information Security Markets

In the defense market´s tactical communications sector, the governments´ defense forces and other authorities need networks that troops, who are more and more constantly on the move, can use and transfer growing amounts of data securely. This creates demand for Bittium Tactical Wireless IP Network™ (TAC WIN) broadband network, Bittium Tough SDR™ handheld, and vehicular radios, and other Bittium´s IP-based (Internet Protocol) tactical communication solutions. Bittium continues its efforts to bring its defense market targeted products and services also to the international defense markets and aims to get new international customers for its tactical communication system in 2022. Due to the long sales cycles driven by purchasing programs of national governments, it will take time to receive purchase orders.

The use of smartphones, and applications continues to increase in public safety market, creating demand for Bittium Tough Mobile™ secure smartphone and other customized special terminals based on Bittium´s own product platform. The awareness of mobile security risks is growing, and the interest in secure mobile devices is increasing. The sales of secure terminal products is expected to develop moderately according to the nature of public safety markets.

The coronavirus pandemic has delayed the start of new projects and receiving orders. Especially in the defense and security markets, testing and piloting of products and systems are typical steps before orders from larger entities. These steps could not be carried out under exceptional circumstances. However, the market has clearly started to recover from the effects of the pandemic and projects are starting again.

The global shortage of components affects the availability of various components used in products, which affects the company's ability to deliver products to its customers on the agreed schedule.

Telecommunication and Digitalization

In mobile telecommunications, the implementation of 5G is accelerating in pace. Investments in developing new features continue and the importance of software development in the 5G network development expands. This creates demand for Bittium´s R&D services. There is a wide range of frequencies allocated for the 5G technology, thus creating the need to develop multiple products to cover the market and creating demand for R&D services for the development of product variants. The different kinds of needs for solutions in the open radio frequency network architecture, Open Radio Access Network (ORAN), and satellite communication increase the demand for Bittium's R&D expertise as new players enter the traditional supplier network. Also, the development of new devices utilizing 5G technology increases the demand for Bittium´s services.

As digitalization evolves, secure IoT (Internet of Things) has become a significant development area in almost every industry. The increasing need for companies to digitalize their operations, collect data wirelessly, and transfer it to the internet and cloud services generate a need for Bittium´s services and customized solutions. To this end, the market needs secure devices, for both demanding industrial and leisure applications, which collect information from the sensors used by the device and create a reliable wireless connection to the Internet and cloud services. The deployment of 5G technology is expanding and the number of digitalized devices increases continuously. The devices will also feature new and more advanced features that will create demand for R&D services. Therefore, the integration of different systems and technologies plays an important role in enabling complete digitalization services. There are several learning systems and devices under development that use different kinds of artificial intelligence (AI) technologies to ease and speed up the processing of large data amounts.

Technological development and new innovations enable the development of new devices for monitoring health and well-being, which increases the demand for Bittium's product development service expertise. Bittium's experience with various wearable and medical devices, combined with wireless connectivity expertise, enables competitiveness also in providing design services for health and well-being devices.

In the wireless communication and digitization market, the coronavirus pandemic is causing only mild caution and a little slowness.

Labor competition is expected to continue in the market during 2022.

Medical ECG, EEG, and Sleep Apnea Remote Monitoring Market

The medical technology market is undergoing significant development in patient care, especially outside hospitals. There is an increasing focus on the prevention of diseases and health problems through early diagnosis and the discharge of patients at an earlier stage to reduce hospital and treatment days. These actions significantly increase efficiency in health care processes and lower costs.

A prerequisite for early hospital discharge is the enabling of accurate and precise follow-up and measurement opportunities in home conditions, which would be enabled through remote monitoring. Remote monitoring and remote diagnostics also enable specialists´ diagnoses regardless of time and place. Also, evolving artificial intelligence-based algorithms become more common in supporting physicians in making diagnoses. These make it possible and faster to obtain more accurate diagnoses, which, in turn, speeds up the start of the right kind of treatment. The market change will enable several new providers to join the overall care service chain, without compromising the quality of specialist services.

For measuring biosignals, remote monitoring and remote diagnostics, Bittium provides its Bittium Faros™ product family for remote heart monitoring, Bittium BrainStatus™ for measuring the electrical activity of the brain, home sleep apnea testing solution Bittium Respiro™, and different kinds of diagnostics software.

During the coronavirus pandemic, non-urgent patients seeking treatment and examinations decreased. Several hospitals, treatment facilities, and health care service providers switched to using remote diagnostics solutions more widely. In the longer term, the pandemic will speed up the introduction of digital remote services in hospitals and care facilities, creating a positive development in the demand for remote monitoring products and services.

The global shortage of components affects the availability of various components used in products and can affect the company's ability to deliver products to its customers on time.