VOL. XCIV, NO. 247

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Friday, December 26, 2025

Motorola Solutions, Inc.

MSI · New York Stock Exchange

Market cap (USD)$62.7B
SectorTechnology
CountryUS
Data as of
Moat score
68/ 100

Weighted average of segment moat scores, combining moat strength, durability, confidence, market structure, pricing power, and market share.

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Overview

Motorola Solutions, Inc. builds and sells a safety-and-security ecosystem spanning LMR communications, video security/access control, and Command Center software for public safety and enterprise customers. LMR is the largest revenue driver and benefits from a large installed base, standards-heavy mission-critical requirements, and sticky government procurement relationships. Command Center software embeds deeply in 911/dispatch workflows and provides interoperability across LMR and broadband networks. Video competes in a crowded market but can differentiate when sold as part of an integrated stack with communications and software. Key erosion risks include broadband-only substitutions, aggressive competitors, and regulatory interventions (e.g., the U.K. Airwave price control).

Primary segment

LMR Communications

Market structure

Oligopoly

Market share

HHI:

Coverage

3 segments · 5 tags

Updated 2025-12-26

Segments

LMR Communications

Mission-critical land mobile radio (LMR) devices, infrastructure, and managed/support services

Revenue

74.9%

Structure

Oligopoly

Pricing

moderate

Share

Peers

LHXBKTIZBRAAIR.PA+2

Video Security & Access Control

Video security (cameras, VMS, analytics) and access control solutions

Revenue

17.7%

Structure

Competitive

Pricing

weak

Share

Peers

AXONALLEHONJCI+3

Command Center Software

Public safety command center software (911 call handling, dispatch/CAD, incident management, interoperability)

Revenue

7.4%

Structure

Competitive

Pricing

moderate

Share

Peers

AXONTYLORCLNICE+1

Moat Claims

LMR Communications

Mission-critical land mobile radio (LMR) devices, infrastructure, and managed/support services

Revenue share derived from 2024 Form 10-K disaggregation of revenue table: LMR Communications total net sales $8.100B (2024).

Oligopoly

Government Contracting Relationships

Legal

Strength: 4/5 · Durability: durable · Confidence: 4/5 · 1 evidence

Public safety/government procurement is relationship-driven and often multi-year; incumbent performance history matters in awards and renewals.

Erosion risks

  • Competitive rebids and RFP cycles
  • Government budget tightening
  • Procurement policy shifts favoring multi-vendor sourcing

Leading indicators

  • Backlog / remaining performance obligations trend
  • Win rate on large agency RFPs
  • Net sales concentration in top government customers

Counterarguments

  • Government contracts can be re-competed aggressively on price
  • Agencies may standardize on open requirements to reduce vendor dependence

Installed Base Consumables

Demand

Strength: 4/5 · Durability: durable · Confidence: 4/5 · 1 evidence

Large installed base of radios and networks creates recurring upgrade/refresh and attached services opportunities.

Erosion risks

  • Migration of some use-cases to broadband push-to-talk
  • Deferred public safety capex cycles
  • Standards-based interoperability enabling mixed-vendor fleets

Leading indicators

  • Services attach rate on LMR deployments
  • Radio/device refresh cycle timing
  • LMR services revenue growth vs hardware

Counterarguments

  • Customers can keep infrastructure but buy some radios from alternative vendors
  • Installed base does not prevent replacement if competitor offers step-change pricing or features

Design In Qualification

Demand

Strength: 4/5 · Durability: durable · Confidence: 3/5 · 2 evidence

Standards-heavy, mission-critical requirements (e.g., P25/TETRA/DMR) plus reliability/security expectations raise qualification hurdles; switching is disruptive once deployed.

Erosion risks

  • Shift to LTE/5G mission-critical voice/data
  • Commoditization within standards
  • Security incidents undermining trust

Leading indicators

  • Adoption of broadband-only voice solutions
  • Share of new deployments requiring P25/TETRA/DMR
  • Product quality metrics (returns, outages, security advisories)

Counterarguments

  • Other vendors offer certified standards-compliant radios
  • Customers can specify interoperability requirements to avoid lock-in

Long Term Contracts

Demand

Strength: 3/5 · Durability: medium · Confidence: 4/5 · 2 evidence

Multi-year managed services contracts (notably the U.K. Airwave network) provide visibility but are exposed to regulatory price controls and renegotiation risk.

Erosion risks

  • Regulatory intervention on pricing or margins
  • Termination-for-convenience clauses in services contracts
  • Technology transition reducing contract duration

Leading indicators

  • Airwave remaining performance obligations disclosures
  • Regulatory/court decisions affecting Charge Control
  • Airwave revenue and gross margin trend

Counterarguments

  • Long-term contracts do not always imply pricing power when regulators intervene
  • Customers may rebid or renegotiate at renewal points

Video Security & Access Control

Video security (cameras, VMS, analytics) and access control solutions

Revenue share derived from 2024 Form 10-K disaggregation of revenue table: Video total net sales $1.920B (2024).

Competitive

Ecosystem Complements

Network

Strength: 3/5 · Durability: medium · Confidence: 4/5 · 1 evidence

Differentiation comes from being part of an integrated safety-and-security stack with LMR and Command Center, supporting cross-sell and unified workflows.

Erosion risks

  • Open protocols/APIs enabling best-of-breed mixing
  • Price-led competition in commodity cameras
  • Geopolitical/regulatory shifts in surveillance tech

Leading indicators

  • Attach rate of Video in multi-technology deals
  • Software subscription mix within Video
  • Gross margin trend in Video offerings

Counterarguments

  • Customers often choose specialist VMS providers (e.g., Genetec/Milestone)
  • Integration claims can be matched via partnerships and APIs

Brand Trust

Demand

Strength: 3/5 · Durability: durable · Confidence: 4/5 · 1 evidence

Motorola's brand in safety/security and long customer collaboration can matter in regulated/public-sector and mission-critical deployments.

Erosion risks

  • Brand less relevant in commoditized segments
  • Adverse security/privacy incidents
  • Aggressive pricing by competitors eroding premium positioning

Leading indicators

  • Win rates in public safety/enterprise security bids
  • Net promoter score / customer satisfaction signals
  • Product cybersecurity disclosures and incident rate

Counterarguments

  • In video hardware, purchasing decisions can be price/spec driven
  • New entrants can win by offering superior analytics or lower TCO

Switching Costs General

Demand

Strength: 3/5 · Durability: medium · Confidence: 3/5 · 1 evidence

Physical installation plus VMS/analytics configuration can create moderate switching costs, especially when integrated with access control and incident workflows.

Erosion risks

  • Standardization on ONVIF/third-party VMS reduces switching costs
  • Cloud-managed camera ecosystems enabling easier migration
  • Channel partners steering customers to alternatives

Leading indicators

  • Renewal/retention rates on video software subscriptions
  • Churn in managed video services
  • Competitive displacement mentions in earnings commentary

Counterarguments

  • Many deployments use interoperable components; swapping vendors may be feasible
  • Some customers intentionally avoid vendor lock-in by mixing components

Command Center Software

Public safety command center software (911 call handling, dispatch/CAD, incident management, interoperability)

Revenue share derived from 2024 Form 10-K disaggregation of revenue table: Command Center total net sales $0.797B (2024).

Competitive

Data Workflow Lockin

Demand

Strength: 4/5 · Durability: durable · Confidence: 4/5 · 1 evidence

Command Center software sits in the middle of 911/dispatch workflows; integrations, data models, and operational procedures make switching disruptive.

Erosion risks

  • Shift to cloud-native competitors with faster innovation cycles
  • Procurement mandates for open data portability
  • High-profile outages hurting trust

Leading indicators

  • Backlog/remaining performance obligations in Software & Services
  • SaaS mix and renewal rates in Command Center products
  • Large CAD/RMS competitive win/loss disclosures

Counterarguments

  • Customers can replace modules over time (phased migrations)
  • Point solutions with open APIs can reduce lock-in

Interoperability Hub

Network

Strength: 3/5 · Durability: medium · Confidence: 4/5 · 1 evidence

Interoperability layer connecting LMR and broadband networks can embed Motorola in multi-network communications architectures.

Erosion risks

  • Industry standardization making interoperability commoditized
  • Platform players (carriers/cloud) moving into interoperability
  • Security vulnerabilities in interoperability gateways

Leading indicators

  • Adoption of interoperability modules in new deployments
  • Partnerships/standards adoption that displace proprietary gateways
  • Security advisories affecting gateways

Counterarguments

  • Interoperability can be delivered by specialist vendors
  • Open standards can reduce differentiation over time

Suite Bundling

Demand

Strength: 3/5 · Durability: medium · Confidence: 4/5 · 1 evidence

Bundling Command Center with Motorola's LMR and Video offerings can reduce standalone competition and increase share-of-wallet in public safety accounts.

Erosion risks

  • Best-of-breed preference in software buying
  • Budget scrutiny leading to unbundling
  • Partner ecosystems enabling competitors to bundle alternatives

Leading indicators

  • Cross-sell rates between LMR/Video/Command Center
  • Average deal size and multi-product penetration
  • Churn in accounts using multiple Motorola modules

Counterarguments

  • Customers can select best-of-breed software even if they buy Motorola radios
  • RFPs can force modular bidding that limits bundling advantage

Evidence

sec_filing
Motorola Solutions, Inc. Form 10-K (FY ended 2024-12-31)

Our largest customer is the U.S. government ... representing approximately 9% of our consolidated net sales in 2024.

Shows material government exposure where contract renewals and procurement relationships matter.

sec_filing
Motorola Solutions, Inc. Form 10-K (FY ended 2024-12-31)

We expect continued growth within our global LMR installed base ... and provide additional services to existing LMR customers.

Explicitly links installed base expansion to incremental services opportunity.

sec_filing
Motorola Solutions, Inc. Form 10-K (FY ended 2024-12-31)

We are a global leader ... including Project 25 (P25), ... TETRA and ... DMR.

Positions Motorola as a leading vendor across key LMR standards used in public safety and enterprise.

sec_filing
Motorola Solutions, Inc. Form 10-K (FY ended 2024-12-31)

Public safety agencies ... trust LMR ... because they are purpose-built ... for reliability, availability, security and resiliency.

Supports reliability/security requirements that tend to favor proven, qualified vendors.

sec_filing
Motorola Solutions, Inc. Form 10-K (FY ended 2024-12-31) - Revenue from Contracts with Customers

In 2023, the CMA imposed ... a prospective price control on Airwave (the "Charge Control").

Demonstrates that long-term contracts can be regulated, constraining economics.

Showing 5 of 12 sources.

Risks & Indicators

Erosion risks

  • Competitive rebids and RFP cycles
  • Government budget tightening
  • Procurement policy shifts favoring multi-vendor sourcing
  • Migration of some use-cases to broadband push-to-talk
  • Deferred public safety capex cycles
  • Standards-based interoperability enabling mixed-vendor fleets

Leading indicators

  • Backlog / remaining performance obligations trend
  • Win rate on large agency RFPs
  • Net sales concentration in top government customers
  • Services attach rate on LMR deployments
  • Radio/device refresh cycle timing
  • LMR services revenue growth vs hardware
Created 2025-12-26
Updated 2025-12-26

Curation & Accuracy

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