Satellite Communication (SATCOM) Market Size, Share & COVID-19 Impact Analysis, By Component (Transmitter/Transponder, Receiver, Transceiver, and Antenna), By Platform (Portable SATCOM Equipment, Land SATCOM Equipment, Maritime SATCOM Equipment, and Airborne SATCOM Equipment), By End-user (Commercial and Government & Defense), By Application (Broadcasting, Remote Sensing, Military Applications & Navigations, and Weather Monitoring), and Regional Forecast, 2022-2029

The global satellite communication (SATCOM) market size was valued at USD 27.56 billion in 2021 and is projected to grow from USD 29.98 billion in 2022 to USD 56.74 billion by 2029, exhibiting a CAGR of 9.54 % during the forecast period. Based on our analysis, the global SATCOM market exhibited a decline of -10.07% in 2020 as compared to 2019.

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. 

Satellite communication is the communication that occurs between any two communications earth stations through a satellite. In this communication process, the transmission of electromagnetic waves is used as carrier signals. These signals carry information through and forth in voice, audio, pictorial, or any other data forms between ground, deep-sea, and space. Satellites are mainly used for communication purposes. Satellite communication has several applications, such as radio broadcasting & voice communications, internet applications & navigations, remote sensing, water monitoring, and weather monitoring applications. Its main functionality is sending, receiving, and processing data.

COVID-19 IMPACT

Space Industry Witnessed Unprecedented Challenges Due to COVID-19 Pandemic

The COVID-19 pandemic had severely impacted the space industry in 2020. Key players in the satellite market faced unmatched decline due to disruption of the supply chain and production challenges amid enforced border restrictions by the government.

This led to the suspension of consumer business contracts and others. Thus, slow production rates from Original Equipment Manufacturers (OEMs) and reduced procurement contracts due to the COVID-19 pandemic affected the key market growth in 2020. However, various countries are opening their borders for travel /trade and defusing the restrictions, resulting in market sophistication. NASA has resumed the production of the Artemis mission in 2021.

India's first Geo Imaging Satellite (GISAT-1) launch was delayed due to the spread of coronavirus across the country. It is the country's first earth observation satellite placed in geostationary orbit. In addition, 47% of the U.K. space sector companies witnessed a reduction in international demand over the last few years.

SATCOM MARKET TRENDS

Development of Small Satellite Constellations to Enhance Communication System

An increase in the demand for small satellites for earth observation services in numerous sectors, such as civil engineering, agriculture, energy, oil & gas, and others, is propelling satellite communications. Defence organizations prominently use CubeSats globally to improve battlefield communications and weather monitoring purposes. The development of small satellites helps in enhancing ground operation for high-speed internet, mobile satellite communication, and broadband services. These satellites deliver high-resolution images with low-cost investments. In February 2021, India launched 100 Femto satellites. These are small satellites with low mass and small size. These satellites are used for gathering scientific data and radio relays.

Moreover, recent developments in inter-satellite communication in terms of optical or laser satellite communication further proliferate the SATCOM market across the globe. Major satellite constellation projects such as Starlink come with optical satellite communication capability. Besides satellite-to-satellite connectivity, developments in laser-based satellite-to-ground communication have significantly improved the data transfer rate. For instance, in October 2023, China successfully tested the laser-based satellite-to-ground communication through the Jilin-1 satellite. Such developments catalyze the SATCOM market across the globe.

DRIVING FACTORS

Rising Integration of the Internet of Things (IoT) in the Aviation Industry to Boost the Market

The Internet of Things (IoT) has entered the industry and is projected to increase the SATCOM market share. Around 2.7 million devices are serviced by satellites, an analysis by the EMEA Satellite Operator’s Association shows. This includes devices in infrastructure, environmental monitoring, military support, shipping, and aviation. The rise of IoT in the aviation industry is projected to boost the market during the forecast period. Aviation applications for IoT-based devices and systems exchange real-time data to the processing units, which helps to optimize the operation in the aviation industry.

IoT devices use satellite connectivity to transmit and exchange real-time data between the IoT systems and components used in these domains, thus reducing the overall time of the process. Earlier, data exchange between the machine control & production was dependent on terrestrial GSM networks, which are now being replaced by satellite connectivity. Satellite technology proves to be a key enabler in transforming IoT connectivity in the aviation industry.

• In July 2023, SpaceX launched the Jupiter 3 satellite of Hughes Network Systems, which will add 500 Gbps capability over North America and Latin America. Jupiter 3 is a Ka-band satellite with V- and Q-band gateways.

Such initiatives propel the market growth of satellite-based IoT and VSAT communication globally.

Implementation of Autonomous Technology and Real-time Data Tracking through Satellites to Aid Satellite Communication (SATCOM) Market Growth

The application of autonomous technology is based on artificial intelligence, data analytics, and cloud computing. These technologies assist in improving flight operations. Autonomous technology is also used in the military for battlefield management and various combat operations. The sensors installed in the systems play a crucial role in providing real-time data gathered from their live locations. It is further analyzed and deployed for tracking and systems for health monitoring purposes. It includes the efficiency of components & systems, Maintenance, Repair & Overhaul (MRO) operations, and route mapping & navigation purposes. These would improve the overall efficiency of the respective systems and minimize operational costs.

RESTRAINING FACTORS

Surging Cyber-Security Concerns to Hamper the Market Growth

Cyber-security threat to satellite communication is a comparatively new phenomenon, still it has a huge threat to the sustainability of satellite systems due to several vulnerabilities. These vulnerabilities are mission-critical, and they include communications, launch systems, tracking and command, and telemetry. Such factors of satellite communication heavily depend on secure and reliable communication systems. Due to the interdependent nature of both satellite and cyberspace activities, these capabilities rely significantly on international organizations to set a legal norm that would protect satellites and their communications. However, when breaches of international law occur in the form of cyber events that cause huge damage to communication through satellites, it hinders the growth of the market.

In May 2022, the U.S. Space Force finally rolled out new cybersecurity standards for its commercial satellite vendors, stating those who could meet them might be able to charge more. The Infrastructure Asset Pre-Assessment program that Reece manages at CSCO is designed to pre-qualify particular commercial assets, such as satellite constellation and its ground system, as meeting federal cybersecurity standards.

SATCOM MARKET SEGMENTATION

By Component Analysis

Antenna Segment Held Highest Share in 2021 Due to Rising Adoption of Advanced Antennas in Various Sectors

On the basis of components, the market is classified into receiver, transmitter/transponder, transceiver, antenna, and others. Among these, the transceiver segment is expected to be the fastest-growing segment during 2022-2029. The growth is due to the rising replacement of transmitters and receivers with advanced transceiver systems.

Over the past two years, the Pentagon’s Defense Innovation Unit and the Space Systems Command looked at options to replace the existing parabolic antennas with modern electronic phased arrays that can maintain contact with multiple satellites across different orbits and frequency bands. The replacement of conventional components with highly advanced antennas will propel the market growth during the forecast period.

By Application Analysis

Military Applications and Navigations will Witness the Highest Growth Owing to the High Demand for Communication Services from the Defense Forces.

On the basis of application, the market is divided into broadcasting, remote sensing, military applications and navigations, weather monitoring, and others. Amongst these, the broadcasting segment held the highest share in 2021. The dominance is due to increasing demand for internet and DTH services from end-users. Growing investments in the space sector and an increasing number of communication satellite launches drive the segment growth. The military applications and navigation segment will witness significant growth during 2022-2029, owing to the growing adoption of next-generation devices from defence forces for real-time information.

By End-user Analysis

Commercial Segment will Witness Highest Growth Due to Rapid Expansion of Telecommunication and IT Sector

Based on end-user, the market is classified into commercial and government & defence. The commercial segment is anticipated to show higher growth during the forecast period due to the rising use of satellite communication in the IT and telecommunication sectors. The government & defence segment will showcase significant growth during 2022-2029. The growth is attributed to the increasing use of satellite communication in military and naval operations.

By Platform Analysis

Increasing Adoption of Connected Ship to Propel Growth of the Maritime SATCOM Equipment Segment

Based on the platform, the market is segmented into portable SATCOM equipment, land SATCOM equipment, maritime SATCOM equipment, and airborne SATCOM equipment. In 2021, the airborne satellite communication equipment segment dominated the market. It consists of military aircraft, commercial aircraft, unmanned aerial vehicles, and satellite launch vehicles. The growing use of connected air and space systems for commercial and military applications is driving the growth of the segment. The maritime satellite communication equipment segment consists of military ships and unmanned naval systems. The rising adoption of autonomous and connected ship is expected to boost the growth of the segment in the industry.

REGIONAL INSIGHTS

The global market is segmented on the basis of region into North America, Europe, Asia Pacific, and the Rest of the World.

North America dominated the market in 2021. The region’s market size stood at USD 10.70 billion in 2021. The growth is attributed to the rising government spending on military and government communication networks. The presence of key players, such as L3Harris Technologies Corporation, General Dynamics Corporation, Honeywell International, Inc., and others, will drive market growth across the region.

In Asia Pacific, the market is estimated to witness a remarkable growth during 2022-2029. The upsurge in the use of satellite antennas in the telecommunication, IT, and aviation industries across the region would propel market growth. Companies worldwide are focusing on strengthening their aviation services in Asia Pacific countries in the coming years.

Europe will showcase significant growth during the forecast period. The growth is due to the rising smart city and infrastructure modernization projects across this region. The growing number of space exploration activities and rising demand for advanced satellite communication services drive the market growth.

The rest of the world will showcase moderate growth owing to rising communication infrastructure in Latin American countries and the Middle East region. In Latin America, Brazil and Argentina are focusing on upgrading their conventional military communication infrastructure in the coming years.

• In March 2022, Thuraya Telecommunications launched the radio communication solution Thuraya's push to talk. Thuraya PTT is an IP-based radio communication solution that works with any Thuraya Broadband terminal to establish a private network.


• Gilat Satellite Networks started expanding contracts with internet para todos in Peru for 4G cellular backhaul services.

KEY INDUSTRY PLAYERS

Key Players Focus on Development of Technologically Advanced Products and Acquisition Strategies to Drive Growth

Key players in the market are focusing on the development of advanced products. A diversified product portfolio of solutions and increased investment in R&D are the prominent factors responsible for the dominance of major players in the market. Major players in the industry are adopting organic and inorganic growth strategies such as mergers and acquisitions and product launches. In June 2022, Viasat received stockholder approval for the proposed acquisition of Britain’s Satellite Communication Company Inmarsat. Furthermore, in 2020, CPI announced it had completed the purchase of SATCOM Technologies, the antenna systems business of General Dynamics Mission Systems, which inhibits approximately 1,000 employees and facilities in the United States, Europe, and India. It will be called CPI SATCOM & Antenna Technologies Inc.

LIST OF KEY COMPANIES PROFILED SATCOM MARKET:

• Boeing (U.S.)


• Cobham Limited (U.K.)


• Communications and Power Technologies(U.S.)


• Honeywell International Inc. (U.S.)


• Inmarsat Global Limited (U.K.)


• Iridium Communications Inc. (U.S.)


• L3Harris Technologies, Inc. (U.S.)


• Qualcomm Technologies, Inc. (U.S.)


• Viasat, Inc. (U.S.)


• KVH Industries, Inc. (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• May 2022 – The Space RCO, a U.S. Space Force organization that procures and manages classified space systems, announced that BlueHalo was awarded a contract. The contract is for the project known as the satellite communications augmentation resource program. This will address the critical U.S. Space Command requirement to rapidly, responsively, and affordably augment satellite control capacity for the satellite control network.


• June 2022– Thales Alenia Space built a very high throughput craft, SES-17, ready to provide “unparalleled” connectivity services to customers across aeronautical, maritime, enterprise, and government sectors, whether on land, at sea or in the skies, according to the operator. SES-17 has successfully launched onboard an Ariane 5 launcher operated by Arianespace from Europe’s Spaceport in Kourou.


• May 2022- Cobham Satcom and UltiSat, Inc., a provider of end-to-end communications, announced the signing of a strategic distributor and integrator agreement. The agreement enables both companies to expand their market reach and provides the DoD and NATO allies with easy access to a range of advanced satellite tracking systems provided by Cobham Satcom.


• January 2020- Brazil's largest rail-based logistics operator, Globalsat, will use mobile satellite communication to increase delivery speed. Globalsat, Inmarsat, and Cobham signed a contract to provide SATCOM for railway infrastructure.

REPORT COVERAGE

The report provides a detailed analysis of the sector and focuses on important aspects such as key players, components, platform, end-users, and applications depending on various regions. Moreover, the research report offers deep insights into the commercial satellite market trends, competitive landscape, market competition, SATCOM product pricing, and market status and highlights key industry developments. Also, it encompasses several direct and indirect factors that have contributed to the sizing of the global market in recent years.

Report Scope & Segmentation