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Satellite Communication (SATCOM) Market Size, Share & COVID-19 Impact Analysis, By Component (Receiver, Transmitter/Transponder, Transceiver, Antenna), By Technology (VSAT, SATCOM-On-The-Move (SOTM), SATCOM-On-The-Pause (SOTP), Telemetry), By End-Use (Commercial and Government & Defense), By Platform (Portable equipment, Land equipment, Maritime equipment), and Regional Forecast, 2021-2028

Region : Global | Format: PDF | Report ID: FBI102679

 

KEY MARKET INSIGHTS

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The global satellite communication market size was USD 23.44 billion in 2020. The global impact of COVID-19 has been unmatched and staggering, with witnessing a negative impact on demand across the globe amid the pandemic. Based on our analysis, the global market exhibited a lower growth of –3.86% in 2020 compared to the average year-on-year growth during 2017-2019. The market is projected to grow from USD 25.33 billion in 2021 to USD 46.50 billion in 2028 at a CAGR of 9.07% in the 2021-2028 period.


Satellite communication is the communication between any two communications earth stations through a satellite. In this communication, electromagnetic waves are used as carrier signals. These signals carry information such as voice, audio, or any other data between ground and space and vice-versa. Majorly, satellites are used for communication purposes. SATCOM has several applications, such as radio broadcasting & voice communications, internet application & navigations, remote sensing, water monitoring, and weather monitoring applications. Communication is an exchange of space information between two or more entities, carried out by a medium or channel. Its main functionality is sending, receiving, and processing data.


Space Industry Has 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 challenges due to the production halt, postponement of satellite launches, hold of several contracts, and others. NASA had paused work on missions that included developing the Artemis program, deep-space exploration spacecraft, and the James Webb Telescope project. Thus, there were disruptions in the supply chain, slow production rate from original equipment manufacturers (OEMs), and reduced procurement contracts due to the COVID-19 pandemic. Therefore, reduced expenditure in the space sector would hamper the satellite communication market growth.


LATEST TRENDS


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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. CubeSats are prominently being used by defense organizations globally to improve battlefield communications and weather monitoring purposes. The development of small satellites helps in enhancing the 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 a low mass and small size. These satellites are used for gathering scientific data and radio relays.


DRIVING FACTORS


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


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, and thus reduces the overall time of the process. Earlier, data exchange between the machine control & production was dependent on terrestrial GSM networks, which is now getting replaced by satellite connectivity. Satellite technology proves to be a key enabler to transform IoT connectivity in the aviation industry.


Implementation of Autonomous Technology and Real-time Data Tracking through SATCOM to Aid 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 its 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, route mapping & navigation purposes. These would improve the overall efficiency of the respective systems and minimize the operational cost.


RESTRAINING FACTORS


Surging Cybersecurity Concerns to Hamper the Market Growth


Cybersecurity 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 mission-critical vulnerabilities include communications, launch systems, tracking and command, and telemetry. Such factors of satellite type of 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 for setting a legal norm that would protect satellites and satellite communications. However, breaches of international law occur in the form of cyber events that cause huge damage to SATCOM, it would thus hinder the growth of the market.


SEGMENTATION


By Component Analysis


SATCOM Antenna Segment Held Highest Shares in 2020 Due to Rising Adoption of Advanced Antennas in Various Sectors


On the basis of the component, the satellite communication systems market is classified into receiver, transmitter/transponder, transceiver, antenna, modem/router, and others. Among these, the transceiver segment is expected to be the fastest-growing segment during 2021-2028. The growth is due to the rising replacement of transmitter and receiver with advanced transceiver systems. The antenna segment held the highest shares in 2020. The growth is due to the wide use of advanced antennas in various industries. Moreover, the replacement of conventional components with highly advanced antennas will propel the market growth during the forecast period.


By End Use Analysis


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


Based on the end-use, the market is classified into commercial, and government and defense. The commercial segment is anticipated to show higher growth during the forecast period due to the rising use of SATCOM in the IT and telecommunication sector. The government and defense segment held the highest share in 2020. The growth is attributed to the increasing use of satellite type of communication in military and naval operations.


By Technology Analysis


SATCOM Automatic Identification System Segment Will Witness Highest Growth Owing to High Demand from Marine Sectors


On the basis of technology, the market is divided into VSAT, SATCOM-on-the-move (SOTM), SATCOM-on-the-pause (SOTP), telemetry, and automatic identification system. Amongst these, the automatic identification system segment is expected to witness the highest growth during 2021-2028. It is widely used for identifying and tracking marine vessels, getting location information, and collision avoidance. The VSAT provides high-speed, broadband SATCOM for private network communications or the internet. The technology is suitable for oil and gas facility purposes and mining camps. Hence, the segment dominated the market in 2020. The telemetry segment comprises a technology that sends monitoring data from a satellite to an earth station.


By Platform Analysis


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Increasing Adoption of Connected Ships to Propel Growth of Maritime Equipment Segment


Based on the end-use, the market is segmented into portable equipment, land equipment, maritime equipment, and airborne equipment. In 2020, the land equipment segment dominated the market. The segment consists of military vehicles, commercial vehicles, unmanned ground vehicles, and emergency vehicles. The growing use of armored vehicles for commercial and military applications is driving the growth of the segment. The maritime equipment segment consists of military ships and unmanned naval systems. The rising adoption of autonomous and connected ships is expected to boost the growth of the segment.


REGIONAL INSIGHTS


North America SATCOM Market Size, 2020 (USD Billion)

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The global market is segmented on the basis of region into North America, Europe, Asia-Pacific, the Middle East & Africa, and South America.


North America dominated the market in 2020. The region’s market size stood at USD 9.03 billion in 2020. The growth is attributed to the rising government spending on military and government communication networks. The presence of key satellite communication providers, such as L3Harris Technologies Corporation, General Dynamics Corporation, Honeywell International, Inc., and others would drive the market growth across the region.


In Asia Pacific, the market is estimated to witness remarkable growth during 2021-2028. The increasing 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 supply chain based in Asian countries in the upcoming 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 Middle East and Africa will showcase moderate growth owing to the rising communication infrastructure in countries, such as the UAE, Saudi Arabia, and Turkey.


Similarly, in South America, countries, such as Brazil and Argentina are focusing on upgrading their conventional military communication infrastructure in the upcoming years. This will boost the growth of the market during 2021-2028.


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 satellite based communication solutions, along with increased investment in R&D are the prominent factors responsible for the dominance of major players in the market.  Renowned companies are adopting organic and inorganic growth strategies, such as mergers and acquisitions and new product launches. In April 2020, Rocket Lab completed the acquisition of Sinclair Interplanetary, a satellite hardware manufacturer. The acquisition will strengthen the satellite division of Rocket Lab which produces the Photon spacecraft line.


LIST OF KEY COMPANIES PROFILED:



KEY INDUSTRY DEVELOPMENTS:



  • February 2021 – Airbus S.A.S. signed a contract worth USD 8.5 million with Viasat, Inc. to upgrade the ultra-high frequency satellite communications Network Control Stations (NCS) that delivers the UHF Skynet capability to the U.K. Ministry of Defense.

  • November 2020 – Inmarsat Global Limited signed a three-year contract worth USD 26 million with the European Space Agency (ESA) to develop a satellite communication service platform. The new capability, known as the International Virtual Satellite Operators Network, is supported by ESA as part of its space systems for security and safety strategic line.


REPORT COVERAGE


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The global satellite communication market report provides a detailed analysis of the industry and focuses on key aspects such as product type, key market players, component, platform, and end-use in the industry. Moreover, the research report offers insights on the market trends, competitive landscape, market competition, 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 over recent years.


Report Scope & Segmentation




















































 ATTRIBUTE



  DETAILS



Study Period



  2017-2028



Base Year



  2020



Forecast Period



  2021-2028



Historical Period



  2017-2019



Unit



  Value (USD Billion)



Segmentation



  Component; Platform;  Technology ; End-Use and Geography



By Component



  • Receiver

  • Transmitter/Transponder

  • Transceiver

  • Antenna

  • Others



By End-Use



  • Commercial

  • Government and Defense



 



By Technology



  • SATCOM Automatic Identification System

  • SATCOM VSAT

  • SATCOM-On-The-Move (SOTM)

  • SATCOM-On-The-Pause (SOTP)

  • SATCOM Telemetry



 



By Platform



  • Portable equipment

  • Land equipment

  • Maritime equipment

  • Airborne equipment



By Geography


 




  • North America (By Component, Platform, Technology, End-Use, and Country)

    • The U.S. (By Platform)

    • Canada (By Platform)



  • Europe (By Component, Platform, Technology, End-Use, and Country)

    • The U.K. (By Platform)

    • Germany (By Platform)

    • France (By Platform)

    • Italy (By Platform)

    • Rest of Europe (By Platform)



  • Asia-Pacific (By Component, Platform, Technology, End-Use, and

  • Asia Pacific

    • China (By Platform)

    • India (By Platform)

    • Japan (By Platform)

    • Australia (By Platform)

    • Rest of Asia-Pacific (By Platform)



  • The Middle East & Africa (By Component, Platform, Technology, End-Use, and Country)

    • The UAE (By Platform)

    • Saudi Arabia (By Platform)

    • Turkey (By Platform)

    • Rest of the Middle East & Africa (By Platform)



  • South America (By Component, Platform, Technology, End-Use, and Country)

    • Brazil (By Platform)

    • Argentina (By Platform)

    • Rest of South America (By Platform)





Frequently Asked Questions

Fortune Business Insights says that the global market size was USD 23.44 billion in 2020 and is projected to reach USD 46.50 billion by 2028.

Registering a CAGR of 9.07%, the market will exhibit steady growth in the forecast period (2021-2028).

By Platformrs, the land equipment segment is expected to lead this market during the forecast period due to the growing adoption of advanced armored vehicles for military applications.

Inmarsat Global Limited is the leading player in the market.

North America dominated the market in terms of share in 2020.

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Satellite Communication (SATCOM) Market Size, Share and Global Industry Trend Forecast till 2026
  • Jul, 2021
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  • 2017-2019
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