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The global satellite communication market size was USD 22.61 billion in 2018 and is projected to reach USD 41.33 billion by 2026, exhibiting a CAGR of 7.73% during the forecast period.
Satellite is a relay station in space for the transmission of communication data to the required ground station. In SATCOM data 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 of information. In this communication, electromagnetic waves are used as carrier signals. These signals carry information such as voice, audio, video, 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.
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Development of Small Satellite Constellations to Enhance Communication System
The increasing demand for small satellites for earth observation services in numerous sectors such as civil engineering, agriculture, energy, oil & gas, and others is consequently propelling the demand of the satellite communication market. CubeSats are prominently being used by defense organizations globally to improve battlefield communications and weather monitoring purposes. Other than commercial applications of small satellites in the defense sector comprises of tactical communication, medium resolution imagery, and geospace & atmospheric research. As compared to conventional satellites, small satellites have features such as shorter development cycles, enhanced communications systems and software and have less manufacturing and launching cost. Moreover, there has been rise in the preference of small satellites in regions such as North America and Asia Pacific.
Rising Integration of Internet of Things (IoT) for Interconnectivity in Aviation Industry to Boost the Market
The emergence of IoT in aviation domains such as aircraft connectivity, airlines, air traffic management, and MRO management is projected to propel the market during the forecast period. Interconnectivity in aviation applications for IoT based devices and systems are exchanging real-time data to the processing units, that help 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 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 the satellite connectivity. Satellite technology proves as a key enabler to transform IoT connectivity across aviation industry.
Implementation of autonomous technology and real-time data tracking through SATCOM
The application of autonomous technology is based on the implementation of 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 that is gathered from its live locations. This data is further analyzed and deployed for tracking and systems health monitoring purposes. This gathered data improves the overall efficiency of the components & systems, maintenance, and repair & overhaul (MRO) operations, route mapping & navigation purposes and thus helps to minimize the operational cost.
Cyber-security Concerns Hinder the Growth of the Market
Cyber-security threat to satellite communication is a new phenomenon, yet has a huge threat to the sustainability of satellite systems due to several vulnerabilities. These vulnerabilities are mission-critical comprising of launch systems, communications, tracking and command, telemetry, and mission completion. These aspects of satellite communications depend heavily on secured and reliable communication subsystems. Due to the interdependent nature of both satellite and cyberspace activities, these capabilities rely significantly on international organizations for setting a legal norm that protect satellites and satellite communications. However, when breaches of international law occur in the form of hostile cyber events that cause huge damage to SATCOM, thus hinders the growth of the market.
“Up-gradation of Conventional Components with IoT Based Components is Driving the Market”
Based on the component, the market has been segmented into a receiver, transmitter/transponder, transceiver, antenna, modem/router, and others. Among these, SATCOM transceiver segment is expected to be the fastest-growing segment during the forecast period. Owing to rise in the replacement of transmitter and receiver with advanced transceiver system. Whereas, the SATCOM antenna segment is expected to be the largest segment in 2018 on account of wide use of technologically advanced antennas in various industries. Moreover, the replacement of conventional components with highly advanced antennas will propel the growth of the SATCOM market during the forecast period.
“Rising Usage of SATCOM in Military and Naval Operations to Propel the Growth of Market”
Based on platform, the satellite communication market is segregated into commercial and government and defense. Amongst these, the commercial segment is expected to witness a higher growth during the forecast period. Owing to rise in the use of satellite in the telecommunication industry, IT sector and other commercial users. The government and defense segment is estimated to be a larger market in 2018. Due to the rise in the use of satellite-based communication in military and naval operations.
“Rising Usage of Identify and Tracking of Marine Vessels to Boost Growth of Market Segment”
Based on technology, the satellite communication market is divided into Very Small Aperture Terminal (VSAT), Satcom-On-The-Move (SOTM), Satcom-On-The-Pause (SOTP), Satcom Telemetry, and Satcom Automatic Identification System. Amongst these, the Satcom Automatic Identification system segment is expected to witness the highest growth during the forecast period. This technology is widely used for identifying and tracking marine vessels, location information, and collision avoidance are driving the growth of the segment. VSAT segment provide 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 2018. Whereas, SATCOM telemetry segment comprises of a technology that sends monitoring data from a satellite to earth station.
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“Increase in the Concept of Connected Ships to Propel the Growth of Market Segment”
Based on end-use, the satellite communication market is segregated into Portable equipment, Land equipment, Maritime equipment, and Airborne equipment. In 2018, the land equipment segment dominated the market. The segment comprises of commercial vehicles, military vehicles, emergency vehicles, and unmanned ground vehicles. The growing adoption of armored vehicles for commercial and military users is driving the growth of the segment. The maritime SATCOM equipment segment comprises of military ships and unmanned maritime systems. The growing seaborne trade across North America and Europe and the rising concept of autonomous and connected ships are expected to drive the growth of the segment. Hence, the segment is anticipated to grow at the highest CAGR during the review period.
North America SATCOM Market Size, 2018 (USD Billion)
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Based on regions, the global satellite communication market analysis has been segmented by North America, Asia-Pacific, Europe, and the Middle East and Africa and South America.
In 2018, North America accounted for the largest market of USD 13.11 billion. It is attributed to surge in military expenditure communication networks. The U.S. is anticipated to contribute to the largest market share in North America. The U.S has the presence of key satellite communication providers such as General Dynamics Corporation, L3 Harris Corporation, Honeywell International, Inc., Hughes Network Systems LLC, and among others. Besides, factors such as a rise in demand for telecommunication, aviation, and defense sector will be increasing the demand for satellite communication in the region.
Asia-Pacific is expected to be the fastest-growing region during the forecast period. The rise in the use of satellite antenna in the aviation, telecommunication and IT industry in countries such as India and China have boosted the growth of the market in the region. companies across the globe are focusing on strengthening their supply chain based in the Asian countries in the coming years.
In the case of Europe, the rise in smart city projects and the modernization of infrastructure in the region would boost the growth of the market in the region. In the case of the Middle East and Africa, the rise in the communication infrastructure in the UAE, Saudi Arabia, Turkey, and others will facilitate the growth of the market during the forecast period. Similarly, in the case of South America, countries such as Brazil and Argentina are focusing on upgrading its conventional military communication infrastructure in the coming years, this will boost the growth of the market during the review period.
Technologically Advanced Products Portfolio and Geographic Expansion Strategies, To Propel the Growth of the Market
The competition landscape of the market depicts the domination of selected players such as Inmarsat Plc., Honeywell International, Inc., and The Boeing Company among others. A diversified product portfolio of satellite solutions, along with increased investment in R&D and strategic acquisition, are prominent factors responsible for the dominance of these companies. The report includes information on international markets, including the development of satellite communication market trends, competitive landscape analysis, investment plans, business strategy, and opportunity.
The satellite communication market report offers qualitative and quantitative insights on the market and detailed analysis of market size & growth rate for the segments in the market.
An Infographic Representation of Satellite Communication (SATCOM) Market
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Along with this, the report provides an elaborative analysis of SATCOM market dynamics, emerging trends, and competitive landscape. Key insights offered in the report are the adoption of advanced technology, satellite consulting, recent industry developments such as partnerships, mergers & acquisitions, consolidated SWOT analysis of key players, Porter’s five forces analysis, business strategies of leading market players, and macro and micro-economic indicators.
Value (USD Billion)
By End Use
In 2018, the global satellite communication market was USD 22.61 Billion, and it is anticipated to reach USD 41.33 Billion by 2026, growing at a stellar CAGR of 7.73% during the forecast period (2019-2026).
In the market, commercial segments are the leading segments.
Some of the driving factors for them market rises in integration of internet of things (IoT) in the aviation industry to boost the market and implementation of autonomous technology and real-time data tracking through SATCOM.
In the market, some of the key players are Inmarsat plc, Honeywell International Inc., The Boeing Company, L3 Harris Technologies, Inc., Indra Sistemas, S.A., General Dynamics Corporation, Cobham plc, Viasat, Inc., Iridium Communications Inc., Qualcomm Technologies, Inc., and GILAT SATELLITE NETWORKS.
In the market, the key players are mainly focusing on establishing a strong supply chain network in high growth regions such as Asia-Pacific. In addition, investment in the R&D capabilities for designing lightweight, durable, and cost-effective SATCOM systems and subsystems.
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