Satellite Communication Market Forecasts to 2028 - Global Analysis By Component (Equipment and Services), By Platform (Land SATCOM equipment, Airborne SATCOM equipment, Portable SATCOM equipment and Maritime SATCOM equipment), By Application (Airtime, Asset Tracking/Monitoring, Drones Connectivity, Data Backup and Recovery, Navigation and Monitoring, Broadcasting, Tele Medicine, Weather Monitoring, Remote Sensing, Military Application & Navigation and Other Applications), By End User (Government & Defense, Energy & Utility, Transport & Cargo, Maritime, Mining and Oil & Gas, Agriculture, Communication Companies, Media & Broadcasting, Corporates/Enterprises, Commercial and Other End Users) and Geography

According to Stratistics MRC, the Global Satellite Communication Market is accounted for $79.8 billion in 2022 and is expected to reach $153.4 billion by 2028 growing at a CAGR of 11.5% during the forecast period. The use of man-made satellites to establish communication links between various locations on Earth is known as satellite communication. A communication satellite is a man-made satellite that connects and amplifies radio communications signals using a transponder. Between a source transmitter and a receiver that are dispersed throughout the world, a communication channel is established. Television, telephone, radio, internet, and military applications all make extensive use of satellite communication.

According to European Commission, coastal and maritime tourism is the largest maritime activity in Europe and employs almost 3.2 million people, generating a total of approximately USD 212 billion (EUR 183 billion) in gross value added and representing over one-third of the maritime economy. Hence, the rise in coastal and maritime tourism is set to create opportunities in the market.

Market Dynamics:

Driver:

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

The Internet of Things (IoT) has entered the market and is anticipated to grow the market share of SATCOM. According to an analysis by the EMEA Satellite Operators Association, satellites provide service to about 2.7 million devices. This covers equipment used in shipping, aviation, environmental monitoring, and military support. During the forecast period, the market is expected to grow as IoT adoption increases in the aviation sector. Additionally, applications for IoT-based devices and systems in the aviation industry exchange real-time data with processing units, which assist in streamlining operations in the sector.

Restraint:

Surging Cyber-Security Concerns

Despite being a relatively recent phenomenon, cyber-security threats to satellite communication pose a serious threat to the long-term viability of satellite systems. Communication, the launch system, tracking and command, and telemetry are some of these mission-critical vulnerabilities. Such satellite communication factors rely heavily on trustworthy and secure communication channels. Because satellite and cyberspace operations are interdependent, it is crucial for international organisations to develop a legal standard that would safeguard satellites and their communications.

Opportunity:

Implementation of autonomous technology and real time data tracking through satellites

The use of autonomous technology is based on cloud computing, data analytics, and artificial intelligence. These innovations help to enhance flight operations. The military also makes use of autonomous technology for a variety of combat operations and for managing the battlefield. Real-time data gathered from the systems' actual locations is provided by the sensors that have been installed in them. It is further investigated and placed in tracking and health monitoring systems. It includes route mapping and navigational needs, maintenance, repair, and overhaul (MRO) operations, and the effectiveness of systems and components. These would reduce operational costs while increasing the overall efficiency of the corresponding systems.

Threat:

Interference in satellite data transmission

Systems for satellite communication can transmit and receive data for telephony, backhaul, the internet, and other services. Interference in satellite communication operations has a significant negative impact on the satellite's performance and causes the operators to lose a lot of money. In order to further enable regular communications, additional costs must be spent on fixing and debugging the communication issues. Some of the causes of SATCOM interference include high-power radar, intentional jammers, unauthorised transmissions such as piracy, adjacent satellite interference (ASI), interference from broadcast FM transmitters, aircraft interference, and adjacent frequency emissions from other signals.

Covid-19 Impact:

The COVID is expected to remain in effect until the second quarter of 2021, but its effect on the satellite communication market is uncertain. The COVID-19 outbreak obligated governments around the world to impose stringent lockdowns and made social isolation mandatory in order to prevent the virus's spread. As a result, many businesses launched work-from-home initiatives as security measures. This resulted in a sudden rise in demand for internet access, which further fuels global demand growth for satellite communication. Additionally, the nationwide lockdown compelled the satellite manufacturing facilities to halt production entirely or partially.

The broadcasting segment is expected to be the largest during the forecast period

Because end users are increasingly seeking internet and DTH services, the broadcasting segment, which had the largest market share in 2021, is predicted to continue to dominate the market during the projection period. Furthermore, the segment is growing as a result of rising space industry investments and an increase in the number of communications satellite launches.

The equipment segment is expected to have the highest CAGR during the forecast period

Over the course of the forecast period, the equipment segment is anticipated to grow at the highest CAGR, owing to factors such as the rising demand for uninterrupted power communication in the energy & utilities, agriculture, oil & gas, and defence industries, as well as an expanding fleet of autonomous, connected vehicles.

Region with largest share:

Due to the military and defence industry's growing need for constant communication, which led to the U.S. defence department's widespread adoption of satellite communication equipment, North America held the largest share of the global market revenue during the forecast period. Additionally, numerous satellite communication service providers, including Telesat, Viasat, Inc., and EchoStar Corporation, support market expansion. Moreover, over the next few years, it is anticipated that the regional market will grow significantly as a result of the upgrading of military communication infrastructure.

Region with highest CAGR:

During the forecast period, the market in Asia-Pacific is anticipated to grow lucratively. The region's telecommunication, information technology, and aviation sectors would increasingly use satellite antennas, which would spur market expansion. Additionally, in the coming future, businesses from all over the world will concentrate on enhancing their aviation services in Asia-Pacific nations.

Key players in the market

Some of the key players in Satellite Communication market include SKY Perfect JSAT Group, Viasat, Inc., Boeing, SES S.A., Communications & Power Industries (CPI) LLC, GILAT SATELLITE NETWORKS, Telesat, Cobham Limited, Honeywell International Inc., Intelsat, Inmarsat, L3 Technologies, Inc., Qualcomm Technologies, Inc., EchoStar Corporation, Thuraya Telecommunications Company and KVH Industries, Inc..

Key Developments:

In 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.

In 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.

Components Covered:
• Equipment
• Services

Platforms Covered:
• Land SATCOM equipment
• Airborne SATCOM equipment
• Portable SATCOM equipment
• Maritime SATCOM equipment

Applications Covered:
• Airtime
• Asset Tracking/Monitoring
• Drones Connectivity
• Data Backup and Recovery
• Navigation and Monitoring
• Broadcasting
• Tele Medicine
• Weather Monitoring
• Remote Sensing
• Military Application & Navigation
• Other Applications

End Users Covered:
• Government & Defense
• Energy & Utility
• Transport & Cargo
• Maritime
• Mining and Oil & Gas
• Agriculture
• Communication Companies
• Media & Broadcasting
• Corporates/Enterprises
• Commercial
• Other End Users

Regions Covered:
• North America
o US
o Canada
o Mexico
• Europe
o Germany
o UK
o Italy
o France
o Spain
o Rest of Europe
• Asia Pacific
o Japan
o China
o India
o Australia
o New Zealand
o South Korea
o Rest of Asia Pacific
• South America
o Argentina
o Brazil
o Chile
o Rest of South America
• Middle East & Africa
o Saudi Arabia
o UAE
o Qatar
o South Africa
o Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements

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