Global Enterprise VSAT Market is likely to touch USD 10,617.5 Million at an 8.8% CAGR between 2014- 2024, reveals the latest Market Research Future’s (MRFR) enterprise VSAT market forecast report. The strong growth of the market can be accredited to the increasing adoption in the BFSI sector.
The on-going COVID-19 outbreak has cast its shadow across the world, with a maximum number of industries across different sectors falling prey, with the global enterprise VSAT market being no exception. The increasing spread of this deadly virus in the APAC region, the United States, and Europe has led to a fall in demand for enterprise VSAT solutions across the globe, with a considerable fall in the revenue for different service providers and suppliers of VSAT. Shortage of equipment, shortage of staff in manufacturing facilities, manufacturing shutdown, and late delivery due to worldwide lockdown and social distancing treads have created a negative impact on the global enterprise VSAT market growth. It is, however, expected to return to normalcy by 2022.
Increased Adoption in Maritime Industry to Bolster Market Growth
VSAT systems are widely equipped in ships to offer speedy broadband connections both for personal communication and business activities alike. In business activities, it is used in video conferencing and ERP, while in personal communications, it is used in streaming, video calling, and email. Enterprise VSAT are used in surveillance apps too to assist defense forces in the naval operation that demand equipment that is portable, lightweight, and small, and also safeguard coastal areas. Ships during long voyages should be well connected with the world to enable passengers and crew to communicate with loved ones to access port and weather information. It is here where VSAT systems help. This will help to bolster the enterprise VSAT market during the forecast period.
Other factors adding to the enterprise VSAT market size include increased use in the oil and gas sector, demand for a broadband data connection from business and government sectors, demand for high VSAT bandwidth speed, increased enterprise VSAT application, technological advances in enterprise VSAT system, reduced operating and investment costs, increased adoption of USATs for on-the-move applications, and increasing use of Ka and Ku band VSATs.
Rising Number of LEO-HTS Constellations to Offer Robust Opportunities
The rising number of LEO-HTS constellations will offer robust opportunities to market players. Besides, the growing need for connected and autonomous cars and an increased need to help telemedicine in various remote locations are also likely to offer good opportunities for market growth.
Sea Connectivity Issues May Restrain Market Growth
Connectivity issues in the sea due to restrictions in coverage and bandwidth may restrain the enterprise VSAT system market growth over the forecast period. Besides, maritime platforms at the time of catering to marine applications also face various issues such as long delays, lapses in service, lack of coverage, and unstable connections.
Apart from these, other factors that may limit market growth include the high price to replace satellites, the complex installation process and the high installation price of VSAT equipment.
Cybersecurity Issues to Challenge Market Players
Cybersecurity issues, coupled with radio spectrum availability issues, can be a major challenge for industry players.
Global Enterprise VSAT Market as per the MRFR’s enterprise VSAT market research report has been segmented based on Organization Size and Type.
Type-based Service Segment to Lead the Market
By type, the global enterprise VSAT market is segmented into services and hardware. Among these, the services segment is predicted to lead the market over the forecast period. It is likely to grow at a 9.1% CAGR over the forecast period. Enhancement in DVB S2X technology is adding to the growth of the segment.
Organization Size-based Large Enterprises Segment to Dominate Market Growth
By organization size, the global enterprise VSAT market is segmented into large enterprises and SMEs (small & medium enterprises). Of these, the large enterprises' segment is predicted to dominate the market over the forecast period, and the small & medium enterprises segment is predicted to grow at a 9.8% CAGR over the forecast period. Various applications of enterprise VSAT in large enterprises like drive-aways for TV broadcast systems, data security and integrity, and private intranet services are adding to the growth of the large enterprises' segment. When data and transactional information is secured, it helps to cater to the financial industry's finest practices and corporate requirements like PCI-DSS (Payment Card Industry Data Security Standards).
North America to Command Largest Share in the Market
By region, the global enterprise VSAT market covers opportunities and recent trends across Europe, North America, the Asia Pacific (APAC), Middle East and Africa, and South America. Of these, North America will command the largest share in the market over the forecast period. The presence of renowned market players in this region such as Skycaster LLC, Gigasat, VT iDirect, and Hughes Network Systems LLC, high adoption of satellite services for different applications like disaster management and volcano monitoring during hurricanes and storms, vegetation identification, and inspection of historical monuments. Additional factors adding to the enterprise VSAT market growth in the region include rising penetration of mobile broadband, technological advances, and increasing adoption in aerospace and defense are adding to the enterprise VSAT market growth in this region. The maximum market share is grabbed by the United States.
APAC to Hold Second-Largest Share in the Market
In the APAC region, the global enterprise VSAT market is predicted to hold the second-largest share over the forecast period. The rising number of SMEs, advances in digital technology like IoT technology and Machine-to-Machine (M2M), and presence of leading market players such as Shanghai VSAT Network Systems Co., Ltd, Asia Satellite Telecommunications Co. Ltd, Nelco, ABS, Inmarsat PLC, Inmarsat PLC, and Syntelix Avances Tecnológicos SL is adding to the global enterprise VSAT share in the region. Additional enterprise VSAT drivers include the growing adoption in the maritime industry, favorable initiatives undertaken by the government for promoting the adoption of VSAT services and connecting colleges and schools in Australia, China, and India, and changing political landscape are adding to the global enterprise VSAT market growth in the region. China will command the largest share in the market, followed by South Korea, South-East Asia, Japan, and India.
Key industry players are laying emphasis on different organic growth strategies such as product launches, product approvals, and patents and events. Besides, they have also incorporated several inorganic growth strategies like collaborations, partnerships, and mergers and acquisitions. These activities have opened new doors for the development of the client and business base of industry players. Industry players are likely to have healthy growth opportunities in the forthcoming years following the burgeoning demand for the market.
Frequently Asked Questions (FAQ) :
The global enterprise VSAT market is poised to witness substantial growth, and record a significant market value from USD 4,871.6 Million in 2014 to USD 10,617.5 million by 2024, at a moderate CAGR of 8.8% over the review period (2014 to 2024).
Comtech Telecommunications Corp., one of the major market players of the global enterprise VSAT market, acquired UHP Networks Inc., a top provider of advanced and disruptive satellite ground station technology solutions, for USD 40 million. Additionally, Newtec, a market giant in the development and production of satellite communication, Marlink, a leading global provider, end-to-end managed connectivity, and IT solutions protracted their partnership to future-proof Marlink’s global VSAT network.
The regional analysis of the global enterprise VSAT market has been carried out in five major regions, namely, North America, Asia Pacific, Europe, Latin America, and the Middle East and Africa. North America is slated to dominate the market share over the review period, followed by the Asia Pacific.
The segmentation of the global enterprise VSAT market is done on the basis of type, and organization size.