Satellite Communication (SATCOM) Market Research Report—Global Forecast till 2027

Satellite Communication (SATCOM) Market Research Report: Information by Product (SATCOM Transponder, SATCOM Transceiver, SATCOM Antenna, SATCOM Modem, and SATCOM Receiver), Technology (SATCOM VSAT, SATCOM Telemetry, SATCOM Automatic Identification System (AIS), SATCOM-On-the-Move, and SATCOM-On-the-Pause), End Use (Commercial and Government & Defense), Vertical (Portable SATCOM Equipment, Land Mobile SATCOM Equipment, Maritime SATCOM Equipment, Airborne SATCOM Equipment, and Land Fixed SATCOM Equipment), and Region (North America, Europe, Asia-Pacific, Middle East & Africa, and Latin America)—Forecast till 2027

ID: MRFR/A&D/6994-CR | August 2021 | Region: Global | 174 pages

Satellite Communication Market Overview


The satellite communication (SATCOM) market is projected to register a CAGR of 8.44% between 2021 and 2027. SATCOM is the process of transmission of information from one place to another using a satellite orbiting around the Earth. Satellites are most commonly used for telecommunication purposes. SATCOM is used for mobile applications such as communication to ships, aircraft, vehicles, hand-held terminals, and for TV and radio broadcasting.


The global satellite communication market has witnessed high growth in recent years owing to the increasing deployment of small satellites, growing demand for high-speed Internet, rising adoption of maritime VSAT, and increasing demand for small form factor SatCom solutions & frequent launches of military satellites. However, the vulnerability to cyber-attacks and lack of clarity in government policies are expected to restrain the market growth to some extent.


COVID-19 Analysis


According to MRFR, the current projections of the global satellite communication market growth till 2027 are expected to be lower than pre-COVID-19 estimates. The pandemic has had a negative impact on the aerospace industry across the world. In the aerospace industry, due to a decrease in tax revenues with a reduction in GDP, it is also expected to decrease the investment in satellite for research & development in the next few years. As a result of the COVID-19 crisis and the subsequent global disruptions to supply and demand, world GDP fell sharply during the first half of 2020. According to the World Bank, there will be a 5.2% decrease in global GDP in 2020. Moreover, every region is subjected to considerable growth downgrades; the Middle East & North Africa by 4.2%, Europe & Central Asia by 4.7%, South Asia will contract by 2.7%, and Latin America by 7.2%. However, East Asia & the Pacific region is expected to grow by 0.5%. These downturns are expected to reverse back years of progress towards development.


Many governments across the globe are focused on controlling COVID-19 outbreaks in their countries. Hence, they are investing more in healthcare equipment and the development of vaccines. Therefore, the R&D expenditures on satellite communication are expected to be slightly lower for the next few years. The aerospace expenditure is expected to increase gradually during the forecast period after the pandemic ends. Moreover, due to a decrease in revenues of aerospace companies, it is also likely that there will be a setback for further investing in satellite communication. However, the growing demand for satellite communication is anticipated to drive the market once the global economy plunges back. Thus, it is expected that the global satellite communication market will grow at a slower rate in 2020 and 2021; from 2022, it will increase gradually.


Market Dynamics


Drivers


  • Rising Adoption of Maritime VSAT


Maritime transport is considered as the backbone of global trade and economy; shipping carried more than 80% of the world’s goods, by volume, in 2017. As per the International Chamber of Shipping, seaborne trade continues to expand, bringing benefits to consumers across the world through competitive freight costs. During the study period, the growth in seaborne trade is expected to be evident in developing countries, offering job and business opportunities. The rise in international seaborne trade is driving the demand for VSAT broadband networks onboard vessels. Onboard broadband increases productivity, reduces the cost of vessel management, improves crew welfare and retention, and decreases fuel costs and lessens delays.


Satellite-based connectivity plays a key role in the maritime industry. According to a Futurenautics survey conducted in 2018, the development of VSAT antennas for ships offering higher-throughput Ku- and Ka-band satellite services has led to increased demand in the last few years. Currently, around 57% of all shipping companies have VSAT solutions fitted on their vessels, and this number is expected to increase during the review period. Hence, the surge in international seaborne trade is projected to drive the growth of the global maritime VSAT market in the coming years. Moreover, as the need for continuous real-time communication between ship owners, passengers, crew, and on-ground staff grows, the focus on technological advancements such as VSAT has increased. The advent of VSAT broadband services has led to a shift away from conventional L-band connections,which ship operators have relied on for decades. VSAT services help meet the need for high-speed broadband that can support bandwidth-intensive applications such as watching online videos, using Internet protocol-based telephony services, and downloading music.


In addition, satellite broadband helps operators improve daily operations, increase profitability, and improve life onboard for crew members. Furthermore, the availability of efficient broadband has enabled the tracking of containers and valuable goods in real-time. Over time, the digitization of the maritime industry is expected to transform vessels into smart ships, resulting in more competition.


Opportunities


  • Increasing Government Investments in Space Technology


There is a significant increase in government investments in space technology globally. For many countries, government investments, especially in R&D and startups, are seen as a means not only of addressing societal challenges but also facilitating independence from imports and eventually becoming a global provider of solutions in a sector such as space. Japan has recently launched the cabinet-level Impulsing Paradigm Change by Disruptive Technologies Program (IMPACT) and the Innovation Network Corporation of Japan (INCJ), both of which could promote space startups.


The European Space Agency (ESA) reported a nearly USD 33 million investment in the advancement of Hall Effect Thruster (HET) propulsion technology and other company incubators. China's government has committed USD 339 billion to startups (not all of which will be focused on space), indicating that governments are compensating for the lack of private funding. In addition, the Canadian government's Industrial Technologies office intends to provide UrtheCast with USD 13 million to aid in the ongoing production of its X- and L-band synthetic aperture radar (SAR) constellation on a small-sat platform. Thus, increasing government investments are expected to create growth opportunities for the players in the global satellite communication market.


Restraints


  • Vulnerability to Cyber-Attacks


Military vessels that rely on VSAT for satellite communication in remote areas have been found to be vulnerable to cyberattacks. For instance, IntelCrawler,the cyber intelligence company, found that of the 3 million VSATs installed on military and commercial vessels, approximately 10,000 could be easily accessed due to configuration weaknesses. The terminals with data transmission rates between 4 Kbps and 16 Mbps used in narrowband and broadband data transmission are more vulnerable to cyberattacks. Additionally, VSATs are most commonly used to transmit narrowband data such as credit card information, RFID data, and broadband data for VoIP or video using satellites in geosynchronous orbit. VSATs can be easily hacked due to poor password policies and default settings. Therefore, the vulnerability of VSATs to cyberattacks is expected to hamper the growth of the global satellite communication market to a certain extent during the forecast period.


Cumulative Growth Analysis


  • Technological Advancements in Satellite Communication to Bolster Market’s Growth Rate


The global satellite communication market growth is expected to be at a rate of 8.44% over the analysis period (between 2021 and 2027) on account of the technological advancements in satellite communication.


Segment Overview



  • Technological Innovationsto Bolster Demand for SATCOM Transponders


The global satellite communication market, based on product, has been segmented into SATCOM transponder, SATCOM transceiver, SATCOM antenna, SATCOM modem, and SATCOM receiver. The SATCOM transponder segment is expected to dominate the market in the coming years during the forecast period, primarily due to technological innovations. Also, there are various advantages to using satellite transponders, including complete control over a specific system, flexibility, and the ability to sustain new and developed applications.



  • Commercial Segmentto Observe Strong Demand


Based on end use, the global satellite communication market is segmented into commercial and government & defense.The commercial segment is forecasted to generate higher revenues in the satellite communication market. Much of this can be attributed to their rapidly growing commercial applications, such as telecommunications, data communication, and TV programming through cable or Direct-To-Home (DTH) programming.


Regional Analysis



  • North America Accounted for the Largest Market Share


North America comprises two major countries, namely, the US and Canada. Thepresence of major manufacturers such as General Dynamics Corporation, Honeywell International, Inc., and Qualcomm Technologies, Inc. is bolstering the market growth. Additionally, SATCOM has tremendous applications in the military field, and the US is the world’s highest military spender. According to Stockholm International Peace Research Institute (SIPRI), US spending on the military reached USD 778 billion in 2020, which was a 4.4% increase in spending from 2019. Furthermore, US spending on Unmanned Aerial Vehicles (UAVs) reached USD 15 billion in 2020, where SATCOM is used for providing beyond visual line of sight capabilities.


Furthermore, companies such as SpaceX (US), which are headquartered in this region, are carrying out multiple satellite launches, which further drives the satellite communication market in the region. For instance, as of May 2021, SpaceX has launched over 1,730 Starlink satellites, which will go up to 12,000 satellites for its Starlink Internet technology.



  • APAC Forecasted to Grow at the Fastest Rate


MRFR anticipates the APAC market to exhibit the fastest growth during the conjectured period due to the high proportion of seaborne trade in the region and increasing defense expenditure. The region has witnessed the emergence of many players in the regional satellite communication market over the past decade. Furthermore, the rising expenditure in defense also contributes to the market growth because of the various applications of SATCOM in the military.


Competitive Landscape



  • Significant Investments by Players to Intensify Competition


The satellite communication market is expected to grow significantly in the coming years.This growth can be attributedto factors such asthe increasing deployment of small satellites, growing demand for high-speed Internet, rising adoption of maritime VSAT, and increasing demand for small form factor SATCOM solutions & frequent launches of military satellites. The global satellite communication market is characterized by the presence of several international and regional vendors. The satellite communication market is highly competitive, with all the players trying to gain maximum market share. Frequent changes in government policies, high competition, and government regulations are the key factors that could restrict the global market growth. The vendors compete based on cost, product quality, and reliability.


List of Key Companies Covered in this Report



  • Inmarsat plc (UK)

  • Honeywell International Inc. (US)

  • L3Harris Technologies, Inc. (US)

  • Indra Sistemas, S.A. (Spain)

  • General Dynamics Mission Systems, Inc. (US)

  • Cobham Plc (UK)

  • Viasat Inc. (US)

  • Iridium Satellite Communications Inc. (US)

  • Qualcomm Technologies, Inc. (US)

  • Gilat Satellite Networks (Israel)


Recent Developments



  • April 2021 –Viasat Inc., a global communications company, completed the purchase of Euro Broadband Infrastructure Sàrl ("EBI"), the wholesale broadband services business created as part of Viasat's former partnering arrangement with Eutelsat Communications. With complete ownership of these assets, Viasat Inc. can continue to diversify its business portfolio in Europe.

  • March 2021 –Qualcomm Incorporated’s subsidiary, Qualcomm Technologies, Inc., completed the acquisition of the world-class CPU and technology design company, NUVIA. This acquisition helped Qualcomm Technologies, Inc. integrate next-generation CPUs across a broad portfolio of products, including powering flagship smartphones, laptops, and digital cockpits, as well as Advanced Driver Assistance Systems, extended reality, and infrastructure networking solutions.

  • June 2020 –Honeywell International Inc. launched its smallest and lightest satellite communications system, specifically designed for unmanned aerial vehicles. Weighing in at 1kg (2.2 pounds), the new system is 90% lighter than its smallest connectivity system and will bring some of the same connectivity capabilities featured in larger aircraft to smaller unmanned vehicles in the air or on land.

  • January 2020 – Advent International (Advent), a private equity investor based in the US, completed the takeover of Cobham, the UK-based defense and aerospace company.


Report Overview


Scope of the Report


The scope of the report highlights drivers, opportunities, restraints, and challenges surrounding the global market. With easy-to-comprehend segmentation that includes product, technology, end use, vertical, and region, MRFR projections are on the basis of historical as well as expected trends. Major firms active in the global market have been profiled as well, paired with the top strategies employed by them to remain competitive in the industry.


Segmentation Table


Product



  • SATCOM Transponder

  • SATCOM Transceiver

  • SATCOM Antenna

  • SATCOM Modem

  • SATCOM Receiver


Technology



  • SATCOM VSAT

  • SATCOM Telemetry

  • SATCOM Automatic Identification System (AIS)

  • SATCOM-On-the-Move

  • SATCOM-On-the-Pause


End Use



  • Commercial

  • Government & Defense

  • Vertical

  • Portable SATCOM Equipment

  • Land Mobile SATCOM Equipment

  • Maritime SATCOM Equipment

  • Airborne SATCOM Equipment

  • Land Fixed SATCOM Equipment



Report Scope:
Report Attribute/Metric Details
  Market Size   
  CAGR   8.44% (2021–2027)
  Base Year   2020
  Forecast Period   2021-2027
  Historical Data   2019
  Forecast Units   Value (USD Million)
  Report Coverage   Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
  Segments Covered   Product, Technology, End Use, and Vertical
  Geographies Covered   North America, Europe, Asia-Pacific, Middle East & Africa, and Latin America
  Key Vendors   Inmarsat plc, Honeywell International Inc., L3Harris Technologies, Inc., Indra Sistemas, S.A., General Dynamics Mission Systems, Inc., Cobham Plc, Viasat Inc., Iridium Satellite Communications Inc., Qualcomm Technologies, Inc., and Gilat Satellite Networks
  Key Market Opportunities   Rise in Coastal and Maritime Tourism Increasing Government Investments in Space Technology
  Key Market Drivers   Increasing Deployment of Small Satellites Growing Demand for High-Speed Internet Rising Adoption of Maritime VSAT Increasing Demand for Small Form Factor Satcom Solutions & Frequent Launches of Military Satellites


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Frequently Asked Questions (FAQ) :


8.40% is the CAGR of the Global Satellite Communication (SATCOM) Market.

Global Satellite Communication (SATCOM) Market will collect revenue of USD 41,860 Million.

The growth period for the Global Satellite Communication (SATCOM) Market is from 2020 to 2027.

The mounting demand for SATCOM solutions by airline operators such as the Emirates Group to boost the demand for the Global Satellite Communication (SATCOM) Market.

Global Satellite Communication (SATCOM) Market is restrained by the sky-scraping cost of development and maintenance.