Satellite Communication Market– Statistics And Analysis & Forecast To 2027

Posted by Mrudula Anil Karmarkar on February 11th, 2021

The global satellite communication market size is expected to reach USD 122.98 billion by 2027, registering a CAGR of 9.2% from 2020 to 2027, according to a new report by Grand View Research, Inc. The growing adoption rate of small satellites in the defense industry for applications, including geospace and atmospheric research, tactical communication, and medium resolution imagery is anticipated to propel the market growth. Besides, the escalating demand for satellite communication (SATCOM) solutions in the aviation sector for better airline operations and air traffic management is also expected to boost market growth in the forthcoming years.

With the rise of the 5G network and launches of several scheduled Low Earth Orbit (LEO) and Medium Earth Orbit (MEO) satellites, the market for SATCOM is expected to grow at a significant pace in the forthcoming years. Also, the expansion of satellite communication into the connectivity market has influenced the SATCOM providers to increase the emphasis on securing the speed of deployment of the Internet of Things (IoT) across the globe. At present, there are around 2.7 million devices serviced by satellites, including infrastructure, aviation, environmental monitoring, shipping, and military support, among others.

In recent years, SATCOM providers have been observed with a paradigm shift towards offering high capacity satellite transponders in terms of bandwidth that are capable of better transponder throughput, thereby decreasing costs. A SATCOM transponder is wireless communication, monitoring, and control device that detects and automatically reacts to an incoming signal. Furthermore, factors such as a rise in demand for corporate enterprise networks and consumer broadband and growing Ka-band and KU-band services, are expected to boost the satellite transponder segment demand in the overall market over the forecast period. Moreover, with the recent space development missions by various space organizations, including the National Space Administration of China and the Indian Space Research Organization of India, among others, the overall market demand has witnessed a considerable market growth in the Asia Pacific region.

Besides, the increase in small satellites, the launch of reusable rocket vehicles, and low-Earth orbit (LEO) are a few key developments in both the military and commercial satellite communication industry. Military satellite communication is becoming increasingly crucial for conducting military operations worldwide. With the combination of commercial communications satellites and military frequency bands, the military SATCOM providers are improving satellite communications capabilities such as personal communication service, global broadcast service, and bandwidth frequency, to meet the military operations requirements in the coming years.

Satellite Communication Market Report Highlights

  • The market growth is driven by the growing need for enriched data communication across the globe
  • The equipment segment is expected to register the highest CAGR of 10.0% owing to the benefits that SATCOM equipment offer, including locating undetected tunnels, integrating targets, and tracing movements, among others
  • The broadcasting segment is expected to hold the largest share in the market in 2020 owing to the high penetration of satellite TV services across the globe
  • The aerospace and defense segment is anticipated to register the highest CAGR of over 11% over the forecast period primarily owing to the increasing use of satellite communications for military operations
  • North America is expected to account for the highest share in terms of revenue, followed by Europe owing to the increasing passenger traffic in marine and coastal tourism. Also, these regions are marked with the presence of a high number of market players

Satellite communication is increasingly being used by the companies to collect operational data to improve efficiency and to realize sustainable ways of conducting business. The companies whose business operations extend to geographically remote locations rely heavily on satellite communications to facilitate real-time asset monitoring and facility monitoring at offshore platforms and unmanned sites. Moreover, as several business facilities are highly remote, deploying terrestrial networks cloud becomes a costly affair. Therefore, these businesses opt for satellite/ mobile satellite services.

Furthermore, the increasing applications and adoption of Artificial Intelligence (AI) and the Internet of Things (IoT) have paved the way for Intelligent Transport Systems (ITS). These systems allow users to track vehicles and enables freight operators to share and receive information promptly. Using satellite communication for transportation will enable seamless and continuous transmission of data between the vehicle and the transport hub, filling the gaps of the terrestrial networks. Therefore, the use of satellites for communications in the transport networks, including logistics, will offer ample growth opportunities for the satellite communication market.

The market is highly fragmented with the presence of several market players. These players are striving to gain a higher market share by adopting various strategies. The satellite operators are also spending huge amounts on developing applications over the Ka-band frequency bands, that will facilitate the transfer of crucial information and high transmissions speed with the use of small ground equipment. Moreover, they are also focusing on maintaining competitive pricing. Additionally, the market players are engaging in partnerships and acquisitions and mergers. For instance, in September 2020, SES SA and Dataset, which provides gateway internet services, entered into a partnership agreement that aimed at providing end-to-end connectivity in the Mediterranean Sea thereby servicing cargo and passengers across destinations including Italy, Spain, Greece, and Morocco. Some of the prominent players in the satellite communication market include:

  • SES S.A
  • Viasat, Inc.
  • Intelsat
  • Telesat
  • EchoStar Corporation
  • L3 Technologies, Inc.
  • Thuraya Telecommunications Company
  • SKY Perfect JSAT Group
  • GILAT SATELLITE NETWORKS
  • Cobham Limited

Grand View Research has segmented the global satellite communication market on the basis of component, application, end-use industry:

SATCOM Component Outlook (Revenue, USD Million, 2016 - 2027)

  • Equipment

o    SATCOM Transmitter/Transponder

o    SATCOM Antenna

o    SATCOM Transceiver

o    SATCOM Receiver

o    SATCOM Modem/Router

o    Others

  • Services

SATCOM Application Outlook (Revenue, USD Million, 2016 - 2027)

  • Voice Communication
  • Broadcasting
  • Data Communication

SATCOM End-use Industry Outlook (Revenue, USD Million, 2016 - 2027)

  • Maritime
  • Aerospace & Defense
  • Industrial

o    Oil & Gas

o    Mining

o    Energy & Utilities

o    Others

  • Transportation & Logistics
  • Agriculture
  • Media
  • Government & Public Safety
  • Enterprises
  • Others

About Grand View Research

Grand View Research, Inc. is a U.S. based market research and consulting company, registered in the State of California and headquartered in San Francisco. The company provides syndicated research reports, customized research reports, and consulting services. To help clients make informed business decisions, we offer market intelligence studies ensuring relevant and fact-based research across a range of industries, from technology to chemicals, materials and healthcare.

For More Information:www.grandviewresearch.com

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Mrudula Anil Karmarkar

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Mrudula Anil Karmarkar
Joined: July 2nd, 2020
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