The global satellite communication SATCOM Service market is estimated to reach USD 160.4 billion by 2030, growing at a CAGR of 9.8% during the forecast period 2022-2030. It was valued at USD 77.8 billion in 2022.
The market’s key driver is the growing demand for small satellites for earth observation services in numerous industries worldwide, such as oil and gas, energy, agriculture, and defense. The demand for dependable and cost-effective communication services at sea propels the industry forward. Furthermore, increased use for navigational purposes is likely fueled by revenue growth. Changes in satellite communications and advancements in all types of telecommunications and computer systems have resulted in new opportunities in the sector’s innovative areas. The demand for efficient wireless connections via terrestrial wireless and satellite communications is quickly increasing as industrial production facilities and mining operations move further into difficult terrains.
Concerns about congestion of frequency bands and orbits and policy and regulatory issues are projected to propel the Satellite Communication SATCOM Service market growth. In the forecast period of 2021-2028, the lack of compatibility amongst MSS systems is expected to challenge the market.
Satcom (satellite communication) is an artificial geostationary satellite that facilitates wide-area telecommunications by collecting radio signals from Earth, amplifying them, and sending them back to terrestrial receivers. End-users such as DTH operators, telecommunication corporations, and others use satellite capacity provided by satellite service providers. These companies purchase satellite capacity from satellite operators and resell voice, broadcasting, and data circuits to various businesses. A key characteristic is the availability of mobile communication beyond the terrestrial-based wireless system.
Ships should be connected to the rest of the world during long voyages, including enabling crew and passengers to communicate with loved ones and get weather and port information, among other critical updates. VSAT-equipped ships can provide high-speed internet connections for commercial applications like ERP and video conferencing and personal communication like email, video conferencing, and streaming. According to Comsys, VSAT data rates surged from 10 Mbps in 2007 to 100 Mbps in 2013, owing to the popularity of streaming video and bandwidth-hungry corporate applications. Installed VSAT systems on around 10,000 ships (mostly tankers and container ships) as of 2019.
The market is positively influenced by the growing trend of adopting autonomous systems and linked devices in the industrial sectors. According to Ericsson, the number of huge IoT connections has doubled, bringing the total number of connections to close to 200 million. According to Ericsson, 40% of cellular IoT connections will be broadband IoT by the end of 2027, with 4G connecting the vast majority. Emerging applications and business models and lower device costs have aided IoT adoption, increasing the number of connected devices and endpoints worldwide. Globally, the enormous IoT technologies NB-IoT and Cat-M1 are still being rolled out. Massive IoT technologies are expected to account for 51% of all cellular IoT connections, surpassing broadband IoT connections. This significant surge in IoT adoption boosts the demand for Satellite Communication SATCOM Service, fueling the market growth.
In the previous few years, there has been an increase in the number of cybersecurity breaches worldwide. IOActive, a security firm based in the United States, discovered serious design flaws and vulnerabilities in a popular VSAT system in 2014. According to IOActive, these design flaws might allow hackers to intercept, block, alter, and even gain complete control of important communication networks, posing a threat to systems used on the ground, in the air, and on the sea. Major manufacturers have developed a variety of security measures to protect their communication networks from these risks.
Before the pandemic, the defense industry’s increasing deployment of small satellites for geospace and atmospheric research, tactical communication, and medium-resolution images was expected to drive market growth. Digitization and urbanization, increased investment, and a focus on data applications and services all positively impact the market.
The COVID-19 pandemic has wreaked havoc on countries’ economies worldwide. SATCOM equipment manufacturing, including systems, subsystems, and components, has also been affected. The level of COVID-19 exposure, the level at which manufacturing operations are functioning, and import-export rules, among other things, all have a role in resuming manufacturing activity. While businesses may continue to accept orders, delivery timetables may not be predetermined.
One of the primary factors estimated to fuel the market’s growth is the increase in demand for mobility following the pandemic. The market is influenced by the increased use of technology in various applications, such as telecommunications, weather prediction and navigation, military intelligence, space exploration, and continual developments in digital technology.
Based on type, the global satellite communication SATCOM Service market is classified into VSAT (Very Small Aperture Terminal) and MSS (Mobile Satellite Services). The VSAT segment is expected to hold a significant share in the global Satellite Communication SATCOM Service market during the forecast period by 2030. The advantages of VSAT over Mobile Satellite Services (MSS), such as reduced time lag, global coverage, and others, are credited with this expansion. VSAT allows users to connect to the Internet regularly for email, file sharing, and instant messaging. VSAT has also made unlimited data consumption available for a fixed monthly fee. This allows the team to communicate with friends and family, handle personal matters, and enjoy entertainment items at a reasonable cost.
Based on Application, the global satellite communication SATCOM Service market is segregated into merchant shipping, transport, maritime vessels, governments, leisure vessels, and others. The Maritime Vessels segment accounts for a significant share in the global Satellite Communication SATCOM Service market over 2022-2030. The market has driven rising demand for onboard commerce and greater data rates in commercial ships. Emergency information, data relating to video monitoring employing IP-based CCTV systems, and telemetry data are all part of commercial ship operations. For commercial ships, major providers include Hughes Network System, Cobham, KVH Industries, Intelsat, and Orbit Communication System.
Based on the regional segmental analysis, the Satellite Communication SATCOM Service market is characterized by North America, Europe, Asia Pacific, South America, and Middle East & Africa. North America accounts for the largest share in the global Satellite Communication SATCOM Service market over 2022-2030. The increase can be attributed to the military industry’s increased desire for continuous communication and the US defense department’s demand for SATCOM services. Many SATCOM providers, such as Viasat, Inc., Telesat, and EchoStar Corporation, are also contributing to industry expansion. Furthermore, due to the strengthening of military communication infrastructure, the North American market is predicted to grow at a significant CAGR in the future years.
Globalstar Inc., EchoStar Mobile Limited, Ericsson Inc., Inmarsat PLC, Iridium Communications Inc., Telstra, Intelsat, Hughes Network Systems, Honeywell International Inc., Via Sat, and Other prominent players are the key players in the Satellite Communication SATCOM Service market.
Key Stakeholders
| Report Attribute | Details |
|---|---|
| Revenue in 2021 | USD Million |
| The revenue forecast in 2028 | USD Million |
| CAGR | 7.1% |
| Historical data | 2017 – 2020 |
| Base Year | 2021 |
| Forecast period | 2022 – 2028 |
| Region covered | North America, Europe, Asia-Pacific, South America, and Middle East & Africa |
| Key companies Profiled | Globalstar Inc., EchoStar Mobile Limited, Ericsson Inc., Inmarsat PLC, Iridium Communications Inc., Telstra, Intelsat, Hughes Network Systems, Honeywell International Inc., Via Sat, and Other prominent players are the key players in the Satellite Communication SATCOM Service market. |
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Satcom (satellite communication) is an artificial geostationary satellite that facilitates wide-area telecommunications by collecting radio signals from Earth, amplifying them, and sending them back to terrestrial receivers. End-users such as DTH operators, telecommunication corporations, and others use satellite capacity provided by satellite service providers.
The global satellite communication SATCOM Service market is estimated to reach USD 160.4 billion by 2030, growing at a CAGR of 9.8% during the forecast period 2022-2030. It was valued at USD 77.8 billion in 2022.
The key driver driving the market is the growing demand for small satellites for earth observation services in numerous industries worldwide, such as oil and gas, energy, agriculture, and defense. The demand for dependable and cost-effective communication services at sea propels the industry forward.
Cybersecurity issues are predicted to create an obstacle to the growth of the global market over the forecasted period by 2030.
The North American region is expected to have the largest share in Satellite Communication SATCOM Service Market and continues this growth rate.
Globalstar Inc., EchoStar Mobile Limited, Ericsson Inc., Inmarsat PLC, Iridium Communications Inc., Telstra, Intelsat, Hughes Network Systems, Honeywell International Inc., Via Sat, and Other prominent players in the Satellite Communication SATCOM Service market.
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