A satellite can receive signals from the earth, transmit them using a transponder, and operate at -150 to 150 C in space. Government and commercial uses include remote voice and data services, in-flight entertainment, asset tracking, monitoring, and telemedicine. Media and communication heavily rely on satellite communication. Satellite manufacturers, launchers, operators, service providers, ground network providers, and end users make up the satellite communication value chain.
Manufacturers of satellite communication systems must first buy raw materials. Multiple parameters are used to test assembled satellites to ensure their durability in space. Satellite launchers launch assembled satellites. NASA, ISRO, CNSA, and the ESA are among them (ESA). Satellite operators can operate launched satellites from three orbits: geosynchronous (GEO), medium (MEO), and low (LEO) (LEO). Satellite operators and satellite service providers offer similar services to end-users. Service providers and end users must install network providers' satellite equipment for high-speed, uninterrupted satellite communications.
Satellite service providers contract with end-users, including federal governments and private companies, to deliver unified satellite-based communication services. Leading satellite communication service providers emphasize horizontal integration to boost market presence and profitability.
Market Dynamics
Growing Demand in Military and Government, and Use in Mobile Applications Drives the Global Market
Satellite communication has gained popularity due to its ubiquity and security. Developing and developed nations, including the U.S., China, and others, are building a robust communication infrastructure to bolster their military and defense capabilities. The U.S. Government, especially the Department of Defense, is the largest commercial satellite consumer (DoD). Increased military/defense spending has also contributed to the expansion of military satellite communication services. Satellite communications provide secure bandwidth for military operations in remote areas with poor communications infrastructure. Fixed Satellite Services (FSS) revenue from government and military applications is expected to rise in the coming years. Governments worldwide are integrating commercial satellites into military communication systems. This is due to the government's efforts to support the growing communication needs of applications like AISR and COTM (COTM). Satellite services provide reliable coverage for these services.
Over a vast geographical area, satellite communications provide robust and ubiquitous connectivity. Therefore, Satcom is preferred in numerous applications across industries, including the maritime and aviation industries. Increasing demand for satellite broadband connectivity for such mobility-based applications is expected to drive demand for satellite communication services during the forecast period. All maritime market segments, including merchant shipping, leisure yachts, cruise ships, container vessels, fishing vessels, and offshore applications, have a high demand for satellite broadband services. In addition, the International Maritime Organization's (IMO) regulations, such as the Safety of Life at Sea (SOLAS) convention and Global Maritime Distress and Safety System (GMDSS), contribute to the market's expansion. In recent years, in-flight or cabin connectivity has been in high demand in the aviation/aeronautical industry. Commercial and business aviation influence the expansion of demand for in-flight connectivity services. Consequently, aviation companies collaborate and form partnerships with Satcom service providers to adopt satellite communication technology. Therefore, the continuous and collaborative efforts of the marine and aeronautical industries to adopt satellite communications technology, as well as the parallel efforts of the Satcom service providers to continuously develop newer solutions for mobile broadband services, are anticipated to drive the growth of the global satellite communication market.
Spread of 5G Services Across the Globe Creates Tremendous Opportunities
High growth in 5G deployment and adoption is expected to continue, and telecommunications companies are deploying terrestrial network infrastructure to support 5G functionality. Wireless providers use satellite communications to expand their networks in sparsely populated areas. Whereas terrestrial networks can't or won't, satellites enable telecommunications providers to offer fixed and mobile networks. The satellite is the best option when terrain, line-of-sight, or distance prevent other backhaul methods. New LEO constellations offer reduced latency in satellite communications, and GEO satellites offer high throughput and improved robustness. 5G's speed, low latency, and improved connectivity offer satellite growth opportunities. 5G offers growth opportunities for satellite communications in backhauling, security, resilience, availability, and disaster recovery/emergency response communication, among other areas.
Regional Analysis
North America dominates the global satellite communications market during the forecast period. The widespread use and high demand for satellite services in the area are to blame for this. In addition, the region is characterized by many market participants, including Viasat, Inc., Echo Star Corporation, and Telesat.
Key Highlights
- The global satellite communication market was valued at USD 71.57 billion in 2021. It is expected to reach USD 160.65 billion by 2030, growing at a CAGR of 9.4% during the forecast period (2022–2030).
- Based on components, the global satellite communication market is divided into equipment and service. The services segment holds the most significant global satellite communication market share and is expected to grow at a CAGR of 8.2% during the forecast period.
- Based on application, the global satellite communication market is divided into asset tracking/monitoring, airtime, drone connectivity, data backup and recovery, navigation and monitoring, telemedicine, and broadcasting. The broadcasting segment held the largest market share in the global satellite communication market, growing at a CAGR of 10.5% during the forecast period.
- Based on the vertical, the global satellite communication market is divided into energy and utility, government and defense, transport, and cargo, maritime, mining, oil and gas, agriculture, communication companies, corporates/enterprises, media & broadcasting, events, aviation, environmental & monitoring, forestry, end user – consumer, and healthcare. The media and broadcasting segment dominated the market in terms of revenue and is expected to grow at a CAGR of 10.5% during the forecast period.
- North America dominates the global satellite communications market during the forecast period.
Market Segments
- By Component
- Equipment
- Satcom Transmitter/Transponder
- Satcom Antenna
- Satcom Transceiver
- Satcom Receiver
- Satcom Modem/Router
- Service
- Equipment
- By Application
- Asset tracking/monitoring
- Airtime
- M2M
- Voice
- Data
- Drones Connectivity
- Data backup and recovery
- Navigation & Monitoring
- Tele-medicine
- Broadcasting
- Others
- By Vertical
- Energy & Utility
- Government & Defense
- Government
- Emergency Responders & Defense
- Transport & Cargo
- Fleet Management
- Rail services
- Maritime
- Mining and Oil & Gas
- Agriculture
- Communication Companies
- Corporates/Enterprises
- Media & Broadcasting
- Events, Aviation
- Environmental & Monitoring
- Forestry
- End-User
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