Hybrid-Satellite Cellular Terminal Market Size, Share & Trends Analysis Report By Platform (Land, Maritime, Aeronautical), By Frequency Band (S-Band Terminal, Ka- and Ku-Band Terminal), By Services (Video and Voice Service, Data Service, Tracking and Monitoring), By End-User (Oil and Gas, Mining, Media and Entertainment, Defense and Government, Aviation, Enterprises, Naval, Automotive, Logistics and Transportation) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Market Overview

The global hybrid-satellite cellular terminal market market was valued at USD 103.7 million in 2022. It is estimated to reach USD 654.3 million by 2031, growing at a CAGR of 20.3% during the forecast period (2023–2031).

A hybrid-satellite cellular system combines cellular and satellite networks, with cellular and satellite components connected but operating separately. In this case, the cellular and satellite systems are distinct and might not use the same frequency range. In addition, hybrid-satellite cellular terminals are made to deliver consumers a dependable internet connection, even in places with little or no cellular service. These terminals enable users to access the internet with dependability wherever they are by fusing satellite and cellular technologies. This is very helpful for individuals who must stay put while on the road or in isolated locations.

Hybrid-satellite cellular system technology offers many services, including GPS navigation, video streaming, and voice and data connections. Along with providing a dependable link for emergency services, the technology is also used to offer remote access to educational and medical services. The popularity of hybrid-satellite cellular terminals is also rising due to their affordability. These terminals can provide consumers with a dependable internet connection for a fraction of the price of conventional satellite communications by fusing satellite and cellular technologies. For individuals who want to keep connected but are on a low budget, this makes them a desirable choice.

Highlights

• Land dominates the platform segment
• Ka- and Ku-Band Terminal dominates the frequency band segment
• Defense and government dominate the end-user segment
• North America is the highest shareholder in the global market

Market Dynamics

Global hybrid-satellite cellular terminal market drivers

Growing number of satellite launches for communication

Numerous countries have launched satellite constellations for communication and global internet coverage applications. There is an extensive demand for satellite constellations in the market owing to the increasing need for faster, more reliable, and more efficient real-time tracking and monitoring systems such as cargo, ships, and commercial fishing. As per the Union of Concerned Scientists (UCS), more than 950 satellites were launched in 2020. A cluster of small satellites could progressively replace large satellites in a single orbital location. Once the technology becomes available, satellite constellation systems can perform better, cost less to launch, and operate equivalent to conventional satellite systems.

Commercial companies such as SpaceX, OneWeb, Kepler Communication, and Swarm Technologies have been launching small communication satellites. Furthermore, these companies aim to enable hybrid-satellite cellular services for reliable, secure, and high-speed wireless communication. For instance, as part of the Starlink project, the company plans to launch over 12,000 satellites to provide data services for remote locations in the coming years. This will enhance the market during the forecast period.

Growing usage of internet of things (iot)-enabled services

The IoT has undeniably been an epicenter for rapid technological development and is considered a revolution with the potential to change everything. Investments in IoT-driven platforms are growing significantly as varied business verticals, consumers, and governments of different nations recognize the advents of enabling wireless connectivity. Moreover, the ever-increasing growth in smartphones and tablets is advancing the number of devices connected to the internet yearly. This staggering growth in the usage of IoT services is expected to provide new growth avenues to the market players over the coming years. It is anticipated that as the IoT network expands, users will thrive on connecting their global resources and managing at one point, requiring IoT connectivity through satellites. All these factors will enhance the market during the forecast period.

Global hybrid-satellite cellular terminal market restraint

Difficulties in creating communication between satellite and hybrid-satellite cellular terminals

Unfavorable environmental conditions such as fog, rain, haze, smoke, sandstorms, water vapor droplets, and snow are one of the significant factors affecting the performance of the hybrid-satellite cellular terminals by stopping the transmission of data due to the high rate of light absorption, refraction, and complete reflection. The fluctuations in air pockets' temperature may affect the signal's strength during the transmission between transmitter and receiver.

One of the primary reasons behind this is the increasing heat from the Earth and the man-made drives like heating ducts which ultimately lead to amplitude loss at the receiver end. Moreover, any physical hindrance, including birds, planes, and people that happens to be in the path of light transmission, leads to collisions that result in signal scattering. Therefore, all the above environmental factors have become one of the major challenging factors for the global market.

Global hybrid-satellite cellular terminal market opportunities

Connectivity requirements in remote locations

The maturation of satellite and cellular connectivity solutions in developed nations and metropolitan regions of developing countries has generated a red ocean market, and industry players are engaged in exploring new methods of revenue generation. One of the significant market opportunities lies in satellite and cellular connectivity solutions for remote locations in developed and developing countries. In addition, major satellite and cellular companies are actively generating opportunities from regions like North America, Europe, and Asia-Pacific. A proactive government approach toward integrating these technologies and infrastructure support allows the company to ensure smooth operations.

Additionally, the rise in enterprise conglomerates, digitization of government agencies, increasing global trade networks, and rising geopolitical conflicts have generated the demand for high-speed, secure, uninterrupted, and private communication networks. Major industry players, government bodies, and defense organizations are willing to pay much higher service charges if service providers can provide them with the perfect requirement, creating opportunities for market growth.

Regional Analysis

Based on region, the global hybrid-satellite cellular terminal market is bifurcated into North America, Europe, Asia-Pacific, and Rest-of-the-World.

North america dominates the global market

North America is the most significant global hybrid-satellite cellular terminal market shareholder and is estimated to exhibit a CAGR of 20.15% during the forecast period. North America region comprises the U.S. and Canada. The growing satellite mega-constellations technologies for communication by various new manufacturers, such as SpaceX, OneWeb, and Amazon, that are U.S.-based, will raise the demand for LEO slots. Once operational, these constellations can provide hybrid-satellite cellular services for various end-users. Further, the North American region dominates the global hybrid-satellite cellular terminal market, with huge investments and revenue expected to be generated from the U.S. market. Currently, the U.S. is the dominant country that manufactures. Similarly, the adoption rate of hybrid-satellite cellular terminals in the U.S. is high, and the trend is anticipated to remain the same until 2031. However, Canada is investing heavily in the research and development of hybrid-satellite cellular terminals for various end-users, which is expected to gain prominence in the market during the forecast period.

Europe is anticipated to exhibit a CAGR of 25.93% over the forecast period. The countries covered in the region include the U.K., France, Germany, and Rest-of-Europe. Europe has several vital companies that provide products to different end users worldwide. The U.K., Germany, and France have many manufacturing, research, and development hubs to develop innovative solutions for market needs. With Europe Space Agency (ESA) in the Europe region, hybrid-satellite cellular terminal manufacturing companies have a tremendous opportunity to generate revenues through contracts with the government agency. Further, Europe has the second-highest number of operating satellites in space, and the scope for expansion is very high.

The Asia-Pacific region comprises the regional markets of China, Japan, and the Rest-of-Asia-Pacific. China dominates this region's market in product innovations and strategic partnerships with market leaders. Over the past decade, the region's economies have been accelerating upward, along with economic booms in developing Asian countries like India, Indonesia, Malaysia, and Thailand, thus, accelerating the growth of satellite cellular connectivity in the region. The Asia-Pacific market experienced the fastest growth within the forecast period. In addition, the region's demand for hybrid-satellite cellular services is mainly driven by the dynamic approaches of key regional players toward risk management, such as global connectivity, remote asset monitoring, resource management, and agriculture management. The region is one of the strongest growing economies globally, with the highest population density. Furthermore, the exploration of new technologies like communication satellites and the increasing adoption of satellites and cellular devices for monitoring and surveillance amid rising geopolitical conflicts supports market opportunities.

The Rest-of-the-World comprises sub-regions, namely the Middle East and Africa and Latin America. The significant growth of the market in the Rest-of-the-World is driven by the increasing adoption of the hybrid-satellite cellular terminal for various end users such as oil and gas, mining, and logistics and transportation during the forecast period. The region has contributed the most negligible share in the market regarding the number of terminals utilization for the next few years. Furthermore, the region has very few key players that operate in the area and depend on other regions for their technological needs. The available funds and resources are also less in this region, further restricting the market's growth. However, the competition in this region is meager compared to the other areas, and this market has lots of potential to generate future revenue. Therefore, companies are trying to develop the technologies required for the market.

Segmental Analysis

The global market is bifurcated into the platform, frequency band, service, and end-user.

Based on platform, the global hybrid-satellite cellular terminal market is divided into maritime, land, and aeronautical platforms. 

The land platform segment accounts for the largest market share and is anticipated to exhibit a CAGR of 19.95% over the forecast period. A land-based platform is one of the most prominent platforms which will contribute to the growth of the global market. This is due to the number of hybrid-satellite cellular terminals for end-users such as oil and gas, mining, defense and government, automotive, logistics, and transportation. Moreover, modernization programs of the hybrid-satellite cellular terminals are expected to drive the demand for ground-based air defense systems.

Based on frequency band, the global hybrid-satellite cellular terminal market is bifurcated into S-band terminal and Ka- and Ku-band terminal. 

The Ka- and Ku-band terminal segment dominates the global market and is projected to grow at a CAGR of 21.70% over the forecast period. Currently, Ku- and Ka-band segment accounts for the highest market share and is anticipated to retain their position during the forecast period. The frequency band terminal has the advantage of having large bandwidth and can support applications requiring high transmission power. According to industry experts, Ka- and Ku-band terminals will widely support connectivity applications requiring high throughput during the coming years. This frequency band terminal will monitor large ships and vessels, aviation connectivity, military emergency responding applications, and vast field connectivity like mining sites. Both Ka and Ku band frequency terminals efficiently offer high-power transmission and broadband communication which is an excellent advantage of the Ku- and Ka-band terminals. However, the major disadvantage of using the Ka and Ku band terminal is its high propagation delays, which leads to high latency.

Based on service, the global hybrid-satellite cellular terminal market is bifurcated into video and voice service, data service, and tracking and monitoring services. 

The data service segment owns the highest market share and is predicted to exhibit a CAGR of 31.37% over the forecast period. Data service can offer services to multiple users simultaneously; its placement of receiving equipment is kept to cover a vast area, including remote locations, allowing users to communicate. Moreover, data services hold high involvement in defense, government, and enterprise businesses across the globe.

Based on end-user, the global hybrid-satellite cellular terminal market is divided into oil and gas, media and entertainment, mining, defense and government, aviation, enterprise, naval, automotive, logistics and transportation. 

The defense and government segment is the most significant contributor to the market and is expected to exhibit a CAGR of 17.28% over the forecast period. For communication, hybrid and cellular satellite network terminals are majorly preferred by defense and government due to their advantage of high security and reliability. With the increasing need to monitor assets and personnel and generate optimum insights, hybrid-satellite cellular terminal connectivity is gaining traction among defense and government. Further, defense and government are the two primary users of the hybrid-satellite cellular terminals. Their dominance is highly attributed to the growing need for technology that can efficiently improve the routing, process of information, and communications.

Recent Developments

• March 2023- Kymeta, a global pioneer in flat panel satellite terminals, announced at SATELLITE 2023 that it had shipped its first HawkTM u8 OneWeb LEO terminal in partnership with OneWeb. Kymeta is the first corporation to deploy electronic user terminals commercially for OneWeb's LEO network.
• March 2022- Wyld Networks announced the availability of its new line of low-power, sensor-to-satellite LoRaWAN® terminals and modules for Internet of Things (IoT) applications in regions with limited or no other connectivity options. The Wyld Connect hybrid devices can transmit data directly to terrestrial networks or via a Low Earth Orbiting (LEO) satellite network via a partnership with Eutelsat.