SATCOM Market

Market Overview

The global SATCOM market size was valued at USD 27.68 billion in 2022. It is projected to reach USD 58.16 billion by 2031, growing at a CAGR of 8.60% during the forecast period (2023-2031). 

Information is transported from one region to another via a satellite in Earth's orbit through satellite communication (SATCOM). The most typical application of satellites is for communication. They are utilized for mobile applications such as broadcasting TV and radio and communicating with automobiles, ships, airplanes, and handheld terminals. The increasing use of small satellites, rising demand for high-speed Internet, rising adoption of maritime VSAT, rising demand for small form factor SATCOM solutions, and regular launches of military satellites are all expected to contribute to the significant growth of the global satellite communication market. However, concerns like cyberattack vulnerabilities and a lack of clarity in governmental rules will likely impede the SATCOM market's growth.

Market Dynamics

Global SATCOM Market Drivers

Improving Deployment of Small Satellites

Small satellite deployment has significantly increased due to benefits including low manufacturing costs and broad potential for mass production. Electronics have been miniaturized thanks to revolutionary technical developments, which have driven the development of smart materials and, eventually, reduced the size and mass of satellites for manufacturers. Additionally, there is a demand for small satellites and miniature rockets due to the numerous start-ups in the aerospace and space industries that have a keen interest in satellite research and design. In the upcoming few years, businesses, including OneWeb, Amazon, Telesat, and SpaceX, plan to launch more than 40,000 satellites.

For instance, SpaceX has launched over 1,443 Starlink Satellites, which are all tiny communication satellites, as of April 7, 2021. Similarly, the use of tiny satellites for defense has increased. Therefore, the need for small satellites is predicted to rise due to the rising investments in satellite constellation launches, which will ultimately fuel the expansion of the worldwide satellite communication market throughout the forecast period.

Global SATCOM Market Restraint

Exposure to Cyberattacks

It has been discovered that military warships that depend on VSAT for satellite communication in outlying areas are susceptible to hackers. For instance, the cyber intelligence firm IntelCrawler found that 10,000 of the 3 million VSATs placed aboard commercial and military ships were vulnerable to simple access because of configuration flaws. Cyberattacks were shown to be more likely to target terminals used for narrowband and broadband data transfer with data transmission rates between 4 Kbps and 16 Mbps.

Additionally, VSATs are most frequently used to transmit narrowband data via geosynchronous orbital satellites, including credit card information, RFID data, and broadband data for VoIP or video. Due to default settings and lax password rules, VSATs are susceptible to hacking. Therefore, the vulnerability of VSATs to cyberattacks during the forecast period will somewhat restrain the expansion of the worldwide satellite communication market.

Global SATCOM Market Opportunities

Suspension in Ocean and Marine Tourism

A crucial component of the world's tourism business, which has been expanding significantly globally, is coastal and maritime tourism. In addition, from 2016 to 2017, Dubai had a considerable increase in nautical tourists and cruises by 15% and 18%, respectively. Additionally, the worldwide cruise sector will continue to experience consistent expansion in 2018, with more than two dozen deliveries planned to keep up with demand, according to the Cruise Lines International Association (CLIA). Cruise ship construction is one of the critical goals of the Chinese government's Made in China 2025 program to modernize the domestic industry.

Regional Analysis

The global market is bifurcated into four regions: North America, Europe, Asia-Pacific, and LAMEA. 

North America Dominates the Global Market

North America is the major revenue contributor and is expected to exhibit a CAGR of 9.30% during the forecast period. This comes from significant manufacturers like Honeywell International, Inc., General Dynamics Corporation, and Qualcomm Technologies, Inc. Additionally, SATCOM has several military applications, and the US has the most extensive military spending worldwide. 

Europe is expected to exhibit a CAGR of 8.60% during the forecast period. Due to factors like the region's sizeable seaborne trade and government initiatives to improve military communication systems, Europe is anticipated to account for a significant portion of the worldwide satellite communication market. For instance, the European Defence Agency (EDA) awarded a contract to Airbus (Netherlands) in May 2020 with an anticipated value of tens of millions of euros to build a new SATCOM framework for the military and civil activities of the EU and member states. Additionally, the French government contracted Thales Group (France) in November 2019 to construct the Syracuse 4 satellite communication system, which will upgrade the SATCOM communication systems for its Rafale planes and Charles De Gaulle aircraft carrier.

Asia-Pacific is the area with the quickest rate of growth in the satellite communication market due to its rapid development and the introduction of several companies. Additionally, the region's high percentage of maritime trade and rising defense spending is fueling the regional market's expansion. For instance, according to the UN, Asia was by far the most significant trading region in the world in 2019. In Asian seaports in 2019, 4.5 billion tonnes of cargo were loaded, and 6.9 billion tonnes of merchandise were emptied, accounting for 62% of all freight loaded and 40% of all merchandise unloaded worldwide.

In the Middle East and Africa, the presence of well-known defense firms like Israel Aerospace Industries Ltd. promotes market expansion. UAE-based defense firms that work with counterparts in the U.S. and other industrialized nations. For instance, Israel Aerospace Industries Ltd. worked with synthetic aperture radar (SAR) data supplier XpressSAR in 2018 to produce sophisticated radar-based surveillance satellites. Additionally, the Middle Eastern countries' interest in purchasing UAVs is boosting the regional satellite communication market's expansion. Further, the regional industry is expanding due to the rising use of communication satellites in nations like Saudi Arabia.

Segmental Analysis

The global market is segmented by product, technology, and end-user.

Based on product, the global SATCOM market share is bifurcated into Satcom transponder, satcom transceiver, satcom antenna, and others.

The SATCOM transponder segment is the major contributor to the market and is estimated to exhibit a CAGR of 9.60% during the forecast period. Wireless monitoring, communication, or control equipment that recognizes and reacts instantly to an incoming signal is known as a SATCOM transponder. It can also be described as the component that connects a satellite's transmitting and receiving antennas. The satellite transporter enables users to access the Internet anytime and anywhere. Using satellite transponders has several benefits, including total command over a particular system, adaptability, and the capacity to support newly developed applications. They primarily use two different transponders: regenerative and bent pipe transponders.

An electrical device known as a transceiver may simultaneously send and receive signals with an antennae aid. The usage of SATCOM transceivers in wireless communication is widespread. Transceivers can be divided into two categories: half-duplex mode and full-duplex mode. In a full-duplex way, transmission and reception of signals are possible simultaneously since they occur on two independent frequencies, preventing interference. In a half-duplex manner, signals can only be broadcast or received simultaneously. Full-duplex transceivers are often used in SATCOM networks. The movement is delivered via the uplink (transceiver to satellite) and received via the downlink (satellite to receiver).

Antennas and transponders are both necessary for satellite communications. Antennas installed on satellites are used to receive and send signals. The satellite's antennas gather signals that have been uplinked from various sources on Earth. The signs are then processed by a transponder and sent back to the Earth station to redistribute them. Satellite antennas come in a variety of styles. As needed, SATCOM antennas are occasionally made to order. Two typical antennas are parabolic reflector and horn, with illustrative reflector type being the more prevalent.

Based on technology, the global SATCOM market share is bifurcated into SATCOM VSAT and SATCOM telemetry.

The SATCOM VSAT segment is the major contributor to the market and is estimated to exhibit a CAGR of 9.20% during the forecast period. A Very Small Aperture Terminal is a tiny earth station that uses a satellite communication network to send and receive data, voice, and video but not broadcast television. A VSAT consists of two components: an inside device that connects the external transceiver to the end user's communications equipment, such as a PC, and an external transceiver having a direct line of sight to the satellite. The hub station must receive every broadcast from one end user before retransmitting it to the other end user's VSAT via satellite. The capacity of VSAT to deliver multimegabit downstream and upstream transfers has significantly increased over time.

Telemetry is acquiring measurements and data from onboard instruments to assess the condition and status of every satellite component. A satellite's telemetry, tracking, and control (TT&C) subsystem is complete with telemetry. Its objectives include tracking the satellite's statistics, analyzing the reception, processing, and transmission of ranging signals to pinpoint the spacecraft's precise location, and managing the satellite effectively by receiving, processing, and carrying out directives from the ground.

SATCOM-on-the-move is a phrase for mobile satellite technology that refers explicitly to platforms used by military aircraft, ships, and ground vehicles. The fundamental idea behind SATCOM-on-the-go is that a vehicle with a satellite antenna on board can make and keep communication with a satellite even when it is moving. They support communication in areas where cellular or radio transmissions are ineffective, such as beyond the line of sight. To ensure a direct connection with the satellite, as well as the stability and durability of the link connection, even in the most challenging conditions, these links need to be made using antenna pointing and stabilization devices.

Based on end-use, the global SATCOM market share is bifurcated into commercial, military, and governmental initiatives.

The commercial SATCOM segment is the highest contributor to the market and is estimated to grow at a CAGR of 9.80% during the forecast period. The commercial SATCOM segment is one of the satellite communication markets expanding quickly. Some of the leading commercial uses of SATCOM are telecommunications, data transfer, and TV programming via cable or Direct-To-Home (DTH) programming. Interactive TV is also gaining popularity, allowing viewers to interact with broadcasts live from their homes. Examples of the telecommunication services offered by SATCOM include telephone calls, services provided to telephone companies, and services provided to wireless, mobile, and cellular network providers.

SATCOM has a variety of uses in military and governmental initiatives. When land-based communication services are ineffective during national emergencies or disasters, SATCOM services are deployed. In emergencies, contact can be reestablished with mobile satellite solutions. Additionally, many government programs make use of SATCOM services. For instance, SATCOM is used by the Indian Space Research Organisation (ISRO) for telemedicine, village resource centers, and tele-education.

Recent Developments

• May 2022- BlueHalo was given a contract, according to the Space RCO, a U.S. Space Force entity that purchases and oversees classified space technology. The agreement relates to the satellite communications resource program initiative. This will take care of the crucial U.S. Space Command demand to increase satellite control capability for the satellite control network quickly, nimbly, and inexpensively.
• June 2022- According to the operator, Thales Alenia Space developed the SES-17, a very high throughput vessel that is prepared to offer "unparalleled" connection services to clients in the aviation, maritime, enterprise, and government sectors, whether on land, at sea, or in the air. SES-17 was successfully launched from Europe's Spaceport in Kourou aboard an Ariane 5 launch vehicle run by Arianespace.