Market Research Report
Global Satellite Communication (SATCOM) Market - Growth, Trends, Forecasts (2021 - 2026)
|Global Satellite Communication (SATCOM) Market - Growth, Trends, Forecasts (2021 - 2026)|
Published: July 1, 2021
Mordor Intelligence Pvt Ltd
Content info: 170 Pages
Delivery time: 2-3 business days
Global Satellite Communication (SATCOM) Market is expected to grow at a CAGR of 6.9% during the period 2021-2026. The pandemic is expected to have a significant impact on the satellite communication industry. The industry is dependent on government contracts in various areas, such as Earth Observation, including the highly reliable and survivable nature of satellite communications services. These are essential services for disaster communications and backup services, which protected the industry from some of the more severe impacts of the global pandemic.
Satellite communication has continued to be a unique technology, independent of mobile networking. With the next generation of satellites built from the 5G architecture, they will be integrating with networks to manage connectivity to cars, vessels, airplanes, and other IoT devices in remote and rural areas. Satellite communications play an essential role in the extension of 5G cellular networks to hard-to-reach and rural areas, especially in regions of the planet traditionally beyond the reach of cellular companies.
SATCOM is an integral enabler of the 5G connectivity concept and can facilitate universal connectivity while driving network efficiencies forward. Companies such as Gilat have been a member of the SaT5G European project, which contributed satellite communication-related aspects into future releases of 5G standards.
Combining satellites with 5G infrastructure enhances the Quality of Experience (QoE) of high-capacity applications. Satellites can save valuable spectrum and improve the resilience of each network by intelligently routing and offloading traffic. Low Earth Orbit (LEO) Satellites will play a crucial part in extending cellular 5G networks to sea, air, and other remote areas that small cell networks cannot cover. They can extend 5G services from the city to airplanes, cruise liners, and other vehicles in remote locations. IoT sensors and M2M connections on farms and remote worksites like mines can also benefit from the broad coverage areas offered by 5G satellites.
Further, new developments in the satellite communications eco-system have succeeded previous limitations, such as the new generation of Low Earth Orbit (LEO) satellites and technical advances in Geostationary (GEO) satellite that provide high throughput and improvements. By focusing on the benefits of satellite networks, various companies have been opening up the market for 5G by demonstrating that satellite networks can be brought into the system efficiently and quickly to benefit both network operators and end-users. According to Union of Concerned Scientists, there are 3,372 active artificial satellites orbiting the Earth as of January 1, 2021.
In July 2021, Thales Alenia Space, a joint venture between Thales and Leonardo, partnered with Hellas Sat to perform a 5G demonstration in Greece in the presence of the Ministry of Digital Governance. Hellas Sat aims to provide a 5G network to remote areas in Greece and Cyprus. For this, it is backhauling the connection between a 5G Core Network and a 5G gNB through Hellas Sat 3 / Inmarsat S EAN satellite (a geostationary telecommunication satellite). The Hellas Sat 3 payload used for this demo delivers DTH (Direct To Home) and Telecom services in Europe, Middle East, and Southern Africa.
Various companies recognized the potential of private satellite constellations to provide Internet connectivity to rural areas and satisfy the global networking services of tomorrow. For instance, London-based OneWeb recently launched 34 OneWeb satellites into orbit, the first of 10 launches in 2020. OneWeb plans to officially open for business in 2021 and begin by selling services to governments and corporate customers that provide internet service to airplanes, boats, and other vessels.
North America dominated the market, especially due to the rising demand for continuous communication by the defense industry and increased demand for SATCOM equipment by the U.S. defense department. Satellite communication services are also increasingly being used by the military and defense forces to establish or increase connectivity across various assets of the forces, such as fighter planes. Moreover, the increased need for high-throughput satellite services and the increasing adoption of cloud-based services for ground mobility platforms are some other factors supporting the growth of the segment in the region.
The government agencies in North America have also been making significant efforts to introduce new satellite and navigation systems that are expected to boost the growth of the satellite communication industry. North America has a large coastal area that requires continuous monitoring. The increasing commercial activities and trade in the region are propelling the need for maritime safety and surveillance, driving the growth of the market in the region.
Unites States also launched its fifth Advanced Extremely High-Frequency spacecraft (AEHF-5), a secure military communications satellite that will provide jam-proof communications, including real-time video, between U.S. national leadership and deployed military forces. The region also has the highest number of satellites, thereby creating many opportunities for the North American satellite communications providers.
To deliver innovative SATCOM solutions to the U.S. Government, various vendors in the region have been partnering to develop better satellite communications solutions. For instance, in April 2021, Honeywell and Inmarsat made an agreement to develop and deliver innovative commercial satellite communications (COMSATCOM) solutions to the U.S. government. These solutions will be focused on fixed-wing and non-fixed-wing aeronautical platforms operating worldwide, including in Arctic regions.
Some vendors in the region have also been focusing on designing satellite communications solutions to meet the needs of the Canadian Armed Forces. In May 2021, Inmarsat built CAD 1 million facility in Ottawa, Canada, which is a fully managed services facility that provides training, tech development, and secure facilities for government departments. Such instances are expected to bring further growth opportunities to the market in the region.
The U.S. coastal waters are most vulnerable due to their open borders. This nature of the vast maritime domain of the U.S. faces critical threats from terrorism, criminal activities, and natural disasters. The underlying threat poses unique and critical challenges in enforcing maritime safety, as illegal activities can happen from all directions across the country's maritime borders if there is no proper system for detection and identification. The factors mentioned above are anticipated to influence the market studied in the region during the forecast period.
Global Satellite Communication (SATCOM) Market has few significant players like Thales Group, Inmarsat Communications, Iridium Communications Inc., Gilat Satellite Networks, and Orbcomm. These major players have been primarily focusing on expanding their customer base by leveraging strategic collaborative initiatives to increase their market share and profitability. With better technological advancements and product innovations, mid-size to smaller companies are also growing their market presence by securing new contracts and by tapping new markets.