Market Research Report
Satellite Communication Market in the Defense Sector - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)
|Satellite Communication Market in the Defense Sector - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)|
Published: January 1, 2021
Mordor Intelligence Pvt Ltd
Content info: 120 Pages
Delivery time: 2-3 business days
The satellite communication market in the defense sector is expected to register a CAGR of over 6.90%, during the forecast period (2021 - 2026). With its penetration in military operations, IoT is significantly impacting military intelligence, operations, and surveillance.
Government Initiatives to Drive the Market Growth
Artificial intelligence is becoming a part of modern warfare. Implementation of AI in satellite communication is expected to be a major trend in the coming decade. Furthermore, the governments of various countries are investing in communication technology, such as navigation systems, vessel tracking, etc., in the maritime sector.
Military satellites are considered as a measure of the country's military strength, operability, and the ability to attack or defend itself. These satellites give the armies real-time data, pertaining to the movement of troops and regarding the arsenal at enemy borders.
Nowadays, nanosatellites are gaining popularity, owing to their wide range of applicability. Nanosatellites are defined as satellites with a mass less than or equal to 10 kg. Moreover, recent advancements in optics and communication technologies have improved the capabilities of smaller spacecraft for remote sensing and imaging. Heightened government interest, coupled with increasing maturity of the technology, is attracting companies to invest in the satellite communication market in the defense sector.
For instance, the National Aeronautic Space Administration (NASA) budget for the fiscal year 2020 is USD 21 billion, which indicates an increase of 1.4%, as compared to that for 2019. NASA may take a more active role in commercializing new space technologies, as many of its new initiatives have both, military and commercial applications.
Asia-Pacific is Projected to Register the Highest Growth Rate
China and India are largely responsible for the rapid growth of the satellite communication market in the defense sector in the Asia-Pacific region. The governments of these countries have adopted conscious strategies to make their respective maritime, aeronautical, and military sectors more secure. Appropriate communication channels are a big part of this strategy, which may inevitably fuel the demand for mobile satellite services.
Additionally, China and India, the world's two emerging economic powers, are demonstrating a sustained increase in their military expenditures and contributing to the growth in the global military spending. Furthermore, joint military activities are increasing in the Asia-Pacific region. These activities are creating major opportunities for the satellite communication market in the defense sector.
The governments in the region are evidently increasing their military budgets. For example, the Government of India allocated INR 4,04,365 crore (USD 62.8 billion) for the Ministry of Defense (MoD).
The satellite communication market in the defense sector is fragmented and competitive in nature. Some of the key players in the satellite communication market in the defense sector are Baker Hughes Incorporated, Globecomm Systems, Inmarsat Communications, and Iridium Communications Inc. among others. The market is not only influenced by the price, but also by the products' performance. The leading companies offer several advantages, such as better performance of products, more abundant product types, and better technical and impeccable after-sales service, as compared to the other players in the market.