Global Satellite Communication Market 2023

Global Satellite Communication Market 2023

Description
The satellite communication market is segmented based on revenue from different industries. It is projected to grow at a CAGR of 9.6% from 2023 to 2029. Satellite communication is used in media, broadband, 5G, defense, and surveillance applications. The demand for broadband communication is high, especially in remote areas. Advancements in technology create opportunities in remote industries. Ground equipment revenues have grown, particularly in GNSS markets. Cybersecurity is a concern for satellite communication. During the pandemic, satellite communication played a crucial role. The market is driven by the adoption of IoT and autonomous systems. Strategic alliances and partnerships are expanding IoT reach through satellite communication. The market is expected to grow due to increased collaborations and the expansion of the IoT sector.

Market Segmentation
The market is segmented based on various factors, including type, end user, and region.

Segmentation by Type
Ground Equipment
Service

Segmentation by End User
Maritime
Defense and Government
Enterprises
Media and Entertainment
Other End-user Verticals

Segmentation by Region
North America
Europe
Asia-Pacific
Latin America
Middle East and Africa

The ground equipment segment was the dominant market segment in 2022, accounting for 56.5% of the market. This segment is also projected to have a higher Compound Annual Growth Rate (CAGR) of 9.8% during the forecast period (2023-2029). Ground equipment for satellite communication includes various electronic systems such as Satellite Gateways, Very Small Aperture Terminal (VSAT) Equipment, Network Operation Center (NOC), and Satellite News Gathering (SNG) Equipment. A satellite gateway, also known as a teleport or hub, acts as a ground station that facilitates data transmission between satellites and local area networks. It contains antennas and equipment that convert Radio Frequency (RF) signals to Internet Protocol (IP) signals for terrestrial access. This connection links the satellite to a Local Area Network (LAN). Similar to terrestrial connections, the satellite gateway uses antennas and technology to translate radio frequency signals to IP signals and vice versa. IP, or Internet Protocol, is used for internet access and data transport, and the Voice over IP protocol can also be used for voice data transmission.

The media and entertainment segment held the largest share of 29.7% in the market in 2022, in terms of end-user vertical. The enterprises segment is expected to have the highest CAGR of 9.9% during the forecast period (2023-2029). Satellites provide a powerful means of distributing communication media. Currently, satellites can transmit at least 30 different combinations of media and multimedia. The term medium refers to the methods of originating, encoding, transmitting, decoding, and displaying messages to receivers. Satellite broadcasting entails the distribution of multimedia content or broadcast signals through a satellite network. These signals typically originate from broadcasting stations such as TV or radio stations and are transmitted via a satellite uplink to a geostationary artificial satellite for redistribution or retransmission to predetermined geographic locations through open or secure channels. Satellite television, also known as direct broadcasting, has become a significant method of distributing television content. The wide coverage areas and ample bandwidth of satellite television allow for the broadcast of numerous channels, making it highly attractive.

In terms of geography, North America had the largest share of 33.5% in the market in 2022. The Asia-Pacific region is expected to experience a higher CAGR of 9.9% during the forecast period (2023-2029). Government agencies in North America have made significant efforts to introduce new satellite and navigation systems, contributing to the growth of the satellite communication industry. Given the large coastal area, continuous monitoring becomes essential. The region's increasing commercial activities and trade have propelled the need for maritime safety and surveillance.

Competitive Landscape
Key players in the SATCOM market include Thales Group, Inmarsat Global Limited, Iridium Communications Inc., Gilat Satellite Networks Ltd, and Orbcomm Inc. These companies are utilizing strategies such as partnerships, innovations, mergers, and acquisitions to enhance their product offerings and gain a competitive advantage. Other notable companies in this market include Cobham SATCOM (Combham Limited), Thuraya Telecommunications Company, ViaSat Inc., ST Engineering iDirect, L3Harris Technologies Inc., Advantech Wireless Technologies Inc. (Baylin Technologies), and KVH Industries Inc.

Recent Industry Developments
CobhamSatcom and RBC Signals have agreed to deploy CobhamSatcom's Tracker 6000 and 3700 series ground stations globally, expanding RBC Signals' ground network for integrated communication services in NGSO missions.

Yahsat's mobility division, Thuraya, and eSATGlobal have formed a partnership to establish a Next Generation IoT Platform, ensuring continuous access to an LPWAN IoT system across Thuraya's Mobile Satellite Services.

Gilat Satellite Networks Ltd will enhance inflight connectivity in the Americas through multimillion-dollar agreements with Intelsat, upgrading Gilat hubs in the United States and Brazil to meet the growing demand for bandwidth on Intelsat's IFC network.