Global Satellite Communication (SATCOM) Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

Global Satellite Communication (SATCOM) Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

The Satellite Communication Market size is expected to grow from USD 47.25 billion in 2023 to USD 83.71 billion by 2028, at a CAGR of 12.12% during the forecast period (2023-2028).

Satellite communication is used for various applications across industries, such as media broadcasting, an extension of broadband coverage, 5G communications systems, integration and convergence of diverse wired and wireless technologies, earth observation, defense and security, and surveillance applications.

Key Highlights

• The demand for broadband communications continues unabated and is not necessarily location-specific. Such demands include connectivity requirements for users on aircraft, ships, and vehicles (including first responders) that operate at fixed locations and while in motion. These three platforms need continuous connectivity along their travel routes, often taking them through unserved parts of major metropolitan areas and less densely populated areas. Such trends are expected to aid in the growth of the market.
• Changes in satellite communications and the progress in all kinds of telecommunications and computer processes led to new opportunities in innovative areas in the sector. As industrial production facilities and mining operations are moving further deep into inaccessible terrains, the requirement for efficient wireless interconnection through terrestrial wireless and satellite communications is increasing rapidly.
• The Satellite Industry Association (SIA) reported that the ground equipment revenues have significantly increased, with the extension in the GNSS markets and network equipment, flat or somewhat declining customer equipment investments and resources, manifesting that mobile satellite communication (MOST) will become a fundamental growth point of the overall market.
• Cybersecurity has become a major concern for satellite communication as launching a satellite to transmit data is highly sensitive. Further, the challenge lies in the negative impact that such cybersecurity threats can potentially make, as the vulnerabilities are mission-critical. The mission-critical vulnerabilities exposed to cybersecurity threats include the launch systems, communications, telemetry, tracking and command, and mission completion. The over-dependency of satellite communication on secure cyber capabilities across the satellite's lifespan makes it a serious concern, hindering its adoption.
• According to the Satellite Industry Association, the commercial satellite industry has played a pivotal role during the COVID-19 pandemic. The demand for satellite communication increased due to its vast applications in providing voice, data, and broadcast communications solutions along with navigation, earth observation, remote sensing, and other unique services vital for businesses, government customers, and consumers domestically and around the globe. Global space agencies like NASA have leveraged communication satellites to illustrate the planet-wide changes resulting from COVID-19.

Satellite Communication (SATCOM) Market Trends

Increase in IoT and Autonomous Systems is Driving the Market

• The growing trend of adopting autonomous systems and connected devices in the industrial sectors positively influences the market studied. According to Ericsson, the number of massive IoT connections is expected to have doubled, reaching close to 200 million connections. According to Ericsson, by the end of 2027, 40% of cellular IoT connections will be broadband IoT, with 4G connecting the majority, and the number of short-range and wide-area internet of things (IoT) devices is 22.4 billion and 5.2 billion by the end of 2027.
• As organizations adopt IoT, companies across geographies are focusing on expanding their IoT reach with the help of satellite communication through strategic alliances, collaborations, and partnerships. For instance, in 2022, Astrocast and Soracom collaborated to expand customer connectivity options with SatIoT. Soracom sought a SatIoT partner in its drive to become the greatest IoT connectivity provider that could securely link consumers while also giving them the premier value. Astrocast, a pioneer in the SatIoT space, brings to this cooperation strong technology and a focus on the customer that enables the integration of their SatIoT capabilities into the Soracom platform a success.
• In September 2022, Network Innovations, a provider of vital communications products and services, announced its partnership with hiSky, a provider of advanced voice and IoT satellite communications technology. Utilizing a patented technology, hiSky's low data rate (LDR) network, which is perfect for Industrialized Internet of Things (IIoT) applications, transmits LDR through high-frequency Ka/Ku-band networks to provide end users with affordable satellite solutions.
• Therefore, the growing collaborations due to significant interest in satellite-based IoT connectivity, the robust expansion of the IoT sector, and the coverage constraints of terrestrial networks are expected to bolster the market’s growth during the forecast period.

North America to Hold Major Share During the Forecast Period

• Government agencies in North America have been making significant efforts to introduce new satellite and navigation systems that boosted 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.​
• The United States has the world's largest military spending. The Senate Armed Services Committee approved a defense budget for FY2022 that was USD 25 billion higher than the President's proposal. The National Defense Authorization Act, with a defense budget of USD 740 billion, was signed on December 27, 2021.​​
• In January 2022, the Minister of Innovation, Science and Technology of Canada announced a USD 8 million commitment in 21 organizations across Canada to explore new solutions that address Earth observation concerns and sustainable development priorities. The money will come from the Canadian Space Agency's (CSA) smartEarth program, which aims to push Canadian businesses to solve difficulties utilizing satellite data and help solve real-world concerns.
• The US coastal waters are most vulnerable due to its open borders. This nature of the vast maritime domain of the US 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.​
• Satellite communication services offer secure bandwidth capacity for military operations carried out in remote areas with insufficient and unstable communications infrastructure. In the upcoming years, it is projected that the income from Fixed Satellite Services (FSS) utilized in government and military applications will increase significantly in the North American region.

Satellite Communication (SATCOM) Industry Overview

The satellite communication (SATCOM) market is highly fragmented, with the presence of major players like Thales Group, Inmarsat Global Limited, Iridium Communications Inc., Gilat Satellite Networks Ltd, and Orbcomm Inc. Players in the market are adopting strategies such as partnerships, innovations, mergers, and acquisitions to enhance their product offerings and gain sustainable competitive advantage.

• February 2023 - The French Navy signed a contract with the Thales Group to receive the Syracuse iv naval stations. Due to its dual-band x and ka capacity, Syracuse iv would give the French Navy more secure and protected satellite communications in all operational conditions, regardless of risks of interference, jamming, cyber-attacks, etc.
• February 2023 - Gilat Satellite Networks Ltd announced that the business awarded a multimillion-dollar contract for extending satellite communications (SATCOM) capabilities on trains throughout Asia-Pacific. A prominent integrator selected Gilat's ER7000 SATCOM On-The-Move antennas for train installation to provide a constant internet connection to passengers traveling throughout the region.

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