Global Satellite Communication Market 2023-2030

Global Satellite Communication Market 2023-2030

Global Satellite Communication Market Size, Share & Trends Analysis Report Market by Type (Ground Equipment, and Service), and by End-User Vertical (Maritime, Defense and Government, Enterprises, Media and Entertainment, and Others) Forecast Period (2023-2030)

The global satellite communication market is anticipated to grow at a considerable CAGR of 12.3% during the forecast period. The growing trend of autonomous systems and connected devices in the industrial sectors are making key contribution to the growth of the global satellite communication market. 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, 40.0% 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.

With the growing adoption of IoT, service providers across geographies are focusing on expansion of 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 for satellite-based IoT connectivity enhancement and the expansion of the IoT sector are driving the growth of the satellite communication market.

Segmental Outlook

The global satellite communication market is segmented based on type, and end-user industry. Based on type, the market is segmented into ground equipment and services. Based on end-user vertical, the market is segmented into maritime, defense and government, enterprises, media and entertainment, others.

Ground Equipment Segment to Hold a Major Share of the Global Satellite Communication Market

According to the Satellite Industry Association (SIA)’s State of the Satellite Industry Report released on June 20, 2023, the satellite ground segment produced over $145 billion in revenue in 2022. As of June 2023, there are over 7 billion satellite-enabled smartphones in use globally. The year saw the deployment of a whopping 2,325 commercial satellites, marking an over 35.0% growth from the previous year. With a record 161 launches conducted, the total number of active satellites orbiting the earth by the end of 2022 reached 7,316, a 51.0% increase from 2021 and a staggering 321.0% growth over the past five years. Hence, ground equipment held major share in the global ground equipment for the satellite communication market.

Regional Outlook

The global satellite communication market is further segmented based on geography, including North America (the US and Canada), Europe (Italy, Spain, Germany, France, and others), Asia-Pacific (India, China, Japan, South Korea, and others), and the Rest of the World (the Middle East & Africa and Latin America).

Asia-Pacific to Exhibit Highest Growth in the Global Satellite Communication Market

Ongoing technological innovation, R&D in satellite communication, and strategic initiatives by prominent market players to enhance their market presence in the region are factors anticipated to drive the growth of the regional market growth. Furthermore, the increasing reliance on satellite communication-dependent services in sectors such as telecommunications, media and entertainment, agriculture, and energy and utility across the region is further driving the market growth. In December 2022, with the Indian Space Research Organization (ISRO), Indian Start-up Qnu Labs aims to demonstrate unlimited distance Satellite Quantum Key Distribution (QKD) based secure communications. QKD is a secure communications method, where the sender and recipient of a message produce a shared secret key and use it to encrypt and decrypt messages. The applications of this technology are primarily in the government and defense sectors, where the security and confidentiality of shared information are of paramount importance. Such developments are further contributing to the regional market growth.

Market Players Outlook

The major companies serving the global satellite communication market include Thales Group Inc., Inmarsat global ltd., Iridium Communications Inc., Gilat Satellite Networks Ltd., and Orbcomm Inc. among others. The market players are considerably contributing to the market growth by the adoption of various strategies, including mergers and acquisitions, partnerships, collaborations, and new product launches, to stay competitive in the market. For instance, in August 2023, Collins Aerospace, an RTX business, has been awarded a $36 million contract from the US Air Force Research Laboratory to develop and demonstrate a platform-agnostic, Beyond-Line-Of-Sight, satellite communications pod. The communications pod will provide warfighters resilient, high bandwidth, low latency communications and data directly to the cockpit. The pod brings together military and commercial satellites to add resiliency to the host platforms; and will switch between services from different vendors with little or no hardware modification, while providing the ability to utilize future constellations as they come online.

The Report Covers

Market value data analysis of 2022 and forecast to 2030.

Annualized market revenues ($ million) for each market segment.

Country-wise analysis of major geographical regions.

Key companies operating in the global satellite communication market. Based on the availability of data, information related to new product launches, and relevant news is also available in the report.

Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.

Analysis of market-entry and market expansion strategies.

Competitive strategies by identifying ‘who-stands-where’ in the market.