The global satellite communication market size was USD 23.44 billion in 2020 and is projected to exceed USD 46.50 billion by 2028, exhibiting a CAGR of 9.07% over the estimated period. The rise can be attributed to the increasing product adoption across a range of applications including radio broadcasting voice communications, remote sensing, water monitoring, internet application navigations, and others.
This information has been provided by Fortune Business Insights™ in its research report, dubbed “Satellite Communication Market, 2021-2028”.
COVID-19 Impact:
Industry Players Face Postponement of Satellite Launches, Production Halt, and Other Challenges
The COVID-19 pandemic has created numerous challenges for the space industry. These included the hold of numerous contracts, the postponement of satellite launches, and production halts. The crisis has further led to a pause on missions that included the James Webb Telescope project, deep-space exploration spacecraft, and the development of the Artemis Program. The additional effects comprised decreased procurement contracts, slow production rate from OEMs (Original Equipment Manufacturers), and disruptions in the supply chain.
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Segments:
Government Defense Segment to Record Substantial Growth with Increased Product Use in Naval and Military Operations
The government and defense segment accounted for the largest share in 2020 and is expected to register a notable rise over the forthcoming years. The upsurge is due to the growing usage of satellite communication in naval and military operations. On the basis of region, the market is subdivided into North America, Asia Pacific, Europe, the Middle East Africa, and South America.
Transceiver Segment to Register Commendable Rise Due to Increasing Replacement of Receiver Transmitter Systems
Based on the type of component, the market is segmented into modem/router, transmitter/transponder, antenna, transceiver, receiver, and others. The transceiver segment is poised to expand at the fastest pace over the study period. One of the major factors propelling this rise is the increasing replacement of transmitter and receiver solutions with advanced transceiver systems.
Report Coverage:
The report provides an in-depth analysis of the key aspects that are expected to propel the industry landscape across various regions. It further gives a comprehensive coverage of the prominent trends that are likely to bolster market growth over the forecast period. The insights have been provided after wide research and collaborations with key industry stakeholders.
Drivers and Restraints:
Growing Adoption of IoT for the Optimization of Operation in the Aviation Sector
Satellite communication market growth is majorly being driven by the rise of IoT (Internet of Things) in the aviation industry. The deployment of this technology helps in the exchange of real-time data to the processing units, which further facilitates the optimization of operation in the sector. The devices use satellite connectivity for transmission and data exchange, which brings about a reduction in the overall time of the process.
However, the industry expansion is likely to be hampered by the threat of cybersecurity. This could be driven by the presence of mission-critical vulnerabilities including telemetry, communications, tracking and command, launch systems, and others.
Regional Insights:
North America to Emerge as Leading Region Due to Surging Government Expenditure on Military
North America satellite communication market share is expected to register commendable growth over the analysis period. The upsurge can be credited to the growing public sector spending on government and military communication networks. The regional growth is further being driven by the presence of major industry players including General Dynamics Corporation, Honeywell International, Inc., L3Harris Technologies Corporation, and others.
The Asia Pacific region is slated to record an appreciable rise through the forthcoming years. This is on account of the rising usage of satellite antennas in the IT, telecommunication, and aviation industries in the region.
Competitive Landscape:
Market Players Forge Contracts and Partnership Agreements for Sustaining Industry Position
Prominent satellite communication companies are depicting a keen interest in the adoption of various initiatives such as mergers, acquisitions, and the formation of alliances. Several industry players are also entering agreements for the consolidation of their market position. Some of the additional steps include increasing participation in trade conferences and research activities.
Key Industry Development:
February 2021 – Airbus S.A.S inked a contract with Viasat, Inc. The USD 8.5 million deal was aimed at upgrading the ultra-high frequency satellite communications NCS, that provides UHF Skynet capability to the U.K. Ministry of Defense.
Informational Scource:
https://www.fortunebusinessinsights.com/satellite-communication-satcom-market-102679
