Mobile Satellite Services Market Size, Share & COVID-19 Impact Analysis, By Service (Voice and Data), By Frequency (L-Band, S-Band, and Others), By End User (Aviation, Maritime, Government and Military, and Others), and Regional Forecast, 2023-2030

The global mobile satellite services market size was valued at USD 5.21 billion in 2022 and is projected to grow from USD 5.56 billion in 2023 to USD 8.63 billion by 2030, exhibiting a CAGR of 6.5% during the forecast period. North America dominated the mobile satellite services market with a market share of 34.74% in 2022.

Mobile Satellite Services (MSS) refers to a range of telecommunication services that utilize satellite technology to provide two-way voice and data communication solutions for mobile and remote users. The MSS operates in the L-band sufficiently low in the frequency spectrum to avoid the rain fade associated with high-bandwidth fixed Ku and Ka-band satellite systems. MSS terminals range in size from handheld devices to laptop devices. Unlike traditional terrestrial networks, MSS enables connectivity in areas where there is limited or no terrestrial infrastructure, which makes it particularly valuable for users who require communication services while on the move or in remote areas.

MSS encompasses a range of services to meet diverse communication needs. These services include voice communication, messaging (text and multimedia), broadband data services, and location-based services. Mobile satellite services are often used in various sectors, including maritime, aviation, military, emergency response, and others. The growing need for high-speed broadband connectivity in areas lacking terrestrial infrastructure is expected to fuel the demand for mobile satellite services from 2023 to 2030.

COVID-19 IMPACT

COVID-19 Pandemic Had a Negative Impact on the Market Owing to Reduced Mobility and Travel Restrictions

Mobile satellite services serve a diverse range of industries, such as aviation, maritime, energy, defense, and others. These end-user industries also comprise the majority of the market share. Many of these sectors experienced significant setbacks during the pandemic. For instance, the decline in air travel affected the demand for satellite communication services in aviation, while the energy and maritime sectors faced operational challenges, contributing to reduced demand for mobile satellite services.

Moreover, the imposition of travel restrictions and lockdown measures globally led to reduced mobility and operational limitations in various sectors. Businesses that heavily rely on mobile satellite services for communication, such as those involved in remote operations or global logistics, faced challenges in maintaining seamless connectivity. Furthermore, the pandemic disrupted timelines for the deployment of new satellites, as manufacturing and launch schedules were affected. Delays in satellite launches had a major effect on the expansion and enhancement of MSS networks, which had a negative impact on market growth.

Mobile Satellite Services Market Trends

Direct-to-Device (D2D) Communication and High-throughput Satellites (HTS) Technology Are Prominent Trends

Direct-to-Device (D2D) communication and High-throughput Satellites (HTS) technology are key trends gaining popularity in the market. D2D allows satellite services to reach end-user devices without the need for intermediaries and also eliminates the need for extensive ground infrastructure. This trend enhances the versatility and accessibility of MSS in various applications. D2D helps in minimizing latency by establishing direct links between satellites and user devices, which results in improved quality of service for real-time applications. This plays a vital role in sectors, such as emergency response, where timely and reliable communication is critical.

For instance, in November 2023, Viasat Inc., a U.S.-based satellite communications company, and Skylo Technologies, a leading provider of Non-terrestrial Network (NTN) services, announced the launch of the world's first global direct-to-device network. For the first time, the companies' global infrastructure agreement will enable Mobile Network Operators (MNOs), device manufacturers, and chipset manufacturers to launch 3GPP Release 17-compliant products within Viasat's global network. The new network combines Skylo's industry-first Release 17-based satellite technology with a constellation of geostationary L-band satellites and other satellite carrier partners. The new network will support and unlock smartphone services, Potentially for large-scale Internet of Things (IoT), automotive, and defense applications.

Additionally, GlobalStar, T-Mobile, SpaceX, Qualcomm, Iridium, and others are focusing on developing D2D communications. Furthermore, ongoing advancements in satellite technologies, including the development of high-throughput satellites and compact & cost-effective satellites, partnerships and collaborations, integration with 5G networks and so on, are the key trends in the market.

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Mobile Satellite Services Market Growth Factors

Surge in Demand for Military Comms On The Move (COTM) Solutions to Drive Market Growth

Comms On The Move (COTM) refers to advanced communication solutions that ensure seamless connectivity for military operations even when vehicles are in motion. This capability is vital for modern military strategies to provide real-time communication and data transfer capabilities in dynamic and rapidly changing environments. Moreover, COTM solutions provide the capability to establish temporary command centers in the field, a usage referred to as Comms On The Pause (COTP).

For instance, in October 2023, in collaboration with Inmarsat, Spectra Group was chosen to provide support for Project Capstone 4, the Army Futures Command's premier integration and experimentation exercise scheduled for 2024. The selected support involves the utilization of the SlingShot satellite communications system. SlingShot is a compact and user-friendly tactical radio range extension system specifically designed to enhance Beyond Line Of Sight (BLOS), Communications On The Move (COTM), and Command and Control (C2) communications.

This groundbreaking system seamlessly allows existing Ultra High Frequency (UHF) and Very High Frequency (VHF) radios to leverage L-band satellite frequencies, significantly expanding their operational range to cover distances spanning thousands of kilometers.

Rising Applications of Internet of Things (IoT) and Machine-to-Machine (M2M) Across the Globe to Catalyze Market Growth

The proliferation of Internet of Things (IoT) and Machine-to-Machine (M2M) applications across various sectors, including agriculture, healthcare, and transportation is propelling the mobile satellite services market growth. These applications rely on robust and widespread connectivity, and MSS offers a reliable solution, fostering the expansion of IoT and M2M ecosystems. For instance, in March 2021, Inmarsat initiated the Application and Solution Provider (ASP) program with the goal of promoting global adoption of IoT by utilizing satellite connectivity.

This program intends to create an environment for software, hardware, and solution providers, along with Original Equipment Manufacturers (OEMs) within commercial land markets. This development of ecosystem aims to enable companies operating in regions lacking dependable connectivity or with crucial connectivity requirements to choose from a wide range of Internet of Things (IoT) solutions, thereby enhancing the efficiency, safety, and sustainability of their operations. Membership will be open to providers spanning a broad spectrum of industries, such as agriculture, aid and NGO, energy, exploration and leisure, media, mining, transport, utilities, and agnostic technology providers.

RESTRAINING FACTORS

High Initial Investment and Operating Costs May Hamper the Demand for Mobile Satellite Services   

The substantial initial investment required for satellite deployment and infrastructure setup is expected to hamper the market growth over the forecast period. For instance, a modern GEO communication satellite that has a life span of 15 years and covers 1/5^th to 1/6^th of Earth and it typically costs around USD 300 Million. Moreover, the launch cost to put into its orbit also costs more than USD 80 Million.

Additionally, ongoing operating costs, including satellite maintenance and spectrum licensing fees, can be massively high, which can affect the overall economic viability. Terrestrial networks, such as 4G and 5G, pose a competitive challenge to MSS, especially in urban and developed regions where terrestrial infrastructure is well-established. The availability of alternative, high-speed connectivity options may limit the adoption of MSS in certain sectors. These factors are anticipated to hinder the growth of the market over the projected period.

Mobile Satellite Services Market Segmentation Landscape

By Service Analysis

Data Segment Dominates the Market Owing to Rising Demand for Satellite Internet Connectivity

By service, the market is segmented into voice and data.

The data segment is the dominating one and is estimated to be the fastest-growing segment during the forecast period due to rising demand for satellite internet connectivity. Data services comprise the transmission of digital information over satellite networks. These services support a wide range of data applications, such as internet browsing, email communication, file transfers, and other data-intensive activities. These services are vital in connectivity for businesses, governments, and individuals in areas lacking terrestrial infrastructure.

The voice segment is expected to grow significantly due to increasing demand for communication for mission-critical applications. Voice services are satellite-based communication solutions that enable users to make and receive voice calls. These services are crucial for various industries and sectors to provide reliable communication capabilities in remote or challenging environments.

By Frequency Analysis

L-Band Dominates the Market Owing to the Growing Demand for Safety and Emergency Communication

By frequency, the market is classified into L-band, S-band and others.

The L-band segment dominates the market and is the fastest-growing segment owing to the rising demand for communication and data transmission from aviation and marine industries. The L-band frequency refers to a specific range of radio frequencies allocated for satellite communication, typically around 1-2 GHz. These frequencies are commonly used for MSS due to their ability to penetrate into atmospheric conditions and provide reliable communication in various terrains. L-Band is often favored for mobile and on-the-move applications.

The S-band segment is expected to grow significantly due to increasing demand for higher bandwidth frequencies. The S-band frequency segment involves radio frequencies typically ranging from 2 to 4 GHz. These frequencies are suitable for a variety of applications, including voice and data services, making them versatile in meeting different communication needs.

By End User Analysis

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Aviation Segment Leads the Market Owing to Rising Demand for Cockpit Communication

By end user, the market is segmented into aviation, maritime, government and military, and others.

The aviation segment is the dominating one and is expected to register significant growth during the forecast period due to in-flight connectivity, cockpit communication, and data transmission for both commercial and military aviation applications. Mobile satellite services in aviation ensure reliable communication and data exchange during flights, enhancing operational efficiency and passenger experience.

The maritime segment is expected to be the fastest growing due to increasing demand for crew welfare & communication and also global coverage of oceanic regions. MSS in the maritime sector includes communication solutions for ships, vessels, and offshore platforms, supporting voice communication, data transfer, navigation, and safety services. MSS in maritime applications is vital for maintaining connectivity in remote oceanic regions.

REGIONAL INSIGHTS

In terms of geography, the market is divided into North America, Europe, Asia Pacific, and Rest of the World.

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North America dominated the market and was valued at USD 1.81 billion in 2022. This growth is attributed to the presence of major players and technological advancements in this region. Rising space launches from private entities for SATCOM services to boost the MSS market.

For instance, in May 2023, Viasat, a U.S.-based communications company, completed the acquisition of Inmarsat for a deal amount of approximately USD 7.3 billion. The completion of the Inmarsat acquisition will enable the two companies to integrate spectrum, satellite and ground assets, including 19 space satellites spanning Ka-band, L-band, and S-band. These complementary assets are expected to provide connectivity and critical security services to the maritime, aviation, government and consumer sectors.

Europe captured the second-largest market share in 2022. This market growth is owing to increasing demand for crucial safety services and support for emergency tracking. For instance, in May 2023, Inmarsat, a U.K.-based mobile satellite communications company, announced that SWISSto12 will develop a new 8th-generation spacecraft. The three I-8 satellites will increase network stability and secure the future of Inmarsat's global L-band security services.

Asia Pacific holds a significant share and is expected to be the fastest-growing region over the forecast period. This growth is due to the increased capabilities of space-based mobile solutions. For instance, in July 2023, AST SpaceMobile introduced space-based mobile services in India. They are working with Vodafone to serve India. The company has already demonstrated this with its BlueWalker 3 (BW3) test satellite. In 2022, they successfully made the first phone call from space using a regular smartphone and provided 4G internet with download speeds of over 10Mbps from space.

Rest of the world is anticipated to witness significant growth in the market during the forecast period. The emerging satellite-enabled connectivity solutions are expected to lead the market growth in this region. For instance, in October 2023, Al Yah Satellite Communications Company announced that its mobility arm, Thuraya and satellite broadband solutions provider, YahClick, entered into a new service partnership with South Sudanese startup Gate for Technologies (G4T) to launch mobility and data services in South Sudan.

List of Key Companies in Mobile Satellite Services Market

Partnerships & Collaborations, Technological Advancements, Product Innovation, and Mergers & Acquisitions are Key Focuses of Leading Players

The global mobile satellite services market share is consolidated with key players, such as Inmarsat Plc, Viasat, Inc., Globalstar, Inc., Iridium Communications Inc., Al Yah Satellite Communications Company P.J.S.C. and others. Major players are focusing on partnerships & collaborations, technological advancements, and mergers & acquisitions to increase their market share.

For instance, in August 2022, SES and its wholly-owned subsidiary SES Government Solutions (SES GS) announced that they had completed the acquisition of DRS Global Enterprise Solutions (GES) from Leonardo DRS for a deal amount of USD 450 Million. The DRS GES business will be combined with SES GS to create a large-scale solutions provider that serves the U.S. government's multi-orbit satellite communications needs and supports missions anywhere on land, sea, and air.

LIST OF KEY COMPANIES PROFILED:

• Inmarsat Plc (U.K.)


• Viasat, Inc. (U.S.)


• Globalstar, Inc. (U.S.)


• Iridium Communications Inc. (U.S.)


• Al Yah Satellite Communications Company P.J.S.C. (UAE)


• Intelsat S.A. (Luxembourg)


• EchoStar Corporation (U.S.)


• Eutelsat S.A. (France)


• Telesat Corporation (Canada)


• SES S.A. (Luxembourg)


• Telefonaktiebolaget LM Ericsson (Sweden)


• ORBCOMM Inc. (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• May 2023 - Australia and New Zealand signed a USD 123 contract with Inmarsat for the new SouthPAN satellite service. Satellite positioning services will be provided by one of Inmarsat's three new I-8 satellites starting in 2027. All major industries in Australia and New Zealand, from transport and construction to resources and agriculture, will benefit from positioning and navigation through the new Southern Positioning Extension Network (SouthPAN) satellite service.


• May 2023 – Thuraya, and eSAT Global announced that they have successfully completed a low-latency over-the-air demonstration, direct-to-satellite IoT texting system by transmitting low-power IoT messages using Thuraya’s satellite network (Thuraya-2 Satellite “T2”). eSAT was able to send and receive messages up to 320 characters long via the T2 satellite using less transmission power (<200 microwatts) than a typical car key fob.


• November 2022 - Apple introduced its revolutionary safety feature, Emergency SOS via satellite, to customers in the U.S. and Canada. Accessible on all iPhone 14 models, this cutting-edge technology allows users to communicate with emergency services even when they are beyond cellular and Wi-Fi coverage. The Emergency SOS via satellite feature enhances the existing indispensable functionalities for iPhone users, such as Emergency SOS, Medical ID, emergency contacts, and Find My Location sharing.


• April 2022 - Intellian Ltd announced the opening of its London office for a product innovation hub focused on developing next-generation L-band terminals for existing and new market segments in both the maritime and commercial sectors. Intellian's current L-band products include his C700, designed for Iridium's Certus network, as well as the Intellian FB250 and Fleet One for use with Inmarsat's ELERA network.


• October 2021 - Inmarsat announced that its strategic partner, BSNL, obtained the necessary licenses to deploy Inmarsat's Global Express (GX) mobile broadband service in India. Under the Ministry of Telecommunications' BSNL Inflight and Maritime Connectivity (IFMC) license, GX will be offered to Indian customers in the government, aviation and shipping sectors.

REPORT COVERAGE

An Infographic Representation of Mobile Satellite Services (MSS) market

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The mobile satellite services market report provides a detailed market analysis. It comprises all major aspects, such as R&D capabilities and optimization of the operating services. Moreover, the market research and analysis report offers insights into mobile satellite services market industry forecast, supply chain analysis, market dynamics, regional analysis, porter’s five forces analysis, competitive landscape of various companies profiled with market competition and primarily highlights key industry developments. In addition to the above-mentioned factors, it mainly focuses on several factors that have contributed to the global market growth over recent years.

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