SATCOM Market Size, Share & Industry Analysis, By Component (Transmitter/Transponder, Receiver, Transceiver & Antenna), By Platform (Portable SATCOM Equipment, Land SATCOM Equipment (Command and Control Centers, Ground Station & Satellite TV), Maritime SATCOM Equipment (Commercial Ships & Military Ships), and Airborne SATCOM Equipment (Commercial Aircraft & Military Aircraft)), By End-user (Commercial and Government & Defense), By Application (Broadcasting, Remote Sensing, Military Applications and Navigation & Weather Monitoring), and Regional Forecast, 2024-2032

The global satellite communication (SATCOM) market size was USD 31.22 billion in 2023 and is projected to grow from USD 33.98 billion in 2024 to USD 70.89 billion by 2032, at a CAGR of 9.6% during the forecast period. Moreover, the SATCOM market in the U.S. is projected to grow significantly, reaching an estimated value of USD 25.15 billion by 2032, driven by the increase in defense procurement and increasing R&D investment by the space industry.

Satellite communication (SATCOM) facilitates the exchange of information between two terrestrial network communication stations through satellites. This communication process utilizes electromagnetic waves as carrier signals to transmit data in various formats, including voice, audio, images, and other data types, across terrestrial, maritime, and aerospace domains. Primarily utilized for communication purposes, satellites serve a myriad of applications, such as radio broadcasting, voice communications, high-speed internet access, navigation, remote sensing, water monitoring, and weather tracking. The core functions of satellite communication encompass data transmission, reception, and processing. Regulatory reforms and initiatives aimed at promoting competition and innovation in the satellite industry have helped drive market growth. This includes spectrum allocation for satellite communications, licensing reforms, and policies to encourage private investment in satellite infrastructure.

Emerging markets, particularly in regions with underdeveloped terrestrial infrastructure, present significant growth opportunities for SATCOM providers. These regions often lack reliable access to traditional communication networks, making satellite-based solutions the preferred choice for connectivity.

The onset of the global COVID-19 pandemic brought unprecedented challenges, leading to a reduction in demand for SATCOM services worldwide compared to pre-pandemic levels. Analysis indicates that the global SATCOM market experienced a decline of -9.1% in 2020.

SATCOM Market Trends

Development of Small Satellite Constellations to Enhance Communication System

Small satellite constellations can support a wide range of communication applications, including broadband internet access, IoT connectivity, machine-to-machine communication, asset tracking, disaster response, and environmental monitoring. Their versatility makes them well-suited for addressing various communication needs across different industries and sectors. Small satellite constellations, consisting of numerous interconnected satellites orbiting the Earth, can provide global coverage, reaching even the most remote and underserved regions. This enables seamless communication and connectivity regardless of location.

Surge in the demand for small satellites, catering to earth observation services across various sectors, including civil engineering, agriculture, energy, and oil & gas, is driving the growth of satellite communications. CubeSats are notably employed by defense organizations worldwide to bolster battlefield communications and weather monitoring capabilities. The advancement of small satellite technology contributes to improving ground operations for high-speed internet, mobile satellite communication, and broadband services. These satellites offer cost-effective solutions for delivering high-resolution images. In February 2021, India successfully launched 100 Femto satellites, characterized by their low mass and compact size. These satellites served purposes, such as gathering scientific data and facilitating radio relays.

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SATCOM Market Growth Factors

Rising Integration of Internet of Things (IoT) in Aviation Industry to Boost Market Growth

One of the primary areas where IoT is making an impact in aviation is aircraft maintenance. By equipping aircraft with IoT sensors, airlines can monitor the health and performance of critical components in real time. This proactive approach to maintenance can help prevent unexpected failures, reduce downtime, and lower maintenance costs. For example, sensors can detect anomalies in engine performance or structural integrity, allowing maintenance crews to address issues before they escalate. The introduction of the Internet of Things (IoT) is making a significant impact on the industry and is expected to drive growth in the SATCOM market. According to the analysis conducted by the EMEA Satellite Operator’s Association, approximately 2.7 million devices are currently being served by satellites, spanning various sectors, including infrastructure, environmental monitoring, military operations, shipping, and aviation. The increasing adoption of IoT technology in the aviation sector is anticipated to further bolster market expansion during the forecast period. IoT applications in aviation facilitate the exchange of real-time data between devices and systems, optimizing operations within the industry.

IoT devices rely on satellite connectivity to transmit and exchange real-time data, enhancing efficiency across various domains. This shift reduces the overall processing time, compared to earlier reliance on terrestrial GSM networks for data exchange, between machine control and production. Satellite technology emerges as a crucial facilitator in revolutionizing IoT connectivity within the aviation industry.

Implementation of Autonomous Technology and Real-time Data Tracking through Satellites to Aid SATCOM Market Growth

Real-time data tracking through satellites is another crucial aspect driving growth in the SATCOM market. Satellites equipped with advanced tracking sensors and communication systems enable the real-time monitoring of assets, vehicles, and personnel virtually anywhere on the planet. This capability is particularly valuable in industries such as logistics, supply chain management, maritime, and oil and gas, where real-time tracking of assets is essential for operational efficiency, security, and safety.

The application of autonomous technology is based on artificial intelligence, data analytics, and cloud computing. These technologies assist in improving flight operations. Autonomous technology is also used in the military for battlefield management and various combat operations. The sensors installed in the systems play a crucial role in providing real-time data gathered from their live locations. It is further analyzed and deployed for tracking and systems for health monitoring purposes. It includes the efficiency of components & systems, Maintenance, Repair & Overhaul (MRO) operations, and route mapping & navigation purposes. These would improve the overall efficiency of the respective systems and minimize operational costs.

RESTRAINING FACTORS

Surging Cyber-Security Concerns to Hamper Market Growth 

The cybersecurity threat to satellite communication is a relatively recent concern, yet it poses significant risks to the sustainability of satellite systems due to various vulnerabilities. These vulnerabilities include mission-critical, encompass communications, launch systems, tracking and command, and telemetry. The reliability and security of these aspects of satellite communication are paramount. Given the interdependence between satellite and cyberspace activities, ensuring secure communication systems is vital. International organizations play a crucial role in establishing legal norms to safeguard satellites and their communications. However, breaches of international law through cyber events that result in substantial damage to satellite communication can impede the SATCOM market growth.

In May 2022, the U.S. Space Force introduced new cybersecurity standards for its commercial satellite vendors, indicating that those meeting these standards might be eligible for higher charges. The Infrastructure Asset Pre-Assessment program managed by Reece at CSCO is designed to assess specific commercial assets, such as satellite constellations and ground systems, to ensure they meet federal cybersecurity standards before deployment.

SATCOM Market Segmentation Analysis

By Component Analysis

Antenna Segment Held Largest Market Share Due to Rising Adoption of Advanced Antennas in Various Sectors

The market is classified by component into receiver, transmitter/transponder, transceiver, antenna, and others.

The dominance of the antenna segment in 2023, driven by the increasing adoption of advanced antennas across various sectors, reflects a broader inclination toward connectivity and communication enhancements. Advanced antennas are pivotal components in diverse fields such as telecommunications, automotive, aerospace, and IoT, facilitating faster data transmission, improved signal quality, and enhanced network coverage. This surge in adoption can be attributed to the growing demand for high connectivity, the proliferation of IoT devices, the evolution of 5G technology, and the integration of antennas into emerging technologies, such as autonomous vehicles and smart infrastructure. As industries continue to prioritize efficient and reliable communication systems, the antenna segment is poised to maintain its significant share, driving innovation and shaping the future of connectivity ecosystems.

Over the past two years, the Pentagon’s Defense Innovation Unit and the Space Systems Command looked at options to replace the existing parabolic antennas with modern electronic phased arrays that can maintain contact with multiple satellites across different orbits and frequency bands. The replacement of conventional components with highly advanced antennas will propel the market growth during the forecast period.

The transceiver segment is expected to be the fastest-growing segment during the forecast period of 2024-2032. The growth is due to the rising replacement of transmitters and receivers with advanced transceiver systems.

By Application Analysis

Military and Navigations Will Witness Highest Growth Owing to High Demand for Communication Services from Defense Forces

Based on application, the market is segmented into broadcasting, remote sensing, military applications and navigation, weather monitoring, and others.

Broadcasting led the market in 2023, driven by rising demand for internet and DTH services, increased investments in the space sector and communication satellite launches. The surging demand for on-demand entertainment services among consumers is supporting the broadcasting segment’s growth.

The military applications and navigation segment is expected to experience notable growth from 2024 to 2032 due to the heightened adoption of next-generation devices by defense forces for real-time information. The anticipated highest growth in military applications and navigation, fueled by the strong demand for communication services from defense forces, underscores the critical role of advanced technology in modern warfare and strategic operations. Military applications encompass a wide array of technologies, including satellite communications, UAVs (unmanned aerial vehicles), ground-based systems, and encrypted communication solutions, all of which are essential for enhancing situational awareness, command and control capabilities, and mission effectiveness.

By End-user Analysis

Commercial Segment will Witness Highest Growth Due to Rapid Expansion of Telecommunication & IT Sector

Based on end-user, the market is classified into commercial and government & defense.

The commercial segment is anticipated to show higher growth during the forecast period due to the rising use of satellite communication in the IT & telecommunication sector. This sector is integral to the functioning of modern businesses, driving demand for services and solutions in areas, such as networking, cloud computing, cybersecurity, and communication tools. As the sector evolves and expands, the need for commercial infrastructure, software, and services also grows, creating opportunities for companies catering to these segments.

The government & defense segment will showcase significant growth during 2024-2032. This growth is attributed to the increasing demand of satellite communication in military and naval operations. The growing demand for improving communication for security across the international borders is also fueling the market’s growth.

For instance, the demand for commercial real estate, especially office spaces, tends to increase in areas where telecommunication and IT companies are flourishing. Additionally, the need for specialized software solutions for businesses operating in these sectors, such as customer relationship management (CRM) systems, enterprise resource planning (ERP) software, and communication platforms, has experienced a surge.

By Platform Analysis

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Increasing Adoption of Connected Ship to Propel Growth of Maritime SATCOM Equipment Segment

Based on platform, the market is segmented into portable SATCOM equipment, land SATCOM equipment, maritime SATCOM equipment, and airborne SATCOM equipment.

In 2023, the airborne satellite communication equipment segment dominated the market. It consists of military aircraft, commercial aircraft, unmanned aerial vehicles, and satellite launch vehicles. The growing use of connected air and space systems for commercial and military applications is driving the segment’s growth.

The maritime satellite communication equipment segment consists of military ships and unmanned naval systems. The rising adoption of autonomous and connected ships is expected to boost the growth of the segment in the industry.

Moreover, the increasing adoption of connected ship technologies is propelling the growth of the maritime SATCOM (Satellite Communications) equipment segment. SATCOM plays a crucial role in enabling reliable and high-speed communication between ships and onshore entities, facilitating various essential functions such as navigation, weather monitoring, crew welfare, and operational efficiency.

REGIONAL INSIGHTS

The global market is segmented on the basis of region into North America, Europe, Asia Pacific, and the rest of the world.

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In 2023, North America emerged as the leading market with a market size of USD 12.23 billion, driven by increased government expenditures on military and government communication networks. Key players, such as L3Harris Technologies Corporation, General Dynamics Corporation, and Honeywell International, Inc. are expected to fuel market growth in the region.

Asia Pacific is forecasted to experience significant growth from 2024 to 2032, propelled by the expanding use of satellite antennas in the telecommunications, IT, and aviation sectors. Companies globally are prioritizing the enhancement of their aviation services in Asia Pacific nations.

Europe is anticipated to witness notable growth throughout the forecast period, attributed to the surge in smart city initiatives and infrastructure modernization projects. Additionally, the increasing focus on space exploration and the rising demand for advanced satellite communication services contribute to market expansion.

The rest of the world is expected to observe moderate growth, driven by the improvement of communication infrastructure in Latin American nations and the Middle East. Brazil and Argentina in Latin America are particularly concentrating on upgrading their conventional military communication systems in the forthcoming years.

• In March 2022, Thuraya Telecommunications launched the radio communication solution Thuraya's push-to-talk. Thuraya PTT is an IP-based radio communication solution that works with any Thuraya Broadband terminal to establish a private network.


• Gilat Satellite Networks started expanding contracts with internet para todos in Peru for 4G cellular backhaul services.

KEY INDUSTRY PLAYERS

Key Players Focus on Development of Technologically Advanced Products and Acquisition Strategies to Drive Growth

The prominent market players are prioritizing the advancement of their product offerings. The development of a diverse range of solutions and heightened investment in research and development are the key factors contributing to the market dominance of these players. Within the industry, major players are embracing both organic and inorganic growth approaches, including mergers and acquisitions as well as the introduction of new products, to sustain their competitive edge.

List of Top SATCOM Companies:

• Boeing (U.S.)


• Cobham Limited (U.K.)


• Communications and Power Technologies(U.S.)


• Honeywell International Inc. (U.S.)


• Inmarsat Global Limited (U.K.)


• Iridium Communications Inc. (U.S.)


• L3Harris Technologies, Inc. (U.S.)


• Qualcomm Technologies, Inc. (U.S.)


• Viasat, Inc. (U.S.)


• KVH Industries, Inc. (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• March 2024 - Sivers Semiconductors revealed that its subsidiary, Sivers Wireless, entered a third product development agreement with a prominent European satellite firm. This fresh contract, valued at USD 4.73 million, pertains to the creation of next-generation beamformer chipsets that are ready for production, spanning the years 2024 and 2025.


• October 2023 - Airbus and Northrop Grumman, a defense prime headquartered in the U.S., revealed the signing of a Memorandum of Understanding (MoU). This MoU aims to establish and enhance a strategic partnership in military satellite communications for the U.K.'s forthcoming wideband SKYNET military satellite communications program.


• June 2022– Thales Alenia Space built a high throughput craft, SES-17, ready to provide “unparalleled” connectivity services to customers across aeronautical, maritime, enterprise, and government sectors, whether on land, at sea or in the skies, according to the operator. SES-17 has successfully launched onboard an Ariane 5 launcher operated by Arianespace from Europe’s Spaceport in Kourou.


• May 2022 – The Space RCO, a U.S. Space Force organization that procures and manages classified space systems, announced that BlueHalo was awarded a contract. The contract is for a project known as the satellite communications augmentation resource program. This will address the critical U.S. Space Command requirement to rapidly, responsively, and affordably augment satellite control capacity for the satellite control network.


• May 2022- Cobham Satcom and UltiSat, Inc., a provider of end-to-end communications, announced the signing of a strategic distributor and integrator agreement. The agreement enables both companies to expand their market reach and provides the DoD and NATO allies with easy access to a range of advanced satellite tracking systems provided by Cobham Satcom.

REPORT COVERAGE

An Infographic Representation of Satellite Communication (SATCOM) Market

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The report provides a detailed analysis of the sector and focuses on important aspects, such as key players, components, platforms, end-users, and applications depending on various regions. Moreover, it offers deep insights into the commercial satellite market trends, competitive landscape, market competition, SATCOM product pricing, and market status and highlights key industry developments. Also, it encompasses several direct and indirect factors that have contributed to the sizing of the global market in recent years.

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Report Scope & Segmentation