Satellite Communication (SATCOM) Market

Satellite Communication (SATCOM) Market Size:

The global satellite communication (SATCOM) market size reached US$ 85.3 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 171.0 Billion by 2032, exhibiting a growth rate (CAGR) of 8.03% during 2024-2032. The market is experiencing significant growth driven by the rising demand for internet services across geographically dispersed regions, escalating requirements for communication networks in defense and military services, the development of satellite-based services for broadcasting and media transmission, and satellite technology utilization for disaster management and crisis response.

Satellite Communication (SATCOM) Market Analysis:

• Major Market Drivers: Several factors are influencing the SATCOM market including the rising need for broadband connectivity in the areas that are not yet reachable by terrestrial networks, the use of SATCOM equipment in military and defense applications, the increasing use of satellite solutions for broadcasting and media distribution and the shift toward the use of satellite solutions in disaster management and handling of calamities.
• Key Market Trends: The satellite communication (SATCOM) market growth is propelled by several trends including the integration of IoT with satellite communication, the use of LEO satellites to enhance coverage, and utilization of the advanced technologies including HTS and reusable launch vehicles. However, the public-private partnership between satellite operators and Telecom players to ensure interconnectivity and the enhanced focus observed among operators for being environmentally sustainable and green are the key market trends.
• Geographical Trends: North America holds the largest SATCOM market share due to the developed space infrastructure, high government and defense spending and major satellite communication companies. The region enjoys a high demand for sophisticated communication system mainly in the defense and space application industries, and business companies.
• Competitive Landscape: Some of the major market players in the satellite communication (SATCOM) industry include Cobham Limited, EchoStar Corporation, General Dynamics Corporation, Gilat Satellite Networks, Honeywell International Inc., L3Harris Technologies Inc., SES S.A, SKY Perfect JSAT Holdings Inc., Telesat (Loral Space & Communications Inc.), Thuraya Telecommunications Company (Al Yah Satellite Communication Company), Viasat Inc., among many others.
• Challenges and Opportunities: Some of the challenges faced by the SATCOM market include up-front investment costs, regulatory issues then there is the issue of space debris and congestion. However, opportunities lie in growing demand for integrated connectivity on the global level, lowering costs of satellite technologies launch, and the ever-growing interest in SATCOM in emergent markets.
   

Satellite Communication (SATCOM) Market Trends:

Rising Demand in Government and Military Services

The SATCOM market trends include rising demand from the government and military systems, and many global and regional countries are investing in SATCOM equipment. For instance, the United States Department of Defense is the biggest procurer of these services with secure and pervasive satellite communication services for operations in distant and threatening terrains. This is particularly realized in the Military satellite communications driving the ISR operations, hence driving the market. Also, other nations are developing their satellite facilities to cater to defense, disaster response, and border control which has augmented the demand for SATCOM solutions, thus creating a favorable satellite communication (SATCOM) market outlook.

Increasing Use of SATCOM for Mobile Applications

The need for reliable and enhanced connectivity in mobile applications and its penetration across many sectors such as maritime and aviation fuels the SATCOM market. As per the International Maritime Organization, international conventions such as the International Maritime Organization’s Safety of Life at Sea (SOLAS) convention require reliable communication systems for safety, hence propelling the demand for satellite broadband services in ships. Along with this, the communication system in the aviation industry needs a better SATCOM system for better passenger interaction and better operation in the flight, which in turn has augmented the satellite communication (SATCOM) demand. Thus, the dependence of these sectors on continuous and worldwide communication services promotes the market development and the technological progress of satellite communications.

Integration with 5G Technology

The penetration of 5G services along with its deployment and adoption plays a significant role in driving the market. Satellite technology is crucial in increasing network connectivity to isolated areas, which cannot be connected through wireline networks. For instance, Nokia reported that the increased use of Lower Earth Orbit (LEO) satellites, which offer lower latency, and improvements in Geostationary (GEO) satellites improve the efficiency of satcoms where the evolution of 5G is required for connectivity. These satellite communication (SATCOM) market insights guarantee compatibility and broadband services in the delivery of smart cities, IoT, and other progressive information communication technologies which will define the advancement of SATCOM.

Satellite Communication (SATCOM) Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the global, regional, and country levels for 2024-2032. Our report has categorized the market based on component, application, and end use industry.

Breakup by Component:

• Equipment
  • Transmitter/Transponder
  • Antenna
  • Transceiver
  • Receiver
  • Modem/Router
  • Others
• Services
   

Equipment accounts for the majority of the market share

The report has provided a detailed breakup and analysis of the market based on the component. This includes equipment (transmitter/transponder, antenna, transceiver, receiver, modem/router, and others) and services. According to the report, equipment represented the largest market segment.

As per the satellite communication (SATCOM) market forecast, the equipment segment holds a larger share of the satellite communications (Satcom) market due to stringent upstream hardware requirements for the satellite. These are the ground stations, satellite terminals, and antenna systems that play a major role in sending and receiving signals. New equipment technology is another factor that pushes efficiency and performance; examples include high-throughput satellites (HTS) and phased-array antennas. New and updated legacy systems continue to be reinstated, which helps the market budding forward. Furthermore, the rising utilization of satellite broadband services and the development of huge-scale satellite constellations fuel the growth of the equipment. According to the U.S. Bureau of Economic Analysis (BEA), the satellite equipment market reached approximately $14.2 billion in 2023, highlighting its significant contribution to the overall SATCOM market. This satellite communication (SATCOM) market dynamics reflects the crucial role that equipment plays in supporting satellite communications infrastructure.

Breakup by Application:

• Voice Communication
• Broadcasting
• Data Communication
   

Broadcasting holds the largest share of the industry

A detailed breakup and analysis of the market based on the application have also been provided in the report. This includes voice communication, broadcasting, and data communication. According to the report, broadcasting represented the largest market segment.

As per the satellite communication market research report, broadcasting holds the largest segment due to its applicability in delivering television, radio, and digital content to viewers across different regions. Satellite technology offers huge reception capability, thus ensuring that signal broadcasts both in urban centers and the outskirts are clear and concise. The sector appreciates the possibility of real-time material distribution concerning a wide geographical area, broadcasts, and news. The transition from high-definition (HD) and ultra-high-definition (UHD) broadcasting also contributes to the need for high satellite solutions. Moreover, satellite broadcasting provides absorbing and actively developing kinds of media services, namely DTH service and OTT service. According to the Federal Communications Commission (FCC), satellite broadcasting accounted for approximately 45% of the total satellite communication market revenue in 2022, highlighting its significant role and market dominance.

Breakup by End Use Industry:

• Aerospace and Defense
• Transportation and Logistics
• Agriculture
• Government and Military
• Media and Entertainment
• Others
   

Government and military represent the leading market segment 

The report has provided a detailed breakup and analysis of the market based on the end use industry. This includes aerospace and defense, transportation and logistics, agriculture, government and military, media and entertainment, and others. According to the report, the government and military represented the largest market segment.

The government and military represent the largest segment in the SATCOM market as reliable and extensive communication networks in these segments are very important. Satellites are indispensable for defense, intelligence, and national security and their proper functioning regardless of the conditions of confrontation, including in a war situation and emergencies. The military spends more on satellites requesting reliable and real-time information with more emphasis on coverage. Moreover, it is required to state that government contracts usually mean large budgets, which creates market demands and development. According to the U.S. Department of Defense (DoD), military spending on satellite communications was estimated at $10.3 billion in fiscal year 2023, illustrating the substantial investment and dominance of this sector in the overall market.

Breakup by Region:

• North America
  • United States
  • Canada
• Asia-Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Russia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

North America leads the market, accounting for the largest satellite communication (SATCOM) market share

The report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, North America was the largest market segment.

North American region dominates the market due to its highly developed technology and infrastructure, high levels of investment, and high demand for superior connectivity. The space industry is well-developed in the region due to industry leaders such as SpaceX, Boeing, and SES thus propelling the deployment of advanced satellite systems. More support from the government alongside the effective infrastructure in the regulatory part acts as a significant propeller for growth. The presence of the U. S military as a major buyer for satellite communications for defense and intelligence is also a major factor propelling the leadership of the region’s market. Along with this, for VPN the increase in the demand for broadband in the rural areas and disaster recovery is apparent. A report by the U. S. Federal Communications Commission (FCC) reveals that the North America region constituted nearly 38% of the Satcom market revenue in 2022 and is therefore the leading region.

Competitive Landscape:

• The market research report has also provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of the major market players in the satellite communication (SATCOM) industry include Cobham Limited, EchoStar Corporation, General Dynamics Corporation, Gilat Satellite Networks, Honeywell International Inc., L3Harris Technologies Inc., SES S.A, SKY Perfect JSAT Holdings Inc., Telesat (Loral Space & Communications Inc.), Thuraya Telecommunications Company (Al Yah Satellite Communication Company), and Viasat Inc.

  (Please note that this is only a partial list of the key players, and the complete list is provided in the report.)

• Key players in the satellite communications (Satcom) market are focusing on advancing technology and expanding services. Companies like SpaceX, with its Starlink constellation, aim to provide global high-speed internet. SES and Intelsat are enhancing satellite networks to support data-intensive applications. Boeing and Lockheed Martin are developing next-gen satellites for military and commercial use. Additionally, new entrants such as OneWeb are working on large satellite constellations to deliver broadband in underserved areas. The market is also seeing a trend toward integrating satellites with terrestrial networks to improve coverage and service quality. For instance, General Dynamics Corporation was awarded a contract by the US Army to supply SATCOM on-the-move antennas that provide reliable, high data rate satellite communications.

Satellite Communication (SATCOM) Market News:

• In March 2023, Cobham Limited received Japanese Radio Law certification for pairing SAILOR XTR VSAT antennas and the MDM3315 satellite modem, which will provide faster internet to Japanese coastal and deep sea satcom users.
• In March 2024, John Deere announced a strategic partnership with SpaceX to enhance rural connectivity for farmers via satellite communications. This collaboration aims to improve data access and operational efficiency in agriculture through advanced satellite technology.

Satellite Communication (SATCOM) Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the satellite communication (SATCOM) market from 2018-2032.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the global satellite communication (SATCOM) market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the satellite communication (SATCOM) industry and its attractiveness.
• The competitive landscape allows stakeholders to understand their competitive environment and provides insight into the current positions of key players in the market.