GVR Report cover Satellite Communication Market Size, Share & Trends Report

Satellite Communication Market Size, Share & Trends Analysis Report By Component (Equipment, Services), By Application (Broadcasting, Airtime), By Vertical, By Region, And Segment Forecasts, 2021 - 2028

  • Published Date: Jul, 2021
  • Base Year for Estimate: 2020
  • Report ID: GVR-4-68038-975-3
  • Format: Electronic (PDF)
  • Historical Data: 2017 - 2019
  • Number of Pages: 100

Report Overview

The global satellite communication market size was valued at USD 66.63 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 9.8% from 2021 to 2028. The escalating demand for small satellites for earth observation services in various industries, such as oil and gas, energy, agriculture, and defense, across the globe is the primary factor driving the market. Satellite communication refers to transmitting signals in the form of a beam of modulated waves between the sender and receiver antenna with the help of a satellite. These signals are amplified and sent back to the receiver antenna on the earth's surface. Satellite communication (SATCOM) also plays a crucial role in increasing the communication technology infrastructure in rural areas. At present, several thousand artificial satellites are orbiting the earth. These artificial satellites transfer analog and digital signals carrying data in the form of voices, photographs, and videos to and from one or several locations across the globe.

U.K. satellite communication market size, by application, 2017 - 2028 (USD Million)

Besides, an increase in small satellites, the launch of reusable rocket vehicles, and low-Earth orbit (LEO) are a few key developments in both the military and commercial satellite communication industry. Military satellite communication is becoming increasingly crucial for conducting military operations worldwide. With the combination of commercial communication satellites and military frequency bands, the military SATCOM providers are improving satellite communication capabilities, such as personal communication service, global broadcast service, and bandwidth frequency, to meet the military operations requirements in the coming years.

SATCOM is increasingly being used by companies to collect operational data to improve efficiency and realize sustainable ways of conducting business. The companies whose business operations extend to geographically remote locations rely significantly on satellite communication to facilitate real-time asset monitoring and facility monitoring at offshore platforms and unmanned sites. Moreover, as several business facilities are highly remote, deploying terrestrial networks cloud becomes a costly affair. Therefore, these businesses opt for satellite/ mobile satellite services.

Furthermore, the increasing applications and adoption of Artificial Intelligence (AI) and the Internet of Things (IoT) have paved the way for Intelligent Transport Systems (ITS). These systems allow users to track vehicles and enable freight operators to share and receive information promptly. Using satellite communication for transportation will enable seamless and continuous transmission of data between the vehicle and the transport hub, filling the gaps of the terrestrial networks. Therefore, the use of satellites for communication in transport networks, including logistics, will offer ample growth opportunities for the market.

The SATCOM market was significantly impacted by the outbreak of the COVID-19 pandemic. The subsequent measures taken by the government to contain the virus resulted in supply chain disruptions at a global level. Industries such as aviation and maritime, which are among the key users of satellite communication services, were deeply impacted by the virus outbreak. As such, the demand for SATCOM was highly impacted from such industry verticals, especially during the initial phase of the outbreak. However, with the continual efforts to contain the virus and resultant successful development of the coronavirus vaccine, the SATCOM industry is anticipated to recover over the forecast period.

Component Insights

The SATCOM equipment segment accounted for more than 40.0% share in 2020. The segment is also anticipated to witness the fastest growth from 2021 to 2028. The segment is further divided into SATCOM transmitter/transponder, antenna, transceiver, receiver, modem/router, and others. The growth of the equipment segment is attributed to factors such as the increasing need for uninterrupted communication in numerous industries, including oil and gas, energy and utilities, agriculture, and defense, and the growing fleet of connected and autonomous vehicles across the globe.

The SATCOM equipment is extensively used in various applications, including military surveillance, weather monitoring, navigation, and telecommunications. Furthermore, SATCOM equipment is used to collect real-time data during wars, locate undetected tunnels, integrate targets, and trace movements, among other uses. Moreover, the growing need for high-throughput satellite services and the increasing adoption of cloud-based services for ground mobility platforms are other factors supporting the growth of the segment.

Application Insights

The broadcasting segment dominated the SATCOM market and accounted for approximately 22.0% share in 2020. The segment is expected to maintain its lead over the forecast period. Broadcasting services include television and radio directly delivered to the consumer and mobile broadcasting services. The benefits of satellite TV, a form of pay-TV, and radio, including seamless connectivity in the far-off areas or locations, are fueling the growth of the segment. However, the prevalence of over-the-top (OTT) services has been observed to hinder the growth of the market. The application segment is further divided into various other services that include airtime, navigation and monitoring, asset tracking, data backup and recovery, drone connectivity, telemedicine, and others.

The penetration of the internet has been increasing over the years across the globe. Additionally, the demand for content delivered over the internet has witnessed a significant increase over the years, primarily due to the growing use of OTT services, especially by gen-x. Moreover, satellite communication is used to transfer data collected through navigational and observational satellites in industries, such as agriculture and public safety. As a result, the data communication segment is anticipated to witness high growth in the coming years.

Vertical Insights

The media and broadcasting segment led the SATCOM market and accounted for over 15.0% share in 2020. The growth of this segment is primarily attributed to the high use of satellites for broadcasting as satellites provide seamless remote coverage. Additionally, under the vertical, the market has been segmented into energy and utility, government and defense, transport and cargo, maritime, mining and oil and gas, agriculture, communication companies, corporates/enterprises, events, aviation, environmental and monitoring, forestry, end user - consumer, healthcare, and others. The government and defense segment is further segmented into government, emergency responders, and defense. Within the government and defense segment, the emergency responders segment is anticipated to register the highest growth rate over the forecast period.

Global satellite communication market share, by vertical, 2020 (%)

Satellite communication services are increasingly being used by the military and defense forces to establish or increase connectivity across various assets of the forces, such as fighter planes. Moreover, the growing market for unmanned aircraft systems and their increasing non-military applications have propelled the growth of satellite communication systems. Beyond the Line of Sight (BLOS), operations require satellite connectivity to establish a connection between the aircraft and the ground-based pilot for retrieving images and data collected by the onboard systems. The growing applications and requirements for continuous and uninterrupted communication in the government and defense segment are expected to bolster the market growth.

Regional Insights

North America dominated the market for satellite communication and accounted for over 35.0% share in 2020. The growth is attributed to the rising demand for continuous communication by the defense industry and increased demand for SATCOM equipment by the U.S. defense department. In addition, the presence of a large number of SATCOM providers, such as Viasat, Inc.; Telesat; and EchoStar Corporation, is contributing to market growth. Moreover, the North American market is expected to expand at a considerable CAGR in the forthcoming years owing to the reinforcement of military communication infrastructure.

The Asia Pacific region is expected to witness the highest growth over the forecast period. Countries such as China and Japan are the major contributors to the growth of this regional market. The growth can be attributed to the increasing use of satellite antenna in the telecommunication, IT, and aerospace and automobile industries. Europe is expected to witness the second-fastest growth in the forthcoming years owing to the modernization of infrastructure and increasing passenger traffic in marine and coastal tourism.

Key Companies & Market Share Insights

The market is highly fragmented with the presence of several market players. These players are striving to gain a greater market share by adopting various strategies. The satellite operators are also spending large amounts on developing applications over the Ka-band frequency bands, which will facilitate the transfer of crucial information and high transmission speed with the use of small ground equipment. Moreover, they are focusing on maintaining competitive pricing. Additionally, the market players are engaging in partnerships and acquisitions and mergers. For instance,in January 2021, Viasat, Inc. announced that the company has entered into a partnership agreement with SKY Brasil, which is one of Brazil’s largest satellite pay TV operators. The partnership was aimed at increasing the availability of reliable and fast satellite internet across Brazil. Some prominent players in the global satellite communication market include:

  • SES S.A.

  • Viasat, Inc.

  • Intelsat

  • Telesat

  • EchoStar Corporation

  • L3 Technologies, Inc.

  • Thuraya Telecommunications Company

  • SKY Perfect JSAT Group

  • GILAT SATELLITE NETWORKS

  • Cobham Limited

Satellite Communication Market Report Scope

Report Attribute

Details

Market size value in 2021

USD 71.58 billion

Revenue forecast in 2028

USD 137.63 billion

Growth Rate

CAGR of 9.8% from 2021 to 2028

Base year for estimation

2020

Historical data

2017 - 2019

Forecast period

2021 - 2028

Quantitative units

Revenue in USD million/billion and CAGR from 2021 to 2028

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments Covered

Component, application, vertical, region

Regional scope

North America; Europe; Asia Pacific; Latin America; Middle East & Africa (MEA)

Country scope

U.S.; Canada; U.K.; Germany; France; Italy; China; India; Japan; South Korea; Brazil; Mexico

Key companies profiled

SES S.A.; Viasat, Inc.; Intelsat; Telesat; EchoStar Corporation; L3 Technologies, Inc.; Thuraya Telecommunications Company; SKY Perfect JSAT Group; GILAT SATELLITE NETWORKS; Cobham Limited

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Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope.

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Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2017 to 2028. For the purpose of this study, Grand View Research has segmented the global satellite communication market report on the basis of component, application, vertical, and region:

  • Component Outlook (Revenue, USD Million, 2017 - 2028)

    • Equipment

      • SATCOM Transmitter/Transponder

      • SATCOM Antenna

      • SATCOM Transceiver

      • SATCOM Receiver

      • SATCOM Modem/Router

      • Others

    • Services

  • Application Outlook (Revenue, USD Million, 2017 - 2028)

    • Asset Tracking/Monitoring

    • Airtime

      • M2M

      • Voice

      • Data

    • Drones Connectivity

    • Data Backup and Recovery

    • Navigation and Monitoring

    • Tele-medicine

    • Broadcasting

    • Others

  • Vertical Outlook (Revenue, USD Million, 2017 - 2028)

    • Energy & Utility

    • Government & Defense

      • Government

      • Emergency Responders

      • Defense

    • Transport & Cargo

      • Fleet Management

      • Rail services

    • Maritime

    • Mining and Oil & Gas

      • Oil & Gas

      • Mining

    • Agriculture

    • Communication Companies

    • Corporates/Enterprises

    • Media & Broadcasting

    • Events

    • Aviation

    • Environmental & Monitoring

    • Forestry

    • End User - Consumer

    • Healthcare

    • Others

  • Regional Outlook (Revenue, USD Million, 2017 - 2028)

    • North America

      • U.S.

      • Canada

    • Europe

      • U.K.

      • Germany

      • France

      • Italy

    • Asia Pacific

      • China

      • India

      • Japan

      • South Korea

    • Latin America

      • Brazil

      • Mexico

    • Middle East & Africa

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