Press Release

Satellite Communication Market to Grow with a CAGR of 10.5% Globally through to 2028

Global Satellite Communication Market is rising due to increasing demand for reliable and high-speed communication services across various industries in the forecast period 2024-2028.

 

According to TechSci Research report, “Global Satellite Communication Market - Industry Size, Share, Trends, Competition Forecast & Opportunities, 2028”, Global Satellite Communication Market has valued at USD 47 Billion in 2022 and is anticipated to project robust growth in the forecast period with a CAGR of 10.5% through 2028. The Global Satellite Communication Market is undergoing rapid expansion, driven by its pivotal role in providing robust and ubiquitous connectivity across the globe. Satellite communication has become indispensable in bridging communication gaps in remote and challenging environments where traditional terrestrial networks are impractical. This market's growth is propelled by the increasing demand for seamless and reliable connectivity in various industries, including telecommunications, aviation, maritime, defense, and emergency response.

The proliferation of mobile devices, IoT applications, and data-intensive services has fueled the need for high-speed and ubiquitous connectivity, further boosting the satellite communication market. Additionally, the emergence of Low Earth Orbit (LEO) and Medium Earth Orbit (MEO) satellite constellations promises reduced latency and expanded coverage, enhancing the capabilities of satellite communication.

In the defense sector, satellite communication ensures secure and resilient communication channels for military operations, intelligence sharing, and disaster response. The maritime and aviation industries rely on satellite communication for vessel and aircraft tracking, passenger connectivity, and operational efficiency. Moreover, satellite internet services are bridging the digital divide in underserved and remote regions, providing internet access and enabling e-learning, telemedicine, and economic development. As the world becomes increasingly interconnected, the Global Satellite Communication Market is poised for sustained growth, offering essential connectivity solutions across diverse sectors.

 

Browse over 26 market data Figures spread through 91 Pages and an in-depth TOC on "Global Satellite Communication Market”.

 

The global satellite communication market has witnessed significant growth and transformation in recent years, driven by advancements in technology and increasing demand for seamless connectivity across the globe. Satellite communication refers to the use of artificial satellites to provide communication links between various points on Earth. These satellites are positioned in geostationary or low Earth orbits, enabling them to transmit and receive signals for a wide range of applications, including telephony, television broadcasting, internet connectivity, and data transfer. One of the key factors driving the growth of the global satellite communication market is the increasing demand for high-speed and reliable communication services in remote and underserved areas. Satellite communication offers a viable solution to bridge the digital divide by providing connectivity to regions where terrestrial infrastructure is limited or non-existent. This is particularly crucial in developing countries, where access to communication networks is essential for economic development, education, healthcare, and disaster management. Moreover, the growing adoption of satellite communication in various industries, such as aerospace, maritime, defense, and media, is further fueling market growth. In the aerospace sector, satellite communication plays a vital role in enabling real-time communication between aircraft and ground control, ensuring safe and efficient air travel. Similarly, the maritime industry relies on satellite communication for navigation, weather monitoring, and crew welfare services. Additionally, the defense sector heavily relies on satellite communication for secure and uninterrupted communication during military operations. Furthermore, the increasing demand for high-definition television (HDTV) and video-on-demand services is driving the growth of satellite broadcasting. Satellites provide a cost-effective and efficient means of delivering television signals to a wide audience, including remote and rural areas. The advent of direct-to-home (DTH) satellite television has revolutionized the broadcasting industry, offering viewers a wide range of channels and interactive services.

In terms of technology, the global satellite communication market is witnessing rapid advancements, particularly in the field of satellite miniaturization and high-throughput satellites (HTS). Miniaturized satellites, such as CubeSats and nanosatellites, are becoming increasingly popular due to their lower costs and faster deployment capabilities. These small satellites are being used for various applications, including Earth observation, climate monitoring, and internet of things (IoT) connectivity. HTS, on the other hand, are designed to provide significantly higher data transmission rates compared to traditional satellites. These satellites utilize advanced frequency reuse techniques and multiple spot beams to deliver broadband services with improved efficiency and capacity. The deployment of HTS is expected to drive the growth of satellite broadband services, particularly in rural and remote areas. However, the global satellite communication market also faces certain challenges that could hinder its growth. These include regulatory constraints, spectrum scarcity, and competition from alternative technologies, such as fiber optics and 5G networks. Additionally, the high initial investment required for satellite infrastructure and the complex nature of satellite launches pose significant barriers to entry for new players in the market.

In conclusion, the global satellite communication market is experiencing robust growth, driven by the increasing demand for connectivity in remote areas, the adoption of satellite communication in various industries, and technological advancements. While challenges exist, the market is expected to continue expanding as satellite technology evolves and new applications emerge. As the world becomes increasingly interconnected, satellite communication will play a crucial role in bridging the digital divide and enabling global connectivity.

The Global Satellite Communication Market is segmented into Component, Application, Vertical, regional distribution, and company.

Based on its Component, the services segment dominated the market in 2022 and accounted for more than 59.0% share of the global revenue. The segment growth can be attributed to the global expansion of the media and entertainment industries, coupled with the increasing demand for satellite television in emerging nations. Efforts to enable seamless data transmission to end-user locations also contribute to the growth.

However, the high upfront costs associated with satellite acquisition often make it financially challenging for many firms to purchase satellites outright. As a result, an increasing number of companies are opting for satellite services through leasing arrangements. Domestic direct-to-home (DTH) operators, for instance, are typically limited to using satellites ordered by their respective space agencies or leasing capacity from foreign satellites. Technological advancements play a crucial role in reducing the manufacturing costs of satellites, thereby lowering lease expenditure, and driving revenue growth in the market.

The equipment segment is projected to witness remarkable growth over the forecast period. The growth of this segment can be credited to the increasing need for uninterrupted communication in various industries, including energy and utilities, oil and gas, agriculture, defense, and the growing presence of connected and autonomous vehicles.

These industries rely on satellite communication systems for diverse applications such as telecommunications, navigation, weather monitoring, and surveillance systems, enabling effective communication with satellites orbiting the Earth. Moreover, the introduction of low earth orbit (LEO) satellites and satellite constellations for telecommunication purposes has led to a surge in the global demand for satellite equipment. These factors are expected to create promising opportunities for the growth of this segment throughout the forecast period.

Based on region, North America region dominated the market in 2022 and accounted for more than 32.0% share of the global revenue. Growing demand for satellite broadband services, especially in remote and hard-to-reach areas, is anticipated to create lucrative growth opportunities for the segment over the forecast period. This trend presents significant revenue generation opportunities as satellite communication becomes essential for providing reliable connectivity in underserved regions of North America.

The North America region is also witnessing the emergence of key market players such as Viasat, Inc.; Intelsat; Telesat; and Harris Technologies, Inc. These companies are driving innovation and actively contributing to the growth of the satellite communication industry in North America. Their investments in research and development, advanced technologies, and strategic partnerships are fueling the expansion of the industry in the region. The Asia Pacific region is projected to grow at the highest CAGR over the forecast period. The expansion of the satellite communication market in Asia Pacific can be attributed to the relentless pursuit of innovation, research and development, and strategic initiatives by prominent market players aiming to enhance their market presence. Furthermore, the increasing reliance on satellite communication-dependent services in sectors such as telecommunications, media and broadcasting, agriculture, and energy and utility within Asia Pacific is anticipated to be a significant driver of market growth. The region is home to numerous organizations dedicated to advancing satellite communications.

 

Major companies operating in Global Satellite Communication Market are:

  • Viasat, Inc.
  • SES S.A.
  • Intelsat
  • Telesat
  • EchoStar Corporation
  • L3Harris Technologies, Inc.
  • Thuraya Telecommunications Company
  • SKY Perfect JSAT Group
  • GILAT SATELLITE NETWORKS.
  • Cobham Limited

 

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“The global satellite communication market has seen significant growth due to technological advancements and the need for seamless connectivity worldwide. Satellite communication uses artificial satellites to establish communication links between different points on Earth, enabling telephony, television broadcasting, internet connectivity, and data transfer. The market is driven by the demand for reliable communication services in remote areas and underserved regions, particularly in developing countries where access to communication networks is crucial for economic development, education, healthcare, and disaster management. Industries like aerospace, maritime, defense, and media are adopting satellite communication for real-time communication, navigation, weather monitoring, and broadcasting. The market is also fueled by the increasing demand for high-definition television and video-on-demand services, as satellites provide a cost-effective means of delivering signals to a wide audience. Technological advancements in satellite miniaturization and high-throughput satellites are further propelling market growth. However, challenges such as regulatory constraints, spectrum scarcity, and competition from alternative technologies pose barriers to entry. Despite these challenges, the market is expected to expand as satellite technology evolves and new applications emerge, playing a crucial role in bridging the digital divide and enabling global connectivity.,” said Mr. Karan Chechi, Research Director with TechSci Research, a research-based management consulting firm.

Satellite Communication Market– Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Component (Equipment, Services), By Application (Broadcasting, Airtime, Drones Connectivity, Data Backup & Recovery, Navigation & Monitoring, Tele-medicine), By Vertical (Agriculture, Communication Companies, Corporates/Enterprises, Media & Broadcasting, Events, Aviation, Environmental & Monitoring, Forestry, Healthcare, Others), By Region, By Competition”, has evaluated the future growth potential of Global Satellite Communication Market and provides statistics & information on market size, structure and future market growth. The report intends to provide cutting-edge market intelligence and help decision makers take sound investment decisions. Besides, the report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities in Global Satellite Communication Market.


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