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Satellite Communication Market Growth & Trends
The global satellite communication market size is expected to reach USD 122.98 billion by 2027, registering a CAGR of 9.2% from 2020 to 2027, according to a new report by Grand View Research, Inc. The growing adoption rate of small satellites in the defense industry for applications, including geospace and atmospheric research, tactical communication, and medium resolution imagery is anticipated to propel the market growth. Besides, the escalating demand for satellite communication (SATCOM) solutions in the aviation sector for better airline operations and air traffic management is also expected to boost market growth in the forthcoming years.
With the rise of the 5G network and launches of several scheduled Low Earth Orbit (LEO) and Medium Earth Orbit (MEO) satellites, the market for SATCOM is expected to grow at a significant pace in the forthcoming years. Also, the expansion of satellite communication into the connectivity market has influenced the SATCOM providers to increase the emphasis on securing the speed of deployment of the Internet of Things (IoT) across the globe. At present, there are around 2.7 million devices serviced by satellites, including infrastructure, aviation, environmental monitoring, shipping, and military support, among others.
In recent years, SATCOM providers have been observed with a paradigm shift towards offering high capacity satellite transponders in terms of bandwidth that are capable of better transponder throughput, thereby decreasing costs. A SATCOM transponder is wireless communication, monitoring, and control device that detects and automatically reacts to an incoming signal. Furthermore, factors such as a rise in demand for corporate enterprise networks and consumer broadband and growing Ka-band and KU-band services, are expected to boost the satellite transponder segment demand in the overall market over the forecast period. Moreover, with the recent space development missions by various space organizations, including the National Space Administration of China and the Indian Space Research Organization of India, among others, the overall market demand has witnessed a considerable market growth in the Asia Pacific region.
Satellite Communication Market Report Highlights
- The market growth is driven by the growing need for enriched data communication across the globe
- The equipment segment is expected to register the highest CAGR of 10.0% owing to the benefits that SATCOM equipment offer, including locating undetected tunnels, integrating targets, and tracing movements, among others
- The broadcasting segment is expected to hold the largest share in the market in 2019 owing to the high penetration of satellite TV services across the globe
- The aerospace and defense segment is anticipated to register the highest CAGR of over 11% over the forecast period primarily owing to the increasing use of satellite communications for military operations
- North America is expected to account for the highest share in terms of revenue, followed by Europe owing to the increasing passenger traffic in marine and coastal tourism. Also, these regions are marked with the presence of a high number of market players