The satellite communication market size was valued at USD 23.44 billion in 2020 and is anticipated to grow from USD 25.33 billion in 2021 to USD 46.50 billion by 2028 at a CAGR of 9.07% during the 2021-2028 period. During the projected period, the rise of IoT in the aviation sector is expected to boost the market.
Satellite communication is described as the use of electromagnetic waves as a carrier signal to communicate between two earth stations via a satellite. It serves as a conduit for information between the earth and space. It refers to sending signals through satellite in the form of a beam of modulated waves between the sender and receiver antenna. It has a wide range of uses in radio transmission, the internet, voice communication, and weather monitoring. According to Fortune Business Insights
Data flow between machine control and production was previously dependent on terrestrial GSM systems, which is currently being replaced with satellite connectivity. In the aviation industry, satellite technology has proven to be an essential enabler for converting IoT connection. IoT devices help to improve the process in the aviation business by allowing real-time data to be exchanged with the processing division. It is also utilized in satellite connectivity to reduce processing time by transferring data between IoT devices and components. Thousands of artificial satellites are now orbiting the planet. These man-made satellites send and receive analogue and digital signals containing data, such as speech, photos, and videos, to and from one or more sites throughout the world.
Top Companies in the Market Listed by Fortune Business Insights™:
- Boeing (U.S.)
- Cobham Limited (U.K.)
- General Dynamics Corporation (U.S.)
- Honeywell International Inc. (U.S.)
- UIndra (Spain)
- Inmarsat Global Limited (U.K.)
- Iridium Communications Inc. (U.S.)
- L3 Harris Technologies, Inc. (U.S.)
- Qualcomm Technologies (U.S.)
- Viasat, Inc. (U.S.)
Supply Chain Disruption to Hamper Market Growth During COVID-19 pandemic
The COVID-19 pandemic has wreaked havoc on countries' commercial activities across the world. Equipment manufacturing has also been hampered. Due to the fabrication halt, satellite launch delays, and the halt of major negotiations, satellite manufacturers faced unprecedented challenges. The situation of COVID-19, engineering processes, and import-export norms are used to decide when industrial activity can be restarted. As a result of the COVID-19 pandemic, the supply chain was disrupted, producers' manufacturing frequency was reduced, and procurement agreements were lowered. Therefore, decreased spending in the space sector would stifle the growth of the satellite communication business.
Application of Satellite Communication from Various Sectors:
The growth of the global market will be driven by the development of Internet of Things (IoT) and autonomous systems, increased demand for military and defense solutions, and increased adoption of SATCOM equipment for online streaming services, radio, and TV broadcast, according to researchers. High-end technological advancements in satellite missions and the deployment of 5G network via satellites are expected to create new opportunities for the sector while cyber security threats to satellite communication and interference in satellite data transmission are expected to limit growth.
In addition, the military and commercial satellite communication industries have seen a surge in small satellites, the launch of reusable rocket vehicles, and Low-Earth Orbit (LEO) satellites. For conducting military operations around the world, military satellite communication is becoming increasingly important. Military SATCOM providers are improving satellite communication capabilities, such as personal communication service, global broadcast service, and bandwidth frequency, by combining commercial communication satellites and military frequency bands to meet military operation requirements in the coming years.
Technological Development and RD Activities to Drive Growth
One of the smallest 2-way satellite communication devices is a transportable SATCOM station, often known as a satellite communicator or hotspot. The device collects location data using an inbuilt GPS chip. When the SEND is activated, this data is sent through commercial satellites to a commercial monitoring agency, which then passes it on to the relevant reacting agency. People involved in hiking, mountain biking, climbing, sailing, and flying are typical users/purchasers of these gadgets. It is also beneficial to individuals who operate in remote locations.