Ever-Rising Telecommunication Traffic to Bolster the Demand for Satellite Communication Equipment Globally

Satellite communication market is estimate to reach US$ 47.1 Bn by 2026, growing with a promising CAGR of 8.88% across the forecast period from 2018 to 2026. Majorly commanded by North America, satellite communication (SATCOM) equipment market is highly driven by rapidly growing IT & telecommunication sector. The SATCOM market expected to witness high growth, due to progressive increase in Internet and telecommunication traffic worldwide. The global Internet traffic demonstrated a CAGR of more than 25% during the period from 2013 to 2016. Immense increase in Internet users as well as telecommunication traffic across the world influenced more number of private players to invest in SATCOM equipment market in search of feasible ways to suffice the ever-rising demand for real-time communication. For instance, in August 2017 EchoStar Corporation, the satellite fleet operator announced that it had signed an alliance with Space Systems Loral, LLC for Jupiter-3/EchoStar-24 satellite. An alliance aimed to strengthen EchoStar Corporation’s market position in the US with provision of strong network system.  

SATCOM Transceiver Expected to Retain Its Dominance Throughout the Forecast Period from 2018 to 2026

SATCOM transceivers dominate the overall SATCOM market accounting for more than 1/4th of the global market value. Majority of day-to-day modules in recent digital world equipped with navigation services. Similarly, growing number of connected vehicles demonstrating the promising growth of the navigational services. Rising penetration of navigation systems in smart digital equipment, connected vehicles and other location based functioning systems, expected increasing the demand for SATCOM transceivers in the near future. Credence Research, Inc. estimated that by 2030, more than 250 Mn units of vehicles in the China will be connected vehicles. Similarly, use of satellite transceivers for surveillance applications along with increasing spending on surveillance services by defense authorities worldwide is further driving the demand for the segment. This would ensure promising growth for SATCOM transceiver segment through the forecast period.

North America Leads the Market; Asia Pacific to Emerge as the Fastest Growing Regional Market

Presently, North America leads the SATCOM equipment market with over 35.0% market shares of overall market value worldwide. The U.S. with strong awareness for benefits of using SATCOM equipment across the nation primarily supporting the market growth in the region. Military satellite constellation supports the U.S. military forces from orbit to keep track on global defense activities. In addition, the U.S. military are adding commercial satellite receivers to aircraft, trucks and other equipment in order to protect their communication network from hackers and boost up security.

Asia Pacific estimated to be the fastest growing market for SATCOM equipment in the coming years. China, India, Japan and South Korea are among the leading countries having promising penetration of SATCOM equipment. These countries hold huge potential for SATCOM equipment primarily due to increasing Internet service, digital satellite broadcasting, satellite R&D projects and satellite launching among others. For instance, China’s DBSat satellite has several years of collaboration with major Chinese cellular operators, which helps extending the reach of their mobile networks. Out of the two billion currently unconnected people across Asia Pacific, the vast majority with more than 80% live in India, China, Indonesia, Pakistan and Bangladesh among others. With increasing number of Internet users, media activities, space R&D projects and real time broadcasting, the trend expected to continue in Asia Pacific over the forecast period.

Leading Players Focusing on Merger & Acquisitions for Market Expansion

Emergence of new private players in the last few years demonstrated nature of SATCOM equipment industry as fragmented market. One of the most common strategies adopted by the global players is mergers and acquisition of small-scale network providers or their satellite communication networks. This enables the companies to expand their communication network, thereby reaching to more number of subscribers. Popular instances include acquisition of GeoEye, LLC by DigitalGlobe, Inc., acquisition of Space Systems/Loral, Inc. by MDA Corporation and acquisition of Thrane & Thrane A/S by Cobham Plc. Some of the major players profiled in the report include Digisat International, Inc., Cobham plc., Paradigm Secure  Communications Ltd., Skyware Technologies Ltd., ePAK International, Inc., Digital Barriers Plc., C-COM Satellite Systems Inc., SatCom Global Ltd., Newtec Cy nv, Hughes Network Systems LLC, Aselson A. S., Nu-Cast Inc., Communications & Power Industries LLC, Orbital Tracking Corporation, Campbell Scientific, Inc. and others.

Historical & Forecast Period

This study report represents analysis of each segment from 2022 to 2032 considering 2023 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2024 to 2032.

The current report comprises of quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends and technological analysis, case studies, strategic conclusions and recommendations and other key market insights.

Research Methodology

The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. key data point that enables the estimation of Satellite Communication Equipment market are as follows:

• Research and development budgets of manufacturers and government spending
• Revenues of key companies in the market segment
• Number of end users and consumption volume, price and value.
• Geographical revenues generate by countries considered in the report
• Micro and macro environment factors that are currently influencing the Satellite Communication Equipment market and their expected impact during the forecast period.

Market forecast was performed through proprietary software that analyzes various qualitative and quantitative factors. Growth rate and CAGR were estimated through intensive secondary and primary research. Data triangulation across various data points provides accuracy across various analyzed market segments in the report. Application of both top down and bottom-up approach for validation of market estimation assures logical, methodical and mathematical consistency of the quantitative data.

Key questions answered in this report

• What are the key micro and macro environmental factors that are impacting the growth of Satellite Communication Equipment market?
• What are the key investment pockets with respect to product segments and geographies currently and during the forecast period?
• Estimated forecast and market projections up to 2032.
• Which segment accounts for the fastest CAGR during the forecast period?
• Which market segment holds a larger market share and why?
• Are low and middle-income economies investing in the Satellite Communication Equipment market?
• Which is the largest regional market for Satellite Communication Equipment market?
• What are the market trends and dynamics in emerging markets such as Asia Pacific, Latin America, and Middle East & Africa?
• Which are the key trends driving Satellite Communication Equipment market growth?
• Who are the key competitors and what are their key strategies to enhance their market presence in the Satellite Communication Equipment market worldwide?