Satellite Communication Terminal Market

The global satellite communication terminal market size was valued at USD 8.66 Billion in 2022 and is likely to reach USD 16.48 Billion by 2031, expanding at a CAGR of 7.26% during the forecast period, 2023 – 2031. The market's growth is attributed to the increasing need for high-speed reliable communication networks.

Increasing need for high-speed reliable communication networks is estimated to boost the demand for the satellite communication terminal (SATCOM) market. Satellites provide a reliable communication network by transmitting radio signals from Earth's orbit to terminals located on Earth. SATCOM terminals are utilized for retransmitting signals from a ground base to a large area of the Earth.

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Satellite communication is a microwave repeater station in space. It is helpful in radio, television, and telecommunications along with internet applications. Satellite communication carries information such as audio, video, voice, or other data between space and ground and vice-versa using electromagnetic waves as carrier signals. SATCOM terminals are devices that are capable of transmitting telecommunications to a satellite system and receiving telecommunications from a communications satellite system.

The COVID-19 pandemic hampered the demand for satellite communication terminals. The disruption in supply chain management due to preventive measures taken by the government to reduce the effect of COVID-19 infection significantly hindered the production of the SATCOM terminals. The shortage of manpower and materials and imposed trade barriers hampered the manufacturing unit among all industries around the world including the satellite industry, which impede the market growth. For instance,

• According to the US Bureau of Labor Statistics, manufacturing output fell a downfall of 43%, and hours worked in manufacturing fell by 38% in the second quarter of 2020 in the US.

Impact of Artificial Intelligence (AI) on Satellite Communication Terminal

The integration of satellite communication terminals with Artificial Intelligence is an immense opportunity in the market. AI helps in tracking and identifying potential interference in signals by classifying different types of signals received by satellites such as video, data, voice, and telemetry signals. It is used to optimize the allocation of resources in a satellite communication network such as storage, power, and bandwidth by predicting usage patterns through AI algorithms.

This technology enhances the security of satellite communication systems by detecting anomalies in network traffic and developing countermeasures to mitigate them. AI in satellite communication reduces the high operational expenditure and latency by automating input from satellite data and translating them into actions.

Satellite Communication Terminal Market Dynamics

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Major drivers

Growing adoption of satellite communication terminals in the military and defense sectors is expected to fuel the market. Communication satellite (comsat) terminals allow military units to coordinate and plan their units and infantry in the field. It allows the military to respond to crises more quickly by providing real-time intelligence to commanders in the field and quickly deploying troops when needed. For instance,

• In April 2023, a research report by Geospatial World states that, according to the United Nations Office for Outer Space Affairs (UNOOSA), as of January 2022, there are 8,261 satellites orbiting the Earth, out of which only 4,852 satellites are active and only 424 satellites are used by the military.

Existing Restraints

High installation costs associated with SATCOM terminals are expected to restrict market growth. Moreover, susceptibility to satellite communication interference due to the poor alignment of the satellite beam to its target earth terminals is projected to impede market growth.

Emerging Opportunities

Increasing satellite launches is an immense opportunity in the market. Communication satellite terminals facilitate two-way communication between the Earth base center and the satellite.  Satellites receive commands from the Earth through SATCOM terminals, so increasing satellite launches is projected to boost the demand for satellite communication terminals. For Instance,

• On April 16, 2023, China launched the Fengyun-3 satellite. The Fengyun-3 satellite has been primarily designed to monitor and provide crucial information on severe weather conditions.

Scope of Satellite Communication Terminal Market Report

The report on the market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Satellite Communication Terminal Market Segment Insights

Band Type Segment Analysis

Based on band type, the satellite communication terminal market is categorized into C Band, X Band, S Band, Ku Band, and Ka Band. The C band segment held a major market share in 2022 and is projected to expand at a robust growth rate during the forecast period. This growth is attributed to fast speed and wide coverage area. C-band offers high speed and travels longer distances than other frequencies, benefitting rural areas with fewer cell towers.

It is used for civil use for downlink satellite transmissions. Downlink satellite transmission provides a wide range of services such as telemedicine, entertainment & media, distance learning, and others. These services require broad geographic coverage and high reliability that only be delivered through the C-band.

The X band segment is estimated to grow at a considerable pace during the coming years, owing to high resolution and accuracy. This bandwidth is used by military personnel for weather monitoring, air traffic control, maritime vessel traffic control, and target identification in radar systems. Moreover, it has a narrow bandwidth, which means it is less prone to interference from other frequency bands, which makes it ideal for military use.

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Application Segment Analysis

In terms of application, the global market is bifurcated into military use and civil use. The civil use segment dominates the market and is anticipated to propel the market in coming years, owing to increased wireless internet connection. The adoption of wireless internet connection among civilians has increased as it allows users to virtually connect with people.

A SATCOM terminal is needed for wireless internet connection as satellites transmit signals to terminals and terminals retransmit the signal to internet users.The military use segment is anticipated to grow at a robust pace during the forecast period, owing to intelligence gathering, and border patrolling. Satellite communications enable real-time surveillance of sensitive areas such as borders by utilizing satellite-mounted cameras, through which border personnel remotely monitor activity in areas.

Military personnel use SATCOM terminals for intelligence gatherings by satellite imagery, communications intercepts, and other sources. This data helps to identify potential threats and to develop strategies to counter them. This in turn is expected to increase the demand for satellite communication terminals among military personnel.

Satellite Type

Based on satellite type, the satellite communication terminal market is segregated into Geostationary Equatorial Orbit (GEO), Medium Earth Orbit (MEO), and Low Earth Orbit (LEO). The LEO segment holds a significant share of the market and is estimated to continue its dominance through the projected period, as it is used in various applications.

The LEO satellite is used for communications, military reconnaissance, spying, and other imaging applications. LEO satellite is an ideal satellite for communication and imaging applications as communication signals require less power due to low altitude. Moreover, the LEO satellite is cheaper compared to MEO and GEO as it requires less rocket power to place which encourages companies to launch LEO satellites. For instance,

• On September 11, 2023, Telesat, one of the largest and most innovative global satellite operators, partnered with SpaceX, a designer and manufacturer of advanced rockets and spacecraft. The collaboration was to announce the launch of LEO satellites in 2026 to provide global broadband service from space in late 2027.

Regional Analysis

In terms of region, the satellite communication terminals market is divided into Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America holds a large market share and is anticipated to boost the market in the projected period, due to the presence of key market players such as Ball Corporation, Collins Aerospace, and L3Harris Technologies, Inc. Moreover, the rising demand for satellite broadband services with increasing satellite launches in the region is projected to boost the demand for satellite communication terminals. For instance,

• On August 31, 2023, Space X launched 22 Starlink satellites to low-Earth orbit from Space Launch Complex 40 at Cape Canaveral Space Force Station in Florida. Space X launched Starlink satellites to provide satellite broadband service.

Asia Pacific is estimated to witness a high CAGR growth during the assessment period, owing to the increasing satellite communication market. Moreover, growing research and innovation in the satellite industry in the region is expected to drive market growth. Additionally, rising satellite launches due to the increasing reliance on satellite communication in several industries such as telecommunications, media and broadcasting, agriculture, and energy are anticipated to boost the demand for satellite communication terminals. For Instance,

• On October 23, 2022, OneWeb, a broadband satellite Internet provider company, successfully launched 36 satellites from the Satish Dhawan Space Centre in Sriharikota, India. The launch objective is to deliver high-speed, low-latency connectivity worldwide.

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Segments

The satellite Communication Terminal market has been segmented on the basis of

Band Type

• C Band
• X Band
• S Band
• Ku Band
• Ka Band

Application

• Military Use
• Civil Use

Satellite Type

• GEO
• MEO
• LEO

Regions

• Asia Pacific
• North America
• Latin America
• Europe
• Middle East & Africa

Key Players

• Get SAT Ltd
• ALL.SPACE Networks Limited
• ND SatCom
• C-COM Satellite Systems Inc
• NEC Corporation
• Orbit Communications Systems Ltd
• Hwa Create Technology Co., Ltd
• IDS Ingegneria Dei Sistemi S.p.A
• AIRBUS
• Thales
• L3Harris Technologies, Inc
• Viasat, Inc
• Cobham Limited
• General Dynamics Mission Systems, Inc
• Collins Aerospace
• Ball Corporation
• Hughes Network Systems, LLC

Competitive Landscape

Key players competing in the global market are Get SAT Ltd; ALL.SPACE Networks Limited; ND SatCom; C-COM Satellite Systems Inc; NEC Corporation; Orbit Communications Systems Ltd.; Hwa Create Technology Co., Ltd.; IDS Ingegneria Dei Sistemi S.p.A.; AIRBUS; Thales; L3Harris Technologies, Inc.; Viasat, Inc.; Cobham Limited; General Dynamics Mission Systems, Inc; Collins Aerospace; Ball Corporation; and Hughes Network Systems, LLC.

These companies adopted development strategies including collaboration, product launches, mergers, acquisitions, partnerships, and production expansion to expand their consumer base worldwide. For instance,

• On May 1, 2023, ViaSat Inc., a provider of high-speed satellite broadband services, launched the ViaSat-3 satellite to multiply available bandwidth and enable faster speeds and more coverage.

• On January 20, 2022, Get SAT introduced new micronized mobile broadband SATCOM Terminals for SES’s O3b network. Get SAT’s micronized terminals are designed to deliver broadband communications with a high data rate and low latency. Combined with SES’s O3b, Get SAT’s terminals provide highly versatile solutions for applications that require smaller terminals.