The global satellite communication market size was USD 23.44 billion in 2020 and is projected to exceed USD 46.50 billion by 2028, exhibiting a CAGR of 9.07% over the estimated period. The rise can be attributed to the increasing product adoption across a range of applications including radio broadcasting & voice communications, remote sensing, water monitoring, internet application & navigations, and others.
This information has been provided by Fortune Business Insights™ in its research report, dubbed “Satellite Communication Market, 2021-2028”.
Industry Players Face Postponement of Satellite Launches, Production Halt, and Other Challenges
The COVID-19 pandemic has created numerous challenges for the space industry. These included the hold of numerous contracts, the postponement of satellite launches, and production halts. The crisis has further led to a pause on missions that included the James Webb Telescope project, deep-space exploration spacecraft, and the development of the Artemis Program. The additional effects comprised decreased procurement contracts, slow production rate from OEMs (Original Equipment Manufacturers), and disruptions in the supply chain.
Government & Defense Segment to Record Substantial Growth with Increased Product Use in Naval and Military Operations
The government and defense segment accounted for the largest share in 2020 and is expected to register a notable rise over the forthcoming years. The upsurge is due to the growing usage of satellite communication in naval and military operations. On the basis of region, the market is subdivided into North America, Asia Pacific, Europe, the Middle East & Africa, and South America.
Transceiver Segment to Register Commendable Rise Due to Increasing Replacement of Receiver & Transmitter Systems
Based on the type of component, the market is segmented into modem/router, transmitter/transponder, antenna, transceiver, receiver, and others. The transceiver segment is poised to expand at the fastest pace over the study period. One of the major factors propelling this rise is the increasing replacement of transmitter and receiver solutions with advanced transceiver systems.
Growing Adoption of IoT for the Optimization of Operation in the Aviation Sector
Satellite communication market growth is majorly being driven by the rise of IoT (Internet of Things) in the aviation industry. The deployment of this technology helps in the exchange of real-time data to the processing units, which further facilitates the optimization of operation in the sector. The devices use satellite connectivity for transmission and data exchange, which brings about a reduction in the overall time of the process.
However, the industry expansion is likely to be hampered by the threat of cybersecurity. This could be driven by the presence of mission-critical vulnerabilities including telemetry, communications, tracking and command, launch systems, and others. Globe Newswire