Satellite modem market to reach $1.03 bn globally, by 2030 at 16.5% CAGR
Allied Market Research recently published a report, “Satellite Modem Market by Channel Type (SCPC Modem and MCPC Modem), Technology (VSAT, Satcom-on-the-move, Satcom-on-the-pause, and Others), Applications (Mobile & Backhaul, IP-trunking, Enterprise & Broadband, Media & Broadcast, and Others), and End User (Telecommunications, Marine, Military & Defense, Transportation & Logistics, Oil & Gas, and Others): Global Opportunity Analysis and Industry Forecast, 2021–2030.” According to the report, the global satellite modem industry generated $354.6 million in 2020, and is expected to reach $1.03 billion by 2030, witnessing a CAGR of 16.5% from 2021 to 2030.
Drivers, restraints, and opportunities
Increase in need for enriched high-speed data communication, rise in number of high-throughput satellites (HTS), and demand for satellite communication in the internet of things (IoT) drive the growth of the global satellite modem market. However, ambiguity in regulatory framework regarding satellite communication protocols and standards restrains the market growth. On the other hand, proposed development of satellite networks to provide internet access in remote areas creates new opportunities in the coming years.
- The demand for satellite modems during the Covid-19 pandemic increased with adoption of remote working culture across corporate and several government organizations. The demand for better connectivity solutions led to the growth of the market during the pandemic.
- However, many 5G network infrastructure development projects were postponed or canceled and the speed of digitization across different sectors slowed down. This impacted the overall market growth.
The Satcom on the move segment is expected to continue its dominance during the forecast period
Based on technology, the satcom on the move segment accounted for the highest share in 2020, contributing to nearly one-third of the global satellite modem market, and is expected to continue its dominance during the forecast period. Moreover, this segment is estimated to witness the highest CAGR of 12.2% from 2021 to 2030. This is due to rise in adoption from the military and defense sector for its ability to provide reliable and high data rate satellite communications while being on the move to provide secure, beyond-line-of-sight communications. The research also analyzes the segments including satcom on the pause, VSAT, and others.
The IP trunking segment to maintain its leadership status during the forecast period
Based on application, the IP trunking segment contributed to the highest share in 2020, accounting for more than one-fourth of the global satellite modem market, and is expected to maintain its leadership status during the forecast period. This is attributed to additional stability and reliability provided to the trunking and backbone networks that enable users to effortlessly navigate over barriers. However, the media and broadcast segment is projected to manifest the highest CAGR of 12.8% from 2021 to 2030, owing to need for high-speed network connectivity solutions.
North America to continue its lead in terms of revenue by 2030
Based on region, North America held the highest market share in 2020, accounting for around two-fifths of the global satellite modem market, and is expected to continue its lead in terms of revenue by 2030. This is due to rise in investments by prime market players in satellite communication. However, Asia-Pacific is expected to portray the fastest CAGR of 14.4% during the forecast period, due to rise in awareness about artificial intelligence and IoT technology to enhance communication processes. PR Newswire
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