Mobile Satellite Phone Market by Type (GEO and LEO), Application (Government, Energy, Aerospace & Defense, Maritime, and Others), and Regional Analysis (North America, Europe, Asia-Pacific, and LAMEA): Global Opportunity Analysis and Industry Forecast, 2019-2027

The global mobile satellite phone market forecast is predicted to reach of $5,262.1 million by 2027, increasing from $3,820.0 million in 2019 at a healthy CAGR of 4.0%. The Asia-Pacific mobile satellite phone market is estimated to grow at a CAGR of 4.6% by registering a revenue of $1,461.3 million by 2027. Strategic collaborations among various market players along with the launch of advanced mobile satellite phones are expected to accelerate the Asia-Pacific mobile satellite phone market growth. 

Mobile Satellite Phone Market Analysis:

The mobile satellite phones are a type of satellite phone used for satellite communication in emergency situation such as disasters where existing mobile networks become non-functional. It is mostly used for military, rescue missions, natural disasters and public safety. 

Impact Analysis of COVID-19 on the Mobile Satellite Phone Market

The global mobile satellite phone market is predicted to witness moderate growth during the pandemic. The COVID-19 pandemic impacted several industries, resulting in factory shutdowns and disruption of supply chains. To mitigate the effect of the pandemic on the mobile satellite phone market, several market players concentrated their effort on product developments and strategic alliances. Several of these efforts were successful. On Oct 2020, Iridium Communications Inc. announced that they experienced a 26% hike in subscription rate during the pandemic. Such key factors are predicted to also generate investment opportunities in the mobile satellite market in the near future.

Dominance of satellite phones over cellular phones during emergency has fueled the growth of the market

The mobile satellite phone industry may witness a massive growth during the forecast period mainly because of the increase in adoption of mobile satellite phones in the emergency conditions such as natural or human made disasters, in defense mission for communicating with team during emergency. Satellite phones are used mainly during lack of existing communication networks for coordinating with rescue people under extreme climate conditions such as hurricanes, tornadoes, floods, volcanic eruptions, earthquakes, tsunamis. Moreover, latest models of satellite phones are much lighter, smaller, and have better functions such as it is not limited to geographical locations and they do not rely on towers for communication. Also, they have better geographic networks than landline and cellular phones. These factors will accelerate the demand for innovative solutions for mobile satellite phone, which may drive the global mobile satellite phone market during the forecast period. 

To know more about mobile satellite phone market drivers, get in touch with our analysts here.

Stringent regulatory standards for satellite phones may restrain the growth of the global mobile satellite phone industry

The key factor that can restrain the market of mobile satellite phone globally is the vast stringent regulations laid out by the government such as satellite phones being banned in many countries such as India and Bangladesh. Also, there are certain standards set by governments while manufacturing the mobile satellite phones such as the International Electrochemical Commission 62262 (IEC 62262)/ European Standard EN 62262. Such factors are expected to create a negative impact on the mobile satellite phone market during the forecast period. 

Technological innovations in satellite phones are anticipated to create attractive opportunities for key players of market

Increase in demand for smart satellite phones such as normal android phones that can work both as satellite phone and normal phones will expected to increase the demand for mobile satellite phones. Moreover, key and innovative market players in the mobile satellite phone market are following various effective strategies in order to grow in the international market. For instance, on November 2018, Thuraya Telecommunications, a United Arab Emirates based mobile     satellite company announced that they launched satellite smartphone, X-5 Touch, a smart satellite phone with android operating system with a large display screen as compared to other traditional satellite phones. All such factors will offer huge growth opportunities in mobile satellite phones industries in upcoming years. 

To know more about mobile satellite phones market opportunities, get in touch with our analysts here.

Mobile Satellite Phone Market, by Type:

The GEO sub-segment is predicted to generate a revenue of $3,453.90 million by 2027. 

Source: Research Dive Analysis 

The global mobile satellite phone market is segmented on the basis of type into GEO and LEO satellite type. GEO type sub-segment is expected to experience a dominant as well as fast growth. It is anticipated to generate a revenue of $3,453.9 million by 2027, growing from $2,583.9 million in 2019. The growth of the GEO sub-segment is mainly due to descended hassles of direction adjustments to procure a strong communication network. Moreover, GEO satellites are positioned at higher altitudes to view and scan larger sections of the earth. With less directional adjustments and large areas under coverage the satellites receive signals from geostationary satellite with ease. Moreover, the enormous growth of mobile satellite phone market is mainly attributed to the extensively increasing use of mobile satellite phone among multiple industries, and growing emphasis on the development of advanced mobile satellite phone may drive the growth of sub-segment in upcoming years.

Mobile Satellite Phone Market, by End-Use:

The global maritime sub-segment for mobile satellite phone market is predicted to have the fastest and highest growth; this is mainly because in maritime, there is no signals between the sea and they need satellite phones for communication 

Source: Research Dive Analysis

The maritime sub-segment of the mobile satellite phone market will have the fastest growth as well as a dominant market share and it is projected to surpass $1280.4 million by 2027 with a CAGR of 3.7% with an increase from $952.9 million in 2019. The growth is due to increasing demand of mobile satellite phones in maritime sector due to the lack of network connection under the water. Communication with teams for rescue operations or any other emergency is highly essential in the maritime sector. Moreover, there are many businesses that are adopting voice satellite services for ensuring continuous and uninterrupted communications for crews in construction, tourism, fishery, mining, and transport industries. All the above stated factors demonstrate that the demand for innovative maritime solutions will increase and further boost the market for mobile satellite phones.

Regional Insights:

North America region has a lucrative market and it may reach up to $1,621.2 million by the end of 2027 mainly because of the presence of industry players and their heavy investments to enhance the application of mobile satellite phone in defense missions.
 

Source: Research Dive Analysis

The North America mobile satellite phone market accounted for $1,257.2 million in 2019 and is projected to register a revenue of $1,621.2 million by 2027. The huge growth of the North America mobile satellite phone market is mainly driven by key factors such as massive investments by market players. For instance, in 2017, SES Government Solutions Inc., an U.S based provider of satellite solution, announced that they have received a contract called complex commercials satellite communication solution contract (CS3) from Future Satellite Communications Service Acquisition (FCSA) program in U.S. Such factors will allow the U.S. Government to take benefits of innovative offerings that include high connectivity for multi-orbit satellite fleet. Such initiatives and companies investing across the region are predicted to positively drive the demand for mobile satellite phone in the region during the analysis period. 

Competitive Scenario in the Global Mobile Satellite Phone Market:

The advanced product development coupled with mergers& acquisitions are the frequent strategies followed by the significant market players

Source: Research Dive Analysis

Some of the leading mobile satellite phone market players are Globalstar, Ericsson, Inmarsat, Iridium Communications Inc., Thuraya Telecommunications, EchoStar Corporation, Intelsat, AT&T, PKI Electronic Intelligence GmbH and Telstramobile satellite phonesmarket players are focusing on merger & acquisition and advanced product developments. These are the effective strategies followed by start-ups as well as established organizations.

Porter’s Five Forces Analysis for Mobile Satellite Phone Market:

• Bargaining Power of Suppliers: The mobile satellite phone service suppliers are high in number with a large and globalized reach. So, there will be less threat from the supplier. Thus, the bargaining power of the supplier is low. 
• Bargaining Power of Buyer: Buyers will have high bargaining power, significantly because of multiple players operating in the mobile satellite phone services. The mobile satellite phone providers offer multiple mobile satellite phones with popular brands at an affordable price. The buyers can freely choose the convenient service that best fits their preferences. Thus, the bargaining power of the buyer is high.
• Threat of New Entrants: The companies that are already in the mobile satellite phone market are globalized and also they are supported by government in some countries. Thus, threat of the new entrants is low.
• Threat of Substitutes: There are very less substitutes available in the market in place of mobile satellite phones, as they offer communication in all geographical areas. Thus, the threat of substitutes is Low
• Competitive Rivalry in the Market: The competitive rivalry among the industry leaders is rather intense, especially between the global players including Globalstar, and Ericsson. These companies are launching their value-added services in the international market and strengthening the footprint worldwide. Therefore, the competitive rivalry in the market is High