As the name suggests, a satellite modem, also knows as a modulator or a demodulator, is used to receive and transmit signals to and from a satellite. For transmitting signals to the satellite, a modem modulates digital information into an RF carrier via an upconverter, while for receiving signals, the modem then demodulates or converts the frequencies from the downconverter to digital information. Although the main operations of a modem are modulation and demodulation, according to satellite communications standards, error correction codes and framing formats are equally essential function.
Increasing demand for satellite communications in several IoT applications and business expansion by prominent market players are some factors predicted to drive the growth rate of the global satellite modem market by 2028. In addition, wide utilization of satellite modems in the military and defense industry is estimated to further boost the market growth during the forecast period. Moreover, the rising demand for connected home and healthcare devices is projected to offer abundant growth opportunities for the global satellite modem market during the 2021-2028 timeframe. However, uncertain regulations governing satellite communication standards and framework is the major factor anticipated to hinder the market growth.
Regionally, the satellite modem market in the Asia-Pacific region is anticipated to have the highest growth rate of 15.3% CAGR and garner a revenue of $264.6 million during the forecast period. This immense growth is mainly attributed to the rising investments and numerous satellites launches in the developing countries like China, Japan, India, etc. Moreover, growing demand for high-speed data connectivity along with uninterrupted data services among people is also predicted to accelerate the market growth in this region.
According to the report published by Research Dive, the global satellite modem market is expected to register a revenue of $1,004.4 million and grow at 14.4% CAGR in the 2021–2028 timeframe. Some prominent market players include Novelsat, Comtech Telecommunications Corp., ST Engineering, ORBCOMM Inc., Datum System, Work Microwave GmbH, Viasat, Inc., Hughes Network Systems, Teledyne Technologies, Gilat Satellite Networks Ltd., and many others.
Covid-19 Impact on the Market
The unprecedented situation caused by the outbreak of the Covid-19 pandemic has hurled almost every business and industry. This also includes the global satellite modem market owing to strict lockdowns imposed by governments all over the world. This caused severe disruptions in the manufacturing and supply chains of several units. Additionally, since people across the entire globe have lost their jobs amid the pandemic stress, the overall spending capacity has also decreased exponentially. However, as per market analysts, the satellite modem market is estimated to revive its growth since governments are loosening the stringent lockdown and travel restrictions in several countries.
Significant Market Developments
The significant companies operating in the industry are adopting numerous growth strategies & business tactics, such as partnerships, collaborations, mergers & acquisitions, and launches to maintain a robust position in the overall satellite modem market, thus helping the market to flourish. For instance:
In February 2022, PathFinder Digital, a leading satellite ground terminal solutions provider, announced the launch of next generation of its ‘BAT’ line of ground mobile satellite network terminals that is specially built and designed for military and defense applications. The BAT-850 VSAT is a carbon fiber, quick-deploy terminal configured for either Drive-away or Flyaway applications.
In August 2021, SpaceX, an American aerospace manufacturer and provider of space transportation services, announced its decision to acquire Swarm Technologies, a satellite connectivity startup, to get control of the latter’s ground and space licenses. Moreover, the acquisition was also aimed to mark a sharp departure from SpaceX’s strategy of developing its tech internally.
In February 2022, Aston University announced its collaboration with Pulse Power and Measurement (PPM), a leading distributor of power electronics components, to create an innovative satellite communication technology. Additionally, the company would be accessing the University’s expertise in coherent optical communications network domain techniques to build the game-changing technology.