Mobile Satellite Phone Market Size Projected to Generate a Revenue of $808.5 Million by 2031Download Sample Reports Overview
The Global Mobile Satellite Phone Market is predicted to be valued at $553.6 million by 2031, surging from $808.5 million in 2021, at a CAGR of 3.9%.
Impact Analysis of COVID-19 on the Mobile Satellite Phone Market
The global market for mobile satellite phones experienced a moderate impact during the pandemic. Numerous industries were affected by the COVID-19 pandemic, which led to supply chains being disrupted and factories being shut down. Several market participants focused their efforts on new product development and strategic alliances in order to lessen the impact of the pandemic on the mobile satellite phone market. Many of these initiatives were successful. For instance, in October 2020, Iridium Communications Inc. reported a 26% increase in subscription rate of various devices such as satellite phones, messengers, and personal trackers. These crucial factors are also anticipated to lead to investment opportunities in the market for mobile satellites in the post-pandemic period.
Global Mobile Satellite Phone Market Analysis
The mobile satellite phone market size is majorly driven by cutting-edge features and user interfaces. Satellite-based phones connect to landlines, cellular networks, and other satellite phones all over the world via satellites. In order to coordinate response and recovery efforts in outlying areas, satellite phones are primarily used for emergencies. Existing land-based networks are vulnerable to damage or overload in the event of a man-made incident, such as potential chemical, biological, radiological, nuclear, or explosive events, or a natural disaster like an earthquake or severe weather. In addition, scenarios where the landline or mobile telephone networks are down or inaccessible, the mobile satellite phones are widely used. Satellite phones are helpful in maintaining command and control operations as the local communications networks are down during an emergency. These phones can withstand extreme weather conditions because they are more rugged and easier to use than cellular phones. Companies that offer satellite phone communications are working to offer services with improved technologies, including better geographic coverage, audio quality, and dependability. Therefore, the global satellite phone market size is projected to expand due to satellite phones' rugged design in the upcoming years.
High cost is one of the major restraints of the mobile satellite phone industry. Some other drawbacks associated with mobile satellite phone is that there is no service when cell tower is not available. There are frequent call drops and these phones can work outside the cellular network infrastructure. Severe weather conditions may interrupt the mobile satellite phone service. These factors are anticipated to restrain the mobile satellite phone market share in the upcoming years.
An increase in demand for mobility, greater integration of mobile and satellite technologies, and advancements in digital technology are the main factors driving the market for mobile satellite services. The increase in rivalry in the Internet services market, increase in bandwidth availability for mobile satellite services (MSS), as well as the rising IoT trend, all offer significant factors driving the market growth. The demand for mobile satellite phones is expected to increase significantly owing to the rising demand from the automotive industry for systems that enhance car navigation capabilities. In addition, smartphone manufacturers are taking several initiatives to convert smartphone into satellite phone. For instance, Bullitt, the prominent phone manufacturer is planning to launch satellite phone services in 2023.
Global Mobile Satellite Phone Market, Segmentation
The mobile satellite phone market is segmented based on type, application, and region.
The type segment is further classified into LEO satellite phone and GEO satellite phone. Among these, the LEO satellite phone sub-segment accounted for the dominant market size in 2021. LEO satellite phone operates on a satellite that has proximity to the ground and can communicate with minimum time delay. For delay-sensitive communication these phones are an ideal choice. LEO satellite phones offer better signal strength and consume less power for transmission. Also, the propagation delay in LEO satellite phone is less due to low latency owing to which LEO satellite phone can be used for several critical operations. With the use of LEO satellite phones there is no need for bulky receiver equipment’s owing to high signal-to-noise ratio. LEO satellite phones have better reuse frequency owing to smaller footprints. LEO satellite phone offers high elevation in the polar regions with better global coverage. These factors are anticipated to boost the LEO satellite phone market demand in the upcoming years.
The application segment is further classified into defense, maritime, aviation, oil & gas, and others. Among these, the maritime sub-segment accounted for a dominant market size in 2021. The maritime sub-segment expansion is primarily attributed to its use in the maritime industry, where commercial, naval, and cruise ships need mobile satellite communications to stay connected with one another and to their main offices for supporting crew welfare activities. In addition, the navy needs more advanced mobile satellite communication for tasks like gathering tactical data and intelligence, remote equipment monitoring, live surveillance, and real-time operational command & control. Each of these factors are estimated to support the mobile satellite phone market growth in the upcoming years.
The mobile satellite phone market in North America accounted for the dominant market share in 2021. The presence of major vendors and their emphasis on R&D investments in the North America market is increasing the demand for mobile satellite phones in the region. The growing popularity of mobile satellite phone in the U.S. can be attributed to the ability of these phones to offer efficient communication even in areas where terrestrial infrastructure is not present. For instance, in March 2018, Iridium, a U.S.-based company that specializes in satellite communication solutions, announced that they were working with Speedcast, the largest global satellite provider, and that the main goal of this agreement is for Iridium to become the mobile service provider for Speedcast's broadband technology. The market for mobile satellite phones is expected to grow more quickly in North America in the upcoming years.
Key Players in the Global Mobile Satellite Phone Market
Some of the leading mobile satellite phone market players are
- Iridium Communications Inc
- Globalstar Inc
- Thuraya Telecommunications Company
- Inmarsat Global Limited
- Beam Communications Pty. Ltd.
- Bharat Sanchar Nigam Limited
- KVH Industries Inc.
- TS2 Space Sp. z o.o.
- Garmin Ltd
In January 2023, Qualcomm and Iridium entered into an agreement to bring satellite-based connectivity for android smartphones.