The Global Satellite Modem Market Anticipated to Generate a Revenue of $1,004.4 Million, Growing at a CAGR of 14.4% from 2021 to 2028Download Sample Reports Overview
The global satellite modem market is estimated to be valued at $1,004.4 million by 2028, surging from $348.7 million in 2020, at a noteworthy CAGR of 14.4%.
Impact Analysis of COVID-19 on the Satellite Modem Market
The global satellite modem market has experienced a negative impact in the recent months due to the COVID-19 outbreak. Various markets around the world have experienced great losses and it is same with the satellite modem market. The supply chain and the import and export of the raw materials have been hampered widely due to which the manufactures are unable to manufacture the devices and meet the demand of the modems.
However, as the governments across the globe has initiated to loosen up, the lockdown the satellite modem market is projected to increase at a better rate.
Global Satellite Modem Market Analysis
The surge in demand for high-speed network communication solutions in the military & defense, enterprise, and government sectors is likely to boost the satellite modem market significantly. Due to an increase in the number of high-throughput satellites, the satellite modem market share is predicted to grow significantly throughout the forecast period. Furthermore, the market has grown due to an increase in demand for high-speed data connection.
Due to confusing legal frameworks, satellite manufactures are struggling to identify whether and to what degree rules apply to them. Furthermore, there is no common approach to licensing and frequency authorizations among national authorities. Because the frequencies they use—the VHF and UHF bands—are typically new to national authorities when compared to the S, L, Ku, C, and Ka bands, small satellite operators may have difficulty obtaining frequency licenses. This is a substantial challenge for satellite modem manufacturers. These factors are anticipated to hamper the market growth.
The growing demand for low earth orbit (LEO) satellites for communication purposes is anticipated to create better growth opportunities in the near future as these satellites have the ability to provide better communication network.
Global Satellite Modem Market, Segmentation
The global satellite modem market is segmented based on channel type, technology, application, end-user, and region.
The channel type segment is further classified into SCPC modem and MCPC modem. The MCPC sub-segment is expected to grow at the fastest CAGR of 16.2% and reach $530.7 million by 2028, up from $163.3 million in 2020. The growth is majorly due to exceptional channel efficiency afforded by these modems, which is a basic necessity of high-data-traffic applications such as mobile communication, internet, and broadband services. MCPC satellite modems can connect to IP networks to give a seamless phone, video, and data connection. Because of its high data rate capacity over satellite technology, MCPC modem technology can provide broadband internet services for enterprise networks.
The technology segment is further classified into VSAT, satcom-on-the-move, satcom-on-the-pause, and others. The satcom-on-the-move sub-segment held the largest market value in 2020 accounting for $121.5 million and is anticipated to reach $357.0 million by 2028 at a CAGR of 14.7%.. Satcom on-the-move (SOTM) terminals are increasingly used in military and commercial applications. These terminals are primarily utilized in military applications for tactical communication. SOTM terminals are used for broadband communication on ships, trains, planes, ground vehicles, and other types of transportation. These terminals are mostly used in corporate applications for broadband Internet access.
The application segment is further classified into mobile & backhaul, IP-trunking, enterprise & broadband, media & broadcast, and others. The IP-trunking sub-segment is expected to grow at the fastest CAGR of 15.2% and reach $293.1 million by 2028, up from $96.9 million in 2020. The enormous array of benefits provided by IP-trunking, such as endless employee mobility, a reliable phone service, and a robust end-to-end unified communications system that aids in data security while also boosting communication system quality, are primarily responsible for the rise. IP trucking also allows customers to use the same IP-based network for a variety of data transports such as video, voice, and more. It is no longer necessary to have many, overlapping networks (and paying for each).
On the basis of end-user, the market is divided into telecommunications, marine, military & defense, transportation & logistics, oil & gas, and others. The military &defense & channel is anticipated to grow at the fastest CAGR of 15.10% and reach $269.0 million over the forecast period. Satellite communication is widely used in military & defense operations for various objectives, including data collection, situational awareness, and border patrol. The volume of data, audio, and video exchanged between headquarters and remote facilities has skyrocketed in recent years. High-speed satellite communications are also provided by satellite modems for missions that are on the go, point-to-point, stationary, or point-to-multipoint. Satellite modems are also necessary for military & defense activities to ensure secure and dependable communication. They are mostly utilized in areas where a telecommunications network is unavailable, such as in India's Siachen.
The Asia-pacific satellite modem market is anticipated to grow at the fastest CAGR of 15.3% and reach $264.4 million by 2028. Growing investments and the number of satellites launches in developing countries like China, India, Japan, and South Korea are driving Asia-Pacific market growth. The need to cover rural locations and the growing demand for high-speed data access with high-availability of data services are the driving market for the massive investments in this region. Furthermore, technical advancements in this region are another significant driver propelling the Asia-Pacific market region growth over the coming. Furthermore, increased spending on military & defense projects is expected to boost the market in the near future.
Key Players in the Global Satellite Modem Market
Some of the leading global satellite modem market players are
- Datum System
- ORBCOMM Inc.
- Gilat Satellite Networks Ltd.
- ST Engineering
- Viasat, Inc.
- Teledyne Technologies
- Comtech Telecommunications Corp.
- Work Microwave GmbH
- Hughes Network Systems
Porter’s Five Forces Analysis for the Global Satellite Modem Market:
- Bargaining Power of Suppliers: The number of satellite modem manufacturing players is moderate. Growing demand for uninterrupted services and the GEO satellites is increasing
Thus, the bargaining power suppliers is high.
- Bargaining Power of Buyers: Buyers have little bargaining power since large investment is required to establish satellite modems.
Thus, the bargaining power of the buyers is low.
- Threat of New Entrants: The companies entering satellite modem market have to deal with high investment cost and are required to adhere to the environmental regulations as well.
Thus, the threat of the new entrants is low.
- Threat of Substitutes: The availability of the alternatives for the satellite modem is very low.
Thus, the threat of substitutes is low.
- Competitive Rivalry in the Market: There is high competitive rivalry among industry leaders since the number of players operating in satellite modem industry are focusing on enhancing the efficiency of the data transfers, business expansion, and product innovations.
Therefore, competitive rivalry in the market is high.