Satellite Connectivity Market Expected to Expand at a Steady 2027
Satellite Connectivity Market Expected to Expand at a Steady 2027
Satellite Connectivity Market to have significant growth of CAGR of 13.09% based on the values during the forecast period from 2020 to 2027.

Space and communication sectors have been witnessed numerous developments in the past years to cater to the rising market demand for satellite communication. Technological developments in satellite components, miniaturization of parts, reducing launch costs, and increasing demand for stable connectivity in remote locations primary factors supporting market opportunities. The rise in research and development efforts and collaborations between space organizations and universities accelerates innovation in the space industry. Some of the major advancements identified within satellite connectivity and the space sector include multispectral communication, 3D printed electronic components, lasercom, and reusable rockets. These technologies are completely independent of each other; the commercial integration of these technologies has resulted in increased inefficiency and reduction in operational cost.

Read Report Overview: Satellite Connectivity Market

The rise in the application of satellites for a range of activities like surveillance, real-time imaging, communication, navigation, weather forecasting, broadband and connectivity, research, development, and testing, and IoT integration for various government, commercial, and civil-military domains is leading to the evolution in the space industry. More than 6,000 satellites are expected to be launched within the forecast timeframe of 2020 to 2027 with rising YoY launch rates. The rise in satellite launches has generated demand for various satellite connectivity components and other peripheral systems, forcing industry players to explore new market verticals to cater to the demand.

Over the past years, the number of satellite launches has increased tremendously, owing to the low cost associated with their development and launch. The satellite connectivity industry is rapidly adopting to in-space small satellite constellations, setting the next big trend in the market. Increasing application of IoT and space-based connectivity solutions like autonomous driving, surveillance, and data analysis have generated demand to establish uninterrupted connections, investments are being made toward increasing the data transfer speed.

Global Satellite Connectivity Market Size

The global satellite connectivity market is expected to reach $ 84.88 billion by 2027, increasing from $ 32.88 billion in 2019 at a CAGR 13.09% during the forecast period 2020–2027.

UHF: Most Preferred Frequency in Global Satellite Connectivity Market

The UHF frequency had the highest market penetration of 38.76% in 2019, followed by the SHF frequency. In 2019, the UHF frequency reported a revenue generation of $12.74 billion, which is further expected to grow at a CAGR of 14.50% to reach $ 35.70 billion by 2027. However, EHF frequencies are expected to witness the CAGR growth of 13.15% over the period 2020–2027, owing to the rising demand for satellite-to-satellite communications.

North America: Frontrunner in the Satellite Connectivity Market

The satellite connectivity market has witnessed different market dynamics across various regions of the globe. Major developed countries such as the U.S., Europe, and Russia have a matured market and will experience increased market competitiveness over the forecast timeframe due to the presence of major industry players like L3Harris Technologies, ViaSat, Thales Group, Israel Aerospace Industries and Thales Group among others. Developing nations like China, India, and Japan will experience accelerated growth rates due to increasing investment by private bodies and government players toward the development of the space industry. For instance, in March 2020, Zhejiang Geely Holding Group, China, announced the investment of $326 million to develop a smart three-dimension mobility ecosystem, under which the company will launch LEO satellites to provide low-latency connectivity and positioning, navigation, and timing (PNT) services.

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Competitive Landscape

The global satellite connectivity market is one of the most competitive industries with the leading players actively competing against each other to gain a greater share in the industry. The competitive landscape of the global satellite connectivity market exhibits an inclination toward emerging strategies and developments by market players.