New York, USA, May 03, 2023 (GLOBE NEWSWIRE) -- According to Research Dive, the global satellite modem market is estimated to generate a revenue of $1,004.4 million by 2028 and grow at a CAGR of 14.4% over the forecast period (2021 to 2028). The comprehensive report provides a summary of the present market scenario comprising key aspects of the market, such as growth factors, lucrative growth opportunities, and restraining factors. Besides, the report provides all the global satellite modem market trends, COVID-19 impact on the market, and market estimations making it easier, helpful, and useful for the new participants to understand the market.
Market Dynamics
As per analysts at Research Dive, an increasing demand for richer data transmission and for solutions that may help in asset monitoring, vehicle tracking, and fleet management, and the rapid development in the satellite industry across the globe are the prime factors predicted to amplify the growth of the global satellite modem market during the forecast period. Besides, key players of the market are working continuously to cater to the rising consumer demand regarding communication advancements, which is another factor expected to boost market growth. Moreover, the growing demand for connected healthcare devices, automobiles, and home devices is expected to offer huge opportunities for the satellite modem market in the 2021-2028 timeframe. However, uncertain regulations related to satellite communications may hamper the growth of the market.
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COVID-19 Impact on the Satellite Modem Market
The COVID-19 pandemic has hit almost every industry and business, and the global satellite modem market is not an exception. The negative impact of the pandemic on the market is owing to strict lockdowns imposed by governments to prevent the virus spread, which caused severe disruptions in the supply chains and manufacturing of several units. Besides, the overall spending capacity of people has decreased due to the pandemic stress, which is impacting the market growth.
Segments of the Market
The report has fragmented the satellite modem market into certain segments based on channel type, technology, application, end-user, and region.
Channel Type: MCPC Modem Sub-segment to be Most Dominant
The MCPC modem sub-segment is predicted to witness noteworthy growth and garner a revenue of $530.7 million by 2028. The growth of this sub-segment is mainly attributed to the exceptional channel efficiency provided by MCPC modems, which is the main requirement of high-data-traffic applications, such as mobile communication, internet, and broadband services.
Technology: Satcom-on-the-move Sub-segment to be Most Lucrative
The satcom-on-the-move sub-segment garnered a revenue of $121.5 million in 2020 and is expected to grow at the fastest rate with a CAGR of 14.7% during the forecast period. This is mainly due to the primary usage of satcom-on-the-move (SOTM) terminals in the military & commercial applications. Besides, land vehicles, trains, maritime boats, and other modes of transportation use SOTM terminals for broadband communication.
Application: IP-trunking Sub-segment to Grow at the Fastet Rate
The IP-trunking sub-segment is expected to have the fastest growth rate and generate $293.1 million by 2028. This significant growth of the sub-segment is mainly owing to the vast range of benefits offered by IP-trunking, such as reliable phone service, infinite employee mobility, and powerful end-to-end unified communications system that helps in data security and improves the quality of communication system.
End-User: Military & Defense Sub-segment to be the Fastest Growing
The military & defense sub-segment is expected to grow at the highest CAGR of 15.1% by 2028. The significant growth of the sub-segment is mainly due to the wide utilization of satellite communication in military and defense activities for various purposes like border patrol, situational awareness, and information gathering.
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Asia-Pacific Region to Witness the Fastest Growth
The Asia-Pacific satellite modem market is predicted to be the fastest growing, surging at a stunning CAGR of 15.3% during the forecast period. This is majorly due to the increase in investments and rise in the number of satellite launches in countries like India, China, South Korea, and Japan. In addition, high spending on defense projects and technological advancements taking place in the Asia-Pacific region are other factors predicted to boost the market growth by 2028.
Key Market Players
Some of the top players of the global satellite modem market are
- Datum System
- Gilat Satellite Networks Ltd.
- ORBCOMM Inc.
- ST Engineering
- Teledyne Technologies
- Viasat Inc.
- Comtech Telecommunications Corp.
- Hughes Network Systems
- Work Microwave GmbH
- Novelsat
These players are applying various strategies to gain a competitive edge and strong hold in the global industry.
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For instance, in August 2021, SpaceX, a leading aerospace manufacturer and provider of space transportation services, acquired a satellite connectivity company, Swarm Technologies, to get control of the latter’s ground and space licenses. The acquisition is also aimed at marking a sharp departure from the strategy of SpaceX to develop its tech internally.
More about Satellite Modem Market:
- The Role of Satellite Modems in Military and Defense Communication Satellites
- Strategic Acquisitions Like that of Swarm Technologies by SpaceX to Drive the Global Satellite Modem Market
