Satellite Modem Market Outlook - 2030
The global satellite modem market was valued at $354.6 million in 2020, and is projected to reach $1033.4 million by 2030, registering a CAGR of 16.5% from 2021 to 2030.
Satellite modem or satmodem is an enhanced communication solution designed to establish data transmissions using a communications satellite as a relay. The prime function of a satellite modem is to convert an input bitstream into a radio signal and vice versa. Furthermore, satellite internet modem in communication is intended to use artificial satellites to offer communication links between various points across the earth. In addition, satellite modem market opportunity is significantly driven by the rise in trend of digitization in the Internet of Things solutions during the forecast period.
The satellite modem transforms digital data into carrier frequency for transfer to an amplifier and antenna for transmission to the satellite. Moreover, rise in demand for high-speed network communication solutions across military & defense, enterprise, and government sectors is expected to offer significant opportunities for the satellite modem market growth.
The satellite modem market share is expected to witness notable growth during the forecast period, owing to increase in number of high-throughput satellites. Furthermore, surge in need for enriched high-speed data communication has driven the growth of the market. Moreover, increase in demand for satellite communications in Internet of Things (IoT) is expected to propel the satellite modem market size during the forecast period.
By Channel Type
SCPC segment influence the market in 2020, and expected to follow the same in future.
However, ambiguity in regulations framework pertaining to satellite communications protocols and standards is restraining the market growth. On the contrary, proposed development of satellite networks to offer internet access in remote areas is expected to provide lucrative opportunities for the growth of this market during the forecast period.
The outbreak of COVID-19 has significantly boosted the growth of the satellite modem market, owing to lack of skilled workforce availability, delay or cancelation of projects, owing to partial or complete lockdown globally. Considering the inputs of various industry experts globally, the third wave of COIVID-19 pandemic is significantly affecting the growth of satellite modem market across the U.S. and the UK. However, increase in demand for 5G network solution globally is expected to drive the growth of this market during the forecast period.
By Technology
Satcom on the Move segment hold domination position in 2020.
The global satellite modem market outlook is segmented into satcom channel type, technology, application, end user, and region. On the basis of channel type, the market is bifurcated into SCPC modem and MCPC modem. The SCPC modem segment dominated the market, in terms of revenue, in 2020, and is expected to follow the same trend during the forecast period. By technology, it is divided into VSAT, satcom-on-the-move, satcom-on-the-pause, and others.
The satcom-on-the move segment was the highest revenue contributor in 2020, and is anticipated to garner significant market share during the forecast period. Depending on application, the market is categorized into mobile & backhaul, IP-trunking, enterprise & broadband, media & broadcast, and others. The IP-trunking segment acquired the largest share in 2020, and is expected to grow at a high CAGR from 2021 to 2030.
By Application
IP Trunking segment generated the highest revenue in 2020.
As per end user, the market is segmented into telecommunications, marine, military & defense, transportation & logistics, oil & gas, and others. The military & defense segment modem segment subjugated the market, in terms of revenue, in 2020, and is expected to follow the same trend during the forecast period.
Region wise, the satellite modem market trends are analyzed across North America (the U.S., Canada, and Mexico), Europe (Germany, the UK, France, Italy, and the rest of the Europe), Asia-Pacific (China, India, Japan, South Korea, and the rest of the Asia-Pacific), and LAMEA (Latin America, the Middle East, and Africa). North America, specifically the U.S., remains a significant participant in the global satellite modem industry. Major organizations and government institutions in the country are intensely putting resources into the technology.
By End User
Others end user segment generated the highest revenue in 2020, and expected to follow the same in future.
Top Impacting Factors
Significant factors that impact the growth of the global satellite modem industry include surge in demand for satellite communication in Internet of Things (IoT), increase in need for enriched high-speed data communications, and rise in number of high-throughput satellites. Furthermore, ambiguity in regulatory framework pertaining to satellite communication protocols and standards affects the market growth. In addition, proposed development of satellite networks to provide internet access in remote areas influences the market growth. However, each of these factors is anticipated to have a definite impact on the growth of the global satellite modem market during the forecast period.
Competitive Analysis
Competitive analysis and profiles of the major satellite modem market players, such as Viasat Inc., ORBCOMM Inc., Novelsat, Datum System, Hughes Networks Systems, Contech Telecommunications Corp., ST Engineering, Teledyne Technologies, Gilat Satellite Networks Ltd., and Work Microwave GmbH are provided in this report.
By Region
North America segment garner significant market share in 2020.
Key Benefits for Stakeholders
- This study comprises analytical depiction of the satellite modem market size along with the current trends and future estimations to depict the imminent investment pockets.
- The overall satellite modem market analysis is determined to understand the profitable trends to gain a stronger foothold.
- The report presents information related to key drivers, restraints, and opportunities with a detailed impact analysis.
- The current satellite modem market forecast is quantitatively analyzed from 2021 to 2030 to benchmark the financial competency.
- Porter’s five forces analysis illustrates the potency of the buyers and suppliers in the smart display.
- The report includes the market share of key vendors and satellite modem market trends.
Satellite Modem Market Report Highlights
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Analyst Review
Satellite modem technology is a set of enhanced technology intended to modulate baseband information on radio frequency and demodulate the modified radio frequency signal receive form communication satellite. Further, the rise in demand for the Internet of Things and artificial intelligence solutions across the military & defense sector is expected to offer profitable opportunities for the satellite modem market. Moreover, the deployment of low orbit satellite solutions is forecast to drive the growth of the satellite modem market in the coming years.
The global satellite modem market is highly competitive, owing to the strong presence of existing vendors. Satellite modem vendors, who have access to extensive technical and financial resources, are anticipated to gain a competitive edge over their rivals, as they have the capacity to cater to the market requirements. The competitive environment in this market is expected to further intensify with increase in technological innovations, product extensions, and different strategies adopted by key vendors.
Surge in demand for emergency response solution for senior citizens globally is driving the need to enhance satellite modem solutions such as SCPC modem and MCPC modem. Moreover, prime economics, such as the U.S., China, Germany, and Japan, plan to develop and deploy next-generation satellite modem solutions across various sectors. For instance, in March 2021, Telesat, one of the world’s most innovative satellite operators, announced today an agreement with satellite communications technology company SatixFy, giving Telesat early access to SatixFy’s second-generation Sx3099 modem chip, which is anticipated to provide lucrative opportunities for the market growth.
Among the analyzed regions, North America exhibits the highest adoption rate of satellite modem and has been experiencing massive expansion of the market. On the other hand, Asia-Pacific is expected to grow at a faster pace, predicting lucrative growth due to emerging countries, such as China, Japan, and India, investing in these technologies. Regions, such as the Middle East and Africa, are also expected to offer new opportunities in the satellite modem market in future.
Globally, various key players and government agencies are investing in satellite modem to make them compatible with various industrial platforms. For instance, on December 16, 2021, Telefonia Germany announced the use of Intelsat Cell Backhaul managed service through Telefonica Global Solutions to bring satellite communication-based 4G LTE mobile coverage rapidly, cost-efficiently, and reliably to customers in some of its most rural coverage areas. In addition, in 2019, Scientists from Nanyang Technological University, Singapore's has successfully launched and deployed its ninth satellite. The AOBA VELOX-IV and SPATIUM-I are nanosatellites trialling new imaging and manoeuvring technologies in space. All these developments across satellite modem showcase lucrative growth opportunities for the market growth.
The key players profiled in the report include Viasat Inc., ORBCOMM Inc., Novelsat, Datum System, Hughes Networks Systems, Contech Telecommunications Corp., ST Engineering, Teledyne Technologies, Gilat Satellite Networks Ltd., and Work Microwave GmbH.
The Satellite Modem Market is estimated to grow at a CAGR of 16.5% from 2021 to 2030.
The Satellite Modem Market is projected to reach $1033.4 million by 2030.
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Significant factors that impact the growth of the global satellite modem industry include surge in demand for satellite communication in Internet of Things (IoT), increase in need for enriched high-speed data communications
The key players profiled in the report include Teledyne Technologies, ST Engineering, Hughes Network Systems and many more.
On the basis of top growing big corporations, we select top 10 players.
The global satellite modem market outlook is segmented intosatcom channel type, technology, application, end user, and region
The outbreak of COVID-19 has significantly boosted the growth of the satellite modem market, owing to lack of skilled workforce availability, delay or cancelation
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