Global satellite communications market to register runaway growth over next 10 years, says study

Even as India prepares to launch the Chandrayaan-3 mission to demonstrate its end-to-end capabilities in safely putting a lander and rover on the lunar surface, the global satellite communication market is projected to grow more than 145 per cent over the next ten years, a new report has said.

The market growing steadily at a CAGR of 9.4 per cent is predicted to be worth $192.09 billion by 2032 vs. $78.22 billion in 2022, according to a study released by the global market research and competitive intelligence provider Fact.MR.

The Covid-19 epidemic and disruptions caused to the supply chains of important raw materials significantly impacted the business’s global growth in 2020.

“Sectors such as aviation, maritime and communication were among the most badly hit businesses by the epidemic, with initial investment declines,” the report stated.

But the availability of new satellite communication technologies and the increased use of the internet of things (IoT) in the aviation industry in applications such as aircraft connection, airlines, air traffic control and management of maintenance, repair and overhaul (MRO) facilities is expected to propel growth in the global satellite communications market.

Besides, the increasingly heavy reliance on satellite communications in military operations is also expected to boost the worldwide market growth over the forecast period. In fact, together with the government, military applications are predicted to be the key growth vertical.

“Due to the rising demand for SATCOM systems from the defence industry, commercial firms have accelerated their development of smart hardware and services. As a result, satellite communications supplement military and defence communication, which is likely to be a major driver of the satellite communication market over the forecast period,” the report said.

It further added that among the different components of the satellite communication industry, communications equipment was set to witness the highest growth of $28.5 billion in revenue at a 9.2 per cent CAGR.

“Rising demand for continuous communication in energy and utilities, oil and gas, agriculture and defence, as well as an increased fleet of automated, connected vehicles are expected to propel the segment’s expansion,” the report observed.

Growth in the broadcasting category, which is expected to have acquired the highest revenue share of 22.2 per cent in 2022, may sputter due to the increased use of over-the-top (OTT) services during the forecast period, the report said.