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The satellite communication market in defense sector size is forecast to increase by USD 3.66 billion at a CAGR of 9.3% between 2023 and 2028. The market is experiencing significant growth due to several key trends and drivers. One notable trend is the increasing use of Unmanned Aerial Vehicles (UAVs) and Remotely Piloted Aircraft Systems (RPAS) in defense applications, which require real-time data transmission for effective operation. Satellite communication plays a crucial role in providing this data, enabling enhanced situational awareness and improved decision-making. Another trend is the deployment of satellite constellations for various applications, including earth-based observation, Intelligent Transport Systems (ITS), media and broadcasting, and Direct-to-Home (DTH) broadcasting. Artificial Intelligence (AI) is also being integrated into satellite communication systems to enhance their capabilities, such as predictive maintenance and automated data processing. However, the high cost of satellite hardware and components remains a significant challenge for market growth. Despite this, the benefits of satellite communication in defense applications, including increased security and improved operational efficiency, are driving demand for advanced solutions. Overall, the market is expected to continue growing, with a focus on innovation and cost reduction to meet the evolving needs of defense organizations.
Satellite communication, a vital component of modern technology, plays a pivotal role in the defense sector. This technology facilitates data transmission, voice communications, video streaming, and various other applications, including Internet of Things (IoT) connectivity and machine-to-machine communication. Satellite communication, also known as Satcom, operates by transmitting and receiving data using electromagnetic waves. These waves travel through various frequency bands, such as Satcom spectrum, to ensure seamless connectivity between spacecraft in orbits and terrestrial networks. The defense sector heavily relies on Satcom for high-speed internet access, navigation, remote sensing, and weather tracking. Communications satellites, placed in geostationary orbit (GEO) or low Earth orbit (LEO), enable real-time data exchange and support various applications. Multi-orbit communication, which includes both GEO and LEO satellite constellations, offers advantages such as increased coverage, reduced latency, and improved reliability. Weather satellites, an essential part of Earth observation systems, provide valuable data for meteorological forecasting and disaster management.
Satellite communication plays a crucial role in voice communications, ensuring secure and uninterrupted communication between military personnel, especially in remote locations or during emergency situations. Furthermore, high-speed internet access through satellite communication enables real-time data analysis and decision-making, enhancing operational efficiency and effectiveness. The integration of IoT and machine-to-machine communication in satellite communication has led to broadband internet access for remote areas, enabling various applications such as surveillance, monitoring, and control systems.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The surveillance and tracking segment is estimated to witness significant growth during the forecast period. Satellite communication plays a crucial role in the defense sector by facilitating real-time data transmission and enhancing situational awareness. Governments utilize this technology to monitor territorial boundaries, track enemy movements, and provide secure communication channels for military personnel.
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The surveillance and tracking segment was the largest segment and was valued at USD 2.57 billion in 2018. Small satellite constellations, such as CubeSats, are increasingly popular due to their cost-effectiveness and flexibility. These satellites enable broadband internet access, IoT connectivity, machine-to-machine communication, and asset tracking for various defense applications. Moreover, satellite communication is essential for environmental monitoring, navigation services, and autonomous technology. For instance, real-time data tracking of weather patterns and natural disasters can help military forces prepare for potential threats.
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North America is estimated to contribute 39% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The defense sector in North America is witnessing significant growth in satellite communication, with the United States leading the way. The region's market expansion is driven by substantial investments in defense, with plans to launch 28 communication satellites in Low Earth Orbit (LEO) between 2022 and 2024. The heightened threat of terrorist activities within the country has prompted the government to allocate a substantial budget of around USD30 billion for the United States Space Force in fiscal year 2024. Geopolitical tensions between countries like China, Russia, and Afghanistan have further fueled the need for advanced satellite communication systems in the defense sector.
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Increased seaborne security threats is notably driving market growth. In the defense sector, satellite communication plays a pivotal role in enhancing maritime security, particularly in regions with extensive coastlines. The vast expanse of water poses unique challenges in maintaining security, as illegal activities such as piracy, human trafficking, drug smuggling, and illegal fishing thrive in these areas.
Traditional methods of maritime security have limitations in detecting and disrupting these threats. Satellite imaging technology offers a viable solution by providing real-time intelligence on potential threats in the sea. This information is crucial for coastal defense units to take swift action against pirate ships or other unauthorized vessels. Satellite communication enables quick and accurate data transmission, allowing security personnel to make informed decisions and take necessary measures to ensure maritime security. Thus, such factors are driving the growth of the market during the forecast period.
Use of AI in satellite communication for earth-based observation is the key trend in the market. The integration of Artificial Intelligence (AI) in the processing and interpretation of satellite-transmitted data is gaining significant traction within the defense sector. The advancements in machine learning and analysis algorithms enable AI to extract valuable insights from vast amounts of data obtained by satellites. A solitary satellite can transmit over a terabyte of earth imagery daily, making manual analysis by human analysts an arduous task.
In such scenarios, AI-driven software applications simplify the process of deriving meaningful information from the raw data. This trend is fueling the demand for AI-based software applications in satellite communication for the defense sector. Unmanned Aerial Vehicles (UAVs) and Remotely Piloted Aircraft Systems (RPAS) are increasingly relying on satellite constellations for real-time data transmission. Thus, such trends will shape the growth of the market during the forecast period.
High cost of satellite hardware and components is the major challenge that affects the growth of the market. Satellite communication plays a pivotal role in the defense sector, enabling data transmission for various applications such as video streaming, Internet of Things (IoT), and Intelligence, Surveillance, and Reconnaissance (ISR). Frequency bands, including Satcom Spectrum, are crucial for effective connectivity solutions. Multi-orbit communication, including Low Earth Orbit (LEO) and Geostationary Orbit (GEO), offers advantages in terms of latency and coverage.
Despite their importance, satellites face significant challenges due to the space environment and stringent security and certification requirements. The manufacturing process is complex and costly, with satellites becoming increasingly larger and more complex. Transponders, a key component, require substantial maintenance costs, amounting to hundreds of thousands of dollars annually. Hence, the above factors will impede the growth of the market during the forecast period
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Airbus SE: The company offers satellite communication such as MilSatCom for defense sector.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
Satellite communication plays a pivotal role in the defense sector, enabling real-time data transmission for various applications. The integration of satellite technology with IoT, RPAS, and ISR systems has revolutionized data collection and analysis in the defense industry. Frequency bands, such as S-band, C-band, and X-band, are utilized for satcom spectrum, providing connectivity solutions for voice communications, high-speed internet, navigation, and remote sensing. Multi-orbit communication, including low Earth orbit (LEO) and geostationary orbit (GEO), enhances satellite coverage and capacity. LEO satellites are used for real-time data tracking and IoT connectivity, while GEO satellites support broadcasting applications like DTH and media and broadcasting. Artificial intelligence (AI) and intelligent transport systems (ITS) are increasingly being integrated with satellite communication to optimize resource allocation and improve operational efficiency.
Satellite infrastructure provides remote connectivity for defense forces, enabling digital transformation and enhancing communication networks. Satellite communication is essential for various defense applications, including weather tracking, asset tracking, environmental monitoring, and cybersecurity concerns. Antenna technology and satellite manufacturing have advanced significantly, enabling the development of small satellite constellations, nanosatellites, and microsatellites for broadband internet access and machine-to-machine communication. Satellite communication is a crucial component of space technology and space programs, providing navigation services, commercial applications, and supporting smart city initiatives. Space innovation continues to drive advancements in satellite technology, enhancing its role in defense applications.
Market Scope |
|
Report Coverage |
Details |
Page number |
141 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 9.3% |
Market growth 2024-2028 |
USD 3.66 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
8.3 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 39% |
Key countries |
US, China, UK, Germany, and India |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Airbus SE, Cobham Ltd., EchoStar Corp., Elbit Systems Ltd., Eutelsat S.A., General Dynamics Corp., Honeywell International Inc., Indra Sistemas SA, Inmarsat Global Ltd., KVH Industries Inc., L3Harris Technologies Inc., Lockheed Martin Corp., NSIL Corp. Ltd., ORBCOMM Inc., RTX Corp., Thales Group, Thuraya Telecommunications Co., and Viasat Inc. |
Market dynamics |
Parent market analysis, market trends , market report , market forecast , Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Opportunity/Restraints
10 Competitive Landscape
11 Competitive Analysis
12 Appendix
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