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The satellite communication market share in the defense sector is expected to increase by USD 2.56 billion from 2021 to 2026 at a CAGR of 6.81%.
This satellite communication market in the defense sector research report provides valuable insights on the post COVID-19 impact on the market, which will help companies evaluate their business approaches. Furthermore, this report extensively covers satellite communication market in defense sector segmentation by application (surveillance and tracking, remote sensing, disaster recovery, and others) and geography (North America, Europe, APAC, South America, and Middle East and Africa). The satellite communication market in defense sector report also offers information on several market vendors, including Airbus SE, Cobham Plc, EchoStar Corp., Elbit Systems Ltd., Eutelsat Communications SA, General Dynamics Mission Systems Inc., Honeywell International Inc., Indra Sistemas SA, Inmarsat Global Ltd., KVH Industries Inc., L3Harris Technologies Inc., Lockheed Martin Corp., NSIL Corp. Ltd., ORBCOMM Inc., Raytheon Technologies Corp., Thales Group, Thuraya Telecommunications Co., and Viasat Inc. among others.
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The increased seaborne security threats is notably driving the satellite communication market growth in defense sector, although factors such as the high cost of satellite hardware and components may impede the market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the satellite communication industry in defense sector. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.
Key Satellite Communication Market Driver in Defense Sector
The increased seaborne security threats is one of the key drivers supporting the satellite communication market growth in defense sector. In the first half of 2021, the International Maritime Bureau (IMB) recorded 68 incidents of piracy and robbery across the globe, and 50 cases of violence against crew members were reported in 2021. Such threats hinder transits in the trade routes and damage relationships between countries. Satellite imaging can detect any unforeseeable threat and relay it back to security personnel. They can track the exact location of pirate ships and provide information to the coastal defense units. Satellite communication can also track weather changes which can help the coastal defense services to prepare for threats such as cyclones, tsunamis, and other weather-borne threats. Hence, the demand for satellite communication is expected to increase in the defense sector due to the demand for investments from maritime security during the forecast period.
Key Satellite Communication Market Trend in Defense Sector
The use of AI in satellite communication for earth-based observation is another factor supporting the satellite communication market growth in defense sector. Machine learning and analysis algorithms innovations make AI-derived information more beneficial for governments and armed forces. The use of AI makes it easier to analyze large amounts of data that is collected by satellites. A single satellite may send more than a terabyte of earth imagery daily. The analysis of such data by human analysts becomes almost impossible. In such cases, AI-based software applications make it simpler to gain insights from the raw data. For instance, in June 2021, new technology was developed by Oxford researchers in partnership with the European Space Agency's (ESA) Phi-lab, which will pilot the detection of flood events from space. Such instances will drive market growth during the forecast period.
Key Satellite Communication Market Challenge in Defense Sector
The high cost of satellite hardware and components is one of the factors hindering the satellite communication market growth in defense sector. Satellites have become larger, more complex, and more expensive. Building such a complex machine requires a lot of resources and financial support to design, construct, launch, and monitor them. Some factors that drive the cost of satellites are the equipment and materials used to build them. Transponders alone cost hundreds of thousands of dollars a year to maintain, while the cost of bandwidth per MHz is priced at a minimum of about $3,500 per month. Running a satellite at a 36-MHz bandwidth will cost over $1.5 million a year. There are also other gadgets and equipment that must be built into the satellite for it to perform its intended function, including computers, computer software, and cameras. Factors such as these will hinder the growth of the global satellite communication market in defense sector during the forecast period.
This satellite communication market in defense sector analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2022-2026.
Technavio categorizes the satellite communication market in defense sector as a part of the global communications equipment market. Our research report has extensively covered external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the satellite communication market in defense sector during the forecast period.
The report analyzes the market's competitive landscape and offers information on several market vendors, including:
This statistical study of the satellite communication market in defense sector encompasses successful business strategies deployed by the key vendors. The satellite communication market in defense sector is fragmented and the vendors are deploying organic and inorganic growth strategies to compete in the market.
To make the most of the opportunities and recover from post COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.
The satellite communication market in defense sector forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies.
Our report provides extensive information on the value chain analysis for the satellite communication market in defense sector, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chain is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.
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40% of the market's growth will originate from North America during the forecast period. The US is the key market for satellite communication market in defense sector in North America. Market growth in this region will be slower than the growth of the market in APAC.
The high investment in the defense sector made by the US will facilitate the satellite communication market growth in defense sector in North America over the forecast period. This market research report entails detailed information on the competitive intelligence, marketing gaps, and regional opportunities in store for vendors, which will assist in creating efficient business plans.
COVID Impact and Recovery Analysis
In 2020, the satellite communication market in defense sector experienced an increase in demand for satellite communication for maintaining border security. The COVID-19 pandemic led to lockdowns in various regions and the shutting of trade routes, which impacted the global market. However, countries faced the increased threat of invasion and trespassing as the COVID-19 pandemic led to reduced ground surveys. Such factors will drive the market in focus during the forecast period.
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The satellite communication market share growth in defense sector by the surveillance and tracking segment will be significant during the forecast period. Satellite communication helps in surveillance and tracking countries with important data related to territorial boundaries. The defense satellite can relay information from enemy territory, track suspicious locations, and guide military officers concerning threats during an active mission. They are also used to enhance the safety of military personnel and provide extra security cover for leaders, bureaucrats, and other high-ranking officials. Such developments will lead to an increase in investment by various countries in satellite communication for the defense sector during the forecast period.
This report provides an accurate prediction of the contribution of all the segments to the growth of the satellite communication market size in defense sector and actionable market insights on post COVID-19 impact on each segment.
Satellite Communication Market Scope in Defense Sector |
|
Report Coverage |
Details |
Page number |
120 |
Base year |
2021 |
Forecast period |
2022-2026 |
Growth momentum & CAGR |
Decelerate at a CAGR of 6.81% |
Market growth 2022-2026 |
$ 2.56 billion |
Market structure |
Fragmented |
YoY growth (%) |
8.97 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 40% |
Key consumer countries |
US, China, India, UK, and Germany |
Competitive landscape |
Leading companies, Competitive strategies, Consumer engagement scope |
Key companies profiled |
Airbus SE, Cobham Plc, EchoStar Corp., Elbit Systems Ltd., Eutelsat Communications SA, General Dynamics Mission Systems Inc., Honeywell International Inc., Indra Sistemas SA, Inmarsat Global Ltd., KVH Industries Inc., L3Harris Technologies Inc., Lockheed Martin Corp., NSIL Corp. Ltd., ORBCOMM Inc., Raytheon Technologies Corp., Thales Group, Thuraya Telecommunications Co., and Viasat Inc. |
Market dynamics |
Parent market analysis, 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 the 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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