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The satellite phone market size is forecast to increase by USD 137.43 million at a CAGR of 4.2% between 2022 and 2027. The growth of the market depends on several factors, including the advantages of satellite phones over landline and cellular phones, the growing investments in satellite communication, and the development of nano and microsatellites. Satphones are basically handheld mobile phones that use satellites to communicate with landlines, cellular, and other satellite phone systems. The process of satellite communication generally begins with the satellite receiving an information signal, either by voice or text, from the sending phone (source), and it transmits the signal to the satellite phone (receiver) or to a ground station for transmission to the receiver. This market research and growth report also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The market is driven by various factors, including the need for communication in remote and sensitive areas. Satphones provide connectivity in areas with no terrestrial cellular networks, making them essential for military personnel, government agencies, and public safety organizations. They operate via orbiting satellites in geosynchronous or low-Earth orbits, overcoming technical limitations such as dead spots and offering reliable voice quality. These phones are crucial for mission-critical applications and during climate-related calamities, serving industries like aviation, energy, and tourism. Despite advancements, challenges remain in radio wave propagation, especially in dense urban areas with many buildings, requiring innovative antenna designs to improve coverage and pocket-sized devices for convenience.
The market is essential for communication in remote and sensitive areas, providing connectivity beyond terrestrial networks. Satphones are crucial for military personnel, government agencies, and public safety in mission-critical applications and during natural disasters. They ensure reliable communication for defense, maritime, and aviation sectors, even in dead spots. Despite technical limitations, including voice quality and radio wave propagation, satellite phones offer geosynchronous and low-earth orbit coverage. They come in various forms, including pocket-sized devices and bag packs, enabling users to stay connected in challenging environments where traditional networks may not reach, making them indispensable tools for communication and safety.
The innovative features and user interfaces are notably driving the satellite phone market growth. Satellite phones utilize satellites to communicate with landlines, cellular, or other satellite phones across the globe. Satellite phones are mainly used for emergency communications in order to coordinate response and recovery efforts in remote areas. Existing land-based networks are prone to damage or becoming overloaded during a natural disaster, such as severe weather or earthquake, or a manmade incident, including potential chemical, biological, radiological, nuclear, or explosive events. In addition, scenarios may arise during such situations where the landline or cellular telephone networks are inaccessible or down.
Therefore, satphones aid in maintaining the command and control functions during an emergency when the existing communications networks in that specific area are non-functional. These phones are simpler to operate than cellular phones and are comparatively more rugged, which allows them to withstand extreme weather conditions. These factors, thus, lead to a higher price for the products than ordinary, terrestrial cell phones. With advances in technology, the newer models of satphones have become smaller and lighter and have more display functionalities than modern cellular phones. Satellite phone communications companies are attempting to provide services with enhanced technologies such as better geographic coverage, audio quality, and reliability. Hence, the rugged nature of satellite phones will drive the growth of the global market during the forecast period.
Progression toward low-cost, satellite-based Internet services is the primary trend driving the market growth. At present, the satellite-based Internet uses satellites in geostationary orbit, which are 22,000 miles or more above the Earth. However, the long-distance results in high latency and makes satellite Internet a poor option for several applications like gaming, video conferencing, and live streaming. In addition, communications from traditional large-size satellites and launching them into orbit require a huge amount of investment, which simultaneously increases the cost of satellite-based Internet services.
In comparison, the constellation of nano and microsatellites placed in low-earth orbit (LEO), which is around 680 miles from the Earth, has lowered the latency in Internet services to approximately 20-30 milliseconds, which is comparable to the existing broadband Internet solutions that use fibre-optic cable networks. Nano and microsatellite-based infrastructure is, thus, a good alternative for providing low-cost satellite-based Internet services. Thus, the implementation of low-cost satellite-based Internet services may drive the growth of the market during the forecast period.
Stringent regulatory standards for satellite phone development may impede market growth. Satellite mobile phones need to be manufactured in accordance with standards such as the European standard EN 62262/International Electrochemical Commission 62262 (IEC 62262), European standard EN 60529/International Electrochemical Commission 60529 (IEC 60529), and the US Department of Defense MIL-STD-810F. EN 62262/IEC 62262-2002 relates to the impact protection (IK) ratings, which specify the degree of protection against mechanical impact provided by enclosures for electronic equipment.
The MIL-STD-810F standard involves a series of test methods that aid in determining the ability of an instrument to operate under different environmental conditions, such as exposure to rain, sand, dust, vibration, or shock. The test methods of MIL-STD-810F include defining the environmental stress sequences, durations, and levels of equipment lifecycles, followed by deciding the analysis and testing criteria customized as per the equipment and evaluating the equipment performance when exposed to different types of environmental stress. Additionally, the deficiencies, shortcomings, and defects in equipment design, materials, communications processes, packaging techniques, and maintenance methods are identified, besides ensuring that the equipment complies with contractual requirements. This long list of criteria that regulatory standards for satellite phones impose will hamper the growth of the global market during the forecast period.
The market serves various applications, particularly in remote locations where terrestrial cellular networks are unavailable. With orbiting satellites, these phones ensure connectivity even in the most isolated areas, aiding in emergencies and disaster management, especially during climate-related calamities. They are vital for military forces, public safety agencies, and energy sectors where reliable communication is crucial. Low-Earth Orbit (LEO) satellites enable faster and more efficient communication, benefiting industries like tourism and construction. Utilizing portable devices, such as pocket satphones, users can stay connected anywhere, regardless of network infrastructure or geographical barriers. Antennas play a key role in ensuring strong signals and facilitating clear and uninterrupted communication.
The market share growth by the maritime segment will be significant during the forecast period. The maritime segment accounted for a significant share of the global satellite phone market in 2022. The segment is expected to benefit from the rising investments in satellite technologies for surveillance, regional security, and spy intelligence in emerging economies such as China, India, and Russia. In May 2019, the Indian Space Research Organization (ISRO) launched a new EO satellite, RISAT-2B (Radar Imaging Satellite-2B). The applications of the RISAT-2B include agriculture and forestry surveillance and support disaster management. It is also used for military surveillance, similar to RISAT-2, which was launched in April 2009 to monitor enemy camp activities inside Pakistan's border.
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The maritime segment showed a gradual increase in market share from USD 244.90 million in 2017 and continued to grow by 2021. The segment is expected to witness a growing trend of hybrid procurement (public-private partnerships), combining proprietary application and data purchase framework contracts prompted by budgetary constraints on defence spending, low utilization rates, and the need to increase the competitiveness of the overall industry. Furthermore, our report provides a brief analysis of historical and forecast market share and their segments, along with their reasons for growth from 2017 to 2027.
The growth of this segment is primarily attributed to the increasing adoption of the market, which is driven by an increase in the global demand for the satellite phone industry.
Based on product, the geo segment holds the largest market share. Geosynchronous orbit (GEO) satellite phones rely on satellites positioned around 22,000 miles above the Earth's equator, synchronized with its rotation, ensuring they stay fixed in place. This setup enables stable antenna alignment, delivering nearly constant global coverage with minimal satellites. However, GEO satellites have limitations within 82 degrees north and south of the equator, and users might experience signal delays due to signal travel distance. Thuraya Telecommunication Co. uses Thuraya 2 for EMEA coverage, operated through a Ground Segment. Inmarsat Group Ltd. employs 13 GEO satellites, including Alphasat and Inmarsat-4, expanding with the Inmarsat-5 series, enhancing their Global Xpress network. The growing need for integrated safety and intelligent monitoring systems in industries is expected to drive market demand.
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APAC is estimated to contribute 33% 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 market in APAC is experiencing the fastest growth among all the regions, mainly owing to the rapid increase in the demand for satellite communication from the developing countries in the region. Countries such as China, Japan, and India are investing in developing advanced satellite-based infrastructure capabilities at different locations. Cross-border security threats in APAC have been a prime motivator for governments to pursue development programs to manufacture multi-role satellites with advanced subsystems to ensure uninterrupted enhanced connectivity.
The market 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 growth 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.
Zscaler- The company offers a secure web gateway such as Sophos Rapid Response.
The research report also includes detailed analyses of the competitive landscape of the market and information about 8 market 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.
The market is witnessing significant growth, driven by various factors. Orbiting satellites and terrestrial cellular networks ensure connectivity even in remote locations and sensitive areas where traditional networks may not reach. These phones are crucial for military personnel, government agencies, and public safety organizations, enabling communication in mission-critical applications and during natural disasters or climate-related calamities. They are also essential for military forces, aviation, and tourism industries. Despite technical limitations such as dead spots and voice quality issues, satellite phones provide reliable communication through radio wave propagation. With compact designs that fit into pocket or bag packs, satellite phones utilize antennas to establish connections, making them indispensable in areas with limited network infrastructure.
The market, also known as the Satphone market, is evolving due to various factors. With the increasing incidences of natural disasters and the impact of global climate change, Satellite telephones/Satphones are becoming vital tools for communication, especially in areas where traditional networks are unavailable. Public safety agencies rely on Satphones for coordination and response during emergencies, while individuals find them convenient to carry in pocket or bag packs. However, costly calls and expensive roaming rates have been a concern, prompting the industry to offer prepaid options and postpaid options to mitigate expenses. Government restrictions and defense expenditure also influence the market, as Satphones play a crucial role in defense industry communications. With internet-enabled devices entering the market, the future of satellite phone technology looks promising. They are particularly useful in remote areas and inside buildings, where terrestrial networks are weak and roaming costs are high.
The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Market Scope |
|
Report Coverage |
Details |
Page number |
150 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.2% |
Market growth 2023-2027 |
USD 137.43 million |
Market structure |
Concentrated |
YoY growth 2022-2023(%) |
3.2 |
Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
Performing market contribution |
APAC at 33% |
Key countries |
US, China, Japan, UK, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
AT and T Inc., Inmarsat Global Ltd, Iridium Communications Inc., Telefonaktiebolaget LM Ericsson, Thuraya Telecommunications Co., United Parcel Service Inc., and Globalstar 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 forecast period |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Five Forces Analysis
5 Market Segmentation by Application
6 Market Segmentation by Product
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Vendor Landscape
11 Vendor Analysis
12 Appendix
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