Satellite Phone Market Analysis APAC, North America, Europe, Middle East and Africa, South America - US, China, Japan, UK, Germany - Size and Forecast 2024-2028

Satellite Phone Market Size 2024-2028

The satellite phone market size is forecast to increase by USD 111.7 million at a CAGR of 3.36% between 2023 and 2028. 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.

What will be the Size of the Market During the Forecast Period?

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Market Segmentation

The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Million" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.

• Application Outlook 
  • Maritime
  • Aerospace
  • Government
  • Energy
• Product Outlook 
  • GEO
  • LEO
• Region Outlook 
  • APAC
    • China
    • India
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • North America
    • The U.S.
    • Canada
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa
  • South America
    • Brazil
    • Argentina
    • Chile

By Application

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 250.40 million in 2018. 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. The growth of this maritime information 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.

By Product

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.

Regional Overview

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APAC is estimated to contribute 30% 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.

Customer Landscape

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

Market Dynamics and Customer Landscape

The market plays a crucial role in disaster management and communication during emergencies such as earthquakes, hurricanes, and other natural disasters and criss. Operating via orbiting satellites in low earth orbit or geostationary positions, satellite phones provide reliable connectivity in remote areas and open oceans where conventional network coverage is sparse. They are essential tools for disaster management teams, military personnel, and government agencies needing robust communication infrastructure. Satellite phones offer direct dialing with unique phone numbers, bypassing the need for terrestrial cellular networks and cell towers. With integrated GPS capabilities, they ensure precise location tracking, enhancing safety and coordination in wilderness areas and remote environments. The market is crucial for emergency responders and public safety agencies, offering reliable communication tools like geosynchronous satellite phones. Essential for government and maritime sectors, these devices support aerospace and defense operations and ensure bifurcated communication channels in critical situations.

Key Market Driver

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.

Significant Market Trends

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.

Major Market Restrain

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.

Further, 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.

Who are the Major Market Companies?

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:

• AT and T Inc.
• Inmarsat Global Ltd
• Iridium Communications Inc.
• Telefonaktiebolaget LM Ericsson
• Thuraya Telecommunications Co.
• United Parcel Service Inc.
• Globalstar Inc.

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.

Market Analyst Overview

The market is pivotal in providing resilient communication solutions for various sectors, especially during climate-related disasters like floods, storms, and tropical cyclones. Operating through low earth orbit LEO and GEO satellite constellations, satellite phones ensure reliable call quality and accessibility in remote locations such as open oceans and wilderness areas, overcoming dead spots and constraints of traditional cellular networks. They are indispensable for mission-critical applications in defense, aerospace, oil and gas, mining, and emergency response sectors, where dependable communication is essential. Offering connectivity without roaming costs and leveraging advancements like 5G networks and IoT integration, satellite phones support business operations, outdoor enthusiasts, remote workers, and travelers worldwide. With robust customer support and affordability, they serve as lifelines during emergencies and critical situations, reinforcing their role in disaster management and global connectivity.

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What are the Key Data Covered in this Market Forecast Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting between 2023 and 2027
• Precise estimation of the market size and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Market growth analysis across APAC, North America, Europe, Middle East and Africa, and South America
• Thorough analysis of the market’s competitive landscape and detailed information about companies
• Market forecasting of factors that will challenge the growth of market companies

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