Mobile Satellite Phone Market Revenue to Grow to $5.2 Billion
According to a report published by Research Dive, the global mobile satellite phone market is anticipated to see revenue reaching $5.26 billion, at a CAGR of 4.0%, between 2019-2027. The report puts forth a summary of the current market scenario, including other aspects such as opportunities and challenges, industry dynamics, and growth & restricting factors during and post pandemic period. The report also offers industry statistics which makes it easier and more beneficial for the new participants to comprehend the present market.
The global mobile satellite phone market is anticipated to experience a massive growth in the analysis period mainly due to an increase in adoption of mobile satellite phones for assistance during emergency conditions in various sectors like construction, tourism, fisheries, mining, and transport industries. Satellite phones are primarily used when existing communication networks are non-functional during extreme weather conditions, natural and man-made disasters. Furthermore, recent satellite phone models are much lighter, smaller, and have more functions than standard cell phones. In addition to the those factors, mobile satellite phones also have better geographic networks than landline and cellular phones. These factors are expected to drive the global mobile satellite phone market during the forecast period by increasing demand for innovative mobile satellite phone solutions.
There are certain standards set by government bodies across various countries for manufacturing mobile satellite phones. This factor is anticipated to restrain the growth of the market.
The North America mobile satellite phone market accounted for $1.25 billion in 2019 and is projected to garner a revenue of$1.62 billion by 2027. Mobile satellite phones are widely used in the defense sector as they are the only means of communication in emergency situations, when all other means of communications become inaccessible. In November 2020, Inmarsat, a world leader in global mobile satellite communications, was granted a three-year contract with the European Space Agency (ESA). This contract aims to co-fund the development of a new facility for governments across the globe, wherein they can plan, monitor, procure, and manage the satellite communications (satcoms) from Inmarsat and other operators and service providers across the world. Such initiatives and companies investing across the region are anticipated to positively boost the demand for mobile satellite phone in the region during the analysis period.
The global mobile satellite phone market is predicted to witness moderate growth during the pandemic. The COVID-19 pandemic impacted several industries including the mobile satellite phone market due to factory shutdowns and disruption in supply chains. To mitigate the effect of the pandemic on the mobile satellite phone market, several market players concentrated their effort on product developments and strategic alliances that lead to several successful operations. In Oct 2020, Iridium Communications Inc., an American company headquartered in Mclean, announced that they experienced a 26% hike in subscription rate during the pandemic. Such key factors are predicted to also generate investment opportunities in the mobile satellite market in the near future.
(Source: Research Dive news release. Public Domain image)