SATCOM Equipment Market Worth $41.51 Billion by 2029: Report
Encompasses Antennas, Transceivers, Modems, Power Amplifiers, and Integrated Systems
The SATCOM (Satellite Communications) equipment market, valued at $24.27 billion in 2024, is projected to reach $41.51 billion by 2029, at a CAGR of 11.3% from 2024 to 2029 according to a new report by MarketsandMarkets. The SATCOM equipment market is a rapidly evolving sector that has become integral to global communications, thanks to the use of satellite technology to offer reliable, high-capacity connectivity.
The range of products and services encompasses antennas, transceivers, modems, power amplifiers, and integrated systems designed for different applications. SATCOM equipment provides military operations with secure communication and the real-time transmission of data, which helps improve situational awareness and operational effectiveness. Key technologies driving this market include phased array antennas, which enable electronically steerable beams for improved signal tracking; software-defined networking (SDN), which enhances flexibility and efficiency in managing communications; and low Earth orbit (LEO) satellite constellations that significantly reduce latency and increase bandwidth availability.
Beyond defense, the market serves many civil and commercial sectors, such as telecommunications, broadcasting, maritime, aviation, and emergency services. With the increasing demand for high-speed internet and reliable communication solutions, the integration of software-defined networks and the emergence of LEO satellite constellations transform the SATCOM landscape. Such technologies are supposed to increase bandwidth, reduce latency, and enhance overall service quality.
Satcom and terrestrial networks can be integrated using NTNs, that is, LEO and MEO satellites for backhaul and connectivity to terrestrial infrastructure, for providing access to remote or underprivileged areas where traditional terrestrial infrastructure cannot be deployed economically. Satellite backhaul can further enhance the resilience and redundancy of terrestrial networks. The option of secondary connectivity becomes available in case of a network outage or disaster, through which satellite links can establish connectivity quickly and efficiently when an outage occurs and maintain the operation of critical communications services.
Market Segments
Based on platform, the airborne SATCOM segment is likely to continue to lead the SATCOM equipment market during 2024-2029 and is expected to grow due to modernization programs undertaken by various countries, which is likely to raise the demand for the advanced airborne SATCOM in new aircraft.
Commercial segment is expected to lead the SATCOM equipment market in the forecast period from 2023 to 2028, by verticals. This can be ascribed to the increasing need for smooth mobile broadband coverage in rural and far-off regions, large-scale usage of small satellites for business and data communication, improvement in transportation and logistics networks, and increased demand for broadband connections and VSAT connectivity.
The market has been segmented based on connectivity into LEO and MEO/GEO orbit. The LEO orbit segment is estimated to grow at a higher CAGR during the forecast period. Emphasis on the development of SATCOM equipment, coupled with the integration of IoT and 5G technology hardware, is fueling the growth of the SATCOM equipment market.
North America is anticipated to dominate the SATCOM equipment industry during the period between 2024 and 2029 by region. SATCOM equipment has an inbuilt opportunity in the lucrative market of the US within North America. The US government is also increasingly investing in the field of SATCOM to improve the quality and effectiveness of satellite communication.