SATCOM Equipment Market Worth $53.7 Billion by 2026

The Satellite Communication (SATCOM) Equipment Market is expected to grow to $53.7 billion at a CAGR of 19.6 percent by 2026 according to a new report from MarketsandMarkets.

The SATCOM equipment market is growing at a significant rate across the world, and a similar trend is expected to be observed during the forecast period. The deployment of low earth orbit (LEO) satellites and constellations of satellites for communications applications has increased their demand across the globe. Other factors driving the market growth include growing demand for Ku- and Ka-band satellites, and the growing fleet of autonomous and connected vehicles used for various applications in the military and commercial sectors, which require customized SATCOM-on-the-move antennas.

Growing investments by several governments particularly in developed and developing economies such as the US, India, and China, among others. COVID-19 has affected the market growth to some extent, and this varies from country to country. Industry experts believe that the pandemic has not affected the demand for SATCOM equipment.

The airborne SATCOM segment is estimated to lead the market from 2021 to 2026 and is projected to grow further due to the increasing need for high-definition intelligence, surveillance, and reconnaissance (ISR) videos, and increasing number of connected commercial aircraft, rising adoption of UAVs and rising number of private aviation companies worldwide supporting market growth.

The commercial segment is expected to lead the SATCOM equipment market from 2021 to 2026. This is due to increasing need for uninterrupted mobile broadband coverage in remote and far-flung regions, streaming information and entertainment, extensive use of small satellites for commercialization and data transferability, technological advancements in transport and logistics network, and increasing demand for broadband connections and VSAT connectivity. In July 2021, the Digital Communications Commission (DCC) accepted the sector regulator's call to allow VSAT operators to provide satellite-based cellular backhaul connectivity to telcos to ensure uninterrupted mobile broadband coverage in remote and far-flung regions.

North America is expected to make up the largest portion of the market during the forecast period.

(Source: MarketsandMarkets news release. Image from file)