Satellite Communication Industry Propelled by SmallSat Deployment

The satellite communication industry is expected to grow to $80.83 billion in 2026 at a CAGR of 10.4%, propelled in part by the large number of small satellites that have been deployed.

That growth rate is slightly lower than the CAGR of 13.5% experienced by the satellite communication industry the previous two years, when the value expanded from $47.86 billion in 2021 to $54.34 billion in 2022, according to a new study from Research and Markets.

The satellite communication market consists of sales of satellite communication technologies by entities (organizations, sole traders, and partnerships) that are used to provide communication services over widely dispersed locations. Satellite communications refer to a system that uses satellite technology to transport information from one place to another through a communication satellite placed in the Earth's orbit. The signal is transmitted through a transponder between the transmitter and the receiver.

Satellite Communication Industry Includes Several Components

The main components of the satellite communication industry are the transponder, transceiver, antenna, receiver, and other sectors. The transponder transmits the signal between the transmitter and the receiver. Satellite communication uses various technologies such as SATCOM automatic identification system, SATCOM VSAT, SATCOM on-the-move (SOTM), SATCOM on the pause (SOTP), and SATCOM telemetry that are used for asset tracking and monitoring, airtime, data backup and recovery, navigation and monitoring, broadcasting, and other applications. It is employed in government and military applications, civil satellite communications, commercial applications, and other verticals.

North America was the largest region in the satellite communication market in 2021. Asia Pacific is expected to be the fastest-growing region for the industry in the forecast period. The regions covered in the satellite communication market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.

The increasing deployment of small satellites is expected to propel the growth of the satellite communication industry going forward. Small satellites are miniature satellites used in advanced space operations. Small satellites are more beneficial for satellite communication as they reduce the cost of space operations, expand access to space and gather scientific data.

(Source: Research and Markets news release. Infographic provided. Image from file)