Satellite Communication Market to Reach $99.58 Billion Globally by 2027
The global satellite communication market was pegged at $56.01 billion in 2019, and is expected to hit $99.58 billion by 2027, registering a CAGR of 9.2% from 2020 to 2027, according to a new report from Allied Market Research.
Development of Internet of Things (IoT) and autonomous systems, an increase in demand for military and defense satellite communication solutions, and the rise in adoption of SATCOM equipment in online streaming services, radio, and TV broadcasts are driving the growth of the global satellite communication market. On the other hand, cyber security threats to satellite communication and interference in satellite data transmission can restrain the growth. Nevertheless, high-end technological advancements in satellite missions and deployment of the 5G network through satellites are projected to pave the way for lucrative opportunities in the industry.
The broadcasting segment contributed to more than two-fifths of the total market share in 2019, and is anticipated to lead the market by 2027, due to rising demand for direct-to-home satellite broadcasting services. However, the data communication segment is forecast to grow at the fastest CAGR of 10.7% from 2020 to 2027. This is because it is used for real-time data conveyance for applications such as meteorological, hydrological, and maritime among others.
The services segment contributed to around two-thirds of the total market revenue in 2019, and is expected to dominate by 2027, due to rising need for high-speed and reliable internet connectivity. The equipment segment, on the other hand, would manifest the fastest CAGR of 9.9% from 2020 to 2027. The fact that advanced equipment is utilized in scientific research, earth observation, automotive, and telecommunication industries for efficient performance will drive the growth of the segment, according to the research.
Europe, followed by Asia-Pacific and North America garnered around one-third of the global market in 2019, due to an increase in adoption of the technology among industries such as civil and defense in the European region. At the same time, the market across Asia-Pacific is anticipated to grow at a CAGR of 10.1% during the forecast period, due to increased investment in the deployment of satellite communication in countries such as China and India.
(Source: Allied Market Research news release. Infographic Provided)