Satellite Connectivity Market to Reach $22.12 Billion by 2031
The global satellite connectivity Market is expected to grow to $22.12 billion by 2030 at a CAGR of 7.3% from 2022 to 2031, according to a recently-published report from Allied Market Research. The market was measured at $11.12 billion in 2021.
Increase in government investment in space exploration and surge in satellite launches have boosted the growth of the global satellite connectivity market. In addition, an increase in the adoption of satellite constellations supplemented the market growth. However, high initial investment and stringent government regulations regarding satellite launches hinder the market growth. On the other hand, a surge in demand for satellite data and growing integration of artificial intelligence, machine learning, and cloud computing are expected to open new opportunities in the future. The report offers a detailed analysis of changing market trends, top segments, key investment pockets, value chain, regional landscape, and competitive scenario.
By component, the fixed segment is estimated to portray the highest CAGR of 8.9% during the forecast period, due to rise in demand for satellite connectivity for fixed services throughout the world. However, the video segment held the largest share in 2021, accounting for around half of the global satellite connectivity market, and is expected to continue its dominance throughout the forecast period. This is owing to high demand for satellite connectivity for video throughout the world.
The LEO segment held the largest share in 2021, contributing to nearly three-fifths of the global satellite connectivity market, and is expected to maintain leading position during the forecast period. In addition, the segment is projected to manifest the highest CAGR of 8.1% during the forecast period, owing to the rise in satellite launches in the LEO orbit by several private players globally.
By end user, the commercial segment is projected to manifest the highest CAGR of 7.6% during the forecast period. In addition, the segment held the largest share in 2021, accounting for more than three-fourths of the market, and is expected to continue its dominance from 2022 to 2031. This is due to the majority of the satellite connectivity being consumed for various commercial applications throughout the world.
North America held the largest share of the market in 2021, accounting for more than half of the value. This is due to increase in R&D activities, technological developments by key players, and rapid adoption of innovative technologies in making advanced, reliable, precise, and efficient satellite connectivity systems. However, the market across Asia-Pacific is expected to register the highest CAGR of 9.9% during the forecast period, owing to the rise in procurement and development of advanced satellite connectivity systems across several Asian nations, for instance, China, India, Japan, and South Korea.
(Source: Allied Market Research news release. Image from file)