Satellite Modem Market to Reach $1.03 Billion by 2030
The global satellite modem market generated $354.6 million in 2020, and is expected to reach $1.03 billion by 2030, witnessing a CAGR of 16.5% from 2021 to 2030, according to new analysis released by Allied Market Research.
An increase in the need for enriched high-speed data communication, rising numbers of high-throughput satellites (HTS), and the demand for satellite communication in the internet of things (IoT) are driving the growth of the global satellite modem market. However, ambiguity in the regulatory framework regarding satellite communication protocols and standards restrains the market growth. On the other hand, proposals to develop satellite networks that will provide internet access in remote areas could create new opportunities in the coming years, according to the report.
The demand for satellite modems during the Covid-19 pandemic increased with adoption of remote working culture across corporate and several government organizations. The demand for better connectivity solutions led to the growth of the market during the pandemic. However, many 5G network infrastructure development projects were postponed or canceled and the speed of digitization across different sectors slowed down. This impacted the overall market growth.
The "satcom on the move" segment accounted for the highest share of the satellite modem market in 2020, contributing to nearly one-third of the market. The segment is expected to continue its dominance during the forecast period. Moreover, this segment is estimated to witness the highest CAGR of 12.2% from 2021 to 2030. This is due to the rise in adoption from the military and defense sector for its ability to provide reliable and high data rate satellite communications while being on the move to provide secure, beyond-line-of-sight communications. The research also analyzes the segments including satcom on the pause, VSAT, and others.
Based on application, the IP trunking segment contributed to the highest share in 2020, accounting for more than one-fourth of the market, and is expected to maintain its leadership status during the forecast period. This is attributed to additional stability and reliability provided to the trunking and backbone networks that enable users to effortlessly navigate over barriers. However, the media and broadcast segment is projected to manifest the highest CAGR of 12.8% from 2021 to 2030, owing to the need for high-speed network connectivity solutions.
North America held the highest market share in 2020, accounting for around two-fifths of the global satellite modem market, and is expected to continue its lead in terms of revenue by 2030. This is due to the rise in investments by prime market players in satellite communication. However, Asia-Pacific is expected to portray the fastest CAGR of 14.4% during the forecast period, due to rise in awareness about artificial intelligence and IoT technology to enhance communication processes.
(Source: Allied Market Research news release)