Defense Satellite Communication Market – Growth, Trends, COVID-19 Impact and Forecast (2022)
Defense Satellite Communications Market was valued at USD 4.60 Billion in 2021, and it is projected to reach a value of USD 6.83 Billion by 2027, registering a CAGR of 6.93% during of the forecast period (2022 -2027).
New York, June 07, 2022 (GLOBE NEWSWIRE) — Reportlinker.com announces the publication of the report “Satellite Communication Market in the Defense Sector – Growth, Trends, COVID-19 Impact, and Forecasts (2022 – 2027)” – https:/ /www.reportlinker.com/p06283190/?utm_source=GNW
Highlights
Satellite communication is used for a plethora of applications in the defense industry, extending broadband coverage, building 5G communication systems, integrating and converging various wired and wireless technologies. wire, earth observation, defense and security and surveillance applications.
The need for broadband communications is growing at a rapid pace and is not confined to a single region. Connectivity requirements for users on board aircraft, ships and vehicles operating at fixed and moving locations are examples of such demand. These three hubs require constant connectivity along their travel routes, which frequently pass through underserved parts of major cities and less populated areas. Such developments are expected to drive the expansion of the market.
According to the Satellite Industry Association (SIA), ground equipment revenues increased significantly due to the expansion of GNSS and network equipment markets, while customer equipment investments and resources remained stable or increased. decreased slightly, indicating that mobile satellite communication (MOST) will become a fundamental growth point of the entire market studied.
Cybersecurity has become a major concern for satellite communication because the whole process of launching a satellite to transmit data is very sensitive. Additionally, the challenge lies in the negative impact that these cybersecurity threats can potentially have, as the vulnerabilities are mission critical. Critical vulnerabilities exposed to cybersecurity threats include launch systems, communications, telemetry, tracking and command, and mission completion. Satellite communication’s overreliance on secure cyber capabilities throughout the lifetime of the satellite makes it a serious concern, hindering its adoption.
During the pandemic, communications satellites can be seen providing essential services to newly deployed field hospitals. Several people have been helped by defense and military during COVID-19. Satellites also provided communication services to ensure business continuity, which were mainly used in self-service gas stations, credit/debit card authorizations for retail outlets, and inventory management.
Main market trends
Remote sensing to drive the market
Remote sensing helps defence, military and aerospace provide many types of data. To avoid sinking when a ship hits an iceberg, navigation vessels use remote sensing technology such as wind wave information, route analysis, ship proximity, and GPS. Many satellites orbit the Earth every day, collecting data that can be useful in locating lost or destroyed aircraft.
For millennia, remote sensing has been used as a method of monitoring. Remote sensors were used before World War I by connecting them to hot air balloons and flying them over target cities. Remote sensing is carried out by specialized satellites with a wide range of capabilities. Optical satellites, radar imaging satellites, ultraviolet and infrared imaging satellites, and signal-intercepting communications satellites are just a few examples.
Remote sensing offers significant advantages over traditional forms of monitoring in that it can provide high resolution images of light wavelengths other than visible light. This data can also be used to track the movements of enemy forces, make strategic decisions and assess tactical threats.
The need for greater connectivity and higher resolution imagery exceeded the Army’s ability to respond using Army-owned satellite technologies due to the rapid growth of science and technology. technology and the dependence of military activities on them. The US military, being the largest military in the world, has relied heavily on the capabilities of commercial satellites for military purposes ever since.
Furthermore, one of the major drivers for the growth of the defense satellite communications market over the next few years is the application of AI in satellite communications for ground surveillance. Additionally, the growing demand for remote sensing and surveillance applications, along with government plans to establish a network of spy satellites, will drive the market demand. Rising maritime security risks, increasing investments in the defense sector, and growing concerns about political instability in many parts of the world are driving the market.
Asia-Pacific is expected to register the highest growth rate
The region is witnessing various innovations and investments in research and development to enhance satellite communication in defense organizations. For example, in December 2021, the Japanese government approved defense spending of 5.4 trillion yen ($47.2 billion) for 2022. The funding will also be used to purchase new defense equipment.
Likewise, South Korea is also rigorously strengthening its defense capabilities. In April 2022, South Korea’s Defense Program Administration announced the development of stealth drones, satellites, and other military equipment to deal with upcoming threats. This plan is in line with the country’s political priorities to strengthen its defense and security capabilities. South Korea has allocated 266.4 billion KRW (220 million USD) to support the development of new stealth drones and military assets.
India, for example, is one of the largest consumers of satellite programming and has made significant progress in recent years in realizing its full video market potential. Although DTH is immensely popular in India, low-cost options from companies like Reliance JIO are becoming competitors in the broadcast space. According to the Telecom Regulatory Authority of India, as of September 2021, there were 68.89 million subscribers to DTH services in India; however, this volume gradually decreases.
According to the IBEF (Indian Brand Equity Foundation), the Indian government has tried to increase the number of airports to meet the expansion of air traffic. India had 153 operating airports in 2020. By FY40, India plans to increase the number of operating airports to 190-200. In addition, growing industry demand has increased the number of aircraft in service. By 2027, the number of aircraft is expected to reach 1,100.
Due to the growing investment in in-flight entertainment, the global aviation satellite communications (SATCOM) market is positioned to improve flight operations and connectivity. Countries like India and China are expected to drive the SATCOM aviation market.
Competitive landscape
The satellite communications market comprises of several global and regional players, who are vying for attention in a highly competitive market space owing to the presence of numerous large players. The market poses high barriers to entry for new players, which impacts opportunities to gain traction. This market is characterized by moderate product differentiation, increasing levels of product penetration and high levels of competition. As a rule, the product is offered in the form of hardware, which gives the impression that the offer is part of the service of the product.
January 2022 – Thales Alenia Space, a joint venture between Thales (67%) and Leonardo (33%), says it has signed a contract with LIG Nex1 Co. Ltd, a South Korean aerospace and defense company, to provide a state-of-the-art technology Digital processor for the GEO-KOMPSAT-3 communication satellite. The Ka-band flexible broadband communication system payload includes an efficient and fully reprogrammable digital processor that combines transparent and regenerative signal processing via digital channel units (DCUs) and on-board processing units (OBPUs), respectively.
January 2022 – Navis Engineering, a manufacturer of dynamic positioning systems, announced offering KVH Watch services to enable remote monitoring of equipment; the company announced that Navis Engineering, manufacturer of maritime dynamic positioning (DP) control systems, has joined the KVH Watch Solution Partner program to offer KVH watch cloud connection services.
December 2021 – Inmarsat announced the launch of its first Inmarsat-6 satellite, I-6 F1. It was launched by Mitsubishi Heavy Industries (MHI) from the JAXA Tanegashima Space Center in Japan. The satellites will deliver increased capacity and new technology advancements for ELERA’s transformational L-band services, as well as additional high-speed capacity from Global Xpress (GX).
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