Satcom Gear Market to Grow 270% in 5 Years: Report

According to a report by Research and Markets, the satcom gear market will grow to $53.7 billion come 2026, at a CAGR of 19.6% from $22 billion in 2021.

Satcom Gear Market to Reach $53.7 Billion in 5 Years: Report

The research firm said that the the demand by the commercial segment will fuel this growth over the next 5 years. The recent phenomenon of LEO satellites deployment has increased the demand of satcom gear across the world. Furthermore, the growing fleets of autonomous vehicles and the increasing Ku- and Ka-band satellites has seen satcom gear demand skyrocket.

Currently, players like Hughes Network Systems, ViaSat, Honeywell International Inc. dominate the satcom gear market. However, companies such as Starlink and OneWeb have been manufacturing their own satellites and have been looking for strategic partnerships to develop satcom gear in-house.

As with everything else, COVID-19 has managed to pull the market growth back. However, R&M added that the government, defense and commercial satcom market has remained largely unaffected.

Market Leaders

In terms of platform, the airborne satcom segment will lead the satcom equipment market during 2021-26. Along with this, the product market will lead the gear market in terms of solutions. Lastly, the commercial segment will lead the verticals in satcom gear market during the same 5-year period.

The commercial segment has found the most use in satcom over the past couple of years. One of the most important being delivering connectivity - both via direct broadband delivery, or via satellite-enabled telecom backhaul. To that regard, the Government of India has recently enabled satcom players to provide backhaul to telcos. This will allow the country's rather new satcom market to grow; India has already seen great interest from companies like Starlink, OneWeb, Nelco, Lynk Global and Amazon.

R&M said that North America will lead the satcom equipment market during the forecast period, however.