High-end technological advancements in satellite missions and the deployment of 5G network through satellites are also projected open up new opportunities for the sector while cyber security threats to satellite communication and interference in satellite data transmission could restrain the growth.
However, extended lockdowns across the world compelled satellite manufacturing facilities to partially or completely close their operations and delays in the development of innovative satellite communication solutions hurt the market.
However, the data communication segment would grow at the fastest CAGR of 10.7% from 2020 to 2027, the researchers predicted.
The broadcasting segment contributed to more than two-fifths of the total market share in 2019, and is anticipated to be the largest segment in 2027, due to rise in demand for direct-to-home satellite broadcasting services.
The development of Internet of Things (IoT) and autonomous systems, increased in demand for military and defense satellite communication solutions, and the rise in adoption of SATCOM equipment for online streaming services, radio, and TV broadcast will drive the growth of the global satellite communication market, the researchers said.
The report found that the outbreak of the pandemic led to steep increase in demand for internet services, which, in turn, accelerated the call for satellite communication.
The services segment of the industry 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 report said.
The equipment segment, on the other hand, would see faster growth with a CAGR of 9.9% from 2020 to 2027.
More information on the “Satellite Communication Market by Application (Voice Communication, Broadcasting, and Data Communication), Component (Equipment and Services), and End-Use Industry (Maritime, Aerospace & Defense, Industrial, Government, Transportation & Logistics, Media, and Others): Global Opportunity Analysis and Industry Forecast, 2020–2027,” is available here.