Ground equipment and services, spacecraft, and satellite launch segments are considered as the three major pillars of the space industry. The global space market was valued at around US$ 300 to $400 billion, which constitutes the satellite as well as non-satellite segments of industry.
Satellite Data Services
Satellite data services play an important role in scientific understanding of environmental processes such as carbon capture, albedo change, and others. This information is crucial to manage and safeguard environmental resources. Satellite data is useful for characterizing and monitoring terrestrial & surface features such as forest, desserts, and urban cities.
According to Allied Market Research, the global satellite data services market is estimated to be valued at $5.52 billion in 2019, growing at a CAGR of around 19.1% during the forecast period (2020-2027).
Top Impacting Factors
The significant factors impacting the growth of the global satellite data services market include increase in Internet of Things (IoT) &
autonomous systems and rise in demand for military and defense satellite communication solutions, which are expected to drive the global satellite communications market growth during the forecast period. However, cyber security threats to satellite communication and interference in satellite data transmission are anticipated to hamper the growth of the market during the forecast period. Moreover, technological advancements in satellite missions and deployment of 5G network through satellites are expected to offer lucrative opportunities for the market in the future.
Increase in Internet of Things (IoT) and autonomous systems
Robust IoT, artificial intelligence (AI), and autonomous technologies are being increasingly implemented throughout several industries such as automobile, defense, and healthcare. These technical tools are employed to increase the efficiency and effectiveness of the new installation or existing infrastructure.
For instance, in September 2020, Microsoft developed a healthcare cloud service. The healthcare cloud service is a digital health technology aimed to provide seamless interactions among various IoT devices, sensors, and users. Multiple tech giants have started developing smart technologies to support the growth and adoption of autonomous systems in real-world applications. Moreover, autonomous systems provide extended safety and comfort for their users by analyzing real-time data to facilitate overall user experience.
Samsung Electronics is developing an autonomous driving chip to be installed in vehicles for providing central control and obtain autonomous driving by further exchanging information in real-time through the data centers of Google. Furthermore, smart technologies, such as IoT and autonomous systems, need extensive and secure network connections for their operation. Satellite communication is being increasingly utilized to provide these systems with the required communication channel. For instance, in March 2021, SpaceX filed for approval from the U.S. Federal Communications Commission (FCC) to enable broadband capabilities in moving autonomous vehicles, which will further ensure connectivity in remote areas through SpaceX’s satellite system.
An increase in adoption of satellite communication system to enhance the potential of IoT and autonomous technologies is anticipated to propel the growth of the global satellite communication verticals.
Deployment of 5G network through satellites
5G network offers low latency and high bandwidth wireless network. It is still to be deployed in remote and rural areas, owing to lack of infrastructure. Private players are working on increasing the reach of the network through satellite launches worldwide. For instance, in March 2021, SpaceX launched 60 Starlink satellites to provide low latency and high-speed broadband internet globally.
Moreover, satellites built from 5G architecture offer an opportunity for 5G Non-Terrestrial Network deployment in remote regions to provide seamless connectivity to the end users. For instance, in March 2021, Marine Corps, U.S. Navy, Omnispace, and Verizon demonstrated a 5G network based on satellite in the S-band spectrum.
The satellite-based 5G network will allow direct and seamless communication among 5G-capable satellites, terrestrial networks, and small tactical 5G devices. Low Earth Orbit (LEO) satellites enable extended cellular coverage and can be integrated with 5G infrastructure to further improve the Quality of Experience (QoE) for the service. For instance, in May 2019, Gilat Satellite Networks Ltd. demonstrated Low Earth Orbit (LEO) satellite 5G services. The 5G network will provide simultaneous services such as streaming up to 8K video, web browsing, and video chatting. The emerging development of the 5G satellite to support 5G network deployment is anticipated to drive the growth of the satellite communications market.
Rising use of AI to ensure Safety at Airports
Over the last decade, airport authorities across the world have ramped up their security considerably in response to the growing threats at airports. Artificial intelligence-generated systems can help tackle the safety concerns for airport authorities. In February 2018, the UK government invested around $2 million for the development of new AI systems to enhance safety and lessen wait times across some of the nation’s busiest airports. To tighten security, in 2018, the U.S. transportation security administration introduced new computed tomography scanners at John F. Kennedy, Los Angeles International Airport, and Phoenix airports that make use of AI in finding threats. In addition to ensuring security at airport checkpoints, AI can also be used to scale up security at landside zone in airports. Various airports are installing cutting-edge solutions to strengthen safety at airports. For instance, in July 2019, one of California’s busiest airports, Oakland international airport, implemented Evolv Edge physical threat detection. The Evolv Edge system makes use of a combination of facial recognition, millimeter-wave technologies, and a camera to inspect individuals walking through a moveable security gate. It scans about 900 people in an hour, making it significantly faster as compared to regular X-ray scanners.
The machine learning models can be deployed to automatically analyze data for several threats. For instance, they can help detect firearms and explosives while ignoring other items, such as keys and belt buckles, that are usually carried by passengers. The rising usage of AI for improving security at airports is expected to propel the growth of the satellite communications and aerospace artificial intelligence market during the forecast timeframe.
COVID-19 Impact
For most of the large space manufacturers, the COVID-19 pandemic has hampered mission-deployments and also slowed down new product deliveries due to delays in supply chains. Government contractors in Asia, Europe, and North America have benefitted significant administrative and financial support from space agencies through accelerated and advanced payments. However, smaller suppliers, which are dependent on larger firms for contracts, should follow the payment cycle to complete.
The COVID-19 pandemic presented several challenges for the satellite industry such as lowered production, non-availability of raw materials, logistics challenges, among others. Video distribution, maritime, aviation, and DTH satellite communication industries were severely affected by the pandemic and observed a decline of investments initially. Various satellite communication service providers were not able to recover from huge losses incurred due to the pandemic.
For instance, in July 2020, Global Eagle Entertainment, a global satellite communications provider based in Los Angeles, filed for bankruptcy protection, owing to US$ 1.1 billion debt owed by the company. However, it emerged out of bankruptcy after 8 months by selling almost all of its assets to first-lien investors. As the pandemic progressed, governments and public & private organizations started the implementation of innovative technologies to tackle the pandemic.
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Lalit Katare is a subject matter expert with multiple years of experience in Consulting, Business Intelligence, Market Research, Forecasting, Matrix-Modelling, Data Analytics, Competitive Intelligence, Primary research and Report writing. He can be reached at:
Lalit.Katare@alliedmarketresearch.net
For more innformation on research studies from Allied Market Research go to: www.alliedmarketresearch.com
