The SATCOM on the move market is projected to grow from US$ 17.7 billion in 2021 to USD 42.8 billion by 2026, at a CAGR of 19.3%. SATCOM equipment is an integral part of the communication in commercial and defense industry according to a new report by Markets and Markets.
The deployment of low earth orbit (LEO) satellites and constellations of satellites for communications applications has increased their demand across the globe. Other factors driving the market growth include growing demand for Ku- and Ka-band satellites, and the growing fleet of autonomous and connected vehicles used for various applications in the military and commercial sectors, which require customized SATCOM-on-the-move antennas.
COVID-19 Impact on the SATCOM Equipment Market
The COVID-19 pandemic has caused significant damage to the economic activities of countries across the world. The manufacturing of SATCOM equipment, including systems, subsystems, and components, has also been impacted. Although SATCOM equipment are critically important for a proper outcome from a satellite, disruptions in the supply chain have halted their manufacturing processes for the time being. Resuming manufacturing activities depends on the level of COVID-19 exposure, the level at which manufacturing operations are running, and import-export regulations, among other factors. While companies may still be taking in orders, delivery schedules may not be fixed.
SATCOM on the move Dynamics
Driver: Increasing use of electronically steered phased antennas
Increased demand for communication on-the-move (OTM) solutions for platforms such as commercial vehicles, military vehicles, trains, and boats has led to the greater use of electronically steered phased antennas (ESPA). These antennas can track and maintain satellite links even when platforms such as military vehicles, trains, or boats, are in motion. Hybrid beam steering is used in this phased array for OTM, both electronically for elevation and mechanically for azimuth. As an antenna terminal’s steering plays a major role in acquiring a satellite link, ESPA is used to eliminate mechanical motion.
In April 2019, the U.S. Air Force Space and Missile Systems Center (SMC), in partnership with the Pentagon’s Defense Innovation Unit, awarded a contract to Atlas Space Operations to prototype an electronically steered antenna array to support Air Force multi-band, multi-mission requirements.
In January 2021, L3Harris Technologies completed the development of an electronic phased array ground antenna for the U.S. Space Force. Lockheed Martin and Atlas Space Operations have also developed ESPA prototypes. The antenna developed by L3Harris—like those from Lockheed Martin and Atlas Space—was integrated with the Space Force’s Satellite Control Network to demonstrate multiple simultaneous satellite contacts. The SCN is an aging network of parabolic dish antennas used to fly military satellites.
Restraints: High costs associated with development and maintenance of infrastructure to support SATCOM antennas
The high cost incurred in the development and maintenance of earth station infrastructure is one of the major factors hindering the market growth. Most of the required components are typically custom-fabricated or purchased from commercial off-the-shelf (COTS) vendors—in both cases, expensive. Besides, the design, development, and construction of antennas and their components require several hours of work by trained personnel. The level of skill required itself poses a significant barrier to entry. Significant investments are also required in the R&D, manufacturing, system integration, and assembly stages of the value chains of these systems.
Moreover, SATCOM services are used for highly sophisticated defense systems, due to which any incident of system failure is unfavorable. Apart from being highly accurate and reliable, they must be durable and energy-efficient and have wide detection ranges. As a result, to maintain market leadership and stay competitive, companies in this market must develop highly functional and efficient ground facilities. This translates into significant investments in testing and infrastructure and collaborations with universities, research institutes, and other companies.
Opportunities: Increasing adoption of small and portable SATCOM terminals by retail consumers
A portable SATCOM terminal, which is also called a satellite communicator or hotspot, is one of the smallest 2-way satellite communication devices. The device uses an internal GPS chip to gather location information. When the SEND is triggered, this information is sent via commercial satellites to a commercial monitoring agency, whose role is to pass the information to an appropriate responding agency. Typical users/purchasers of these devices are participants in activities such as hiking, mountain biking, climbing, boating, and flying. It is also useful for those who work in remote areas (loggers, foresters, geologists, fisheries, and wildlife staff). Additional features are sending preprogrammed messages and breadcrumb tracking via Google Earth. Some newer devices offer 2-way communication via satellite; for example, Germin InReach mini, Spot X, Zoleo satellite communicator, and Bivy stick blue.
In 2020, Iridium launched its Global Maritime Distress and Safety System (GMDSS) service. The launch of new GMDSS terminals provides Iridium with access to a fleet of vessels that are required by maritime law to maintain this L-band safety service. GMDSS is a sophisticated safety network designed to provide communication and coordination between people, vessels, and even aircraft to facilitate rescue and disseminate weather and navigation information.
Challenges: Vulnerability of SATCOM devices to cybersecurity attacks
Incidents of cybersecurity breaches have increased across the world in the past few years. Security is the most significant area of technical concern for most organizations deploying IoT systems, and now 5G networks, with multiple devices connected across networks, platforms, and devices. This is also true for satellites, given the size and scope, as well as the number of earth station access points. IoT proliferation means if one single device isn’t encrypted or the communication isn’t protected, a bad actor can manipulate it and potentially a whole network of connected devices. It isn’t just the devices themselves that need to be protected, but it is also every stage of data transmission too. In 2014, serious design defects and vulnerabilities in a popular SATCOM device were identified by a US-based security firm, IOActive. According to the company, these design vulnerabilities could allow hackers to intercept, block, manipulate, and even take full control of critical communication systems, thereby affecting operations of airborne SATCOM used on ground, airborne, and marine platforms. Various security measures have been undertaken by major airborne SATCOM manufacturers to safeguard their communication systems.
Based on platform, airborne SATCOM segment is estimated to account for the fastest growth of the SATCOM on the move from 2021 to 2026.
Based on platform, airborne SATCOM segment is estimated to lead the SATCOM on the move from 2021 to 2026 and is projected to grow further due to the increasing need for high-definition intelligence, surveillance, and reconnaissance (ISR) videos, and increasing number of connected commercial aircraft, rising adoption of UAVs and rising number of private aviation companies worldwide supporting market growth. In December 2019, The French Airforce have enhanced their Airborne Satellite communication capabilities by adopting new Thales technologies. The French Defense agency awarded a contract to Thales to design and built the next-generation Syracuse 4 satellite communication system. This contract enables French defense forces to improvise the SATCOM system in the Charles De Gaulle Aircraft Carrier and the Rafale combat aircraft.
Based on verticals, commercial segment is estimated to account for the fastest growth of the SATCOM on the move from 2021 to 2026.
Based on verticals, commercial segment is expected to lead the SATCOM on the move from 2021 to 2026. This is due to increasing need for uninterrupted mobile broadband coverage in remote and far-flung regions, streaming information and entertainment, extensive use of small satellites for commercialization and data transferability, technological advancements in transport and logistics network, and increasing demand for broadband connections and VSAT connectivity. In July 2021, the Digital Communications Commission (DCC) accepted the sector regulator’s call to allow VSAT operators to provide satellite-based cellular backhaul connectivity to telcos to ensure uninterrupted mobile broadband coverage in remote and far-flung regions.
The North American market is projected to contribute the largest share from 2021 to 2026 in the SATCOM on the move
Based on region, North America is expected to lead the SATCOM on the move from 2021 to 2026. The US is a lucrative market for SATCOM equipment in the North American region. The US government is increasingly investing in the field of SATCOM to enhance the quality and effectiveness of satellite communication. The increasing investment on SATCOM equipment to enhance defense and surveillance capabilities of the armed forces, modernization of existing communication in military platforms, critical infrastructure and law enforcement agencies are increasingly using SATCOM equipment are key factors expected to drive the SATCOM on the move in North America. In August 2020, The US Special Operations Command (USSOCOM) awarded Cubic Mission Solutions (CMS) a follow-on, single-award, indefinite-delivery/indefinite-quantity (ID/IQ) contract with a ceiling of USD 172 million. The contract is for the delivery of Ground Area Transmit Receive (GATR) inflatable SATCOM terminals and baseband communications equipment in support of the communications requirements of Special Operations Forces (SOF).
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