|Study Period:||2019- 2026|
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The Asia-Pacific Maritime Satellite Communication Market is expected to register a CAGR of approximately 11% during the forecast period from 2021 to 2026. The Asia-Pacific region is expected to show the maximum growth rate in the Maritime Satellite Communication Market. The major factor driving the market growth is increased sea-borne threats and ambiguous maritime security policies in the region.
- With the ship traffic increasing significantly in the Asia-pacific region, it has become crucial to improve safety and security and safeguard the environment. As per the IBEF, in 2019, cargo traffic increased by 2.9% year-on-year to 699.05 million tons in India. On similar lines, the traffic increased by 0.7%, reaching 704.82 million tons in 2020.
- Commercial vessels, like container ships, need reliable satellite communications to stay connected to their main offices and support crew welfare activities. Satellite services can also offer coverage and an effective communication channel to help in relief operations during emergencies.
- India and Japan are expected to exhibit significant growth with increased offshore activity, trade, and investments in defense security in the maritime sector. All these factors are also expected to contribute to the growth of the market in the region. Recently, in 2021, the Indian space organization, ISRO, launched a DRDO satellite for monitoring military and merchant navy ships in the Indian ocean.
- The COVID-19 hurt the ports in various countries in the region. According to the UNCTAG (United Nations Conference on Trade and Development), the lockdown measures in the first half of 2020 in India led to acute workforce shortages in its ports. This was due to widespread migrant labor in many of the country’s industrial and port hubs. Workers returned to their home-ground after the announcement of lockdown.
Scope of the Report
Satellite communication technologies help to track ships and cargo throughout the globe. The study characterizes the satellite communication market based on the Technology type, Offering that includes solutions and services, and End-user vertical. The scope of the study is currently focused on key countries in Asia-Pacific, such as China, Singapore, India, Japan, and South Korea, among others.
|Mobile Satellite Communication|
|Very Small Aperture Terminal (VSAT)|
|Rest of Asia Pacific|
Key Market Trends
Government Agencies are Expected to Have the Larges Market Share in the Region
- Increased spending on marine products and services by various governments across the region, increased security threats, increased water transport and trade numbers, and other tracking are critical drivers of market growth.
- Moreover, many government agencies face an ongoing challenge to provide essential telephony services throughout their countries. Many governments worldwide have turned to VSAT networks for a low-cost, reliable public telephony solution to meet this challenge. Very Small Aperture Terminal (VSAT) networks represent the most cost-effective solution for communities where public service telephone network (PSTN) services are unavailable, overloaded, or too expensive.
- Further, emerging countries, such as India, China, Japan, and South Korea, continuously increase their defense budgets year-over-year to strengthen their national security. The government of India is planning to handle the issue of threats by implementing a national automatic identification system for India's coastline safety and security.
- Also, the China Belt and Road Initiative' and Pearl River Delta expansion projects undertaken by the government are further expected to boost the market's growth during the forecast period.
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China Expected to Dominate the Market
- China is expected to lead the Maritime Satellite Communication market in the Asia-Pacific region due to the substantial trade influx. China is an important market for passenger vessels in the region.
- Moreover, countries like China play a vital role in promoting maritime security since the maritime industry adds to the regions' economic growth. The Chinese central government took the initiative to promote intelligent shipping development in the country. Under this initiative, the government mentioned work in collaboration with various government agencies for completing the strategy design for intelligent shipping development by the end of 2020 and further improve intelligent shipping service, safety, environment protection level, and efficiency by 2035, and establish a high-quality intelligent shipping system by 2050.
- Also, China's Ministry of Transport and the Ministry of Finance issued a notice to reduce 50% of the ship's oil pollution damage compensation fund. They will not charge the port construction fee for the export and import cargos for the period of 1 March - 30 June. The measure was released to support work resumption and stabilize the economy under the prevention and control of the coronavirus (COVID-19).
- Furthermore, the companies in the country are witnessing strategic collaborations as a lucrative path towards growth. For instance, Gilat Satellite Networks and China Satellite Communications collaborated to deploy Gilat's DVB-S2X technologies throughout China to jointly provide satellite communication services covering: aero, land, and maritime fixed and mobility applications.
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The competitive landscape of the Maritime Satellite Communication Market in the Asia-Pacific region is expected to move towards moderate fragmentation. The market players in the region and the governments of various countries in the region are taking several initiatives for innovation to improve the maritime security of the nations. Also, the market players are forming strategic partnerships and collaborations to boost their market presence in the Asia-Pacific region and globally.
- August 2020 - ESChat announced push-to-talk (PTT) over satellite to the ESChat communications ecosystem. In partnership with Thales Defense & Security, the companies have integrated ESChat into the ThalesLINK line of products, specifically Thales MissionLINK and VesseLINK. ThalesLINK systems provide global communications coverage using Iridium Certus broadband services.
- July 2020: Marlink completed its strategic agreement with Stolt Tankers to provide an upgrade in bandwidth and to enable greater digitalization of its operations, focusing on quality, safety, security, and client satisfaction. This upgradation of bandwidth will deliver greater efficiency in the IT management processes of Stolt Tankers.
- January 2020: Inmarsat and ITC Global declared a five-year strategic collaboration. This partnership enables organizations to combine highly complementary market-leading services to provide broadband connectivity and combine high-value connectivity solutions for customers in the maritime, yacht, and offshore energy sectors.
- March 2021: Kom Solutions, Inc. developed a new version of Aero Satellite Communication Antennas. The new product variant enables embedded phased array applications and allows flexibility in installing military beyond-line-of-sight (BLOS) missions.
- October 2020: Singapore-based PACC Ship Managers Pte Ltd (PaccShip) has chosen to extend its supply relationship with Satcom Global Ltd, renewing its contract for Aura VSAT for an additional 3-year period. The company has supported more than 50 PaccShip managed vessels with seamless Ku-band connectivity since 2017, with an additional five vessels to be joining the Aura network by the end of 2020.
Table of Contents
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Consumers
4.2.3 Threat of New Entrants
4.2.4 Intensity of Competitive Rivalry
4.2.5 Threat of Substitute Products
4.3 Assessment of COVID-19 impact on the industry
4.4 Market Drivers
4.4.1 Increased Sea-borne Threats and Ambiguous Maritime Security Policies
4.4.2 Need for Advanced Communications along SLOC
4.5 Market Restraints
4.5.1 Reliance on High-cost Satellite Equipment
5. MARKET SEGMENTATION
5.1.1 Mobile Satellite Communication
5.1.2 Very Small Aperture Terminal (VSAT)
5.3 End-user Industry
5.3.2 Merchant Shipping
5.3.4 Passenger Ships
5.3.5 Leisure Vessels
5.4.2 South Korea
5.4.6 Rest of Asia Pacific
6. COMPETITIVE LANDSCAPE
*List Not Exhaustive
6.1 Company Profiles
6.1.1 Inmarsat Group Ltd.
6.1.2 Network Innovation Inc.
6.1.3 Thuraya Telecommunications Company
6.1.4 Thaicom PCL
6.1.5 Thales Group
6.1.6 Intelsat S.A.
6.1.7 Asia Satellite Telecommunications Holdings Ltd.
6.1.8 Speedcast International Ltd. (Globecomm Systems Inc.)
6.1.9 The SKY Perfect JSAT Group
6.1.10 Singapore Telecommunications Ltd.
6.1.11 Eutelsat Asia PTE Ltd.
7. INVESTMENT ANALYSIS
8. FUTURE OF THE MARKET
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Frequently Asked Questions
What is the study period of this market?
The Asia-Pacific Maritime Satellite Communication Market market is studied from 2019 - 2026.
What is the growth rate of Asia-Pacific Maritime Satellite Communication Market ?
The Asia-Pacific Maritime Satellite Communication Market is growing at a CAGR of 11% over the next 5 years.
Who are the key players in Asia-Pacific Maritime Satellite Communication Market ?
Inmarsat Group Ltd., Network Innovation Inc., Thuraya Telecommunications Company, Thaicom PCL, Thales Group are the major companies operating in Asia-Pacific Maritime Satellite Communication Market .