Maritime Satellite Communication Market Size

Maritime Satellite Communications Market Analysis

The Maritime Satellite Communication Market size is estimated at USD 6.47 billion in 2024, and is expected to reach USD 10.91 billion by 2029, growing at a CAGR of 11% during the forecast period (2024-2029).

The primary market growth drivers include rising demand for broadband connections, VSAT connectivity, and high-throughput satellites to enable cloud and IoT applications. According to the Department of Telecommunications (India), in 2023, the total number of internet connections in India reached close to 851 million. The connectivity has almost tripled in the past few years, compared to 302.33 million connections.

• The ability to track cargo and ships worldwide is made possible by satellite communication systems. VSAT terminals are communication instruments that enable text, audio, and video data transmission and reception over satellite-based broadband internet assistance. These terminals are geostationary satellites on the Ku, Ka, and C bands. Service providers would require even greater capacity, performance, coverage, and flexibility to meet the maritime industry's changing needs, where end users have a wide range of communication needs. Additionally, they must be able to expand networks to meet consumer demands swiftly. Customers need help using satellite solutions due to the growing use of maritime satellite technologies.
• The rising demand for applications such as audio broadcasting and voice communications in end-user industries is studied to propel the growth of the satellite communication industry. For instance, in March 2023, Tata Communications launched a new cloud-based application, Jamvee, with integrated voice calling and messaging capabilities for enterprises. With flexible plans for voice calling and data roaming, Jamvee is a cost-efficient solution for the employee collaboration needs of enterprises.
• Crew welfare is made possible by digitalization's quick connectivity for VoIP conversations, messengers, and video conferencing. Smaller ships typically need more room or space for an expensive satellite communications setup, while large ships are quickly adopting new digitalization methods by VSAT communications. Orion Edge V provides a VSAT-like experience on little hardware for all vessels and allows for optimized applications through the OneGate platform for video conferencing, telemedicine, remote maintenance, and IoT. With voice services provided through the Thuraya MarineStarterminal acting as an onboard public phone and data services delivered over the Thuraya Orion IP broadband terminal acting as the first line of communications, it can be used as the primary communications system for small vessels.
• Further, the Russian Satellite Communications Company (RSCC) now has 400 vessels as part of its VSAT marine network, the company announced in February 2022. The company's services are currently used on 373 sea-going and river ships and 27 ice-class ships, including 12 icebreakers. Such developments in various regions may further propel the studied market growth.
• Furthermore, the growing number of IoT-connected and sensing devices, such as autonomous shipping, performance computing, fleet management, and cybersecurity applications, is driving the demand for satellite communication. For instance, in April 2022, Chinese officials reported that they had put the world's first autonomous, electric container feeder ship into retail service after extensive trials. The vessel, designed through a broad collaboration of Chinese institutions, is reported to be a demonstration ship that will deliver significant learning for the future development of the technology. The vessel is 384 feet long with a beam of 57 feet deep and approximately 32 feet, working between Qingdao Port in Shandong Province and Dongjiakou, operated by Navigation Brilliance (BRINAV).
• Companies also adopt voice-based mobile satellite services to connect employees with their families and close friends. For instance, Inmarsat offers one the services called ChatCard, which assists in reducing feelings of isolation at sea by providing crewmembers the freedom to stay in touch with relatives and friends anywhere. For instance, American communications firm Viasat Inc. is headquartered in Carlsbad, California, and has other domestically and abroad operations. Over 50% of Viasat's revenue in 2022 came from satellite services, with the balance coming from its product line. Viasat provides secure networking solutions and high-speed satellite broadband services for the military and commercial markets. In the fiscal year 2022, the corporation made 2.8 billion dollars in revenue. Viasat's revenue has been steadily increasing since previously.
• However, a lack of awareness about advanced maritime satellite services and reliance on high-cost satellite equipment hamper the market growth. Furthermore, high-throughput satellites to unlock cloud and IoT services and the unification of satellites and cellular communication technology will likely provide lucrative development opportunities for maritime satellite communication demand in the forthcoming years.
• Moreover, inflation significantly impacts the studied market, as it can lead to higher costs for satellite communication industries. This can be due to various factors, such as higher prices for raw materials, increased shipping costs, and labor costs and shortages. As a result, manufacturers may be forced to raise their prices to maintain profitability, ultimately decreasing solutions demand.