Market Size of Satellite Communication Industry in the Defense Sector
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 5.55 Billion |
| Market Size (2029) | USD 7.76 Billion |
| CAGR (2024 - 2029) | 6.93 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Defense Sector Satellite Communication Market Analysis
The Satellite Communication Market in the Defense is expected to grow from USD 5.55 billion in 2024 to USD 7.76 billion by 2029, at a CAGR of 6.93% during the forecast period (2024-2029).
- Satellite communication is being used for a plethora of applications across the defense industry, an extension of broadband coverage, setting up of 5G communications systems, integration and convergence of diverse wired and wireless technologies, earth observation, defense and security, and surveillance applications.
- The need for broadband communications is growing at a fast pace, and it isn't limited to a single region. Connectivity requirements for users' aboard aircraft, ships, and vehicles operating at fixed places and in motion are examples of such demand. These three platforms require constant connectivity along their travel itineraries, which frequently pass through underserved portions of big cities and less populated areas. Such developments are projected to boost the market's expansion.
- According to the Satellite Industry Association (SIA), ground equipment revenues have increased significantly due to the expansion of GNSS markets and network equipment, while customer equipment investments and resources have remained flat or slightly declining, indicating that mobile satellite communication (MOST) will become a fundamental growth point of the overall market studied.
- Cybersecurity has become a major concern for satellite communication as the entire process of launching a satellite to transmit data is highly sensitive. Further, the challenge lies in the negative impact that such cybersecurity threats can potentially have as the vulnerabilities are mission-critical. The mission-critical vulnerabilities exposed to cybersecurity threats include the launch systems, communications, telemetry, tracking and command, and mission completion. The over-dependency of satellite communication on secure cyber capabilities across the lifespan of the satellite makes it a serious concern, thus, hindering its adoption.
- During the pandemic, communications satellites can be seen providing essential services to freshly deployed field hospitals. Several people were helped by the defense and military during COVID-19. Satellites also provided communication services to ensure business continuity, which was mostly used in self-serve petrol stations, credit/debit card authorizations for retail POS, and inventory management.
