Market Trends of Satellite Communication Industry in the Defense Sector
This section covers the major market trends shaping the Defense Sector Satellite Communication Market according to our research experts:
Remote Sensing to Drive the Market
- Remote sensing aids defense, military, and aerospace in providing many types of data. To avoid sinking when a ship hits an iceberg, navigating ships use remote sensing technology such as wind-wave information, routing analysis, ship proximity, and GPS. Many satellites orbit the Earth every day, collecting data that can be useful in locating lost or destroyed aircraft.
- For millennia, remote sensing has been utilized as a surveillance method. Remote sensors were used before the First World War by connecting them to hot air balloons and flying them over target cities. Remote sensing is being carried out by specialized satellites with a wide range of capabilities. Optical satellites, radar imaging satellites, ultraviolet and infrared imagery satellites, and signal intercepting communication satellites are only a few instances.
- Remote sensing offers significant advantages over traditional forms of surveillance in that it may provide high-resolution imagery of light wavelengths other than visible light. This data can also be utilized to track enemy force movements, make strategic decisions, and assess tactical threats.
- The need for greater connection and higher-resolution imaging was beyond the military's ability to meet using military-owned satellite technologies due to the fast growth of science and technology and the dependency of military activities on it. The United States Military, being the world's largest military, has relied largely on commercial satellite capabilities for military purposes since then.
- Furthermore, one of the primary factors driving the satellite communication market growth in the defense sector over the next few years is the application of AI in satellite communication for earth-based surveillance. Furthermore, the rising demand for remote sensing and monitoring applications, as well as governments' plans to establish a network of spy satellites, will drive market demand. Increased seaborne security risks, increased defense sector investments, and growing concerns about political instability in many parts of the world are driving the market.
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Asia-Pacific is Projected to Register the Highest Growth Rate
- The region is witnessing various innovations and investments in research and development to strengthen satellite communication in defense organizations. For instance, in December 2021, the Japanese government approved JPY 5.4 trillion (USD 47.2 billion) defense spending for 2022. The funding will also be used to buy new defense equipment.
- Similarly, South Korea is also rigorously strengthening its defense capabilities. In April 2022, The defense program administration of South Korea announced to development of stealth drones, satellites, and other military equipment to address upcoming threats. This plan is a part of the country's policy priorities to enhance its defense and security capabilities. South Korea has allocated KRW 266.4 billion (USD 220 million) to back the development of new stealth drones and military assets.
- India, for example, is one of the largest consumers of satellite programming and has made significant progress in recent years in realizing its full video market potential. Though DTH is immensely popular in India, low-cost options from businesses like Reliance JIO are becoming competitors in the broadcasting space. According to the Telecom Regulatory Authority of India, as of September 2021, there were 68.89 million DTH services subscribers in India; however, this volume is reducing gradually.
- According to the IBEF (Indian Brand Equity Foundation), the Government of India has been attempting to increase the number of airports to accommodate expanding air traffic. India had 153 operating airports as of 2020. By FY40, India plans to increase the number of operational airports to 190-200. Furthermore, the sector's growing demand has increased the number of planes in service. By 2027, the number of aircraft is predicted to reach 1,100.
- As a result of growing investment in in-flight entertainment, the global aviation satellite communication (SATCOM) market is positioned for improved flight operations and connectivity. Countries like India and China are expected to drive the aviation SATCOM market.
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