Analyst Report News

Satellite modem market to reach $1,004.4m by 2028: Adroit Market Research

According to a report, the Asia Pacific area is forecasted to lead the way in the worldwide satellite modem industry.

The global satellite modem market is expected to grow significantly, with its value projected to reach $1,004.4m by 2028, expanding at a compound annual growth rate (CAGR) of 14.4% from 2022 to 2028, according to a report by Adroit Market Research.

The market’s growth is driven by the increasing demand for rapid data exchange and communication across sectors such as aerospace, defence, government, and telecommunications. Satellite modems are essential for efficient data and voice signal transfer via satellite communication networks, particularly in areas with inadequate or nonexistent traditional communication infrastructures. The need for reliable and secure satellite connectivity, coupled with the rising adoption of satellite-based communication systems, is propelling market expansion. Additionally, technological advancements and the advent of high-capacity satellites are fueling the demand for satellite modems.

A satellite modem connects to a satellite network to send and receive data signals, acting as a bridge between the user’s local network and the satellite system. These modems enhance data transfer speeds through various modulation techniques and are widely used in telecommunications, remote sensing, and broadcasting, providing long-range connectivity in regions lacking conventional infrastructure.

The Asia Pacific region is forecasted to lead the global satellite modem industry, driven by rapid technological advancements, increased demand for fast internet access, and expanding satellite communication networks in countries like China, India, and Japan.

The MCPC (Multi-Channel Per Carrier) Modem sector is expected to dominate the global satellite modem market due to the rising need for multi-channel transmission in applications like video conferencing, internet access, and voice broadcasting. MCPC Modems efficiently share bandwidth across multiple channels, optimising satellite capacity utilisation.

VSAT (Very Small Aperture Terminal) technology is projected to take the lead in the global satellite modem market, offering high-speed data transfer, voice-over IP, video conferencing, and real-time monitoring in remote areas. Continuous improvements in VSAT modems have enhanced their efficiency and performance, solidifying their global dominance.

The Enterprise & Broadband sector is identified as the leading application in the global satellite modem market, driven by the adoption of satellite communication solutions across various applications, including e-commerce, remote sensing, and cloud connectivity.

The Telecommunications sector is anticipated to maintain dominance due to the growing need for satellite communication services and the integration of satellite technology in the telecom industry. Advancements in satellite technology, such as High Throughput Satellites (HTS), are further propelling the growth of telecommunications within the satellite modem market.

In February of 2021, an announcement was made regarding the acquisition of Gilat Satellite Networks by Comtech Telecommunications Corp. This strategic move by leading secure wireless communication technology provider Comtech is aimed at bolstering its satellite ground station division by capitalising on Gilat’s specialised knowledge in satellite ground stations and modems.

In September 2020, a breakthrough was introduced by ViaSat Inc. with the unveiling of the VR-12 Ka-band antenna system. This compact and efficient antenna system is custom-built for satellite modems, enabling enhanced data rates and connectivity in satellite communications.

In November 2019, Hughes Network Systems launched the HM700 high-performance satellite modem, offering a level of throughput and dependability across a range of satellite applications. The HM700 modem is equipped with cutting-edge coding and modulation techniques to maximise its performance, fulfilling the increasing need for top-tier satellite connectivity.

Leading entities in the satellite modem market include Hughes Network Systems LLC, ViaSat Inc., Gilat Satellite Networks Ltd., Newtec Cy N.V., Comtech EF Data Corporation, Advantech Wireless Inc., Datum Systems Inc., WORK Microwave GmbH, Holkirk Communications Ltd., and Aptus Broadband Inc. These manufacturers play a critical role in developing and producing satellite modems tailored for diverse communication needs.