Industry Insights
The global enterprise VSAT satellite communication system market size was valued at USD 5.14 billion in 2016. It is expected to expand at a CAGR of 4.4% over the projected period. Rising number of enterprises coupled with increasing shift towards digitalization is expected to drive the demand for VSATs over the projected period.
North America enterprise VSAT satellite communication system market revenue, by solution, 2014 - 2025 (USD Billion)
VSAT, or very small aperture terminal, is a two-way satellite ground station designated for uplinking and downlinking of communication signals. They typically handle data, voice, and video signals. It hosts a dish antenna which has a size smaller than 3.8 meters. Usually, majority of the VSAT antennas range from 75 cm to 1.2 meters.
VSATs are used in a broad range of applications to transmit narrowband as well as broadband data. Narrowband is typically defined as a channel where bandwidth of the message does not exceed the coherence bandwidth of the channel and is often used for communication network of Point of Sale (POS) terminals. On the other hand, broadband covers a wide bandwidth for data transmission for multiple signals and traffic. It is extensively used in telecommunications, internet, and TVs.
VSATs are extensively used for vessels at sea, mining camps, oil and gas camps, emergency responders, and satellite news gathering. They are used in a broad range of applications including maritime, SCADA/M2M monitoring, mobile, offshore platforms, government and defense, and public safety and emergency response.
Segmentation by Solution
• Service
• Broadband
• Narrowband
• Product
• Modem
• Antenna
• RF Chain
In terms of value, service segment occupied major market share in the past and is anticipated to emerge as the fastest and largest growing segment. Governments in developing nation are focusing on providing education and healthcare facilities to remote areas through VSAT, which is expected to boost the enterprise VSAT satellite communication system market over the forecast period.
Furthermore, organized hospital chains such as Fortis Hospital are using VSAT service, implement telemedicine projects in various parts of India. Moreover, increasing trend of telehealth service in developing countries is expected to boost growth in the forthcoming years. Also, various security agencies are adopting VSAT service to improve security surveillance, which is expected to boost demand in near future.
Segmentation by Vertical
• Banking
• Retail
• Energy
• Government
Government is anticipated to expand at the fastest CAGR of over 4.5% during the forecast period. Various government organizations leverage VSAT for operations such as tracking, disaster management, and inter connectivity. Banking, which holds more than 15.0% market share, is expected to be the second fastest growing sector. The retail sector holds the largest share of the enterprise VSAT satellite communication system market and is expected to expand at a CAGR of over 4.0% during the forecast period. Retail sector has evolved over time and has transparency and interconnectivity in operations.
Segmentation by Region
• North America
• U.S.
• Europe
• Russia
• Asia Pacific
• China
• Japan
• India
• Rest of the World
Asia Pacific is expected to expand at the highest CAGR of around 5.0% over the forecast period due to increasing demand from government and retail enterprises. Furthermore, rising government initiatives to provide better healthcare and education to remote areas in countries such as India is expected to drive VSAT market on domestic level.
Competitive Landscape
The global enterprise VSAT satellite communication system market is highly consolidated in nature. Companies like Hughes, Gilat, and iDirect together accounted for over 80.0% market share in 2016. Newtec, ViaSat, and SageNet/SpaceNet among others accounted for the remaining market share in the same year. Companies such as Gilat Satellite Networks, Hughes Network Systems and ViaSat held major market share. Some other significant vendors in the market are VT iDirect and Newtec.
Over the past few years, Hughes has established itself as a prominent VSAT player having integrated operations with the subsidiaries of its parent company, EchoStar Corporation. The company’s JUPITER system is widely used across the world with several leading service providers sourcing these systems from EchoStar.
