Industry Insights
The global mobile satellite services market size is expected to reach USD 5.53 billion by 2024. The growing demand for communication devices which provide services such as sending and receiving data from any remote location is the key factor that has been driving the market. Moreover, increasing number of natural disasters and uncertain occurrence of events resulting in a complete breakdown of communication on land has necessitated the use of satellite communication devices to maintain connectivity at such places.
Global mobile satellite services market revenue, by application, 2014 - 2024 (USD Billion)
According to the Satellite Industry Association, the global revenues for the overall satellite related services has grown by 5% between 2012 and 2013, as a result of increasing consumer base around the globe. Development in the technology of satellite ground equipment’s such as broadband, TV, navigation devices and mobile terminals has been another driving factor.
The regulations and policies are some of the factors which are expected to restrain the market from growth. These regulations vary from region to region, for instance, in U.S. the regulations are provided by the Federal Communications Commission to overcome the interruptions that occur between the radio frequencies and provide proper communication from an earth station to a space station or vice versa.
The leading companies are working with their partners to come up with advanced technologies and developing new satellites to be launched with increased frequency for better communication. For instance, in June 2017, Inmarsat in collaboration with Thales Alenia Space successfully launched S-band satellite for the European Aviation Network which will advance the satellite into its geostationary orbit over the Middle East and Europe.
Segmentation by Service
• Data
• Voice
Data services dominated the MSS market in 2016 valued at USD 2.34 billion. Majority of the information is transferred in the form of data signals as it can be encrypted making it secure and impenetrable to loss. Moreover, maritime and aviation applications require high-quality data with enhanced safety features which are expected to boost the market over the forecast period.
Segmentation by Application
• Maritime
• Aviation
• Land
Maritime dominated the market in 2016 contributing to over 45.4% of the revenues and is expected to maintain its position over the forecast period. The need for a proper communication line to ensure the safety and operational efficiency on sea routes are anticipated to fuel the demand over the forecast period. Moreover, most of the goods are exported and imported through sea routes in cargo ships which require advanced technology to communicate with the land stations.
Aviation was the second fastest growing segment owing to the need of proper communication line on air routes due to the increasing number of incidents. For instance, in March 2014, the disappearance of the Malaysian flight 370 in the South China Sea with 238 members on board has resulted in an increasing need for communication devices to overcome such incidents.
Segmentation by End-Use
• Defense
• Government
• Transportation
• Mining
• Oil & Gas
• Others
Globally, the defense segment dominated the market in 2016 by contributing to 31.8% of the market share and is expected to maintain its position over the forecast period. The rising incidents across the world necessitated the use of satellite devices in the marine and aviation segment. These devices help in high-quality data transfer with the ensured safety to reach the destination without any interference.
Transportation is expected to witness above-average growth as a result of rising use of land and cargo ships for trade activities. Majority of the sea routes and remote areas on land do not have proper sources of communication, and hence, are adapting this technology to overcome these issues. For instance, according to World Trade Statistics, China and the U.S. contributed for 47.9 twenty-feet equivalent unit (TEU) millions of export and 34.3 TEU millions of import through containerized cargo in 2014.
Segmentation by Region
• North America
• U.S.
• Europe
• Germany
• UK
• Asia Pacific
• China
• India
• Central & South America
• Middle East & Africa
North America was leading the market followed by Europe as these regions are technologically developed, and a number of consumers use satellite communication devices. Together, these regions accounted for over 60% of the revenues generated in 2016.
However, Asia Pacific is likely to witness a lucrative growth at a CAGR of 7.2% during the forecast period as a result of increasing application of these devices in defense and government sector. The development of these industries coupled with increasing levels of security for protecting classified data is expected to provide an opportunity for the growth of the MSS market over the next few years.
Competitive Landscape
The market for mobile satellite services is concentrated as it requires substantial investment for set-up and operations. The leading players operating in the mobile satellite services industry are Inmarsat plc., Globalstar, Iridium Communications Inc., Thuraya Telecommunications Company, EchoStar Corporation, INTELSAT, ORBCOMM, ViaSat Inc., Singtel, and Telstra.
The leading players are entering into agreements with domestic players to increase their presence and meet the required demand of the customers. For instance, in January 2017, Inmarsat plc entered into an agreement with Virgin and Tecbuy Megastores in UAE to market IsatHub terminals and Inmarsat’s GSPS IsatPhone satellite phones.
