Maritime Satellite Communication Market Size, Market Research and Industry Forecast Report, 2025 (Includes Business Impact of COVID-19)

                                          
Industry Insights, Market Size, CAGR, High-Level Analysis: Maritime Satellite Communication Market


The global maritime satellite communication market size was valued at USD 2.64 billion in 2018, registering a CAGR of 8.9% from 2019 to 2025. Rising need for reliable and cost-effective communication services at sea is driving the growth. Moreover, increasing adoption for navigational purposes is also expected to fuel revenue growth. Also, huge investments by key maritime communication equipment manufacturers, such asIridium Communications Inc. and Inmarsat Global Limited, to introduce new and affordable equipment is expected to boost the growth.

Maritime telecommunication equipment have become the standard for short as well as long-term voyaging. Reliable communication has become an indispensable part of maritime transport, whether its recreational boats, mega yacht, commercial fishing or other naval transport.Cellular services are only available within the offshore areas and have a limited range wherein they functions properly. Satellite network is used as a solution to mitigate the communication issues and offer services that have a competitive advantage over land-based communications.

In the past, satellite network was used for communication of ship to shore and with another marine vessel. Now the role of satellite communication has transformed from the voice calls to additional user-oriented data services, such as entertainment, tracking, and monitoring services. These equipment have become ubiquitous owing to their diverse applications, such as DTH broadcasting, disaster management, voice calls, weather forecasting, and navigation among others.

Receiver, transmitter/transponder, transceiver, antenna, modem/router, and satellite phone are the prominent communication equipment deployed on marine vessels. These equipment also find application in air and marine navigation and meteorological monitoring. Although marine satellite communications are becoming ever more crucial, the solutions that work on land do not typically operate at seas. Continuous R&D in the field is leading to minimizing the size of antennas and increasing the rate of data transfer to reduce the time lag. This factor is positively influencing the growth of the maritime satellite communication market.

Marine satellite communication equipment used for naval defense forces help deal with aerial monitoring, sending and receiving distress call, and navigational requirements. Moreover, growing investment across various regions to upgrade legacy systems in the naval fleet is likely to propel demand over the forecast period. Defense and security sector has to maintain communications with zero time lag to evade challenges, such as pirate activities, inter-country conflicts, and border infiltrations among others. Thereby, marine satellite communication is gaining attention among coast guard, naval forces and other security organization.

Type Insights of Maritime Satellite Communication Market

Very Small Aperture Terminal (VSAT) segment captured the higher market share in 2018 and is expected to witness considerable growth during the forecast period. This growth is attributed to the advantages of VSAT over Mobile Satellite Services (MSS), such as reduced time lag, global coverage, and others. Broadband VSAT network is used for establishing onboard VPN networks that cover fleets and connect ships to shore. This connectivity supports critical business applications, carries VoIP traffic and increases ships access to information. VSAT provides regular access to the Internet for email, file sharing, and instant messaging, among others. VSAT has also provided the option of unlimited data usage at a fixed monthly payment. This enables the crew to stay in touch with friends and family, manage personal affairs, and consume entertainment content at a reasonable rate.

Although the market is undoubtedly heading toward an era of enhanced marine connectivity, research suggests that MSS will continue finding a place on vessels and platforms where data usage is minimal. For instance, fishing boats, are expected to adopt VSAT solutions at a slower rate and will continue with existing MSS equipment in the forthcoming years. Furthermore, if Arctic Circle once again recedes to open up northern shipping passages, MSS L-band will be the only feasible satellite connectivity solution in such extreme geographical locations. Furthermore, L-band is exceptionally reliable, outperforming some VSAT solutions in adverse climatic conditions and will, therefore, used as a backup for several years to come. This is owing to the frequency of VSAT causing the signal to be attenuated during rain showers and adverse climatic condition at waters.

End Use Insights

Commercial vessel segment accounted for revenue of over USD 1.3 billion in 2018, owing to the rising trade activities using commercial vessels; in key emerging countries such as China, Brazil, and India among others. The international shipping industry is responsible for the carriage of around 90% of the world trade. Maritime trade continues to expand, bringing benefits for consumers across the globe through competitive logistics costs. With rising manufacturing and global trade, there has been a rise in the number of marine vessels added to the existing fleet. Increase in the number of ships and naval vessels is expected to fuel the market over the forecast period.
Rising globalization and supportive trade policy, as well as some geopolitical shifts such as the emergence of China as the manufacturing hub, constitutes a rise in maritime trade in Asia Pacific. According to the UNCTAD Maritime Transport outlook 2018, maritime trade expanded by 4% in 2017, which is the fastest growth registered in five years. It is expected to exhibit similar growth in the upcoming years. Volumes across all segments witnessed growth in 2018, with dry bulk and containerized commodities recording significant progress on account of increasing tanker volumes. UNCTAD projected an average year-on-year growth rate in total volumes of 3.8 % till 2023.The increase in global trade and rising maritime fleet to cater to the demand for logistics is expected to boost the market over the forecast period.

Revenue Source Insights

Hardware was the dominant segment in 2018, accounting for more than 30% market share in terms of revenue and is expected to maintain its dominance over the forecast period. Hardware components are utilized in large volumes and the cost associated with them is very high. This high cost is likely to positively impact revenue generation over the forecast period. A rise in installation of VSAT broadband equipment in new as well as existing marine vessel fleet is anticipated further fuel the market growth. Technological innovations, such as reduced size of dish and cost of data usage is expected to drive the demand for installation of new VSAT services over MSS services.

The software segment is poised to witness moderate growth during the forecast period, attributed to accessibility of wide range of application-specific software that suits interests and requirements of marine vessels. For instance, satellite tracking and prediction, simulations and graphical interfaces, radio tuning with automatic Doppler correction, antenna steering through popular interfaces, navigational and entertainment software. Increasing adoption of marine satellite communication equipment in defense vessels, cruise ships, luxury yacht, and others is anticipated to further drive the segment.

Regional Insights of Maritime Satellite Communication Market

Asia Pacific is projected to emerge as a predominant region over the forecast period owing to the increasing adoption of VSAT technologies in the merchant and cruise ships in the region. Large-scale modernization of legacy systems, such as close in air defense systems, radar and communication systems in defense vessel and rise in political tensions and border disputes in the countries, such as India and China is also driving the demand for new satellite communication technologies in the region.

Europe is expected to witness the second-fastest growth over the forecast period, owing to the increased sales of luxury vessels. The demand is majorly driven by factors, such as increasing number of High-Net-Worth Individual (HNWI) and rising popularity of marine tourism owing to rising popularity of water sports and fishing. In the upcoming years, passenger traffic in marine and coastal tourism is expected to witness substantial rise due to the attractiveness of the region. Introduction of tourism supportive policies, such as on-arrival visa is anticipated to boost investments in coastal areas for recreational activities, such as fishing, white-water rafting, kayaking, sail training adventures, one-day boating adventures, scuba diving, free diving, and snorkeling. These luxury vessels are equipped with latest satellite communication technology. The rise in sales of these luxury vessels will positively impact the market.

Market Share Insights of Maritime Satellite Communication Market

Major market players include Inmarsat Global Limited; Iridium Communications Inc.; Leonardo S.p.A.; Thuraya Telecommunications Company; ViaSat Inc.; Orbcomm Inc.; KVH Industries, Inc.; Singapore Technologies Engineering Ltd; EchoStar Corporation; Kongsberg Maritime AS; Saab AB; and Rohde & Schwarz GMBH. The key market incumbents are undertaking initiatives and adopting strategies, such as business partnerships, mergers and acquisitions, and competitive pricing to capture greater market share.

In August 2018, Al Yah Satellite Communication Company PJSC (Yahsat), a provider of satellite telecom services based in United Arab Emirates (UAE), acquiredThuraya Telecommunications Company into mobile satellite services. This acquisition will help the former to expand its customer base and services and gain greater market share in near future.

In March 2019, Singapore Technologies Engineering Ltd., a provider of products and services related to aerospace, land defense systems, and marine capabilities for defense and commercial enterprises, acquired Belgium-based satellite telecom provider Newtec Group. It has a global customer base and this acquisition will help the former to reach greater customer base on global scale.

Segmentations, Sub Segmentations, CAGR, & High-Level Analysis overview of Maritime Satellite Communication Market Research Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends from 2014 to 2025 for each of the sub-segments. For the purpose of this study, this market research report has segmented the global maritime satellite communication market report on the basis of type, revenue source, end use, and region:

Type Outlook (Revenue, USD Billion, 2019 - 2030)

  
Very Small Aperture Terminal (VSAT)
  
Ka-Band
  
C-Band
  
Others
  
Mobile Satellite Services (MSS)

Revenue Source Outlook (Revenue, USD Billion, 2019 - 2030)

  
Hardware
  
Software
  
Services

End Use Outlook (Revenue, USD Billion, 2019 - 2030)

  
Naval Vessel
  
Commercial Vessels
  
Leisure Vessels
  
Offshore Oil Rigs