Global Sky Based Communication Market Research Report: Forecast (2021-2026)

Market Definition:

Sky-based communication transfers data in the form of audio, video, and sometimes Data & Telemetry (Temperature & Light intensity) from one device to another via receivers, transmitters, modems, and other broadcasting components. This type of communication is used across different verticals like aerospace, defense, automotive, electronic, among others for connectivity across extensive areas.

Market Insights:

The Global Sky Based Communication Market is projected to grow at a CAGR of around 28% during the forecast period, i.e., 2021-26, says MarkNtel Advisors. The market growth attributes primarily to the growing need of the rapidly expanding aerospace & defense sectors worldwide to attain secure communication lines with timely data transmission using digital mediums. Besides, the increasing number of satellite launches for communication and the mounting need for uninterrupted communication in military & defense applications are other crucial aspects that shall soar the demand for sky-based communication systems in the forecast period.

Increasing technological advancements like the Internet of Things (IoT) & Artificial Intelligence (AI) in satellite communication, coupled with the competitive edge of High Altitude Platform System (HAPS) for fixed broadband connectivity & communication between core networks & mobiles for backhauling traffic over conventional satellite systems, are also backing the market growth. 

Although, the market observed a slight decline in growth due to the Covid-19 pandemic in 2020, which resulted in severe economic fluctuations globally. However, 2021 has brought revival to the market with the recommencement of operations and research & development activities in satellite technology, especially across prominent regions like North America, Europe, and Asia-Pacific.

Covid-19 had a Dual Impact on the Global Sky Based Communication Market

The emergence of the Covid-19 pandemic had a decelerating effect on most industries worldwide. Yet, the Global Sky Based Communication market observed a dual impact. Initially, the market faced certain challenges with the hampered supply chain & shutdown of manufacturing industries that affected several sectors like aviation, aerospace, automotive, etc., which, in turn, resulted in reduced demand for sky-based communication. The market further observed a temporary halt on research & development activities & all initiatives taken for deploying innovative sky-based communication solutions got suspended.

On the other hand, while the government of different countries had to respond in unprecedented ways like frequent lockdowns & stringent movement restrictions to curb the virus spread, most industries adopted the Work-from-Home culture. Due to this, the demand for efficient communication mediums from diverse locations soared considerably. Additionally, this trend also propelled the use of internet services and, in turn, infused a swift rise in the requirement for sky-based communication mediums.

Moreover, seeing a gradual improvement in the pandemic situation, the governments of different countries have uplifted the restrictions since 2021 and allowed the recommencement of all research operations. Currently, the market is on the track of regaining its usual pace & expects a boom in the years to come.

Market Segmentation

Based on the Platform:

• Satellites
• UAVs
• High Altitude Platform Stations

Of them all, the Satellite platform attained a significant market share during 2016-20. Satellite-based communication offers enhanced reliability, better coverage, and real-time transmission of high-quality & extensive data. Due to these advantages, its application is rapidly increasing for military secured communication, GPS signaling for navigation by many commercial users, and commercial airline signal transmission. Moreover, satellite communication covers a large spectrum to communicate, offers access to remote areas, and promotes real-time data transmission. These aspects have created a significant demand for satellite-based communication to improve urban mobility.

Based on End-Users:

• Maritime
• Aerospace & Defense
• Industrial
• Transportation & Logistics
• Media
• Government & Public Safety
• Agriculture

Of them all, the Aerospace & Defense sectors are anticipated to dominate the market with the largest share during 2021-26. It owes principally to the immense requirement for flexible, uninterrupted, secure, and reliable communications networks to expedite data sharing for critical missions, thereby propelling the demand for sky-based communication systems. Besides, the booming utilization of Unmanned Aerial Vehicles (UAVs) for applications like monitoring, surveillance, transportation, retrieving images & data, etc., is also backing the market growth around the aerospace & defense sectors.

Regional Landscape

Based on the Geography, the Global Sky Based communication market expands across:

• North America
• South America
• Europe
• Asia-Pacific
• Middle East & Africa

Of them all, North America held a prominent market share during 2016-20, owing to the widespread presence of major aircraft manufacturers & consumer electronic companies and the extensive use of satellite communication systems by most end-users across the region. In addition, the region has also observed an upswing in aerospace communication owing to the mounting use of space-based internet services for fast-speed data transmission.

In 2020, NASA contracted Nokia for 4G internet on the lunar surface, which is a significant improvement in the field of sky-based communication systems.

In North America, the US has been a prime contributor to the market growth in 2020, owing to its highly developed aviation & aerospace industry that massively require sky-based communication systems. Moreover, the surging demand for autonomous vehicles & navigation systems is also boosting the sky-based communication market in the US.

Market Dynamics:

Key Drivers: Burgeoning Adoption of IoT in the Aviation Industry to Drive the Market

The governments of different countries are actively taking various initiatives & investing substantially in the research & development on integrating new technologies like the Internet of Things (IoT) & Artificial Intelligence (AI) in satellites. The aviation industry is witnessing an increasing utilization of IoT, which requires extensive & secure network connections for their operations. It, in turn, is boosting the demand for satellite communication to provide these systems with the needed communication channels. IoT devices, using satellite connectivity, transmit & exchange real-time data between IoT systems & components used in these domains, which helps optimize aviation operations. Hence, these aspects are projected to drive the Global Sky-Based Communication Market in the coming years. Some other aspects that shall boost the market include:

• Massive investments in 5G deployment that require higher bandwidth, which, in turn, is leading to more number of satellites getting launched
• Increasing need for maritime satellite communication
• Mounting adoption of satellites for real-time data tracking

Growth Restraint: Increasing Number of Satellites Launches Posing Vulnerabilities to Security Threats

The swiftly rising number of satellite launches worldwide to procure uninterrupted & continuous connectivity might cause interference in data transmission through satellites. Besides, Satellite systems are accountable for bandwidth communication globally and are prone to risks like exploitation by cybercriminals. Hence, these factors might act as growth restraints to the Global Sky-Based Communication Market over the forecast years. 

Competitive Landscape

According to MarkNtel Advisors, the major leading players in the Global Sky Based Communication Market are SES S.A., Honeywell Corporation, Viasat, Inc., Intelsat, Telesat, EchoStar Corporation, L3 Technologies, Inc., Thuraya Telecommunications Company, SKY Perfect JSAT Group, GILAT SATELLITE NETWORKS, Cobham Limited, Thales Group, General Dynamics, Satcom Global, Newtec, Hughes Network Systems, Iridium, Harris, Avl Technologies, Aselsan.

Key Questions Answered in the Market Research Report:

1. What are the overall market statistics or market estimates (Market Overview, Market Size- By Value, Forecast Numbers, Market Segmentation, Market Shares) of the Global Sky Based Communication Market?
2. What is the region-wise industry size, growth drivers, and challenges?
3. What are the key innovations, opportunities, current & future trends, and regulations in the Global Sky Based Communication Market?  
4. Who are the key competitors, their key strengths & weaknesses, and how do they perform in the Global Sky Based Communication Market based on the competitive benchmarking matrix?
5. What are the key results derived from the market surveys conducted during the Global Sky Based Communication Market study?

Market Outlook, Segmentation, and Statistics

• Impact of COVID-19 on Global Sky Based Communication Market
• Market Size & Analysis
  • By Applications
    • Telecommunication
    • Broadband
    • Navigation
    • Remote Sensing
    • Broadcasting
    • Data communications
    • Others
  • By Platform
    • Satellites
      • By Frequency
        • L & S Band (1-4 GHZ)
        • C & X Band (5-12 GHZ)
        • Ku & Ka Band (13-40 GHZ)
    • UAVs
    • High Altitude Platform Stations
  • By Components
    • Modems
    • Gateways
    • Antennas
    • Transponders
    • Receivers & Transmitters
    • Others
  • By End Users
    • Maritime
    • Aerospace & Defense
    • Industrial
    • Transportation & Logistics
    • Media
    • Government & Public Safety
    • Agriculture
    • Others
  • By Region
    • North America
      • The US 
      • Canada
    • South America
      • Brazil 
    • Europe 
      • The UK
      • Germany
      • France
    • Asia-Pacific 
      • China
      • South Korea
      • Japan 
    • The Middle East & Africa 
  • By Competitors
    • Competition Characteristics
    • Market Share & Analysis
    • Competitive Matrix
• Global Sky Based Communication Market Hotspots & Opportunities
• Global Sky Based Communication Market Regulations & Policy
• Key Strategic Imperatives for Success and Growth
• Global Competition Outlook
  • Competition Matrix
  • Company Profile