Airborne SATCOM Market

Airborne SATCOM Market Size Share and Trends 2026:

Airborne SATCOM Market is valued at around $ 6.6 billion in 2021and is expected to grow to $ 9.9 billion by 2026, with a CAGR of 7.3% from 2022 - 2027.

The airborne satellite communications system (SATCOM) is an integrated solution that provides reliable and constant transmission on and off-road of vital information in real-time to support any air mission. An airborne SATCOM consists of various pieces of equipment, such as a transmitter, a transceiver, a receiver, an antenna, an airborne radio, and modems and routers. The airborne SATCOM market is driven primarily by the increasing number of aircraft, the increase in long-haul flights and passenger traffic, the increase in the number of high-speed satellites, and the growing demand for customized SATCOM solutions on the go.

Airborne SATCOM Market Growth:

The growing fleet of commercial and fighter jets, the increase in long-haul flights and passenger traffic, and the demand for customized SATCOM solutions on the go are the main drivers of the airborne SATCOM market. Leading equipment/system manufacturers also offer advancements in SATCOM equipment used in commercial aircraft, military aircraft, and drones.

Recent Developments and Trends:

In 2019, Honeywell delivered a new SATCOM system for the Chinese carrier, offering fast and reliable in-flight Wi-Fi connectivity.

In 2017, the Australian Defence Force awarded a big contract to Northrop Grumman Corporation to provide with the most advanced satellite systems and improve communication coverage, capacity and connectivity for Australian Defence troops.

Airborne SATCOM Market Drivers:

OEM's emphasis on integrating the next generation of airborne platforms, increased demand for custom SATCOM solutions on the move, and increasing adoption of SATCOM transceivers are drivers of global market growth. The ultra-compact SATCOM terminals for tactical drones and the need to improve the passenger experience present new avenues in the industry. The demand for new aircraft can be attributed to the deployment of advanced airborne SATCOM systems in commercial and military applications. The growing fleet of commercial and combat aircraft and the increase in long-haul flights and passenger traffic are fuelling the demand for customized SATCOM solutions on the go. This strong demand for custom SATCOM is expected to drive growth in the global airborne SATCOM market. The invention of transceivers has resulted in the progressions of several modern communication technologies like two-way radios and the Internet. Additionally, SATCOM transceivers provide a next-generation situational awareness system, offering increased capacity for increased throughput capabilities. Several airlines are upgrading their existing fleet with a SATCOM transceiver to enhance the passenger travel experience, thus opening up the growth potential of the global market.

Airborne SATCOM Market Restraints:

Factors such as ultra-compact SATCOM terminals for tactical drones and the need to improve the passenger experience are hampering the market growth. Cybersecurity concerns and the high cost of satellite communications are expected to restrict market growth to some extent.

REPORT COVERAGE:

Airborne SATCOM Market Segmentation:

Based on the installation, the new installation segment of the market is expected to grow at the highest CAGR during the forecast period. The progress in this segment can be credited to the deployment of advanced airborne SATCOM systems in commercial and military applications and the increasing demand for new commercial aircraft orders in Asia-Pacific and Europe. Aircraft manufacturers and airlines around the world are focusing on integrating next-generation aerial platforms to improve situational awareness and passenger experience. Based on components, the transceiver segment of the market is expected to grow at the highest CAGR during the outlook period. The invention of transceivers has led to the improvement of several modern communication technologies, such as two-way radios and the Internet.
Based on application, the commercial segment is foreseen to progress at the highest CAGR over the outlook period. The growth in this segment can be attributed to the growing demand for a better passenger experience. Major airlines such as Alaska Airlines, Southwest Airlines, Delta Airlines, and American Airlines are opting for the latest inflight entertainment systems to enhance the passenger experience.

Airborne SATCOM Regional Analysis:

North America dominates the airborne SATCOM market. This trend is anticipated to continue during the forecast period because of the presence of leading players such as Honeywell International, Inc., L3 Harris Technologies, Inc., United Technologies Corporation, and Viasat, Inc., and investments by these companies in the development of airborne SATCOM systems and solutions. The increasing adoption of combat aircraft and UAVs by military forces for tactical missions is expected to drive growth in the European market during the estimated period.

The market in the Asia-Pacific region is expected to grow at a high CAGR during the projected period. Increasing demand for new aircraft and defense spending from countries such as India and China are driving the growth of the regional market. Rising defense spending from countries like Saudi Arabia, the United Arab Emirates, and Israel, and the presence of major airlines like Etihad Airways and Saudi Arabian Airlines are motivating market development in the Middle East and Africa region. In Latin America, the use of drones for gathering intelligence on drug trafficking and rebel groups, monitoring deforestation, and controlling illegal migration has increased, which is expected to spur growth in the market.

Competitive Landscape:

ASELSAN is a Turkish defense company based in Ankara, Turkey. Its main field of activity is the research, development, and manufacture of advanced military products for the air, land, and sea forces. The company is one of the main subcontractors of the Turkish armed forces.

Key Players:

Some of the key players profiled in the global Airborne SATCOM Market include Aselsan A.S., Astronics Corporation, Cobham PLC, Collins Aerospace, General Dynamics Corporation, Gilat Satellite Networks, Harris Corporation, Honeywell International Inc., Hughes Network System, Israel Aerospace Industries, Norsat International Inc., Orbit Communication System Ltd, Raytheon Company, Thales Group, and Viasat, Inc., among others.

Impact of Covid-19 on Airborne SATCOM market:

COVID-19 has played a key role in slowing the adoption of in-flight connectivity and SATCOM equipment by 2021and beyond. The mobility and transportation segments, such as maritime and aviation, are heavily affected in the application areas of airborne SATCOM equipment, amid the ongoing coronavirus pandemic. Air travel and related industries fell with a more than 50% drop in passenger traffic at the end of March 2020. Late adoption was persistent through the end of April 2020, with a small and uncertain improvement in adoption. This trend has resulted in growing challenges for sustainability throughout the global value chain. Constant bankruptcies and departures throughout the aviation industry value chain have made these challenges clear.