SATCOM Transceivers Market Trends

Growth Drivers

• Growing Number of Satellite Launches – Every year, numerous satellites are being launched for earth observation services in numerous sectors such as civil engineering, agriculture, energy, oil & gas, and other industries. Satellites are also used for delivering high-resolution images with low-cost investments. However, for communicating with the satellites, the need for SATCOM transceivers is generated. Thus, with the high number of satellites being launched every year, the global market is expected to grow during the forecast period. For instance, in 2019, there were a total of 95 satellites launched.
• Rising Integration of the Internet of Things (IoT) – The Internet of Things (IoT) has entered into the global market as almost all of the internet-powered devices in infrastructure, environmental monitoring, military support, shipping, aviation, and others are serviced by satellites. Therefore, the rapid growth of the IoT industry is anticipated to bring lucrative growth opportunities for the expansion of the global market in the near future. According to recent statistics, it is been revealed that the worth of the global IoT industry was almost USD 800 billion by end of the 2022, which is forecasted to grow to reach USD 1 trillion by 2024 with a growth rate of 13%.
• Increasing Adoption of Automation Processes Across the World – Recent statistics that have been published in 2022, stated that automation is expected to boost global productivity by almost 2% every year. Also, almost 85% of global businesses are forecasted to introduce robots and automation in the next ten years.
• Escalation in the Use of Artificial Intelligence (AI) - It has been stated that AI is predicted to contribute almost USD 16 trillion to the global economy by 2030, and nine out of ten leading businesses are forecasted to invest in AI technologies.
• Increased Investment in the Research & Development (R&D) Sector – As per the World Bank, the Research and Development expenditure accounted for 2.63% of total GDP in 2020. This was a rise from 2.13% of the total GDP in 2017.

Challenges

• Surging Cyber Security Concerns – One of the major concerns in SATCOM transceivers is the rising concern regarding cyber-security and cyber-crimes which is considered to be a major threat to the sustainability of satellite systems. It generates various vulnerabilities as SATCOM transceivers are mission-critical, and include communications, launch systems, tracking and command, and telemetry which requires secure and reliable communication systems. Thus, the recent surge in cyber security concerns is estimated to hamper market growth during the forecast period.    
• Requirement of High Investments at Every Stage
• Shortage of Skilled Professionals