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 The global satellite modem market is estimated to be valued at $1,004.4 million by 2028, surging from $348.7 million in 2020, at a noteworthy CAGR of 14.4%.

Impact Analysis of COVID-19 on the Satellite Modem Market

The global satellite modem market has experienced a negative impact in the recent months due to the COVID-19 outbreak. Various markets around the world have experienced great losses and it is same with the satellite modem market. The supply chain and the import and export of the raw materials have been hampered widely due to which the manufactures are unable to manufacture the devices and meet the demand of the modems.

However, as the governments across the globe has initiated to loosen up, the lockdown the satellite modem market is projected to increase at a better rate.

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Global Satellite Modem Market Analysis

The surge in demand for high-speed network communication solutions in the military & defense, enterprise, and government sectors is likely to boost the satellite modem market significantly. Due to an increase in the number of high-throughput satellites, the satellite modem market share is predicted to grow significantly throughout the forecast period. Furthermore, the market has grown due to an increase in demand for high-speed data connection.

Due to confusing legal frameworks, satellite manufactures are struggling to identify whether and to what degree rules apply to them. Furthermore, there is no common approach to licensing and frequency authorizations among national authorities. Because the frequencies they use—the VHF and UHF bands—are typically new to national authorities when compared to the S, L, Ku, C, and Ka bands, small satellite operators may have difficulty obtaining frequency licenses. This is a substantial challenge for satellite modem manufacturers. These factors are anticipated to hamper the market growth.

The growing demand for low earth orbit (LEO) satellites for communication purposes is anticipated to create better growth opportunities in the near future as these satellites have the ability to provide better communication network.

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Global Satellite Modem Market, Segmentation

The global satellite modem market is segmented based on channel type, technology, application, end-user, and region.

Channel Type:

The channel type segment is further classified into SCPC modem and MCPC modem. The MCPC sub-segment is expected to grow at the fastest CAGR of 16.2% and reach $530.7 million by 2028, up from $163.3 million in 2020. The growth is majorly due to exceptional channel efficiency afforded by these modems, which is a basic necessity of high-data-traffic applications such as mobile communication, internet, and broadband services. MCPC satellite modems can connect to IP networks to give a seamless phone, video, and data connection. Because of its high data rate capacity over satellite technology, MCPC modem technology can provide broadband internet services for enterprise networks.


The technology segment is further classified into VSAT, satcom-on-the-move, satcom-on-the-pause, and others. The satcom-on-the-move sub-segment held the largest market value in 2020 accounting for $121.5 million and is anticipated to reach $357.0 million by 2028 at a CAGR of 14.7%.. Satcom on-the-move (SOTM) terminals are increasingly used in military and commercial applications. These terminals are primarily utilized in military applications for tactical communication. SOTM terminals are used for broadband communication on ships, trains, planes, ground vehicles, and other types of transportation. These terminals are mostly used in corporate applications for broadband Internet access.


The application segment is further classified into mobile & backhaul, IP-trunking, enterprise & broadband, media & broadcast, and others. The IP-trunking sub-segment is expected to grow at the fastest CAGR of 15.2% and reach $293.1 million by 2028, up from $96.9 million in 2020. The enormous array of benefits provided by IP-trunking, such as endless employee mobility, a reliable phone service, and a robust end-to-end unified communications system that aids in data security while also boosting communication system quality, are primarily responsible for the rise. IP trucking also allows customers to use the same IP-based network for a variety of data transports such as video, voice, and more. It is no longer necessary to have many, overlapping networks (and paying for each).


On the basis of end-user, the market is divided into telecommunications, marine, military & defense, transportation & logistics, oil & gas, and others. The military &defense & channel is anticipated to grow at the fastest CAGR of 15.10% and reach $269.0 million over the forecast period. Satellite communication is widely used in military & defense operations for various objectives, including data collection, situational awareness, and border patrol. The volume of data, audio, and video exchanged between headquarters and remote facilities has skyrocketed in recent years. High-speed satellite communications are also provided by satellite modems for missions that are on the go, point-to-point, stationary, or point-to-multipoint. Satellite modems are also necessary for military & defense activities to ensure secure and dependable communication. They are mostly utilized in areas where a telecommunications network is unavailable, such as in India's Siachen.


The Asia-pacific satellite modem market is anticipated to grow at the fastest CAGR of 15.3% and reach $264.4 million by 2028. Growing investments and the number of satellites launches in developing countries like China, India, Japan, and South Korea are driving Asia-Pacific market growth. The need to cover rural locations and the growing demand for high-speed data access with high-availability of data services are the driving market for the massive investments in this region. Furthermore, technical advancements in this region are another significant driver propelling the Asia-Pacific market region growth over the coming. Furthermore, increased spending on military & defense projects is expected to boost the market in the near future.

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Key Players in the Global Satellite Modem Market

Some of the leading global satellite modem market players are

  1. Datum System
  2. ORBCOMM Inc.
  3. Gilat Satellite Networks Ltd.
  4. ST Engineering
  5. Viasat, Inc.
  6. Teledyne Technologies
  7. Comtech Telecommunications Corp.
  8. Work Microwave GmbH
  9. Hughes Network Systems
  10. Novelsat.

The Role of Satellite Modems in Military and Defense Communication Satellites

Strategic Acquisitions Like that of Swarm Technologies by SpaceX to Drive the Global Satellite Modem Market



About Research Dive

Research Dive is a market research firm based in Pune, India. Maintaining the integrity and authenticity of the services, the firm provides the services that are solely based on its exclusive data model, compelled by the 360-degree research methodology, which guarantees comprehensive and accurate analysis. With an unprecedented access to several paid data resources, team of expert researchers, and strict work ethic, the firm offers insights that are extremely precise and reliable. Scrutinizing relevant news releases, government publications, decades of trade data, and technical & white papers, Research dive deliver the required services to its clients well within the required timeframe. Its expertise is focused on examining niche markets, targeting its major driving factors, and spotting threatening hindrances. Complementarily, it also has a seamless collaboration with the major industry aficionado that further offers its research an edge.

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