Satellite Modem Market Size, By Channel Type (Single Channel Per Carrier (SCPC) Modem, Multiple Channel Per Carrier (MCPC) Modem), By Date Rate, By Application (Broadcast, Enterprise & Broadband, In-flight Connectivity, IP Trunking, Mobile & Backhaul), By End-use, Forecast 2024 - 2032

 Satellite Modem Market Size

Satellite Modem Market size was valued at over USD 490 million in 2023 and is estimated to grow at a CAGR of over 9.5% between 2024 & 2032. A satellite modem is a device used to transmit and receive data over satellite communication networks. It modulates digital data into radio signals for transmission to satellites and demodulates received signals back into digital data. Satellite modems facilitate various applications including internet access, telecommunication, remote sensing, and broadcasting, enabling communication in remote or inaccessible areas without traditional wired infrastructure.

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The growing use of satellite networks in military & defense applications is a major growth driver for the market. As defense agencies around the world rely more on satellite communication for secure and reliable data transmission, there is an increasing demand for advanced satellite modems that can meet stringent security and performance requirements. These modems enable encrypted communication, real-time situational awareness, and command & control functions, resulting in the development of specialized, high-performance solutions for military requirements.

For instance, Comtech was awarded a USD 48.6 million contract by the Army for a new multi-network satellite communications modem. This modem is set to replace the existing standard modem used for transmitting and receiving SATCOM signals in Army ground systems, as well as those of the Navy and Air Force, as per company and Army documents.
 

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The satellite modem market is experiencing significant growth owing to the rising demand for high-speed internet access in remote areas. Satellite modems provide broadband connectivity in areas where traditional wired infrastructure is unavailable or impractical. This demand is driven by the need for dependable internet access for businesses, educational institutions, healthcare facilities, and remote residents, driving the deployment of satellite communication networks and the use of satellite modem technology.

Dependence on atmospheric conditions creates a challenge to the market. Adverse weather conditions, such as rain, snow, or heavy clouds, can weaken or disrupt satellite signals, resulting in poor performance or even complete signal loss. This dependency introduces reliability issues for communication networks, particularly in areas prone to inclement weather, affecting the seamless delivery of services and impeding the market's ability to provide consistent connectivity solutions.

Satellite Modem Market Trends

In the market, notable trends include the growing use of High Throughput Satellites (HTS) to meet the rising demand for bandwidth-intensive applications such as video streaming and data transfer. Another trend is the incorporation of advanced features such as Adaptive Coding and Modulation (ACM) and advanced Forward Error Correction (FEC) techniques to improve signal reliability & efficiency. Furthermore, there is a trend toward smaller & lighter modem designs to accommodate emerging applications on the Internet of Things (IoT) and mobile satellite communications.

For instance, in June 2023, Qualcomm launched new satellite IoT solutions to provide uninterrupted remote monitoring and asset tracking. The company announced two modem chipsets with satellite capabilitythe Qualcomm 212S Modem and the Qualcomm 9205S Modem. These modem chipsets power off-grid industrial use cases that require standalone Non-terrestrial Network (NTN) connectivity or hybrid connectivity alongside terrestrial networks, and allow IoT enterprises, developers, ODMs, and OEMs to harness real-time information and insights to manage business projects.

Furthermore, the market is seeing an increase in the demand for satellite modems that include built-in cybersecurity features to address growing concerns about data security and privacy. Overall, these trends represent a continuous evolution in satellite modem technology to meet the increasing demand for high-speed, reliable, and secure satellite communication solutions across various industries & applications.

Satellite Modem Market Analysis

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Based on the end-use industry, the market is segmented into energy & utilities, government, marine, media & entertainment, military & defense, mining, oil & gas, telecommunications, transportation & logistics, and others. The military & defense segment accounted for a market share of over 25% in 2023.
 

• Satellite communication is becoming increasingly important in military operations such as command & control, intelligence gathering, and situational awareness owing to its secure and resilient connectivity. Furthermore, advances in satellite modem technology, such as improved encryption and anti-jamming capabilities, are consistent with the sector's stringent security requirements.
   
• The expansion of military satellite constellations and the deployment of HTS are increasing the demand for high-speed data transmission and interoperability, which is boosting the market. With the demand for dependable and secure communication in remote & hostile environments, the military & defense industry remains a key driver of innovation and growth in the market.

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Based on channel type, the satellite modem market is segmented into single channel per carrier (SCPC) modem and multiple channel per carrier (MCPC) modem. The MCPC modem segment is estimated to register a significant growth rate of over 10% over the forecast period.
 

• MCPC modems are gaining popularity in the market owing to their ability to optimize bandwidth utilization and increase efficiency in satellite communication systems. Multiplexing multiple data channels onto a single carrier frequency allows MCPC modems to transmit different data streams, such as video, audio, and data, over the same satellite transponder. This capability helps make the most of limited satellite bandwidth resources, allowing service providers to offer a wider range of services and accommodate more users within the existing infrastructure.
   
• MCPC modems support cost-effective and scalable satellite communication solutions, making them increasingly appealing for applications such as broadcasting, telecommunications, and broadband internet access, driving their adoption and contributing to the growth of the market.

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North America held a significant share of over 30% in the global satellite modem market in 2023. The region's significant investments in space exploration, satellite communication infrastructure, and military applications are driving the regional market growth. Furthermore, the increased demand for high-speed internet access in remote and rural areas is propelling the market. Also, the region's technological advancements and the strong presence of key market players benefit the market. Additionally, the proliferation of satellite-based services in industries such as telecommunications, broadcasting, and transportation will drive the demand for satellite modems in North America.

Satellite modem Market Share 

Viasat, Inc. and Comtech Telecommunications Corp. holds a significant share of over 30% in the market. Viasat, Inc. is a global communications company that provides satellite-based internet and networking services to residential, commercial, and government customers. The company offers a wide range of satellite modems and related equipment tailored for various applications, including broadband internet access, in-flight connectivity, military communications, and more. With its extensive experience and innovative solutions, Viasat plays a significant role in shaping the satellite communication landscape and driving growth in the modem market.

Major players, such as Hughes Network Systems, Viasat, Inc., Gilat Satellite Networks Ltd., and Comtech Telecommunications Corp., are constantly implementing strategic measures, such as geographical expansion, acquisitions, mergers, collaborations, partnerships, and product or service launches, to gain market shares.

Satellite modem Market Companies

Major players operating in the satellite modem industry are

• Amplus Communication
• AYECKA Ltd.
• Comtech Telecommunications Corp.
• Datum Systems
• Gilat Satellite Networks Ltd.
• Hughes Network Systems
• ND SATCOM
• NOVELSAT
• ORBCOMM Inc.
• SatixFy
• ST Engineering
• Teledyne Technologies
• Viasat, Inc.
• WORK Microwave GmbH

Satellite Modem Industry News

• In April 2024, Hughes Network Systems, an EchoStar company, was awarded a production contract from General Atomics Aeronautical Systems, Inc. (GA-ASI) to produce a key component of the next-generation Satellite Communications (SATCOM) system for the MQ-1C Gray Eagle 25M Unmanned Aircraft System (UAS). Under the contract, Hughes will provide advanced, ruggedized HM400 modems, named the HM400T, that integrate with the DoD's standard waveform technology and transmission security (TRANSEC) features to enable significantly increased endurance and resilience for Gray Eagle 25M's wide range of Airborne Intelligence, Surveillance, and Reconnaisance (AISR) mission requirements, particularly for operations in contested environments.
   
• In June 2021, ST Engineering iDirect, a subsidiary of ST Engineering, and Intelsat (U.S.), an operator of the world's largest integrated satellite and terrestrial network, entered a long-term partnership with a local VSAT service provider to expand the provision of broadband internet services across the Philippines, utilizing the iDirect Evolution platform which includes satellite modem.
   

The satellite modem market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Million) from 2018 to 2032, for the following segments

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Market, By Channel Type, 2018 - 2032

• Single Channel Per Carrier (SCPC) Modem
• Multiple Channel Per Carrier (MCPC) Modem

Market, By Data Rate, 2018 – 2032

• High Speed
• Mid Range
• Entry Level

Market, By Application, 2018 – 2032

• Broadcast
• Enterprise & Broadband
• In-flight Connectivity
• IP Trunking
• Mobile & Backhaul
• Offshore Communication
• Tracking & Monitoring
• Others

Market, By End-use Industry, 2018 - 2032

• Energy & Utilities
• Government
• Marine
• Media & entertainment
• Military & Defense
• Mining
• Oil & Gas
• Telecommunications
• Transportation & Logistics
• Others

The above information is provided for the following regions and countries

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ
  • Rest of Asia Pacific 
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• MEA
  • UAE
  • Saudi Arabia
  • South Africa
  • Rest of MEA