PUBLISHER: The Business Research Company | PRODUCT CODE: 1436551
PUBLISHER: The Business Research Company | PRODUCT CODE: 1436551
Optical satellite communication (OSC) is a space-based method of transmitting digital data utilizing an optical transmitter to encrypt messages into optical signals. Unsuch as traditional methods, OSC employs optical fibers for communication purposes. This technology facilitates efficient communication between widely dispersed geographical locations by relaying signals around the Earth through satellites.
The key components within the optical satellite communication market encompass the transmitter, receiver, modulator, demodulator, and additional elements. At the transmitting point, the transmitter converts information into light waves. These waves, carried by a laser beam, traverse through space to be received by an optical receiver. Upon reception, the optical receiver decodes the signal and forwards it to its destination. There, another converter translates the optical signal back into electrical form for further processing. Various laser types such as YAG, silex, microwave, CO2, and AlGaAs laser diodes play integral roles in applications such as backhaul, surveillance, tracking, earth observation, enterprise connectivity, research, space exploration, telecommunication, and more.
The optical satellite communication market research report is one of a series of new reports from The Business Research Company that provides optical satellite communication market statistics, including optical satellite communication industry global market size, regional shares, competitors with an optical satellite communication market share, detailed optical satellite communication market segments, market trends and opportunities, and any further data you may need to thrive in the optical satellite communication industry. This optical satellite communication market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.
The optical satellite communication market size has grown rapidly in recent years. It will grow from $12.14 billion in 2023 to $14.5 billion in 2024 at a compound annual growth rate (CAGR) of 19.4%. The growth observed in the historical period can be attributed to increased bandwidth demand, applications in military and defense, space exploration, concerns related to data security, and advancements in earth observation and remote sensing technologies.
The optical satellite communication market size is expected to see exponential growth in the next few years. It will grow to $38.49 billion in 2028 at a compound annual growth rate (CAGR) of 27.6%. The anticipated growth in the forecast period can be attributed to the emergence of low earth orbit (LEO) constellations, the expansion of inter-satellite communication, and the increasing utilization of commercial applications. Major trends in the forecast period include the deployment of high throughput satellites (HTS), advancements in free-space optical (FSO) communication, the development of inter-satellite links (ISL), the implementation of quantum key distribution (QKD) for secure communication, and the trend towards miniaturization and lighter payloads.
The rising prevalence of smartphones is anticipated to drive the growth of the optical satellite communication market in the coming years. Smartphones, characterized as portable electronic devices with internet connectivity and integrated software applications performing various computer functions, heavily rely on optical satellite communication for their proper functioning. Optical satellite communication plays a crucial role in providing communication signals, especially in remote areas where traditional communication infrastructure may be limited. As an example, in 2021, data from the National Health Authority of India, an Indian government agency, reported 1.18 billion mobile connections, 600 million smartphones, and 700 million Internet users in India, with an incremental increase of 25 million users every quarter. This surge in smartphone penetration highlights the growing user base, emphasizing the pivotal role of optical satellite communication in meeting the communication needs of an expanding mobile user population, thereby driving market growth.
The ongoing expansion of broadband networks is poised to significantly propel the growth of the optical satellite communication market in the foreseeable future. Broadband networks, characterized by their high-capacity telecommunications capabilities that allow for the simultaneous transmission of multiple signals and data types, play a crucial role in enhancing optical satellite communication. The development of broadband networks holds the potential to revolutionize satellite communication by facilitating faster and more reliable data transmission. The incorporation of fiber optic technology, in particular, has the capacity to surmount existing limitations, leading to improved performance, cost efficiencies, and expanded coverage in satellite communication. As highlighted in a July 2023 report by the Organisation for Economic Co-operation and Development (OECD), a France-based intergovernmental organization, OECD countries witnessed a notable 17% increase in data usage per mobile broadband subscription in 2022. This robust growth underscores the pivotal role of broadband network expansion in driving the optical satellite communication market.
The optical satellite communication market is witnessing a notable trend with the rise of laser communication relay systems. Major players within this sector are prioritizing the development of innovative and advanced systems to maintain their market standing. Notably, in 2021, NASA, the US-based space agency, introduced its Laser Communications Relay Demonstration (LCRD) system. This cutting-edge technology is geared toward enhancing optical communication capabilities in space. The LCRD represents a shift from traditional radio communications to optical communications, offering a substantial bandwidth increase ranging from 10 to 100 times more than conventional radio frequency systems. This groundbreaking initiative by NASA signifies a significant advancement in optical satellite communication technology, promising improved data transmission and communication efficiency in space missions.
Major players in the optical satellite communication market are innovating their product offerings to cater to larger customer bases, drive sales, and augment revenue, exemplified by the development of scalable optical communication terminals. These terminals are adaptable communication systems designed for easy adjustment or expansion in size, capacity, or functionality to meet diverse requirements. For instance, in August 2021, Mynaric, a Germany-based manufacturer specializing in laser communication equipment for airborne and spaceborne communication networks, introduced the CONDOR Mk3. This launch aims to bolster the company's existing product portfolio by presenting a mass-manufacturable, more compact, lighter, and energy-efficient alternative to its predecessors. The development of the CONDOR Mk3 stems from valuable insights gathered from consumers and industry stakeholders regarding the prior SDA-compliant Mk2 model. The commercial introduction of the Mk3 is characterized by its dual scalability, offering adjustable speeds and output capabilities. The terminal's variable data rates range from 100 Mbps to 100 Gbps, ensuring compliance with SDA regulations while providing the flexibility to accommodate evolving mission needs with higher speeds. This technological advancement reflects a commitment to addressing diverse communication requirements within the satellite industry by delivering scalable and adaptable solutions.
In November 2021, CACI, a U.S.-based information technology company, completed the acquisition of SA Photonics for a deal amounting to $275 million. This strategic move is aimed at expanding CACI's capabilities and services, particularly in the domains of free-space optical (FSO) communication and laser communications. The acquisition supports CACI's efforts in the fields of space, airborne, and terrestrial communications. SA Photonics, the acquired company, is based in the U.S. and specializes in the manufacturing, design, and development of advanced optical communication systems.
Major companies operating in the optical satellite communication market report are Mitsubishi Electric Corporation, Honeywell International Inc., NEC Corporation, Thales Group, Space Exploration Technologies Corporation, Ball Aerospace & Technologies Corporation, Maxar Technologies Ltd., Starlink , Tesat-Spacecom GmbH & Co.KG, Surrey Satellite Technology Ltd., Fibertek Inc., Toray International Inc., Space Micro Inc., Synspective Inc., Transcelestial Technologies, Skyloom Global Corporation, ATLAS Space Operations Inc., Aperture Optical Sciences Inc, Bridgecomm Inc., Analytical Space Inc., Hisdesat Servicios Estrategicos S.A., Mynaric AG, Kleos Space SA, BridgeSat Inc., SITAEL S.p.A, Clutch Space Systems Ltd., Hfcl Limited, Laser Light Communications Inc.
North America was the largest region in the optical satellite communication market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the optical satellite communication market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the optical satellite communication market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The optical satellite communication market consists of revenues earned by entities by providing optical satellite communication lasers such as YAG laser, CO2 laser and AlGaAs laser. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Optical Satellite Communication Global Market Report 2024 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on optical satellite communication market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for optical satellite communication ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The optical satellite communication market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
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The impact of higher inflation in many countries and the resulting spike in interest rates.
The continued but declining impact of covid 19 on supply chains and consumption patterns.