Airborne SATCOM Market Research Report and Outlook by 2028

The airborne SATCOM market size is expected to grow from US$ 6,492.75 million in 2022 to US$ 10,390.96 million by 2028; it is estimated to grow at a CAGR of 8.2% from 2022 to 2028.

Satellite communication technology plays a crucial role in Communications on the move (COTM), which is widely used in first responder operations, disaster recovery, remote access, and emergency preparedness, among other applications. COTM is also used in moving aircraft, including commercial and government unmanned aerial vehicles (UAVs), which maintain communication with a satellite network while in motion. The satellite-based COTM (SATCOM) has become a popular communication system in both defense and commercial aerial communication systems, thanks to advancements in low-gain antenna solutions and high-powered L-band satellites. Manufacturers are working on developing advanced airborne on-the-move SATCOM solutions to address operators' network constraints, leading to the development of new antenna types and bandwidth pricing strategies. For example, in March 2020, Hughes Network Systems, LLC was selected by the United States Naval Air Systems to provide SATCOM systems for the HC-27J aircraft of the US Coast Guard. This decision was based on the company's incorporation of Beyond Line of Sight (BLoS) systems into these aircraft, which have COTM capabilities for intelligence, surveillance, and reconnaissance (ISR), disaster relief, and humanitarian aid, among other applications. These developments have contributed to the growth of the global airborne SATCOM market share.

In 2021, Europe accounted for the second-largest share in the airborne SATCOM market. Aircraft manufacturers operating in this region focus on developing advanced aircraft models that comply with strict safety regulations and emission norms. These regulations require the incorporation of advanced technologies and sophisticated subsystems in aircraft. The presence of significant aircraft manufacturers, such as Airbus S.E., Dassault Aviation, Leonardo, and Thales Group, in European countries contributes to the growth of the airborne SATCOM market share in the region. The aviation industry is a critical sector that contributes significantly to Europe's GDP, with air travel being the most popular means of transportation in European countries. As per GAMA, in 2020, the European general aviation fleet had access to more than 4,000 airports and 133,000 aircraft. The presence of such a robust aviation industry fuels the growth of the airborne SATCOM market in Europe.

COVID-19 Pandemic Impact on Airborne SATCOM Market

The COVID-19 pandemic had a severe impact on the Asia Pacific region, with many countries experiencing a decline in GDP, international trade, and economy. The airborne SATCOM market in the region also suffered a setback during the first half of 2020, leading to a significant reduction in revenue for major market players. Production, military operations, and supply chains were disrupted due to the outbreak, resulting in a decrease in military expenditure. Both large and small and medium-sized enterprises in the Indian aerospace and defense sectors were affected, with the Indian defense enterprise losing around US$ 3 billion in revenue between March and May 2020. The delay in the delivery of VVIP planes for the President, Vice President, and Prime Minister of India also had a negative impact on the APAC airborne SATCOM market growth.

Canada is projected to exhibit the highest compound annual growth rate (CAGR) in the North American airborne SATCOM market during the forecast period, owing to its increasing military expenditure. The country's military expenditure has risen by 16% in 2021 as compared to 2020. In January 2020, WestJet entered into an agreement with FLYHT Aerospace Solutions Ltd., worth US$6.2 million, to install FLYHT's Automated Flight Information Reporting System (AFIRS) on its Boeing 737 fleet. Under the five-year contract, WestJet will receive AFIRS units that support satellite communications (SATCOM), SATCOM air traffic control (ATC) data safety services, FANS datalink, and voice capabilities. The rising demand for commercial aircraft in Canada is also expected to contribute to the growth of the airborne SATCOM market in the country.

The market study on the global airborne SATCOM market has profiled several market players, such as Airbus SE, Thales Group, General Dynamics Mission Systems Inc., Honeywell International Inc., and L3Harris Technologies Inc.

The size of the airborne SATCOM market has been determined using primary and secondary sources. The research process began with exhaustive secondary research from internal and external sources to gather qualitative and quantitative information related to the airborne SATCOM market. This process was also used to obtain an overview and forecast of the market size for all market segments. Furthermore, multiple primary interviews were conducted with industry participants, including VPs, business development managers, market intelligence managers, national sales managers, and external consultants such as valuation experts, research analysts, and key opinion leaders, who specialize in the airborne SATCOM market, to validate the data and gain more analytical insights.