Airborne SATCOM Market Research Report and Outlook by 2028

The airborne SATCOM market is projected to expand from US$ 6,492.75 million in 2022 to US$ 10,390.96 million by 2028, reflecting a compound annual growth rate (CAGR) of 8.2% during this period.

Satellite communication technology is essential for Communications on the Move (COTM), which finds extensive application in first responder activities, disaster recovery, remote access, and emergency preparedness. COTM is also utilized in mobile aircraft, including both commercial and government unmanned aerial vehicles (UAVs), which maintain satellite communication while in transit. The satellite-based COTM (SATCOM) has gained traction as a preferred communication system in both defense and commercial aviation sectors, driven by innovations in low-gain antenna technologies and high-powered L-band satellites. Manufacturers are actively developing sophisticated airborne SATCOM solutions to overcome network limitations faced by operators, leading to the introduction of new antenna designs and bandwidth pricing models. For instance, in March 2020, Hughes Network Systems, LLC was awarded a contract by the United States Naval Air Systems to supply SATCOM systems for the HC-27J aircraft utilized by the US Coast Guard. This selection was influenced by the integration of Beyond Line of Sight (BLoS) systems into these aircraft, which are equipped with COTM capabilities for intelligence, surveillance, reconnaissance (ISR), disaster response, and humanitarian assistance, among other uses. Such advancements have significantly bolstered the global airborne SATCOM market.

In 2021, Europe held the second-largest share of the airborne SATCOM market. Aircraft manufacturers in this region are dedicated to creating advanced aircraft models that adhere to stringent safety standards and emission regulations. These regulations necessitate the integration of cutting-edge technologies and complex subsystems into aircraft designs. The presence of major aircraft manufacturers like Airbus S.E., Dassault Aviation, Leonardo, and Thales Group in European nations enhances the growth of the airborne SATCOM market in this area. The aviation sector is a vital contributor to Europe?s GDP, with air travel being the predominant mode of transportation across European countries. According to GAMA, in 2020, the European general aviation fleet had access to over 4,000 airports and 133,000 aircraft. This robust aviation infrastructure supports the expansion of the airborne SATCOM market in Europe.

Impact of the COVID-19 Pandemic on the Airborne SATCOM Market

The COVID-19 pandemic significantly affected the Asia Pacific region, leading to declines in GDP, international trade, and overall economic activity. Consequently, the airborne SATCOM market in this region faced challenges during the first half of 2020, resulting in a notable drop in revenue for key market players. The outbreak disrupted production, military operations, and supply chains, causing a reduction in military spending. Both large corporations and small to medium-sized enterprises in the Indian aerospace and defense sectors were impacted, with the Indian defense industry experiencing a revenue loss of approximately US$ 3 billion between March and May 2020. Additionally, delays in the delivery of VVIP aircraft for India's President, Vice President, and Prime Minister adversely affected the growth of the airborne SATCOM market in the Asia Pacific region.

In North America, Canada is anticipated to demonstrate the highest CAGR in the airborne SATCOM market throughout the forecast period, driven by increasing military expenditures. The country's military spending rose by 16% in 2021 compared to 2020. In January 2020, WestJet signed a US$6.2 million agreement with FLYHT Aerospace Solutions Ltd. to equip its Boeing 737 fleet with FLYHT's Automated Flight Information Reporting System (AFIRS). This five-year contract includes the provision of AFIRS units that facilitate satellite communications (SATCOM), SATCOM air traffic control (ATC) data safety services, FANS datalink, and voice capabilities. The growing demand for commercial aircraft in Canada is also expected to propel the growth of the airborne SATCOM market in the nation.

The global airborne SATCOM market study has identified several key players, including 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 assessed using both primary and secondary research methods. The research process commenced with comprehensive secondary research from various internal and external sources to collect qualitative and quantitative data related to the airborne SATCOM market. This approach was also employed to establish an overview and forecast of the market size across all segments. Additionally, numerous primary interviews were conducted with industry stakeholders, including VPs, business development managers, market intelligence managers, national sales managers, and external consultants such as valuation experts, research analysts, and key opinion leaders specializing in the airborne SATCOM market, to validate the findings and gain deeper analytical insights.