North America Mobile Satellite Services Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022-2027)

The North America Mobile Satellite Services Market is expected to grow at a CAGR of 6.25% over the forecast period (2022 - 2027). The usage of satellite communication services for IoT, as well as in the disaster management areas in the region, is expected to boost the market studied over the forecast period.

Key Highlights

• Mobile satellite services are used for several applications such as media broadcasting, weather, telecommunication, military intelligence, navigation, space exploration, 5G communications systems, and surveillance applications.
• Additionally, augmenting 5G mobile networks with next-generation satellite capabilities helps the mobile satellite operators play a vital role in the emerging 5G ecosystem.
• According to the Satellite Industry Association (SIA), ground equipment revenues have increased significantly due to the expansion of GNSS markets and network equipment. In contrast, customer equipment investments and resources have remained flat or slightly declining, indicating that mobile satellite communication (MOST) will become a fundamental growth point of the overall market studied.
• There is a growing trend among end-user industries to adopt data and voice mobile satellite services to satisfy their communication requirements, wherever their operations are located. Companies, such as Inmarsat, are offering pre-paid satellite services for voice and data via the Inmarsat pre-pay platform, with the introduction of support for voice calls originating in the United States and its territories.
• However, the lack of interoperability between MSS systems and increasing regulations on the use of satellite technology are restraining factors hindering the market's growth over the forecast period.
• According to the Satellite Industry Association, the commercial satellite industry played a pivotal role during the COVID-19 pandemic. The demand for satellite communication increased due to its vast applications in providing voice, data, and broadcast communications solutions along with navigation, earth observation, remote sensing, and other unique services vital for businesses, government customers, and consumers domestically and around the globe. Global space agencies, such as NASA, have leveraged communication satellites to illustrate the planet-wide changes resulting from COVID-19.

Key Market Trends

Increasing Government Investments

• The government agencies in North America have been making significant efforts to introduce new satellite and navigation systems that boosted the growth of the satellite communication industry. North America has a large coastal area that requires continuous monitoring. The increasing commercial activities and trade in the region are propelling the need for maritime safety and surveillance.
• In order to command and control forces, monitor opponent actions, and uncover threats that could jeopardize the United States and its allies, the U.S. Department of Defense (DoD) relies on the advantages afforded by satellites for nearly every military mission. As per the Union of Concerned Scientists, out of 4,852 active artificial satellites orbiting the Earth, 2,944 belongs to the United States as of January 1, 2022.
• Moreover, various key players are looking forward to strategic acquisitions to further provide regional mobile satellite-related services. For instance, In May 2021, OneWeb announced the addition of TrustComm, a satellite service provider, the Low-Earth Orbit (LEO) operator. The acquisition is to provide channels to deliver services to TrustComm’s U.S. government and enterprise clients. Further, this acquisition will provide DoD and other government clients with a new suite of services with network speeds up to 195 Mbps, lower latency, more compact multi-orbit user terminals, and built-in network management tools.
• The Canadian government is taking steps to enhance satellite-based connectivity in the region. For instance, In May 2021, the Canadian government announced the availability of the spectrum to develop competition in the wireless services market, improve rural connectivity and ensure the effective deployment of 5G technologies. With large amounts of spectrum maintained for satellite services in remote areas, the spectrum available to support wireless broadband services increased from 50 MHz to 80 MHz. The citizens in rural areas will also be benefited from this initiative.
• Moreover, In April 2022, Hispasat, Spanish telecommunications satellite operator, announced its collaboration with GlobalSat, an internet service provider, to provide free satellite connectivity hotspots in 500 remote towns in Mexico. The Mexican federal government promotes this partnership through the CFE TEIT (Telecommunications and internet for everyone) program. Residents of the cities will have free satellite connectivity on their devices through an open Wi-Fi hotspot in public areas.

United States is Expected to Hold a Major Share

• Satellite services can serve remote areas far from the ground. Remote commercial industries such as forestry, mining, oil, gas, and defense use mobile satellite services for voice communications, remote connections to the internet, location information, and automated surveillance.
• In addition, mobile satellite equipment often operates in significant parts of the globe and can be deployed quickly and easily. Commercial satellite companies offer U.S. government customers such as the Department of Defense a variety of mobile satellite solutions, from essential satellite voice and data to tracking and high-speed handset solutions.
• In June 2021, Iridium Communications was awarded a contract by the United States Army to build a payload that may transmit data such as timing or position signals. The contract is used for research and development activities valued at up to USD 30 million. Iridium will develop a tiny satellite payload housed by an unnamed low-Earth-orbit constellation.
• Many regional organizations are contributing to the development of mobile satellite services. For instance, In June 2022, Ligado Networks announced a partnership with Sony Semiconductor Israel to develop chipsets for Ligado's 5G mobile satellite network for the Internet of Things (IoT), marking a major milestone for deploying enhanced connectivity and serving the growing market for 5G mobile satellite connectivity anywhere in the U.S. and across North America.
• Similarly, In April 2022, Kymeta, a satellite communications company, and OneWeb Technologies, a provider of secure commercial satellite communications application solutions, announced an agreement to distribute secure, reliable, and cost-effective broadband connectivity services to the U.S. government.

Competitive Landscape

North America Mobile Satellite Services market appears to be fragmented owing to the availability of the large number of players intensifying the competition. Major players in the North America Mobile Satellite Services market are adopting strategies like acquisitions and partnerships to expand their reach to more consumers worldwide. Some major mobile satellite servicing companies are Globalstar Inc, Thales Group, and Inmarsat PLC, among others.

• In December 2021, Inmarsat, the global leader in mobile satellite communications, and Mitsubishi Heavy Industries, Ltd. (MHI) launched the Inmarsat-6 fleet's first satellite (I-6 F1) using MHI's H-IIA Launch Vehicle No. 45. The Inmarsat-6 F1 communications satellite, designed and produced by Airbus Defense and Space and based on the Eurostar 3000EOR satellite bus, will be operated by Inmarsat's British satellite operator.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

This product will be delivered within 2 business days.