Market Trends of Italy Satellite Communication Industry
Defense and Government Segment is Anticipated to Hold Significant Market Share
- The defense and government sector is analyzed to hold a significant market share in the Italy satellite communication market. Defense satellite services can assist military departments in boosting operational effectiveness and mission success probabilities by offering dependable, secure broadband services that permit global interoperability on land, at sea, and in the air.
- Moreover, satellite communication services significantly boost the digital economy in Italy by offering high-speed broadband services for various economic sectors. Various government departments across the country use satellite communication from market vendors to avail secure communications and monitoring infrastructures for different economic sectors. For instance, government sectors such as the Presidency of the Council of Ministers, the Ministry of Interiors, the Ministry of Defense, and the Ministry of Infrastructure and Transportation use satellite communication services from Gomedia Satcom.
- Further, high-speed satellite communications offer governments access to a completely digital world. Satellite communication enables governments to deploy IoTs in many service sectors, fueling the market growth. Moreover, increasing government spending is further expected to increase the demand for satellite communications in various economic sectors. According to the data from the IMF, government spending in Italy is expected to reach EUR 1154.37 Billion (~USD 1268.9 Billion) by 2028 from EUR 1084.88 Billion (USD 1256.67 Billion) in 2022.
- In a shifting geopolitical landscape, secure and uninterrupted communications are becoming crucial for the government and defense sectors. In crises, natural disasters, or the unavailability of ground-based operators, governmental institutions need access to rapidly deployable and robust satellite communications capabilities, such as Civil Protection and Fire Corps Department, to save lives in emergency-related activities in Italy.
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Technological Advancement and Adoption of Advanced Technologies such as AI and IoT in Various Industries is Expected to Drive the Market
- Technological advancements and growing digital transformation in various end-user industries is expected to increase the demand for satellite communications services in the country. As every industry continues to be transformed by data, companies face challenges such as the growing volume of data, the variety of data, and the increasing speed of data requirements.
- Digital transformation is causing many companies to rethink their strategy for capturing, accessing, and transforming the data, including using various technologies such as artificial intelligence and machine learning, as well as the development of how they can most effectively retain the data over longer periods. This has significantly boosted the demand for satellite communication in end-user industries to fulfill expanding demand for uninterrupted communication services.
- Moreover, the increasing adoption of Artificial Intelligence in various industries nationwide is expected to enhance the demand for satellite communication services in end-user companies. For instance, according to the data from ArmCharm Italy, between 2017 and 2030, the adoption of artificial intelligence (AI) is expected to increase the revenues of Italy's economy by EUR 570 billion (~USD 626.55 Billion). According to the forecasts, the financial services and retail sectors are expected to grow by about EUR 112 billion (~USD 123.11 billion) and EUR 172 billion (~USD 189.06 Billion), respectively.
- Additionally, various latest trends, such as the rising implementation of IoT and autonomous systems in end-user industries, deployment of 5G networks through satellites, ongoing development of smart cities, etc., are expected to boost the demand for the satellite communication market to provide a high degree of connectivity they need. Moreover, the country is witnessing significant IoT solutions rollout in the past few years, and this massive increase in the adoption of IoT is driving the need for satellite communication, thereby supporting the growth of the studied market.
