Japan Satellite Communication Market Size (2024 - 2029)

Japan Satellite Communication Market Analysis

The Japan Satellite Communication Market size is estimated at USD 3.34 billion in 2024, and is expected to reach USD 6.74 billion by 2029, growing at a CAGR of 15.09% during the forecast period (2024-2029).

One of the main factors driving the satellite communication industry is Japan's growing requirement for high-speed and consistent broadband connectivity.

• The introduction of 5G technology and technological advancements are one of the primary drivers of the market in Japan. The satellites improve coverage in outlying areas and supplement terrestrial networks. Key competitors are investing in the market through mergers, acquisitions, and other means to grow their presence among customers and better serve their needs across a range of applications.
• For instance, in May 2023, to build local 5G networks employing Dynamic Spectrum Access (DSA) technology on urban expressways in Japan, Sony and Mitsui collaborated on a system feasibility testing study. The businesses claim that this project represents the first effort ever made to use Dynamic Spectrum Access (DSA) technology for local 5G networks to provide automatic coordination of wireless spectrum and prevent damaging radio interference issues. As a result, this project is predicted to significantly contribute to encouraging cooperative usage of local 5G networks in Japan.
• The Japanese government has been actively promoting the satellite communications sector through initiatives and investments. Collaborations and public-private partnerships are also promoting innovation in the industry. Together, these developments help the satellite communication market in Japan expand and advance, enabling better connection, data services, and technical advancements across a range of businesses and sectors. In addition, satellite-based communication systems are used in mobile, automotive, and other applications that require connectivity while in motion. Expanding IoT hardware and software necessitates stable connectivity with a broad reach.
• However, factors like interference in data transmission might be a significant concern that can hamper the overall market's growth throughout the forecast period. Since launching a satellite to send data is a highly sensitive process, cybersecurity has become a significant issue for satellite communication, which can hinder the market's growth.
• Factors like the rising demand for mobile broadband, the growing use of smartphones and smart wearable devices, and the surging demand for mobile video adoption are expected to drive the growth of 5G over the forecast period, which is expected to aid the growth of the market studied. According to the Ministry of Internal Affairs and Communications (Japan), the number of fixed-line broadband service subscriptions in Japan amounted to 44.7 million in 2023, up 0.7 million from the previous year.

Japan Satellite Communication Industry Segmentation

Satellite communication is the transfer of data and information via satellites orbiting the Earth. It enables long-distance communication by relaying signals between ground stations and satellite receivers in orbit, enabling television broadcasts, internet access, and phone calls. The satellite communication (SATCOM) market is defined based on the revenues generated from the types used in various end-user verticals such as maritime, defense and government, enterprises, and media and entertainment. The analysis is based on the market insights captured through secondary research and the primaries. The report also covers the major factors impacting the market's growth in terms of drivers and restraints.

The scope of the study has been segmented based on the type of satellite communication equipment and services (ground equipment (a gateway, very small aperture terminal (VSAT) equipment, network operation center (NOC), and satellite newsgathering (SNG) equipment) and services (mobile satellite services (MSS), fixed satellite services, and earth observation services), platform (portable, land, maritime, and airborne), and end-user vertical (maritime, defense and government, enterprises, media and entertainment, and other end-user verticals). Common satellite communication services include voice calling and internet access for different applications. The report offers market forecasts and size in value (USD) for all the above segments.

The study tracks the key market parameters, underlying growth influencers, and major vendors operating in the industry, supporting the market estimations and growth rates over the forecast period. In addition, the study provides the SATCOM market trends, along with key vendor profiles. The study further analyzes the overall impact of COVID-19 on the ecosystem.