United Kingdom Satellite Communications Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 14.22 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
United Kingdom Satellite Communications Market Analysis
The UK Satellite Communication market is valued at USD 2.24 Billion in the current year and is expected to grow at a CAGR of 14.22% during the forecast period to USD 4.9 Billion by the next five years.
- Satellite communication has gained significant traction due to its excessive use in the defense and military sectors for transmitting information and establishing communication between military personnel. Further, it also helps with satellite-asset tracking and remote sensing. For instance, life safety at sea has been gaining importance in the defense sector. The governments of various countries are investing in communication technology, such as navigation systems and vessel tracking. The governments of countries like China, the United States, the United Kingdom, and Indonesia play a vital role in promoting maritime security, as the maritime industry adds to the region's economic growth.
- Compared to other uses, satellite communication for military service demands more security. Military satellite communications providers have been driven to improve their solutions to meet the escalating needs of the military and defense industry in the upcoming years. These demands include increased bandwidth frequency, global broadcast service, and personal communication service.
- According to the Satellite Business Association, the commercial satellite business has been crucial in combating the COVID-19 pandemic. Due to its numerous uses in providing voice, data, and broadcast communications solutions, as well as navigation, earth observation, remote sensing, and other specialized services essential for businesses, government clients, and consumers domestically and globally, the demand for satellite communication has increased. International space agencies, like NASA, have used communication satellites to highlight the global effects brought on by COVID-19.
- Cybersecurity has become a major concern for satellite communication as the entire process of launching a satellite to transmit data is highly sensitive. Further, the challenge lies in the negative impact that such cybersecurity threats can potentially make, as the vulnerabilities are mission-critical. The mission-critical vulnerabilities that are exposed to cybersecurity threats include the launch systems, communications, telemetry, tracking and command, and mission completion. The over-dependency of satellite communication on secure cyber capabilities across the satellite's lifespan makes it a serious concern, thereby hindering its adoption.
- Since launching a satellite to send data is so sensitive, cybersecurity has become a fundamental problem for satellite communication. The difficulty stems from the potential harm such cybersecurity risks could do because the flaws are crucial to the operation. Launch systems, communications, telemetry, tracking and command, and mission completion are mission-critical weaknesses vulnerable to cybersecurity threats. Its implementation needs to be improved by the excessive reliance on satellite communication for safe cyber capabilities during the satellite's lifetime.
United Kingdom Satellite Communications Market Trends
Government policies will drive the market
- The United Kingdom has outlined far-reaching ambitions for communications technologies such as satellites in a massive new policy endeavor. Its most recent Wireless Infrastructure Strategy outlines the importance that technologies like satellites will play as the United Kingdom strives to be at the forefront of communications and connectivity. The government is introducing an 8 million pound ($9.92 million) fund to provide capital grants to the most remote 35,000 premises to promote new satellite communication.
- The government aims to provide nationwide standalone 5G connectivity in all populous locations by 2030. In addition, the government will invest 40 million pounds ($49.58 million) to construct eight to ten 5G Innovation Regions around the United Kingdom. This policy will allow regions and local governments to unlock opportunities by tailoring advanced wireless connectivity to each area's specific needs and strengths, encouraging 5G adoption in the public sector and industry, and strengthening the case for local investment, driving productivity and growth.
- In December 2022, to assess the capacity and viability of Low-Earth Orbit (LEO) satellites for providing high-speed connection to homes and businesses in remote places. The United Kingdom has launched seven sites across the country, utilizing a combination of OneWeb and Starlink technology. Snowdonia National Park, North York Moors, Papa Stour, and Lundy Island are among the locations included in this list.
- The UK Space Agency has announced a £50 million investment in bold and innovative initiatives to boost the UK's satellite communications industry. The funding, which is part of the European Space Agency's (ESA) Advanced Research in Telecommunications Services (ARTES) program, is available for a variety of projects, including the development of new satellite constellations, ground systems to access them, and entire end-to-end systems delivering new services to customers. These could include integrating 5G technology to enable people and machines to connect and modernizing infrastructure to help new markets and services.
- Another significant strategy component is introducing a new long-term national mission, with initial funding of up to 100 million pounds ($123.96 million), intending to keep the United Kingdom at the forefront of future telecoms and 6G technology. From complex AI and quantum-enabled networks of satellites and drones to fiber-optic networks, the UK government sees these following generation networks ushering in a new, more decadent generation of internet-based services, powering a quickly rising global digital economy, and supporting net zero.
- A crucial component of this mission will be a network of future telecoms research centers, where early-stage research will be coordinated by UKRI and the Engineering and Physical Sciences Research Council (EPSRC) under the Technology Missions Fund (TMF).
Entertainment industry is expected to grow at a significant CAGR
- Satellite communication has changed the entertainment sector by enabling efficient content distribution across geographical borders, resulting in a larger audience and new business models. The technology allows high-quality multimedia distribution that gives users an immersive experience at a low cost and excellent reliability. The music industry, in particular, has benefited from the rise of streaming services and digital music platforms, with satellite communication enabling efficient music distribution, the emergence of new genres and independent artists, and the creation of new revenue streams for artists and labels.
- Satellite communication has also aided in the creation of new business models in the UK entertainment industry. Subscription-based streaming services, for example, have grown in popularity, allowing entertainment firms to monetize their material in novel ways. These services provide consumers access to an extensive library of content for a fixed monthly fee, generating a consistent source of revenue for entertainment firms. In the United Kingdom, all of the major streaming platforms are available. With 84% of Britons subscribed to Netflix in 2020, it is the undisputed ruler of the UK streaming business. Amazon Prime came in second with a respectable 62%, then Disney+ with 26%, and Now TV with 12%.
- Satellite communication has instantaneously enabled content makers to access a broader, more diverse audience worldwide. It has enabled content providers to reach previously inaccessible audiences owing to geographical or cultural restrictions. This has allowed the sector to grow and change in novel ways. With the advent of streaming services, users now have immediate access to content, altering how individuals access and consume content. People may now view films, TV shows, and other types of entertainment from the comfort of their homes because of the availability of content online.
- Finally, satellite communication has transformed the entertainment sector by providing a dependable, cost-effective, and efficient way of content dissemination. It has allowed content creators to reach a worldwide audience and revolutionized how consumers access and consume material. While there are still obstacles to overcome, the sector will undoubtedly continue to expand and evolve with the continuous usage of satellite communication technology. Satellite communication has significantly impacted the music industry, revolutionizing how music is distributed and consumed. Satellite communication is likely to continue to affect the music industry in the years ahead as technology evolves.
United Kingdom Satellite Communications Industry Overview
The United Kingdom satellite communication (SATCOM) market is highly fragmented, with the presence of major players like Inmarsat global limited, Surrey Satellite Technology Limited (SSTL), L3Harris Technologies Inc., and Oneweb World, ViaSat Inc. Players in the market are adopting strategies such as partnerships, innovations, mergers, and acquisitions to enhance their product offerings and gain sustainable competitive advantage.
- January 2022, Hughes Network Systems and SES announced the completion of the first successful demonstration of a new multi-orbit satellite communications (SATCOM) capability for remotely piloted aircraft. The march, which was carried out for General Atomics Aeronautical Systems, Inc. (GA-ASI), combined Hughes HM series software-defined modems and the Resource Management System with SES satellites in geosynchronous (GEO) and medium earth (MEO) orbits. The unique multi-orbit fleet of SES, which provides worldwide coverage, high throughput, and security, was used to demonstrate how uncrewed aerial vehicles, such as the GA-ASI MQ-9 series, can sustain critical connectivity and reliability even in hostile areas.
- January 2022, Airbus and OneWeb signed a distribution partnership agreement to provide low Earth orbit (LEO) satellite communication services for military and governmental use. Airbus aims to offer new military satellite communication services leveraging the OneWeb constellation to select European and UK armed forces, civil protection, and security forces.
United Kingdom Satellite Communications Market Leaders
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Surrey Satellite Technology Limited (SSTL)
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Oneweb.World
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Inmarsat Plc
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L3Harris Technologies Inc
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ViaSat Inc
*Disclaimer: Major Players sorted in no particular order
United Kingdom Satellite Communications Market News
- January 2023 - The United Kingdom Space Agency has announced a 50 million pound investment in the satellite communications industry in the UK. The funds come from the European Space Agency's (ESA) Advanced Research in Telecommunications Services (ARTES) program and can be used for a variety of projects, including the development of the new satellite constellations and ground infrastructure required to connect to them or complete end-to-end systems that provide further services to clients.
- February 2023 - Babcock International has been awarded a contract to manage the ground components of the British military's Skynet satellite communications system. The British support services company will control and operate the constellation of satellites now delivering secure communications for UK military and government customers for a minimum of six years under the deal, worth at least £400 million ($480 million).
Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Bargaining Power of Buyers
4.2.2 Bargaining Power of Suppliers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitutes
4.2.5 Intensity of Competitive Rivalry
4.3 Industry Value Chain Analysis
4.4 Assessment of the Impact of COVID-19 on the Market
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Increase in Internet of Things (IoT) and Autonomous Systems
5.1.2 Rise in Demand for Military and Defense Satellite Communication Solutions
5.2 Market Restraints
5.2.1 Cybersecurity Threats to Satellite Communication
5.2.2 Interference in Transmission of Data
6. MARKET SEGMENTATION
6.1 By Type
6.1.1 Ground Equipment
6.1.2 Services
6.2 By Platform
6.2.1 Portable
6.2.2 Land
6.2.3 Maritime
6.2.4 Airborne
6.3 By End-user Vertical
6.3.1 Maritime
6.3.2 Defense and Government
6.3.3 Enterprises
6.3.4 Media and Entertainment
6.3.5 Other End-user Verticals
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 Surrey Satellite Technology Limited (SSTL)
7.1.2 Oneweb.World
7.1.3 Inmarsat Plc
7.1.4 L3Harris Technologies Inc
7.1.5 ViaSat Inc
7.1.6 Peak Communications Ltd
7.1.7 Avanti Communications
7.1.8 Earth-I
7.1.9 Tariam
7.1.10 Isotropic Systems
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
9. MARKET OPPORTUNITIES AND FUTURE TRENDS
United Kingdom Satellite Communications Industry Segmentation
The Satellite Communication (SATCOM) market is defined based on the revenues generated from the types that are being used in various end-use industries such as Maritime, Defense & Government, Enterprises, and Media & Entertainment, among other end-users. The analysis is based on the market insights captured through secondary research and the primaries. The market also covers the major factors impacting the growth of the market 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) and end-use industries (Maritime, Defense & Government, Enterprises, Media & Entertainment, and other end-users). Common satellite communication services include voice calling and internet access for different applications. The study tracks the key market parameters, underlying growth influencers, and major vendors operating in the industry, which supports the market estimations and growth rates over the forecast period. The study also tracks the revenue accrued through the sale of grown equipment and communication services that are being used in various end-user industries across geography. In addition, the study provides the SATCOM market trends, along with key vendor profiles. The study further analyses the overall impact of COVID-19 on the ecosystem.
| By Type | |
| Ground Equipment | |
| Services |
| By Platform | |
| Portable | |
| Land | |
| Maritime | |
| Airborne |
| By End-user Vertical | |
| Maritime | |
| Defense and Government | |
| Enterprises | |
| Media and Entertainment | |
| Other End-user Verticals |
Frequently Asked Questions
What is the current United Kingdom Satellite Communications Market size?
The United Kingdom Satellite Communications Market is projected to register a CAGR of 14.22% during the forecast period (2024-2029)
Who are the key players in United Kingdom Satellite Communications Market?
Surrey Satellite Technology Limited (SSTL), Oneweb.World, Inmarsat Plc, L3Harris Technologies Inc and ViaSat Inc are the major companies operating in the United Kingdom Satellite Communications Market.
What years does this United Kingdom Satellite Communications Market cover?
The report covers the United Kingdom Satellite Communications Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the United Kingdom Satellite Communications Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
United Kingdom Satellite Communications Industry Report
Statistics for the 2024 United Kingdom Satellite Communications market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. United Kingdom Satellite Communications analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
