Market Trends of Communication-on-the-Move (COTM) Hardware Industry
Growth of Connected Transportation to Drive the Market
- With the advancement of autonomous and semi-autonomous vehicles, the demand for robust and reliable communication systems has surged. COTM hardware ensures seamless communication between vehicles and infrastructure, enhancing navigation, optimizing traffic management, and bolstering accident prevention efforts.
- To ensure operational efficiency, safety, and adherence to regulations, the maritime and aviation sectors are turning to COTM systems. These systems facilitate uninterrupted communication with vessels and aircraft, even in remote or offshore locations.
- For instance, in October 2023 - StarWin Science and Technology (StarWin) from China, known for its innovative engineering solutions, successfully tested its electronically steered phased array antenna (ESA) terminal for communications on the move (COTM) using Avanti Communications’ high-speed HYLAS 4 Ka-band satellite.
- As smart cities expand and the Internet of Things (IoT) gains traction, the COTM market is expected to boost. In these smart cities, connected transportation systems depend on COTM hardware. This ensures seamless communication among all components, be it traffic lights or public transport, optimizing the movement of people and goods.
- Active satellite manufacturing and deployment are bolstering the COTM and connected transportation sectors. As of July 2024, satellite internet provider Starlink boasted 6,111 active satellites, representing nearly 50% of all satellites currently in orbit. The emergence of satellite internet constellations has significantly shaken the larger satellite market, putting established players under pressure from new entrants. Starlink notably supports comms on the move (COTM) and comms on the pause (COTP) functionalities.
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North America to Hold a Major Share
- North America is poised to lead the communication-on-the-move (COTM) market. The region boasts numerous top-tier technology firms specializing in COTM hardware and software solutions. This concentration of innovation and investment bolsters the advancement and implementation of sophisticated COTM systems across diverse sectors.
- With their cutting-edge military operations, the United States and Canada fuel a robust demand for COTM solutions. These systems are pivotal in ensuring secure, real-time communication for military endeavors, from battlefield management to strategic operations.
- For instance, for the fiscal year 2024, the US Army proposed a base budget of approximately 173 billion US dollars, alongside an extra allocation of 12.4 billion US dollars for Overseas Operations. In contrast, the previous fiscal year saw the US Army requesting a base budget of 171 billion US dollars, with 14.5 billion US dollars earmarked for Overseas Operations. The US military is well supported with financial support to research, develop, and deploy COTM equipment.
- Contracts awarded by the US government for developing and deploying COTM solutions, particularly for defense and public safety, further cement the region's dominance in the global COTM market.
- For instance, in July 2024 - SES Space & Defense, a wholly-owned subsidiary of SES, secured a pilot project to deliver satellite communications (SATCOM) as a managed service (SaaMS) to the US Army. This came under a blanket purchase agreement (BPA) with a ceiling of USD 3.6 million. The initiative aims to provide commercially leased SATCOM network services adaptable and customized to evolving mission requirements.
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