Market Trends of North America Mobile Satellite Services Industry
This section covers the major market trends shaping the North America Mobile Satellite Services Market according to our research experts:
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.
- 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 look forward to strategic acquisitions to 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.
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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, the United States Army awarded Iridium Communications a contract 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.
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