July 14, 2024

Growing demand for remote communication capabilities to boost the growth of Satellite Telephones Market

The global Satellite Telephones Market is estimated to be valued at US$4475.6 Mn in 2023 and is expected to exhibit a CAGR of 4.0% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:
Satellite telephones are portable satellite phones that use an orbiting satellite to facilitate communication. Rather than relying on land-based communication networks, satellite phones provide coverage over remote areas with poor or no cellular reception. They are widely used by journalists, aid workers, travelers, mountaineers and others who require reliable access to mobile communications from any location on the earth. Satellite telephones provide text and voice capability across rugged terrain, oceans, deserts, jungles, and polar regions where conventional cellular service is unavailable. They offer emergency communication capabilities and are crucial for rescue operations when regular phones cannot be relied upon.

Market key trends:
One of the key trends in the satellite telephones market is the increasing demand for reliable communication in remote areas. As adventure tourism and expeditions to remote locations become popular, the need for mobile connectivity in areas lacking cellular infrastructure is growing. Satellite phones enable critical contact in emergencies for travelers, hikers, climbers and rescue teams. Moreover, rising offshore activities in oil & gas and maritime industries has spurred demand for satellite phones that function seamlessly over oceans and seas. Leading players are focusing on developing more compact and affordable solutions to tap the potential of commercial and consumer applications of satellite communication technologies. For instance, smaller personal locator beacons (PLBs) are gaining popularity among recreational users.
Porter’s Analysis
Threat of new entrants: The threat of new entrants in the satellite telephones market is low as satellite technology requires huge capital expenditure and establishment of infrastructure. However, declining launch costs may encourage new players to enter this market.

Bargaining power of buyers: The bargaining power of buyers is high in the satellite telephones market. Buyers can choose from multiple vendors offering a wide range of products at competitive prices.

Bargaining power of suppliers: The bargaining power of suppliers is moderate. A few major players dominate the components required for satellite telephones manufacturing like semiconductor chips, batteries, etc. However, developing local suppliers can reduce dependence on international suppliers.

Threat of new substitutes: The threat of substitutes is moderate. Alternatives like mobile phones are gaining traction. However, satellite telephones have an edge in areas with no terrestrial network coverage.

Competitive rivalry: The competitive rivalry in the satellite telephones market is high owing to the presence of global and regional players offering similar products. Players compete based on product features, reliability, pricing, distribution and branding.

Key Takeaways

The global satellite telephones market is expected to witness high growth, exhibiting CAGR of 4.0% over the forecast period, due to increasing demand for uninterrupted communication in remote areas without cellular network coverage.

Regional analysis

North America dominated the satellite telephones market in 2023 and is expected to continue its dominance over the forecast period. This is attributed to extensive usage of satellite phones for military & defense communications in the US. Asia Pacific is anticipated to be the fastest growing region owing to ongoing infrastructure development projects and disaster management activities in China and India.

Key players

Key players operating in the satellite telephones market are Inmarsat, Iridium, Globalstar, TerreStar, Thuraya, Nice Trip, and SPOT Global Phone. Leading market participants are adopting off the shelf marketing strategies in order to obtain competitive edge.