Global Satellite Phone Market 2019-2023
About this market
Presently, satellites in geostationary orbit which are positioned more than 22,000 miles above the earth’s surface are used to provide satellite-based Internet services. However, the high latency due to the large distance makes satellite-based Internet inefficient for several applications such as video conferencing, live streaming, and gaming. Moreover, the high manufacturing and launching costs of the traditional large-size satellites makes satellite-based Internet services costly. The latency of satellite-based Internet services can be reduced to nearly 20-30 milliseconds by using the constellations of nano and microsatellites which are placed in LEO at around 680 miles from the surface of the earth. The latency provided by this infrastructure is comparable to that provided by broadband Internet solutions. This satellite-based Internet service is also less costly. Thus, the progression towards low-cost, satellite-based internet services is expected to drive the market growth during the forecast period. Technavio’s analysts have predicted that the satellite phone market will register a CAGR of over 4% by 2023.Market Overview
Advantages of satellite phones over landline and cellular phones
Satellite phones are mainly used in emergency situations when existing communication networks become inaccessible or non-functional. These phones can be used to communicate with other landline, cellular and satellite phones and co-ordinate rescue efforts during extreme weather conditions and natural and manmade disasters. The newer models of satellite phones are also smaller, lighter and provide better functionalities than ordinary cell phones. These advantages of satellite phones over landline and cellular phones are driving the growth of the market during the forecast period.
Stringent regulatory standards for satellite phone development
Satellite phone companies need to follow several regulatory standards such as European Standard EN 62262/ International Electrochemical Commission 62262 (IEC 62262), and the US Department of Defense MIL-STD-810F while manufacturing. This requirement to follow several strict regulatory standards during satellite phone development hampers the growth of the market.
For the detailed list of factors that will drive and challenge the growth of the satellite phone market during the 2019-2023, view our report.
The market appears to be concentrated and with the presence of few established companies including Globalstar, and Inmarsat the competitive environment is less intense. Factors such as the rugged nature of satellite phones and its several advantages, will provide considerable growth opportunities to satellite phone manufactures. Globalstar, Inmarsat, Iridium Communications, and Thuraya Telecommunications are some of the major companies covered in this report.
Technavio Announces the Publication of its Research Report – Global Satellite Phone Market 2019-2023
Technavio recognizes the following companies as the key players in the global satellite phone market: Globalstar, Inmarsat, Iridium Communications, and Thuraya Telecommunications.
Commenting on the report, an analyst from Technavio’s team said: “The latency and the cost of satellite-based Internet services can be reduced by using nano and microsatellites present in LEO. This progression towards low-cost satellite-based Internet services will be a key trend driving market growth.”
According to the report, one of the major drivers for this market is the advantages of satellite phones over landline and cellular phones. These phones are rugged in nature and can withstand rough weather conditions. These phones also provide better geographic coverage than landline and cellular phones.
Further, the report states that one of the major factors hindering the growth of this market is the need to adhere to stringent regulatory standards while developing satellite phones. Satellite phone vendors need to follow several standards such as EN 62262/IEC 62262-2002 and MIL-STD-810F, which is hurting the growth of the market during the forecast period.
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