Very Small Aperture Terminal (VSAT) Market Size, Share, Analysis, Trends, Growth, 2032

Very Small Aperture Terminal (VSAT) Industry Prospective:

The global very small aperture terminal (VSAT) market size was worth around USD 8.79 billion in 2023 and is predicted to grow to around USD 35.55 billion by 2032 with a compound annual growth rate (CAGR) of roughly 16.80% between 2024 and 2032.

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Very Small Aperture Terminal (VSAT) Market: Overview

A very small aperture terminal (VSAT) is an earth station with a compact structure. It is used for the transmission and retrieval of voice, data, and video signals using a satellite communication system or network. VSAT does not have applications in television broadcasting. The tool consists of two parts. A device is placed indoors and its role is to allow interfacing the transceiver with the communication device with the end-user. A transceiver on the other hand is placed outdoors with direction facing the satellite’s line of sight. A transceiver’s main role is to allow the receiving and sending of signals to a sky-based satellite transponder. The ground station computer, also acting as the station hub, sends and receives signals from the satellite. It also acts as a common connecting ground for all end-users to the hub station thus forming a star topology. The hub is the main controller of all communications. In case an end-user wants to communicate with a different user, the information or transmission passes through the hub station followed by retransmission through the satellite and ultimately reaches the second end-user’s very small aperture terminal. In most cases, VSAT tends to operate in C-band and Ku-band frequencies however, there has been significant growth in the new Ka-band satellites which could lead to higher very small aperture terminal market expansion during the forecast period.

Key Insights:

• As per the analysis shared by our research analyst, the global very small aperture terminal (VSAT) market is estimated to grow annually at a CAGR of around 16.80% over the forecast period (2024-2032)
• In terms of revenue, the global very small aperture terminal (VSAT) market size was valued at around USD 8.79 billion in 2023 and is projected to reach USD 35.55 billion, by 2032.
• The very small aperture terminal market is projected to grow at a significant rate due to the rising applications in remote working environments
• Based on the land, the land VSAT segment is growing at a high rate and will continue to dominate the global market as per industry projection
• Based on the vertical, the energy & power segment is anticipated to command the largest market share
• Based on region, Asia-Pacific is projected to dominate the global market during the forecast period

Request Free SampleVery Small Aperture Terminal (VSAT) Market: Growth Drivers

Rising applications in remote working environments will drive the market growth rate

The global very small aperture terminal (VSAT) market is expected to grow due to the growing applications of the technology in remote work settings. Very small aperture terminals are used extensively in remote areas that are otherwise disconnected due to the lack of cellular networks or traditional means of wire-based connection. The growing remote work culture across the globe, especially encouraged during COVID-19 has been an essential driver for the escalating adoption of VSAT systems among corporate houses. Business operations throughout the globe are evolving as companies continue to strive to achieve operational efficiency and reduce extra costs. The rise of remote work culture has helped businesses curb avoidable costs while also gaining access to a larger talent pool without being affected by geographical boundaries. Remote working is facilitated by the advancements in VSAT technologies that allow reliable video and audio conferences over long distances. The extended applications of VSAT are observed in the education industry where colleges and schools can easily conduct interactive video sessions without requiring the students to be present in the classroom. The tool is exceptionally helpful for students participating in distance learning thus aiding extensive growth in the educational sector globally.

Growing adoption of telemedicine is made possible using VSAT systems

Telemedicine is a modern form of providing healthcare. It deals with remote diagnosis and treatment of a medical condition. Telemedicine relies heavily on telecommunications technologies such as VSAT. Telemedicine offers several advantages to patients and medical caregivers, especially at present times in which the global healthcare burden is growing at a rapid rate. The global very small aperture terminal (VSAT) market is expected to help shape the telemedicine industry in the coming years.

Very Small Aperture Terminal (VSAT) Market: Restraints

Higher development rate of alternate technologies could limit the market’s growth rate

The global industry for very small aperture terminal (VSAT) faces multiple growth restrictions. The most crucial market growth inhibitor is the growing rate of development observed in alternate technologies such as 5G telecommunications. Advancements in other modes of receiving and transmitting data with reduced latency can cause market disruption. In May 2024, Ericsson, a leading telecom giant, announced that it would be making an additional investment of USD 50 million for the expansion of its 5G smart factory based in Texas, USA. Such investments toward rapid and mass-scale deployment of state-of-the-art alternate communication systems will impede the market’s growth rate.

Very Small Aperture Terminal (VSAT) Market: Opportunities

Military applications of VSAT systems to generate extensive growth opportunities

The global very small aperture terminal (VSAT) market is expected to generate growth opportunities in the coming years due to the growing applications of the technology in military communication. The technology is used across several military segments ranging from gathering critical information to surveillance. In the last 5 years, military-based defense activities have soared across the globe with several domestic and international factors impacting the disruption in the global social-political scenario. Countries worldwide are keen on saving the interests of their regional population. VSAT systems specially designed for military applications are more secure since they facilitate encrypted conversation. In April 2023, Northrop Grumman announced that it was working on developing a geostationary communications satellite for military communication. The new satellite is expected to launch in 2025 and will provide a means for greater investments in VSAT technology. The project investment will be approximately around USD 2.4 billion.

Surge in the development of novel VSAT technologies may prove beneficial for the market players

The makers of very small aperture terminals are constantly striving to upgrade technology offerings to deliver improved results. The increasing research & development (R&D) can expand growth avenues for the companies operating in the very small aperture terminal industry. In April 2024, Intelsat and Satcom Global announced a new partnership. The companies will work toward the expansion of the global Ku-band network for further innovation in the AuraNow VSAT solution.

Very Small Aperture Terminal (VSAT) Market: Challenges

High cost of initial investment is a challenge for new entrants

The global very small aperture terminal (VSAT) industry is projected to be challenged by the high cost of investment required for building VSAT systems and associated supporting infrastructure. Moreover, the problems arising in procuring basic raw materials required for constructing VSATs along with lack of availability of human labor may further impede the market growth rate.

Very Small Aperture Terminal (VSAT) Market: Segmentation

The global very small aperture terminal (VSAT) market is segmented based on platform, solution, vertical, end-user, and region.

Based on the platform, the VSAT market segments are airborne VSAT, maritime VSAT, and land VSAT. In 2023, the highest growth was observed in the land VSAT segment. These solutions enable highly effective connectivity. The extensive development in land VSAT offerings will fuel the market demand during the projection period. The growth in maritime VSAT segment is growing at a steady pace driven by increasing demand for highly secure maritime communication systems. The US maritime industry generates more than USD 150 billion in revenue.

Based on the solution, the VSAT industry divisions are support services, equipment, and connectivity services.

Based on the vertical, the global very small aperture terminal (VSAT) industry divisions are energy & power, healthcare, BFSI, education, retail, media & entertainment, agriculture & forestry, and others. In 2023, the energy & power segment was a leading revenue generator. VSAT systems are used during the exploration of remote areas. They are used across mining units and offshore sites for monitoring critical infrastructure-related data. By the end of the decade, the global energy & power market is expected to cross more than USD 3 trillion.

Based on end-user, the VSAT market divisions are private networking services, broadband/data networks, broadcast, voice communication, and others.

Very Small Aperture Terminal (VSAT) Market: Report Scope

Very Small Aperture Terminal (VSAT) Market: Regional Analysis

Asia-Pacific is expected to emerge as the leading revenue generator during the projection period

The global very small aperture terminal (VSAT) market is expected to witness the highest growth in Asia-Pacific during the projection period. China, Japan, India, and South Korea are projected to emerge as leading nations contributing to the regional market growth rate. One of the primary reasons driving the revenue rate in Asia-Pacific is the growing satellite-based investments. In recent times, China and India have launched several new satellites in space as the regional demand for effective communications is on the rise. In addition to this, the satellite cost in the region is decreasing due to the constant efforts of the market players. In February 2024, Telkomsat is expected to encourage the connectivity range across Indonesia, especially targeting remote locations. To achieve this vision, the company launched its 11th satellite equipped with High Throughput Satellite (HTS) technology. The communication system was built with an investment of USD 242.8 million. In August 2023, Eutelsat signed an agreement with Space Tech Innovation Limited (STI) through which the former will now lease half of a software-powered satellite over the Asian continent.

Very Small Aperture Terminal (VSAT) Market: Competitive Analysis

The global very small aperture terminal (VSAT) market is led by players like:

• Thuraya Telecommunications Company
• Gilat Satellite Networks
• Hughes Network Systems
• Skylogic (a subsidiary of Eutelsat)
• Speedcast International Limited
• Eutelsat Communications
• Telesat
• Newtec (a STn Engineering iDirect Company)
• Viasat Inc.
• Globalstar Inc.
• SES S.A.
• Iridium Communications Inc.
• Inmarsat plc
• Comtech Telecommunications Corp
• Orbcomm Inc.

The global very small aperture terminal (VSAT) market is segmented as follows:

By Platform

• Airborne VSAT
• Maritime VSAT
• Land VSAT

By Solution

• Support Services
• Equipment
• Connectivity Services

By Vertical

• Energy & Power
• Healthcare
• BFSI
• Education
• Retail
• Media & Entertainment
• Agriculture & Forestry

By End-User

• Private Networking Services
• Broadband/Data Networks
• Broadcast
• Voice Communication

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa