According to a new market report published by Transparency Market Research , the global optical satellite communication market is expected to reach a value of US$ 4,238.7 Mn by 2027, due to rising demand for high data rate. The market is projected to expand at a CAGR of 31.5% during the forecast period from 2019 to 2027. North America is expected to hold the dominant position in the market followed by Europe and Asia Pacific during the forecast period.
Increasing government initiatives for the development of advance technology for data transmission and communication
Governments of various countries are investing in different optical communication projects to develop high data rate links. For instance, in 2018, NASA signed an agreement with BridgeSat Inc. to develop a space optical communication system for the agency. Similarly, The European Space Agency operates optical data relay services known as EDRS. The agency launched the Copernicus earth observation project with five LEO satellites, which offer optical communication for data transmission.
In addition, various advantages such as huge modulation bandwidth, narrow beam divergence, less power and mass requirement, high directivity, unlicensed spectrum, and high security make optical satellite communication a promising candidate for next generation (5G) network as it requires high data rate (high speed and bandwidth capacity) which drives the need for high capacity backhaul links.
The optical satellite communication market has been segmented based on component, application, and region. On the basis of component, the market is segmented into transmitter, receiver, modulator, demodulator, and others. According to the research, the transmitter segment held the dominant position in the market and is expected to retain its dominance throughout the forecast period. Increasing demand for high speed data transfer from satellite-to-ground is one of the major factors responsible for the expansion of the segment. High data rates have increased the demand for continuous R&D in optical satellite communication components.