Gajendra Ghumare, SEO Executive, Research Nester
VSAT is a two-way ground station used for sending and receiving data, voice, and video signals over a satellite communication network. Enterprise VSAT systems, made up of a modem, tiny dish antenna, and other network hardware, provide dependable connectivity for rural areas or places with inadequate infrastructure. Moreover, these systems are intended for corporate applications as they allow businesses to access voice, video, and data services.
The global enterprise very small aperture terminal (VSAT) market is predicted to witness tremendous growth in the coming years. This article examines the prospects of the enterprise VSAT market.
1. Increasing Demand for Remote Connectivity
According to Statistics Canada, in 2021, more than 315,000 small enterprises—or 15.3% of all small businesses in Canada—operated in rural and small town (RST) communities. These enterprises often face significant connectivity challenges due to the high cost of the internet and the lack of required infrastructure. For instance, according to about 65% of businesses in rural and isolated places, inadequate connectivity has a detrimental effect on their operations. This makes VSAT technology an essential solution that provides private networks and Internet connection through satellite in isolated areas. VSAT technology enables data, phone, and video communication at any location on the planet with greater operational efficiencies and reduced costs.
2. Need for Disaster Recovery and Emergency Communication
Strong emergency communication networks are becoming increasingly important as the world is becoming more susceptible to natural disasters. For instance, in 2022, natural disasters in the United States killed over 470 people and caused around USD 175 billion in damages. During emergencies, network outages, or natural disasters, VSAT systems are used by businesses for business continuity and catastrophe recovery. These systems guarantee continuous communication for emergency responders and impacted communities during hurricanes or earthquakes when terrestrial infrastructure fails. Moreover, VSATs are used by entities such as the United Nations and humanitarian aid organizations to coordinate relief efforts. Now, let’s understand some of the prominent use cases of enterprise VSATs in several fields.
3. Oil and Gas Industry
The oil and gas sector often operates in isolated and vulnerable landscapes to reduce costs and enhance the safety of operations. Telecommunications infrastructures in such locations are extremely unstable. Businesses in the oil and gas sector depend on strong connectivity for digital transformation, pressure readings, early kick detection, and gas leak detection. As a result, businesses employ VSAT to ensure continuous communication, which guarantees that oil and gas operations can continue uninterrupted. For instance, in July 2021, Space Communication Technologies Company and Dunes Middle East Company announced to provide the new Ka technology VSAT services to the oil and gas vertical of the Omani market. This partnership enables Dunes to collaborate with several market segments to offer satellite connection in various places and a wide range of applications. 2. Banking and Financial Services Enterprise VSAT technology is used in banking and financial services to supply communication networks for automated teller machines (ATMs), particularly operating in remote locations. Due to network connectivity concerns in remote areas, ATMs may experience malfunctions and network issues, which could cause service interruptions. VSAT provides dependable and steady internet connectivity, enabling ATMs to stay linked to the main bank network.
3. Maritime Industry
VSAT is essential to the marine sector because it provides dependable, fast connectivity at sea. Having dependable connectivity at sea can improve the efficiency of maritime operations and the way shipping businesses run. For instance, since more than 75% of commodities are transported by water, maritime connections are essential to keeping the wheels of global trade turning. For ships traveling over open waters, VSAT is essential for providing internet and communication services, permitting ships to remain in contact with the outside world while at sea. Besides this, the aviation industry, defense and military, media and broadcasting are supported by VSAT systems for enhanced connectivity. Let’s now look into the market dynamics of the enterprise VSAT market.
By the close of 2037, the enterprise VSAT market is expected to have grown from its 2024 valuation of $8 billion to $21.2 billion. Several of the most significant companies in the market are Cambium Networks, Ltd., Hughes Network Systems, LLC, Link Communications Systems, and Orion Satellite Systems Pty Ltd., which are making significant investments in research and development. In order to remain competitive in the market, they are also concentrating on expanding their product lines.
In addition, by region, North America is predicted to dominate the VSAT market. The growth in the region is driven by the rising demand for reliable communication solutions in remote and underserved areas.
Based on a report by County Health Rankings & Roadmaps, in the United States, some 24 million people—roughly 19 million in rural areas and 1.4 million on tribal lands—live in digital deserts without broadband access. Moreover, a number of prominent companies in the area will propel market expansion.
In a Nutshell
The market for enterprise VSAT is presenting profitable growth prospects. Businesses’ needs are increasing; therefore, for businesses to succeed, they want reliable, fast, high-capacity connectivity to even the most remote areas.
Gajendra Ghumare Numerous VSAT-specific geostationary satellites have been deployed by various firms in recent decades, as it is regarded as the best satellite choice for corporate environments.
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Author Gajendra Ghumare is the Search Engine Executive for the market resarch and analysis company Research Nester.
