Satellite Modem Market Report 2026

The satellite modem market size has grown strongly in recent years. It will grow from $1.73 billion in 2025 to $1.88 billion in 2026 at a compound annual growth rate (CAGR) of 8.7%. The growth in the historic period can be attributed to expansion of broadband satellite services, increased use of maritime and aviation connectivity, deployment of geostationary and low-earth-orbit satellites, growth in defense and government communication applications, evolution of software-defined modems.

The satellite modem market size is expected to see strong growth in the next few years. It will grow to $2.59 billion in 2030 at a compound annual growth rate (CAGR) of 8.3%. The growth in the forecast period can be attributed to rising demand for satcom-on-the-move solutions, higher data rate requirements for lEO constellations, expansion of internet-of-things connectivity in remote regions, integration with 5g and beyond networks, adoption of frequency agile and multi-channel modems. Major trends in the forecast period include high-speed satellite data transmission, satcom-on-the-move solutions for mobility applications, frequency agile modem deployment, software-defined satellite modems, maritime and aviation satellite connectivity solutions.

The growing need for high-speed data transmission is significantly contributing to the expansion of the satellite modem market. This type of transmission enables the swift transfer of large amounts of data, supporting real-time communication and efficient processing. The rise in demand is driven by the proliferation of data-heavy applications, which require faster and more reliable connectivity to function effectively. Satellite modems help meet this demand by offering dependable, high-capacity communication links, especially in regions where terrestrial networks are underdeveloped or unavailable. For example, in June 2024, Japan’s National Institute of Information and Communications Technology (NICT) achieved a record-breaking data transmission speed of 402 Tb/s using standard optical fiber, a 25% increase from the 321 Tb/s recorded in October 2023. This trend underscores how increasing data transmission demands are fostering growth in the satellite modem industry.

Key players in the satellite modem sector are prioritizing innovations such as optical communication technologies to stay competitive. These technologies use light-based signals for data transfer between satellites and ground stations, offering benefits such as higher bandwidth, reduced latency, and improved security over conventional radio frequency systems. A notable development occurred in November 2023, when Kepler Communications Inc., a Canadian space technology company, unveiled an optical communication system compatible with the Space Development Agency (SDA) for its space data relay constellations. This system features high-speed inter-satellite connections, low-latency data delivery, and has undergone extensive in-orbit testing to ensure reliability. Such innovations allow satellite modem manufacturers to integrate advanced data relay capabilities, boost throughput, and enable secure communications, while also alleviating dependence on increasingly congested radio frequencies. This strengthens the capabilities and appeal of satellite modem solutions in advanced satellite missions.

In July 2025, MDA Systems Inc., a Canada-based satellite manufacturer, acquired SatixFy Ltd. for approximately $356 million. Through this acquisition, MDA Systems Inc. aims to integrate SatixFy Ltd.’s advanced digital satellite communication technologies into its Aurora satellite line, enhancing capabilities and competitiveness in the rapidly expanding Software-Defined Digital Satellite (SDDS) market. The acquisition also positions MDA to capture a larger share of future satellite communications contracts and drive innovation in beamforming, beam-hopping, and software-defined radio technologies. SatixFy Ltd. is an Israel- and UK-based satellite communications company specializing in ASIC and RFIC chip development for advanced digital satellite communication, holding 60 registered and pending patents.

Major companies operating in the satellite modem market are Airbus SE, General Dynamics Corporation, Honeywell International Inc., Thales Group, EchoStar Corporation, L3Harris Technologies Inc., Viasat Inc., Bharat Electronics Limited (BEL), Cobham Satcom Limited, Hughes Network Systems LLC, ST Engineering iDirect Inc., Gilat Satellite Networks Ltd., Comtech EF Data Corporation, Thuraya Telecommunications Company, Teledyne Paradise Datacom Inc., Advantech Wireless Inc., SatixFy Ltd., Amplus Communication Pte Ltd., Communications And Power Industries (CPI) International Inc., WORK Microwave GmbH.

North America was the largest region in the satellite modem market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the satellite modem market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

Tariffs influence the satellite modem market by increasing the costs of imported modems, components, and RF equipment, affecting segments like VSAT, broadband, and military modems, especially in regions such as North America, Europe, and Asia-Pacific. This results in higher operational expenses and slower adoption, but also promotes domestic manufacturing, incentivizes innovation, and encourages cost-effective, locally produced satellite communication solutions.

The satellite modem market research report is one of a series of new reports that provides satellite modem market statistics, including the satellite modem industry global market size, regional shares, competitors with the satellite modem market share, detailed satellite modem market segments, market trends, and opportunities, and any further data you may need to thrive in the satellite modem industry. This satellite modem market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

A satellite modem is a networking device that facilitates data communication between user equipment and a satellite network. It transforms digital signals from computers or routers into radio waves for satellite transmission and performs the reverse process for received signals. Unlike conventional modems that rely on terrestrial infrastructure, satellite modems operate with geostationary or low-earth-orbit satellites. They are widely used in remote regions as well as in maritime, aviation, and defense applications where terrestrial internet access is limited or unavailable.

The primary categories of satellite modems include very small aperture terminal (VSAT) modems, broadband satellite modems, military satellite modems, and transportable satellite modems. VSAT modems are compact devices that provide two-way data, voice, and internet connectivity between remote sites and a central hub via satellite. They accommodate various data speeds, ranging from entry-level to mid-range and high-speed, and function across frequency bands such as C-band, Ka-band, and Ku-band. These modems are applied in areas such as telecommunications, broadcasting, satellite internet, military operations, and aerospace. Major end-users include sectors such as energy and utilities, mining, telecommunications, marine, military and defense, transportation and logistics, oil and gas, among others.

The countries covered in the satellite modem market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The satellite modem market consists of sales of single channel per carrier (SCPC) modems, multiple channel per carrier (MCPC) modems, high-speed data rate modems, satcom-on-the-move modems, satcom-on-the-pause modems, frequency agile modems, and software-defined modems. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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