The global optical satellite communication market is expected to grow from $8.50 billion in 2021 to $10.46 billion in 2022 at a compound annual growth rate (CAGR) of 23.1%. The optical satellite communication market is expected to reach $22.55 billion in 2026 at a CAGR of 21.2%, according to Research And Markets.
North America was the largest region in the optical satellite communication market in 2021. The regions covered in the optical satellite communication market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
The increase in penetration of smartphones is expected to propel the growth of the optical satellite communication market going forward. Smartphones refer to portable electronic gadgets with features such as the internet and integrated software applications that can perform computer functions. Smartphones depend on optical satellite communication for proper functioning, as this satellite communication helps to provide communication signals in remote areas.
For instance, in 2021, according to the National Health Authority of India, an Indian government agency, there were 1.18 billion mobile connections, 600 million smartphones, and 700 million Internet users in India, which is increasing by 25 million every quarter. Therefore, the increase in the penetration of phone users is driving the growth of the optical satellite communication market.
The emergence of laser communication relay systems has emerged as a key trend gaining popularity in the optical satellite communication market. Major companies operating in the optical satellite communication sector are focused on developing new advanced systems to sustain their position in the market.
For instance, in 2021, NASA, a US-based space agency, launched its new Laser Communications Relay Demonstration (LCRD) system. The LCRD will help the agency with optical communication in space. It will use optical communications instead of radio communications, which will further help increase the bandwidth 10 to 100 times more than radio frequency systems.
In November 2021, CACI, a US-based information technology company, acquired SA Photonics for a deal amount of $275 million. Through this acquisition, CACI will broaden its capabilities and services in the areas of free-space optical (FSO) communication, laser communications provider, supporting space, and airborne and terrestrial communications. SA Photonics is a US-based company that manufactures, designs, and develops advanced optical communications systems.
The countries covered in the optical satellite communication market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA.