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Optical satellite communication is enriching satellite communications based on radio frequencies (RF). Technological strides in the optical satellite communication market have improve the functional benefits and performance in relation to setting high security for optical wavelengths. High throughput low-power, and low interference are some of the salient gains generating business opportunities in the products.
The demand for large-scale communication via satellites is a key driver for the prospects of the optical satellite communication. The range of applications continue to impart momentum to the growth of the optical satellite communication market. A case in point is the growing use of optical satellite communication in quantum key distribution (QKD).
The growing use cases of optical satellite communications is a key driver for lucrative avenues. This is large part due to rise in public spending on high end versatile communication technologies. Players in the optical satellite communication market are focusing on expanding the commercializing avenue by boosting the business and technological aspects. Players have been able to meet the various requirements, key of which are Low Size, Weight and Power (SWaP), low recurring cost terminals, and low latency, high reliability and security.
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On the technical front, new ways that can complement optical communications to complement the RF communications technology. In this regard, intersatellite links pose a massive potential. Optical bench function is a key technological parameter that has attracted the attention of players. The growing use of optical satellite communication in multiplexed data-communication has been crucially important for achieving an optimal optical bench function.
Over the years, players in the optical satellite communication market have been spending sizable R&D in compact LEO communication optical head for intersatellite links. The market has also been witnessing new revenue streams from increasing focus on CubeCat architecture. This is crucial for cost-effective satellite communications services. A growing number of companies have are finding a renewed interest in developing small CubeSats.
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Optical satellite communication and free space optical communication are wireless telecommunication networks that provide optical data signals at high bit-rate using free space as a mode of median for communication. The global optical satellite communication market generated revenue of US$ 297.2 Mn in 2017 and is expected to reach US$ 4,238.7 Mn in 2027 at a CAGR of 31.5% during the forecast period.
Various advantage of wireless communication such as lower deployment cost, easy construction of network topology, and flexible maintenance of operating networks have increased the number of mobile users globally. For instance, the number of smartphone users globally is expected to reach 6.7 billion by 2022 up from 4.3 billion in 2017. Hence, this increasing number of mobile phone users has increased the demand for high speed data transmission. Moreover, increasing multimedia services such as video-on-demand, audio-on-demand, and peer-to-peer have increased the need for high network bandwidth. In addition, increasing adoption of various advance technology such as machine to machine communication and Internet of Things also drives the demand for high data rate which has accelerated the optical satellite communication market globally.
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On the basis of application, the backhaul segment is projected to expand with the highest CAGR during the forecast period. Demand for high data rate is increasing due to adoption of various advance technologies such as M2M communication, Internet of Things etc. which require gigabit capacity. For instance, by 2022, M2M communication devices are expected to reach 14.6 billion, up from 6.1 billion in 2017. Hence, this significant growth has led to the need for reconfigurable broadband communication networks with high data rates. Moreover, increase in mobile traffic has also enhanced the demand for more bandwidth and large number of backhaul connections. For instance, by 2022, smartphone users are expected to reach 6.7 billion, up from 4.3 billion in 2017.
In addition, development of next generation mobile network (5G) requires high data rate (high speed and bandwidth capacity) which drives the need for high capacity backhaul links. Optical satellite communication has the capability to provide gigabit capacity backhaul links due to its low cost and rapid development speed as compared to conventional backhaul technology such as RF. With the integration of ultra-short pulse (USP) laser, optical communication can provide up to 10 Gbps backhaul connection and with the help of advanced modulation, wireless backhaul can increase up to 100 Gbps which can fulfill the requirement of 5G cellular networks.
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