– Positive market outlook due to the expansion of small satellite adoption in the private service market

– It is important to understand market trends as the use of satellite communication equipment is increasing in addition to artificial satellites.

Trade name and HS code

The HS code for satellite communication equipment is 854370, and HS code 8543 includes all electrical machines and apparatus, having individual functions, others, which are not specified or included in other parts.

Satellite Communication Equipment Market Trend

Market research firm Markets and Markets estimated the size of the satellite communication equipment market to be $2021 billion in 220, and predicted that it will grow to $19.6 billion in 2026 at a CAGR of 537%. Among them, the North American market accounts for 31% of the global satellite communication equipment market, which is analyzed to be due to the high demand for communication satellites and small satellites in the defense, energy, and agricultural industries in the United States.

According to the Satellite Communications Industry Association (SIA), the number of world satellites increased by 2010% between 10 and 252 years. Among them, the proportion of satellites for commercial and non-profit communications increased by 1% in the past year, recording the highest growth rate. As the number of low-orbit satellites for communication applications, autonomous vehicles, and commercial satellites for expanding communication connections is increasing, the demand for satellite communication equipment is expected to increase significantly.

<Proportion Trends by Type of Artificial Satellites>

[Source: SIA 2021 report]

Satellite Communication Equipment Import Trend and Import Size

According to market research firm IHS Markit, U.S. imports of HS code 8543 and its subcategories in 2021 amounted to $112 billion, up 2% from the previous year. The main importing countries are China, Mexico, and Malaysia, and imports from these three countries account for nearly half of the total imports. Among imports in 38.1, imports from Malaysia and other countries showed the highest increase at 2021% and 340.8%, and the US imports to Korea in 51.2 increased 2021% from the previous year to reach $32.6 million.

<Trends of U.S. Satellite Communication Equipment Imports for the Last 3 Years>

(Unit: US$ million, %)

Note: Based on HS code 8543

[Source: IHS Markit]

distribution structure

According to market research firm Ibis World, the distribution structure of satellite communication equipment in the United States is divided into primary and secondary suppliers and primary and secondary buyers. The primary supplier receives raw materials from the secondary supplier, processes it, and delivers it to the real manufacturer. The primary buyers are satellite communication providers and Internet service providers, and the secondary buyers are public administration agencies and broadcasting stations.

<Satellite Communication Equipment Market Distribution Structure in the United States>

[Source: IBIS World]

Tariff rates and certifications

The general tariff rate for satellite communication equipment is 1.9~2.6%, but in the case of Korea, it is subject to the tariff-free preferential treatment of the Korea-US FTA.

In order to export satellite communications, approval from the National Safety Testing Laboratory (NRTL) operated by the Occupational Safety and Health Administration (OHSA) under the US Department of Labor is required and approval from the US Federal Communications Commission (FCC) is required. Additional information on NRTL and FCC can be found at the address below.

* About NRTL Program: https://www.osha.gov/nationally-recognized-testing-laboratory-program

* FCC Certification Procedure: https://www.fcc.gov/general/equipment-authorization-procedures

competitive trend

Imarc, a market research firm, introduced major satellite communication equipment manufacturers in the United States in 2021 as Viasat, Intelsat, General Dynamics, and Echostar. In addition, according to Ibis World, Ecostar had the highest market share (25%), followed by Intelset and SES with market shares of 13.9% and 9.6%, respectively. In addition, the remaining companies occupy a total of 51.55% of the market.

<Competitive Trends in the U.S. Satellite Communication Equipment Market>

[Source: IBIS World]

Major Vendors and Products

According to Fortune Business Insight, the market share of antennas is the highest among satellite communication equipment that is largely divided into receivers, transmitters, transceivers, antennas, and modems. analyzed. Replacement work is easy, and new products with advanced transceivers are released every year, so it was evaluated that antenna consumption is active. In addition, the product names and prices of products sold by type provided by the satellite communication equipment sales website, Satcom Resources, are as follows.

<Products for sale of satellite communication equipment in the United States>

[Source: Satcom Resources]

implication

During the Russia-Ukraine conflict, SpaceX's Starlink industry performed outstandingly, and interest in small satellites is growing around the world. In particular, the advantage of providing a communication environment without a terrestrial wide area network is expanding to civilian service areas such as autonomous vehicles and cloud services, in addition to the military information of existing satellites, ground and atmospheric observation, and broadcasting support roles. Accordingly, the market for satellite communication equipment is expected to grow further in the future, and it is expected that Korea's technology, which has been building high recognition and reliability due to the recent successful launch of Nuri, can play an active role.

As many countries, such as China and the European Union, realize the vision and potential of the satellite business and participate in the space race, it seems important to pay attention to changing market trends and expand sales outlets. In addition to artificial satellites, there is also a movement to develop related technologies by introducing satellite communication equipment to unmanned machines. As the use of satellite communication equipment that can provide a stable communication environment increases, it is expected that satellite communication equipment will be further utilized in the Internet of Things (IoT) field. However, as US-based IO Active evaluated that some satellite communication devices are vulnerable to cyber attacks as a potential risk in the market, companies with the goal of expanding their sales fields need to be mindful of cyber security.

Sources: FCC, Fortune, IBIS World, IHS Markit, Imarc, Markets and Markets, NRTL, Satcom Resources, SIA, USITC and KOTRA Washington Trade Center

☞Source: KORTA Overseas Market News