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Transponder Market Is Expected To Rise At A CAGR Of 7.36% During 2021-2028

The Global Transponder Market was valued at USD 1,536 Million in 2020 and is expected to grow at a Compound Annual Growth Rate (CAGR) of 7.36% between 2021 to 2028. It is a wireless network that controls and tracks incoming signals, picks them and automatically respond to the signals. It has applications and use in both defense and civil aviation. The satellite transponder is used for transmitting and receiving signals and are part of satellite payload.

Technological Advancements And Demand For High Performance Satellites To Spur The Market Growth

Increasing demand for satellites with high performance technological advancements in VSAT systems had helped the market to grow. Moreover, the rise in video subscriber, increasing service quality and rising data applications is expected to boost the market. Furthermore, the rising adoption and increasing growth in Ka band services and Ku band services will boost the demand for transponder.

Whereas the major factor that is obstructing the market growth for transponder is due to huge amount of capital investments and the operational costs. Moreover, failure in the launch of satellites and abnormality in the operations are some factors that restrict the market growth.

Due to COVID-19 pandemic the production and supply chain was disrupted and hence the integration of new transponders was difficult as the workers stayed home due to restrictions. Therefore, the global supply chain disruptions were seen.

The transponder market in segmented based on application the market is bifurcated into government communications, navigation and remote sensing and commercial communications. In addition, the market can also be segmented on the basis of service that transponders provide that is maintenance & support services and leasing services.

North America region is expected to grow at a high rate over the coming years and is the dominating region. This is attributable increasing demand for better and stable communications fir defense and military connectivity. Moreover, the shift from standard definition to high definition offering and rising demand for DTH or direct to home satellite TV services is contributing to regional growth.

Some of the major players operating in the global transponder market includes SingTel Optus, Asia Broadcast Satellite, Intelsat, China Satellite Communications 10;ISRO, Arabsat MEASAT satellite systems, Eutelsat and Telesat, among others.