North America stands as the predominant force in the micro VSAT market, propelled by the swift adoption of satellite communication technology and a surge in research and development endeavors aimed at minimizing antenna size. This market dominance is further fueled by the escalating demand for maritime communication and the widespread adoption of wireless communication across various industries in the North American region. Additionally, the burgeoning need for micro VSAT solutions is driven by the increasing prevalence of fixed networks and cellular communications.
Within North America, the United States plays a pivotal role in driving the micro VSAT market forward. The country's leadership is underscored by a heightened deployment of micro VSAT in military and defense applications. The presence of key players in the US market significantly contributes to the region's growing demand for VSAT solutions. Notably, the United States has witnessed a notable uptick in the utilization of micro VSAT, particularly in military and defense applications.
In response to the global pandemic, the Federal Communication Commission (FCC) announced a substantial increase in the utilization of fixed networks and cellular communications in April 2020. The rise, ranging from 20% to 35% in fixed networks and 10% to 20% in cellular networks, was attributed to the growing number of operational cell phones within the region. This surge in demand further underscores the pivotal role played by micro VSAT solutions in addressing the evolving communication needs, especially during challenging times.
The dominance of the United States is exemplified by notable contracts and initiatives within the military and defense sector. In January 2020, L3Harris Technologies Inc secured a substantial USD 100 million contract from the United States Special Operations Command (USSOCOM) for VSAT upgrades. This contract not only highlights the technological advancements in micro VSAT solutions but also underscores the strategic importance of these systems in critical defense applications.
The North American region's leadership in the micro VSAT market is a testament to the region's proactive stance in adopting cutting-edge communication technologies. The convergence of factors such as robust research and development efforts, a surge in demand for maritime communication, and the strategic utilization of micro VSAT in military and defense applications collectively position North America at the forefront of this dynamic market. As key players continue to make significant contributions and the region experiences an upswing in demand for advanced communication solutions, the micro VSAT market in North America is poised for sustained growth and technological innovation.