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The satellite internet market size is estimated to grow by USD 4.48 billion at a CAGR of 16.85% between 2022 and 2027. The growing number of IoT devices, driven by the increasing adoption of smart home devices, wearables, and industrial IoT applications, is driving market growth by increasing the demand for IoT connectivity solutions. The evolution of frequency bands, driven by advancements in wireless communication technologies such as 5G, is also boosting market expansion by enabling faster and more reliable IoT connectivity. Additionally, the rising demand for Internet connectivity in rural areas, driven by efforts to bridge the digital divide and improve access to online services, is driving market growth by increasing the deployment of IoT solutions in rural areas.
It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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This market report extensively covers market segmentation by end-user (commercial and non-commercial), type (K-band, X-band, L-band, and C-band), and geography (North America, Europe, APAC, South America, and Middle East and Africa).
The market share growth by the commercial segment will be significant during the forecast period. The commercial segment in the market includes government and public sectors, maritime and aircraft, and the military. The increased adoption of artificial intelligence (AI), cloud computing, and machine learning (ML) in commercial end-users is a major driving factor for the growth of the commercial segment.
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The commercial segment was valued at USD 1.17 billion in 2017. In this segment, governments worldwide are increasingly investing in satellite broadband technology to provide broadband services in all regions and depend only on frontline technology to connect rural areas to the broadband network. For instance, in September 2022, Hughes Communications India announced the commercial release of the HTS internet service in India, which combines ground-based Hughes Jupiter Platform technology with the K-band satellite frequency on GSAT-29 and GSAT-11. This service is operated by the Indian Space Research Organization (ISRO) to provide high-speed internet connectivity all over India. The most densely forested regions, like Odisha, Jharkhand, Maharashtra, and Chhattisgarh, and the most distant regions in the north-Eastern, are included in this service. Such factors will increase segment growth during the forecast period.
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North America is estimated to contribute 45% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The telecommunication sector in North America is expected to witness significant growth owing to the advancement in communication technology during the forecast period. The US is overcoming issues related to construction, operation, and maintenance costs in internet services. Additionally, as the number of internet users is growing rapidly in North America, the requirement for connectivity continues to evolve. Therefore, this with fifth-generation (5G) networks can work in densely networked communities. Improving network infrastructure is propelling the growth of the market in focus during the forecast period.
The market is a dynamic sector that leverages satellite communication to provide global connectivity. This technology bridges the digital divide by offering high-speed internet access to remote areas. Companies like OneWeb and Eutelsat are making strides, including recent mergers. Despite challenges like natural disasters and infrastructure limitations, satellite internet is enhancing educational, healthcare, and economic development opportunities. SpaceX is a key player, revolutionizing connectivity with innovative solutions. Regulatory frameworks and international coordination are crucial for the industry's growth and efficient network management. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
A growing number of IoT devices is the key factor driving the growth of the market. Mobile edge computing is evolving with the integration of IoT devices such as routers, integrated access devices, routing switches, multiplexers, cloud services and resources, and various wide-area network access devices. The proximity of users allows the use of available resources on satellite internet. By connecting directly to the network edge, they will enable billions of connected IoT devices to run compute-intensive applications in real-time in end-user industries. 5G networks offer ultra-fast, low-latency internet connectivity, which is of particular interest to satellite operators and network management systems. However, the implementation of 5G also requires careful consideration of regulatory frameworks and international coordination to fully realize its bandwidth capabilities. Companies like OneWeb are exploring ways to leverage 5G technology for satellite communications.
Moreover, it allows software applications to tap into local content, thereby accessing real-time information about local-access network conditions. This is accessible for various services and caching content at the network edge and simplifies data analytics within industries. Thus, the growing number of IoT devices helps in providing accuracy and real-time processing of data with satellite internet, which will drive the growth of the market during the forecast period.
The increasing deployment of 5G networks is the primary trend in the market growth. Communication service providers and network equipment manufacturers are showing increasing interest in deploying 5G. The 5G communication standard will offer higher bandwidth compared to previous standards, such as second-generation (2G), third-generation (3G), and fourth-generation (4G) networks. 5G networks offer ultra-fast, low-latency internet connectivity. This allows companies to improve their performance.
They can complement 5G and helps in providing backhaul services, especially in areas where installing physical infrastructure is difficult. It also works well in the increasing traffic and number of connections outside of densely populated cities in remote areas with the proliferation of IoT devices. These factors are anticipated to boost the growth of the market during the forecast period.
The influence of bad weather on satellite internet is a major challenge to the growth of the market. One of the main problems facing providers is bad weather. Some satellite internet systems shut down when the weather gets too hot. For example, Starlink is one of SpaceX Exploration Technologies Corp. Developed and operated a satellite internet constellation that shuts down when the temperature reaches 122 degrees Fahrenheit and restarts when the temperature drops to 104 degrees Fahrenheit.
So, it is quite a challenge for people living in hot climates. The temperature limitation could effectively render these systems useless during periods of high temperature. Therefore, companies need to focus on developing satellite internet systems that can easily adjust to different climatic conditions. Then, potential customers have a choice and get terminals prone to weather-related problems. Thus, bad weather can be a major limiting factor for the growth of the global satellite internet market during the forecast period.
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
ASELSAN AS: The company offers satellite internet, such as KU Band Inet. Also, the company provides technical system expertise in design, development, production, and after-sales services for various products for the defense industry.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
The market is experiencing growth due to its ability to provide seamless connectivity in remote and underserved areas. It leverages satellites in Low Earth orbit (LEO) to offer real-time communication and digital services in aviation, disaster management, and emergency response scenarios. Technological advancements in satellite technology, including high-capacity satellite constellations and the Eutelsat merger, are enhancing connectivity. However, challenges such as data transfer rates, bandwidth limitations, and satellite infrastructure costs remain. Overall, satellite internet is crucial for social inclusion, equality, and advancing the digitized economy.
The market is evolving rapidly with advancements in satellite technology and increasing demand for global connectivity. While terrestrial networks have limitations in remote locations, satellite internet offers a solution, especially with geostationary (GEO) satellites. However, challenges like satellite capacity and congestion persist, impacting internet speeds and user experience. Despite these restraints, satellite internet is crucial for rural and remote communities, providing access to educational opportunities, healthcare services, and improving communication capabilities. With the rise of telemedicine and the need for public safety and security, satellite internet plays a vital role in broadband networks and community well-being.
Market Scope |
|
Report Coverage |
Details |
Page number |
173 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 16.85% |
Market growth 2023-2027 |
USD 4.48 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
16.46 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 45% |
Key countries |
US, China, Japan, Russia, and France |
Competitive landscape |
Leading companies, Market Positioning of companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
ASELSAN AS, AT and T Inc., AXESS Network Solutions S.L., Cobham Ltd., EchoStar Corp., General Dynamics Corp., Honeywell International Inc., Hytera Communications Corp. Ltd., Israel Aerospace Industries Ltd., Indra Sistemas SA, Inmarsat Global Ltd., L3Harris Technologies Inc., Leonardo Spa, Marlink SAS, Raytheon Technologies Corp., SES SA, Singapore Telecommunications Ltd., SITA, Space Exploration Technologies Corp., Thaicom Public Co. Ltd., Thales Group, and Viasat Inc. |
Market dynamics |
Parent market analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period. |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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