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The satellite internet market size is estimated to grow at a CAGR of 16.85% between 2022 and 2027. The market size is forecast to increase by USD 4,476.69 million. The growth of the market depends on several factors, including the growing number of IoT devices, the evolution of frequency bands, and the rising demand for Internet connectivity in rural areas.
This satellite internet 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). 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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The growing number of IoT devices is notably driving the market growth, although factors such as the influence of bad weather on satellite internet may impede the market growth. 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 global satellite internet 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, Satellite Internet will enable billions of connected IoT devices to run compute-intensive applications in real-time in end-user industries.
Moreover, it allows software applications to tap into local content, thereby accessing real-time information about local-access network conditions. Satellite internet 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 global satellite internet market during the forecast period.
The increasing deployment of 5G networks is the primary trend in the global satellite internet 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.
Satellite internet 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 global satellite internet market during the forecast period.
The influence of bad weather on satellite internet is a major challenge to the growth of the global satellite internet market. One of the main problems facing satellite internet providers is bad weather. There are some satellite internet systems that 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 satellite internet systems useless during periods of high temperature. Therefore, vendors 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 Satellite Internet Market Customer Landscape
Vendors 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 vendors, including:
Qualitative and quantitative analysis of vendors 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 vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the commercial segment will be significant during the forecast period. The commercial segment in the global satellite internet 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 1,166.04 million in 2017 and continued to grow until 2021. 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 northeastern, 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, satellite internet 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.
In 2020, the regional market in focus witnessed a slight decline in revenue due to the outbreak of COVID-19. However, with the large-scale initiation of COVID-19 vaccination drives and ease in lockdown restrictions from Q1 2021, several end-user industries resumed their operations which led to a surge in demand for satellite internet in the region. Furthermore, satellite internet and 5G partnerships can find applications in various use cases such as industrial IoT, healthcare, and autonomous vehicles. As of January 2021, 75% of the US population had 5G services. Hence, it will provide high bandwidth capabilities with satellite internet and will improve the performance of end-user industries in the data processing domain. Thus, the regional satellite internet market is expected to witness growth during the forecast period.
The satellite internet 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.
Technavio categories the global satellite internet market as a part of the global communications equipment market within the overall global information technology sector. The parent global communications equipment market covers the manufacturers of enterprise networking products, including local area networks (LANs), wide area networks (WANs), routers, telephones, switchboards, and exchanges. Our market research report has extensively covered external factors influencing the parent market growth during the forecast period.
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Satellite Internet Market Scope |
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Report Coverage |
Details |
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Page number |
173 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 16.85% |
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Market growth 2023-2027 |
USD 4,476.69 million |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
16.46 |
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Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
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Performing market contribution |
North America at 45% |
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Key countries |
US, China, Japan, Russia, and France |
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Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
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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. |
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Market dynamics |
Parent market analysis, 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. |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
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
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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