Global Space-Based Broadband Internet Market Grows at a Staggering CAGR of 20.64%

Introduction

Governments and business users are becoming increasingly enamored with space-based broadband internet technologies due to the growth in demand for 24/7 connection options for various uses. Internet service can be accessed through satellite without any infrastructure on the ground. Space-based broadband internet is the Internet service provider that utilizes communication satellites. The key advance was the invention of the internet and the world wide web, which will result in the usage of geostationary satellites to provide internet access in the future. Since then, several organizations have demonstrated using high-capacity satellites to provide broadband Internet services from space.

Market Dynamics

Technological Advancements Toward Developing Next-Generation Communication Satellite Constellations Drive the Global Market

Microsatellites and nanosatellites have evolved due to the most recent technological developments in component miniaturization. In the space-based broadband internet business, leading manufacturers widely develop these satellites. With the latest technology, satellite developers may more affordably produce numerous satellites for LEO constellations. The high cost per launch was one of the first obstacles encountered by space corporations while attempting to launch numerous satellites. However, the costs associated with the launch have fallen dramatically over time due to technological breakthroughs in propulsion and maneuverability. Many commercial firms have been creating and developing launch vehicles that use a combination of fuels and designs to minimize the cost of space launch vehicles, thereby driving the growth of the global market.

Building a Hyper-Connected World with Reliable Connectivity Creates Tremendous Opportunities

Several mobile and stationary devices can access satellite connection services anywhere. Instead of utilizing numerous modems for each platform, the single space-based system can service stationary and mobile platforms. Several contracts and memorandums of understanding (MoUs) have been made with commercial firms to digitalize developing nations' economies. The absence of infrastructure, such as signal towers and optical cables between the source and the end-users, is one of the primary benefits of space-based broadband internet. Thus, the majority of businesses seek to penetrate this sizable opportunistic market.

Regional Analysis

North America is the most significant global space-based broadband internet market shareholder and is expected to grow at a CAGR of 18.40% over the forecast period. The global space-based broadband internet market is dominated by the North American area, which is anticipated to create enormous investments and revenues. The governments of Canada and the U.S. have invested significantly in satellite Internet service for rural and isolated areas. Hence, this region's revenue is anticipated to increase dramatically in the following years. In addition, businesses are designing and creating products and solutions to fulfill market demands. Amazon – Project Kuiper, Hughes Network Systems, LLC, ST Engineering iDirect, Inc., Starlink, Swarm Technologies, Inc., Telesat, and Viasat, Inc. are among the prominent participants in the area. This region is also among the most technologically advanced in the world, and the expansion of space projects will raise demand for space-based broadband internet technology.

Asia-Pacific is anticipated to exhibit a CAGR of 25.11% over the forecast period. The surge in demand for advanced internet services in the region is one of the motivating factors for a number of businesses to extend their operations in the area. The region's businesses have different product offerings. Depending on the applications and end customers, several companies have invested in developing space-based broadband internet that simulates high-speed data transfer. In addition, China and India are market leaders in the region due to their revolutionary space-based broadband internet technologies. Government measures to digitalize the economies have significantly influenced the expansion of various regional businesses. However, the Asia-Pacific area requires additional participants to satisfy the tremendous demands of China and India. Therefore, the region's proportion of the worldwide market may be greater, which has impeded market expansion.

Key Highlights

• The global space-based broadband internet market was valued at USD 9,664.82 million in 2022. It is estimated to reach USD 52,309.93 million by 2031, growing at a CAGR of 20.64% during the forecast period (2023–2031).
• Based on frequency, the global space-based broadband internet market is bifurcated into Ka, Ku, and K bands, C and X bands, and S and L bands. The Ka, Ku, and K band segment dominates the global market and is projected to grow at a CAGR of 20.0% over the forecast period.
• Based on orbit, the global space-based broadband internet market is divided into low earth orbit (LEO), medium earth orbit (MEO), and geostationary earth orbit (GEO). The LEO segment is the highest contributor to the market and is estimated to exhibit a CAGR of 22.44% over the forecast period.
• Based on components, the global space-based broadband internet market is divided into satellites, gateways, and antenna dishes and modems. The satellite segment owns the highest market share and is anticipated to exhibit a CAGR of 19.89% over the forecast period.
• Based on application, the global space-based broadband internet market is bifurcated into agriculture, maritime, aviation, enterprise, data and telecommunication, logistics and transportation, and others. The data and telecommunication segment is the highest contributor to the market and is predicted to grow at a CAGR of 16.81% over the forecast period.
• Based on the end-user, the global space-based broadband internet market is bifurcated into commercial, defense and government, and individual users. The commercial segment dominates the global market and is projected to exhibit a CAGR of 21.55% during the forecast period.
• North America is the most significant global space-based broadband internet market shareholder and is expected to grow at a CAGR of 18.40% over the forecast period.

Competitive Players

Competitive Players

The key players in the global space-based broadband internet market are Airbus S.A.S, Amazon-Project Kuiper, BridgeComm, Inc., Eutelsat Communications SA, Gilat Satellite Networks, Hughes Network Systems, LLC, Intelsat, L3Harris Technologies, OneWeb, SES S.A., ST Engineering iDirect, Inc., Starlink, Swarm Technologies, Inc., Telesat, and Viasat, Inc.

Recent Developments

Market News

• In March 2023, AST SpaceMobile, Inc. signed a non-binding MoU with Saudi Telcom Company today ("STC"). The two firms inked a memorandum of understanding at Mobile World Congress in Barcelona to explore new telecom technologies and satellite-based digital services to improve mobile service accessibility.

• In March 2023, Along with Cloud Signals, Hellas Sat, and a renowned Mobile Network Operator (MNO), Comtech announced that the firms successfully tested and certified a 5G connection over a satellite network in Greece.

Segmentation

Global Space-Based Broadband Internet Market: Segmentation

By Frequency

• Ku, K, and Ka Band
• C and X Band
• L and S Band

By Component

• Satellites
• Gateways
• Antenna Dish and Modem

By Orbit

• LEO
• MEO
• GEO

By Applications

• Agriculture
• Maritime
• Aviation
• Enterprise
• Data and Telecommunication
• Logistics and Transportation
• Others

By End-User

• Commercial
• Defense and Government
• Individual Users

By Regions

• North America
• Europe
• Asia-Pacific
• Rest-of-the-World