5G Satellite Communication Market

Market Overview

The global 5G satellite communication market size was valued at USD 2.75 billion in 2021. It is projected to reach USD 29.06 billion by 2030, growing at a CAGR of 29.09% during the forecast period (2022–2030).

 The increasing adoption of small satellites in the defense industry for applications such as geospace and atmospheric research, tactical communication, and medium resolution imagery is expected to drive market growth. In addition, there is an increasing demand for satellite communication (SATCOM) solutions in the aviation sector for improved airline operations and air traffic management. A SATCOM transponder is a device that allows for wireless communication, monitoring, and control. It is also capable of detecting incoming signals and automatically responding.

In the coming years, it is expected that the SATCOM market will expand significantly due to the 5G network's development and the launches of several scheduled satellites in Low Earth Orbit (LEO) and Medium Earth Orbit (MEO). Furthermore, the introduction of satellite communication into the market for connectivity has prompted satellite communications technology (SATCOM) service providers to place a greater emphasis on ensuring the rate of Internet of Things (IoT) rollout in every region of the world. At this time, approximately 2.7 million devices are serviced by satellites. These devices are utilized in various fields, including aviation, environmental monitoring, shipping, and military support. These satellite transponders are capable of better transponder throughput, reducing costs.

Market Dynamics

Global 5G Satellite Communication Market Drivers

Massive Demand for 5G Connectivity

The rapidly expanding demand for catering to a wide range of applications and eliminating existing technological problems is the primary factor driving the growth of the global 5G satellite communication market. The performance parameters in the market are as follows:

• A high bandwidth
• Low latency
• High system spectral efficiency
• High system spectral efficiency
• Reduced energy consumption

A surge to enhance the existing infrastructure to cater to the technological needs of the 5G satellite communication networks is also likely to take the market ahead in the forecast period due to the robust demand for the 5G network in multiple applications.

Work-from-Home Culture

The governments of several nations had to enact strict mobility restrictions & frequent lockdowns to stop the spread of the virus due to a sudden increase in Covid-19 cases. As a result, the implementation of satellite communication systems was not possible. The majority of industries, however, underwent a significant shift towards remote labor, which increased the demand for constant network connections and supported satellite communication services. In reality, during the crisis, some nations employed satellite communication technologies to determine demographics throughout contagious areas and build databases of local geography.

Global 5G Satellite Communication Market Restraint

Space Debris Hindering Launch of Satellites

The presence of space debris is expected to present significant difficulties for the market for communication satellites. Intelsat announced in April 2019 that its communication satellite Intelsat29e had been destroyed entirely due to an immovable piece of space debris. The dead satellite threatens other satellites traveling along a path similar to its own because this is a typical location for placing communications and surveillance satellites. The presence of dead satellites, which leads to an increase in space debris, constitutes a significant risk for the environment and other satellites' functioning. These factors are going to act as a drag on the expansion of the market.

Growing Concerns Regarding Cybersecurity

Satellite communication technology has recently gained attention as a novel communication phenomenon that is more susceptible to threats and assaults. There may be difficulties with its adoption in the upcoming years due to these mission-critical vulnerabilities, which can affect launch systems, tracking, surveillance, and national security, among other things.

Global 5G Satellite Communication Market Opportunities

Growing Demand for Maritime Satellite Communication

The ever-increasing need for satellite communication in the maritime industry is expected to significantly contribute to the market's expansion. A desperate need for communication has arisen as a direct result of growing concern about the safety of people at borders. This can help in the growth of the market during the forecast period.

Regional Analysis

The global 5G satellite communication market is divided into North America, Europe, Asia-Pacific, and Rest-of-the-World.

North America is anticipated to rule the 5G satellite communication market during the forecast period. The significant presence of key companies highly engaged in developing and providing 5G telecom services and satellite connectivity is a significant factor contributing to the region's growth.

In the upcoming years, Asia-Pacific is projected to present growth prospects for the top market players. The extraordinary increase can be attributed to the growing desire to usher in a revolution for greater speed and lower latency broadbands and provide a platform with wider access to digital services like e-health. For example, Nelco and Omnispace teamed up in March 2022 to deploy 5G via satellites throughout South Asia and India. The sector is further captivated by the growing installation of satellite antennas brought on by the surge in demand for telecommunications, I.T., and aviation networks.

The European market appears to prosper in the upcoming years due to the growing emphasis on smart cities and infrastructure upgrades. Another key factor supporting the market expansion in the region is the rapidly expanding utilization of satellite communication with 5G technology across industries like civil & defense.

Segmental Analysis

The global 5G satellite communication market is segmented by solution type, end-user, orbit, spectrum band, and service.

By Satellite Solution Type

Based on satellite solution type, the market is segmented into backhaul and tower feed, trunking and head-end feed, communication on the move, and hybrid multiplay.

The backhaul and tower feed satellite solution type is anticipated to lead the global 5G satellite communication market. Backhaul and tower feed satellite solutions provide cell towers with high-speed internet and the ability to multicast high- and ultra-high-definition videos and content to a large coverage area across multiple devices, such as smartphones, smart T.V.s, and tablets. With the increasing number of 5G devices and consumer demand for low-latency, high-speed 5G connectivity, backhaul and tower feed satellite solution types will dominate over the forecast period.

By End-User

Based on end-user, the market is divided into defense, government, commercial, and consumer.

It is anticipated that the commercial end-user segment will hold most of the 5G satellite communication market share. This is primarily a result of the demand for 5G and satellite connectivity in the mobility sectors, which include commercial aviation, automobiles, and logistics and shipping.

By Orbit

Based on the orbit segment, the market is divided into low earth orbit (LEO), geosynchronous earth orbit (GEO), and medium earth orbit (MEO).

In comparison to medium earth orbit (MEO) and geosynchronous earth orbit (GEO), low earth orbit (LEO) will gain significant traction over the forecast period. This is due to the fact that businesses all over the world are working to develop the LEO constellation, which will include thousands of satellites.

By Spectrum Band

Based on the spectrum band segment is bifurcated by L and S-Band (1-4GHZ), C and X Band (4-12GHZ) and Ku and Ka-Band (12-40GHZ). 

The service segment is divided into mobile broadband, defense and government mission-critical communication, and satellite IoT. 

Recent Developments

• February 2022- India'sIndia's leading digital service provider, Jio Platforms and SES S.A., announced the formation of a joint venture called Jio Space Technology Limited to bring the next generation scalable and affordable broadband services in India leveraging satellite technology.
• January 2022- Intelsat S.A. and Thales Alenia Space entered an agreement to build two software-defined satellites to advance Intelsat'sIntelsat's global fabric of software-defined GEO connectivity and its 5G software-defined network. The two next-generation software-defined satellites, Intelsat 41 (IS-41) and Intelsat 44 (IS-44), are scheduled to be in service in 2025.
• In February 2023, SES, ThinKom, and Hughes have proven a ground-breaking high-performance multi-orbit service capable of enabling various options for government airborne missions.
• In October 2022, Intelsat reported that satellites Galaxy 33 and Galaxy 34 were successfully launched.
• In January 2023, EUTELSAT 5 West was successfully decommissioned by Eutelsat—the satellite.
• In September 2022, GateHouse Satcom, a market-leading software provider for the satellite communication sector, and Omnispace, a company that is redefining mobile connectivity, announced that they had successfully modeled the performance of the 5G new radio (N.R.) non-terrestrial network (NTN) waveform in an NGSO setting.