Satellite Communications (Global Market)

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Main Article: Satellite Equipment (Global Market)

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Main Article: Telecommunications Services (Global Market)

Chronicle

2023: Global Satellite Internet Market Rises to $5.62 Billion for the Year

In 2023, the global satellite Internet market reached $5.62 billion. This is a third (34%) more compared to 2022, when the costs in the segment under consideration were estimated at $4.2 billion. Such data are given in the Market Research Future study, the results of which were published in mid-July 2024.

Analysts highlight several factors that stimulate the rapid development of the industry. This, in particular, the lack of alternative options for connecting to the Internet in rural areas and hard-to-reach regions. The capacity of satellite channels and the reliability of services are constantly improving, and the price of these services is decreasing, which leads to an increase in demand. Satellite systems allow rapid communication in areas where cable or cellular subscriber lines are not available or where the cost of building the necessary infrastructure is too high.

In addition, there is an increase in demand for satellite communications services in the defense sector. Such technologies provide stable and secure data links when conducting military operations in remote areas with missing or unreliable communication infrastructure. Revenues from fixed satellite services used for military and government purposes are expected to grow rapidly. Commercial satellite technology is being introduced into military communications networks by governments around the world, the study said.

Top players are investing heavily in research and development, the study said. Due to this, the dimensions of satellite terminals are reduced, and their functionality is expanded. The organization of local production to minimize costs is one of the main business tactics used by participants in the satellite Internet market. In addition, the industry is being stimulated by the development of the satellite Internet of Things.

Another market driver is large investments. Among the leading participants in the industry are named Singtel Group, Freedomsat, EchoStar Corporation, Thuraya, Eutelsat, SpaceX, OneWeb, Viasat, Axess and DSL Telecom. From a regional point of view, North America is the largest satellite Internet market: in 2022, it accounted for $1.92 billion of total revenue, or approximately 46%. Several large operators operate in this region, which increases competition. In addition, people living in the US and Canada are highly dependent on internet access: this increases the need for high-speed data links across North America, including hard-to-reach areas. The European region is in second place in terms of satellite internet market share, due to growing demand for services in remote and underserved areas. The Asia-Pacific region closes the top three, where the highest CAGR is recorded (CAGR in compound percentage). China and India are the two largest markets in this region: these countries invest heavily in space technology, including to stimulate economic growth.

Market Research Future analysts believe that in the future, the global satellite Internet industry will continue to grow rapidly: CAGR is expected at 33.9%. As a result, costs could reach $58.11 billion by 2032. The demand for commercial applications and services based on satellite platforms is increasing due to the growing need for high-speed connections in various industries, including transport and agriculture, it said.^[1]

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