Satellite Communications (Global Market)

Satellite equipment

Main Article: Satellite Equipment (Global Market)

Telecommunications services

Main Article: Telecommunications Services (Global Market)

Chronicle

Satellite Internet in the world: leaders, country plans, number of satellites

The volume of the modern global satellite communications market as of 2023 is estimated at $22.6 billion. The contribution of the Russian segment, according to experts, is approximately 2% of this amount, or $450 million (about 45 billion rubles at the exchange rate for December 2024). The global industry shows an annual growth rate of 11-13%. Such data are given in a study by J'son & Partners Consulting, the results of which were published at the end of December 2024.

It is noted that the existing satellite broadband Internet access systems (broadband Internet access systems) are considered, on the one hand, as a competitive environment for new low-orbit broadband access groups, on the other hand, as a basis for assessing the future market and requirements for low-orbit broadband access platforms. According to the presented forecasts, by 2035 the volume of the global satellite communications market will double, reaching $45- $50 billion. The share of the Russian segment may increase to about 2.5-3%, subject to the implementation of projects provided for by the Sphere program.

It is noted that the leader in the development of satellite Internet at the end of 2024 is the United States with the Starlink project. This system, which is in operation, will in the future number up to 42 thousand spacecraft. At the same time, Britain is starting to operate the OneWeb constellation, which will include 648 satellites. All other countries are only planning to deploy or commission similar platforms. The largest projects include:

• G60 Starlink (China) - 12 thousand spacecraft;
• Guo wang (China) - 12,992 satellites;
• IRIS2 (European Union) - 170 (or 290) spacecraft;
• Telesat Lightspeed (Canada) - 198 satellites;
• Project Kuiper (USA) - 3236 satellites;
• Rivada (USA) - 600 spacecraft;
• Dawn (Russia) - 272 satellites.

In Russia, as noted in the study, high expectations are associated with the indicated low-orbit system "Dawn" (LLC "Bureau 1440"), which is announced in the national project "Data Economics." It is emphasized that this group should become an analogue of the Starlink system: it will provide a solution to the problems of digital inequality by providing Internet access anywhere in Russia in 2027. However, the concept of "broadband access" is not disclosed in Russian regulatory documents and ITU-R recommendations. Among the difficulties are issues of both a market nature caused by sanctions actions (restriction of the supply of equipment, electronic component base and technologies for their production) of unfriendly countries in relation to Russia, and problematic issues of a technical nature.

A common problem for the global market is the high cost of subscriber terminals. Analysis of technical materials shows that reducing the cost of such equipment to a level acceptable to the mass market is based on an increase in the number of satellites in the orbital constellation. This minimizes scanning of the AFAP beam (active phased array antenna) and, as a result, reduces the cost of AFAP (see Figure).^[1].

2024

5G Satellite Communications Market Rises to $4.91 Billion for the Year

In 2024, the global 5G satellite communications market reached $4.91 billion. For comparison, a year earlier, costs in this area were estimated at $4.22 billion. Thus, growth was recorded at 16%. Industry trends are addressed in the Market Research Future survey published in mid-January 2025.

The concept of satellite 5G communication provides for the use of spacecraft as nodes of the fifth generation data network. This allows for faster 5G deployment across all geographic regions while creating new market opportunities for stakeholders. Thanks to satellite 5G channels, high-speed Internet access can be provided where there is no coverage of the traditional cellular network.

One of the drivers of the market in question, analysts call the growing demand for high-speed Internet access, especially in remote and rural areas. The integration of satellite technology with 5G networks provides seamless connectivity, providing an alternative to traditional ground infrastructure. The development of the 5G satellite segment not only eliminates digital inequality, but also facilitates the integration of Internet of Things (IoT) devices, smart cities platforms and other advanced systems that require constant communication with the Internet.

Advances in satellite technology have a positive impact on the industry. We are talking, in particular, about the development of spacecraft groupings in low Earth orbit (LEO). Such satellites provide higher data rates and lower latency compared to conventional geostationary vehicles. As technology advances, satellite networks offer increasing opportunities. In addition, advances in production and launch facilities reduce the cost of putting spacecraft into orbit.

Government initiatives also play an important role in the rollout of 5G satellite networks. The authorities of many countries are investing in the development of satellite platforms as part of their initiatives to improve communication in rural and underserved areas. These initiatives include direct project funding, regulatory support, and public-private partnerships.

The authors of the study identify four key market segments: telecommunications services, Internet of Things services, military/defense communication channels and emergency services. In 2023, the first of these areas provided the largest revenue - $1.5 billion. This is due to the growing demand for high-speed internet connection in remote regions. The IoT sector accounted for about $1.2 billion, the defense sector - $0.92 billion. The contribution of emergency services is estimated at $0.6 billion. Among the significant market players named:

• Telesat;
• Intelsat;
• Inmarsat;
• SES S.A.;
• L3Harris Technologies;
• SpaceX;
• Amazon;
• Viasat;
• Hughes Network Systems;
• Comtech Telecommunications Corp.;
• Eutelsat;
• GlobalStar;
• Iridium Communications;
• OneWeb;
• China Satcom.

Geographically, North America was leading in 2023 with an estimate of $1.68 billion. This is followed by the Asia-Pacific region and Europe with costs of $1.05 billion and $1.02 billion, respectively. The contribution of South America amounted to about $0.25 billion, the Middle East and Africa - $0.22 billion.

Market Research Future analysts believe that in the future, the average annual growth rate in complex percentages (CAGR) in the 5G satellite communication market will be 16.37%. As a result, by 2032, costs on a global scale could increase to $16.51 billion.^[2]

A key fob has entered the market, giving any smartphone satellite communications

HMD introduced the OffGrid compact keychain in January 2025, providing satellite communication for any smartphone via the Skylo satellite network. Read more here.

2023

The volume of the global satellite Internet market for companies and government agencies has grown to $4.9 billion over the year

In 2023, the costs of the global satellite Internet market for companies and government agencies reached $4.9 billion. This sector demonstrates stable positive dynamics, which is explained, among other things, by technological achievements and the development of spacecraft groupings in low Earth orbit. Industry trends are addressed in the Market Research Future survey published in mid-November 2024.

It is noted that one of the main drivers of the market is the growing demand for high-speed Internet access - especially in underserved or remote areas. The deployment of traditional ground infrastructure in such areas is often difficult or economically impractical, making satellite technology an attractive solution. Geostationary and low-orbit satellites provide global coverage, ensuring connectivity even in complex landscapes.

In addition, the need for bandwidth-intensive services such as video streaming and remote work platforms is increasing: this is fueling the need for high-bandwidth satellite services. The expansion of the segment is also facilitated by various government initiatives to introduce modern satellite Internet services in order to create a digital economy and improve public safety. Satellite data links are actively used by police, fire departments and other organizations.

Technological advances, such as improved beamforming systems and phased antenna arrays, contribute to more efficient data transmission and reception. The adoption of such technologies is changing the market landscape, providing promising prospects for increased productivity and expanded coverage.

But there are also deterrents. One is concern about the rapidly increasing number of satellites in low Earth orbit. Putting hundreds of such vehicles into space creates risks formations of space debris clouds in the event of satellite destruction for one reason or another.

The segmentation of the commercial satellite Internet access market by end user includes the defense sector, healthcare, education, small and medium enterprises, government agencies, etc. A significant part of the revenue, according to Market Research Future, is provided by government agencies. From a geographical point of view, North America and the Asia-Pacific market are leading. Satellite Internet services are most in demand in the USA, China, Japan, India and South Korea. The key players in the global market are:

• Hughes Communications;
• Visat;
• Avonline Satellite Solutions;
• Speedcast International;
• Skycasters;
• Immarsat;
• Iridium Communications;
• Star Inc.

It is also said that the segment of corporate users occupies a large share, since enterprises often need a reliable and high-speed Internet connection to support various operations, such as data collection and remote monitoring. Satellite technology offers a viable solution for these users, especially in remote or rural areas where ground infrastructure may be lacking or insufficient.

Market Research Future analysts believe that in the future, the CAGR in the market under consideration will be 18.4%. Thus, by 2032, costs on a global scale, according to the presented estimates, could reach $20.4 billion.^[3]

The global satellite Internet market grew to $5.62 billion over 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.^[4]

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