5G NTN Market by Component (Hardware, Software, Services), End-use Industry (Maritime, Aerospace & Defense, Government, Mining), Application (eMBB, URLLC, mMTC), Location (Urban, Rural, Remote, Isolated), Platform and Region - Global Forecast to 2028
5G NTN Market Size – Worldwide
[190 Pages Report] The global 5G NTN Market was valued at $4.2 billion in 2023. Over the course of projection period, the 5G NTN Industry is anticipated to increase at a CAGR of 40.7% in between 2023-2028 to rise over $23.5 billion in 2028. The increasing demand for uninterrupted services in underserved regions, including mines, remote areas, and challenging environments like the sea, is anticipated to be a key catalyst for the evolution and expansion of 5G networks beyond terrestrial boundaries.
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5G NTN Market Dynamics
Driver: Adoption of software-centric approach
The current focus of NTN services extends to supporting satellite-to-cell services, particularly for emergency and mission-critical applications. Notably, industry leaders such as Qualcomm, and Huawei have adopted a hardware and software approach to enable NTN connectivity, necessitating users to invest in new flagship devices. However, an alternative approach gaining prominence involves a software-centric strategy, targeting unmodified devices.
Key players in this arena, including T-Mobile, SpaceX’s Starlink, AST SpaceMobile, and Lynk, are pivotal contributors to the growth of the satellite connectivity sector for unmodified mobile devices. These companies establish strategic partnerships with global mobile network operators (MNOs), deploy satellites, and leverage MNOs’ terrestrial spectrum to deliver their services. AST SpaceMobile, for instance, has forged alliances with over 25 MNOs, such as Vodafone, Rakuten Mobile, AT&T, and Bell Canada, collectively catering to a vast customer base exceeding 1.8 billion cellular users. This trend is significantly driving the 5G NTN market by expanding its reach and usability. The collaborative efforts between satellite service providers and MNOs enable seamless integration with existing mobile networks, offering enhanced connectivity solutions. The adoption of a software-centric approach, especially targeting unmodified devices, contributes to the accessibility and widespread adoption of 5G NTN services, creating a robust and versatile communication ecosystem.
Restraint: Need for radio components to be on the ground
The incorporation of radio components like gNB and relay in space poses a challenge as the core network needs to be stationed on the ground. This necessitates that satellites or airborne platforms establish a connection with a ground station, limiting the distance they can travel before losing connectivity. The constraint on satellite distances implies the need for numerous ground stations and satellites to cover expansive areas. Establishing ground stations can be particularly challenging, especially when covering vast expanses like oceans, where deploying ground stations for satellite coverage becomes impractical.
Addressing this challenge, one proposed solution involves allowing satellites to indirectly connect to the core network through another satellite, bypassing the need for a ground station. This approach requires the establishment of relay networks or mesh networks among satellites. While theoretically feasible, practical implementation poses significant challenges. The complexities associated with creating such networks may hinder the growth of the 5G NTN market and impact investments within the ecosystem.
Opportunity: Impact of NR-NTN integration on 5G connectivity
The integration of NR-NTN into communication systems represents a significant advancement that brings about notable improvements in capacity and network capabilities. This integration enhances the overall performance of the network, enabling it to support a larger number of concurrent users and applications while facilitating higher data rates. As a consequence, the expanded capacity opens up new possibilities and creates diverse use cases for satellite connectivity.
With increased capacity, NR-NTN enables networks to accommodate a higher volume of simultaneous connections, enhancing the overall user experience. This is particularly crucial in scenarios where there is a need for robust and reliable connectivity, such as in densely populated urban areas or during large-scale events where a multitude of users may simultaneously access the network. Moreover, the integration of NR-NTN introduces the potential for higher data rates. This means that data can be transmitted more efficiently and at faster speeds, paving the way for applications that require substantial bandwidth, such as high-definition video streaming, virtual reality experiences, and large-scale data transfers.
The emergence of new possibilities and use cases for satellite connectivity is a direct result of these improvements. Industries ranging from telecommunications and entertainment to healthcare and remote sensing can leverage the enhanced capacity and data rates to explore innovative applications.
Challenge: Signal interception
Eavesdropping or signal interception poses a significant security concern in the realm of 5G NTN due to the inherent openness of wireless communication channels. The vulnerability lies in the potential for attackers to intercept and decode signals transmitted between satellites and users, leading to unauthorized access to sensitive data. In the context of 5G NTN, where communication often involves satellites in open space, the risk of eavesdropping becomes particularly pronounced.
The eavesdropping threat is exacerbated by the fact that wireless communication signals, by their nature, traverse the airwaves and can be susceptible to interception if adequate security measures are not in place. Attackers with the capability to intercept these signals can potentially exploit the lack of encryption or weak encryption protocols, compromising the confidentiality of the transmitted information. To mitigate the risk of eavesdropping in 5G NTN, robust encryption protocols, and secure communication channels are imperative. Implementing end-to-end encryption, secure key exchange mechanisms and other cryptographic measures becomes crucial to safeguarding the integrity and privacy of the data in transit.
5G NTN Market Ecosystem
By end-use industry, aerospace & defense register a higher CAGR during the forecast period.
Success in the aerospace and defense industry is increasingly tied to the adoption of cutting-edge technology and the implementation of digitalized solutions. A pivotal focus in this trajectory is on 5G NTN solutions, aiming to amplify 5G coverage and facilitate diverse applications within the industry. One crucial aspect is the provision of high-speed internet connectivity for aircraft passengers, ensuring an on-par connectivity experience within the plane as that experienced on the ground.
In the defense sector, the imperative for a robust 5G NTN system takes center stage, playing a vital role in supporting various application areas. These include static communication, deployable CIS for expeditionary operations, land operations, real-time remote surgery, and maritime operations. The strategic integration of 5G NTN in defense operations not only enhances communication capabilities but also fosters real-time connectivity for critical functions, contributing significantly to the efficiency and effectiveness of defense activities.
By component, hardware to account for the largest market share during the forecast period
The hardware segment of the 5G NTN market has been broadly classified into User Equipment (UE), satellite gateway stations, base stations, and other hardware. These hardware elements support the 5G NTN communication. In the 5G NTN architecture, UE is categorized as handheld and very small aperture terminals (VSAT). VSAT and handheld operate in the radio frequency of Ka-band (20 GHz for downlink and 30 GHz for uplink) and S-band (2 GHz), respectively. Some satellite constellations consider VSAT, which is most likely stationary devices mounted on buildings or vehicles. NTN gateway is a logical node used to connect the NTN platform with the 5G network. Satellites are used to expand the network coverage in 5G NTN infrastructure, such as LEO, MEO, and GEO satellites that provide network coverage ranging from 300 km to 36,000 km from the Earth's surface. The NTN system uses various satellite gateways that provide connectivity between the public network and the NTN.
Based on region, North America is expected to hold the largest market size during the forecast.
North America is poised to dominate the overall 5G NTN market, with the United States leading the region in the widespread adoption of 5G NTN technology. The surge in demand for 5G NTN solutions in this region is propelled by several factors, including the widespread use of smart connected devices, the proliferation of the Industrial Internet of Everything (IloE), and the increasing commercialization of 5G services. The region has witnessed a substantial increase in the deployment of 5G services, driven by a robust ecosystem and a proactive approach to technological advancements. According to The Mobile Economy report published by the Global System for Mobile Communication (GSMA), North America exhibited a 14% penetration of 5G connections in 2022, a figure anticipated to surge to 64% by the conclusion of 2025. This staggering growth reflects the region's strong commitment to embracing and advancing 5G technologies, solidifying its position as a key player in the global 5G NTN market.
Market Players:
The 5G NTN market vendors have implemented various types of organic and inorganic growth strategies, such as new product launches, partnerships and agreements, product upgrades, business expansions, and mergers and acquisitions to strengthen their offerings in the market. The major vendors in this market include Telesat (Canada), Qualcomm Technologies, Inc (US), SoftBank Group Corporation (Japan), Thales Group (France), Rohde & Schwarz GmbH & Co KG (Germany), Keysight Technologies, Inc (US), MediaTek Inc. (Taiwan), SES S.A. (Luxembourg), Inmarsat Global Limited (UK), EchoStar Corporation (EchoStar) (US), SpaceX (US), AST & Science, LLC (US), ZTE Corporation (China), OneWeb (UK), Telefonaktiebolaget LM Ericsson (Sweden), GateHouse SatCom A/S (Denmark), Omnispace, LLC (US), Nelco Limited (US), Skylo Technologies (US), Nokia Corporation (Finland), Globalstar, Inc (US), Spirent Communications (Spirent) (UK), Intelsat US LLC (US), and Telefonica S.A. (Spain), Viasat Inc, (US), Satelitiot (Barcelona), Kuiper Systems LLC (US ), and SpaceIoT (China). The study includes an in-depth competitive analysis of these key market players along with their profiles, recent developments, and key market strategies.
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Report Metrics |
Details |
Market size available for years |
2023-2028 |
Base year considered |
2023 |
Forecast period |
2023–2028 |
Forecast units |
Value (USD) Million/Billion |
Segments Covered |
By component, platform, application, end-use industry, location, and region |
Region covered |
North America, Europe, Asia Pacific, Middle East & Africa, and Latin America |
Companies covered |
Qualcomm Technologies, Inc (US), SoftBank Group Corporation (Japan), Thales Group (France), Rohde & Schwarz GmbH & Co KG (Germany), Keysight Technologies, Inc (US), MediaTek Inc. (Taiwan), SES S.A. (Luxembourg), EchoStar Corporation (EchoStar) (US), SpaceX (US), AST & Science, LLC (US), ZTE Corporation (China), OneWeb (UK), GateHouse SatCom A/S (Denmark), Omnispace, LLC (US), Nelco Limited (US), Inmarsat Global Limited (UK), Skylo Technologies (US), Globalstar, Inc (US), Spirent Communications (Spirent) (UK), Telefonaktiebolaget LM Ericsson (Sweden), Nokia Corporation (Finland), Intelsat US LLC (US), and Telefonica S.A. (Spain), Viasat Inc, (US), Telesat (Canada), Satelitiot (Barcelona), Kuiper Systems LLC (US ), and SpaceIoT (China). |
This research report categorizes the 5G NTN market to forecast revenues and analyze trends in each of the following submarkets:
By Component:
- Hardware
- Solutions
-
Services
- Deployment Services
- Connectivity Services
By Platform:
- UAS Platform
- LEO Satellite
- MEO Satellite
- GEO Satellite
By Application
- EMBB
- URLLC
- MMTC
By End-Use Industry
- Maritime
- Aerospace and Defense
- Government
- Mining
- Other End-use industries
By Location
- Urban
- Rural
- Remote
- Isolated
By Region:
-
North America
- US
- Canada
-
Europe
- UK
- France
- Germany
- Italy
- Rest of Europe
-
Asia Pacific
- China
- South Korea
- India
- Rest of Asia Pacific
- Middle East and Africa
- Middle East
- Africa
-
Latin America
- Brazil
- Mexico
- Rest of Latin America
Recent Developments:
- In September 2023, Rohde & Schwarz and Skylo Technologies are collaborating to establish a device acceptance program for Skylo's non-terrestrial network (NTN). Leveraging Rohde & Schwarz's established device test framework, they will conduct tests on NTN chipsets, modules, and devices to ensure their compatibility with Skylo's test specifications.
- In April 2023, NTT and SES partnership to leverage NTT’s expertise in networking and enterprise-managed services and SES’s unique O3b mPOWER satellites system to develop a new offering that will deliver reliable connectivity to enterprises.
- In February 2023, MediaTek and Skylo collaborated on the next-gen 3GPP NTN Satellite solutions for smartphones and wearables, committing to extensive stress testing between Skylo's NTN service and MediaTek's 5G modems featuring 5G NTN that meets 3GPP standards.
Frequently Asked Questions (FAQ):
What is 5G NTN?
5G Non-Terrestrial Network (NTN) is a technology that extends the reach of 5G cellular connectivity beyond the limitations of traditional terrestrial towers. It does this by incorporating satellites into the network, allowing 5G services to be delivered to areas where terrestrial infrastructure is sparse or non-existent.
What is the market size of the 5G NTN market?
The 5G NTN market size is projected to grow from USD 4.2 billion in 2023 to USD 23.5 billion by 2028 at a CAGR of 40.7% during the forecast period.
What are the major drivers in the 5G NTN market?
The major drivers in the 5G NTN market include solving the problem of extreme coverage extension and 3GPP evolution toward NTN interworking and integration.
Who are the key players operating in the 5G NTN market?
The key vendors operating in the 5G NTN market include Qualcomm Technologies, Inc (US), SoftBank Group Corporation (Japan), Thales Group (France), Rohde & Schwarz GmbH & Co KG (Germany), Keysight Technologies, Inc (US), MediaTek Inc. (Taiwan), SES S.A. (Luxembourg), EchoStar Corporation (EchoStar) (US), Telefonaktiebolaget LM Ericsson (Sweden), SpaceX (US), AST & Science, LLC (US), Spirent Communications (Spirent) (UK), Nokia Corporation (Finland), ZTE Corporation (China), OneWeb (UK), ), Skylo Technologies (US), GateHouse SatCom A/S (Denmark), Omnispace, LLC (US), Telesat (Canada), Nelco Limited (US), Inmarsat Global Limited (UKGlobalstar, Inc (US), Intelsat US LLC (US), and Telefonica S.A. (Spain), Viasat Inc, (US), Satelitiot (Barcelona), Kuiper Systems LLC (US ), and SpaceIoT (China).
What are the opportunities for new market entrants in the 5G NTN market?
New entrants in the 5G NTN market have significant opportunities to capitalize on the growing demand for advanced connectivity solutions beyond terrestrial networks. By focusing on innovative technologies, such as satellite integration and seamless communication platforms, newcomers can tap into emerging markets, address specific industry needs, and establish a competitive edge in the evolving landscape of non-terrestrial 5G networks. .
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This research study involved extensive secondary sources, directories, and databases to identify and collect information useful for this technical, market-oriented, and commercial study of the 5G NTN market. The primary sources were mainly several industry experts from core and related industries and preferred suppliers, manufacturers, distributors, Service Providers (SPs), technology developers, alliances, and organizations related to the segments of this industry’s value chain. In-depth interviews were conducted with various primary respondents that included key industry participants, subject-matter experts, C-level executives of key market players, and industry consultants to obtain and verify critical qualitative and quantitative information, as well as assess prospects.
Secondary Research
The market size of the companies offering 5G NTN to various telecom operators was arrived at based on the secondary data available through paid and unpaid sources and by analyzing the product portfolios of major companies in the ecosystem and rating the companies based on their performance and quality. In the secondary research process, various sources were referred to for identifying and collecting information for the study. The secondary sources included annual reports of Qualcomm, press releases of various companies, such as Thales, Ericsson, and white papers, journals, and certified publications and articles from recognized authors, directories, and databases, such as 5G Americas and GSM Association.
Secondary research was used to obtain key information about the industry’s supply chain, the total pool of key players, market classification, and segmentation according to the industry trends to the bottom-most level, regional markets, and key developments from both market and technology-oriented perspectives, all of which were further validated by primary sources.
Primary Research
In the primary research process, various primary sources from both the supply and demand sides were interviewed to obtain qualitative and quantitative information for the report. The primary sources from the supply side included Chief Executive Officers (CEOs), Chief Technology Officers (CTOs), Chief Operating Officers (COOs), Vice Presidents (VPs), Managing Directors (MDs), technology and innovation directors, and related key executives from various key companies and organizations operating in the 5G NTN market.
Primary interviews were conducted to gather insights, such as market statistics, data on revenue collected from solutions and services, market breakups, market size estimations, market forecasts, and data triangulation. Stakeholders from the demand side, such as Chief Information Officers (CIOs), Chief Finance Officers (CFOs), Chief Strategy Officers (CSOs), and the installation team of end-users who use 5G NTN, were interviewed to understand buyers’ perspectives on suppliers, products, service providers, and their current usage of 5G NTN, which is expected to affect the overall 5G NTN market growth.
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Market Size Estimation
In the market engineering process, top-down and bottom-up approaches and data triangulation methods have been used to estimate and validate the size of the 5G NTN market and other dependent submarkets. The research methodology used to estimate the market sizes includes the following:
- Initially, MarketsandMarkets focuses on top-line investments and spending in the ecosystems. Further, major developments in the key market area have been considered.
- Analyzing major original equipment manufacturers (OEMs), studying their product portfolios, and understanding different applications of their solutions.
- Analyzing the trends related to adopting different types of authentications and brand protection equipment.
- Tracking the recent and upcoming developments in the 5G NTN market that include investments, R&D activities, product launches, collaborations, mergers and acquisitions, and partnerships, as well as forecasting the market size based on these developments and other critical parameters.
- Conduct multiple discussions with key opinion leaders to know about different types of authentications and brand protection offerings used and the applications for which they are used to analyze the breakup of the scope of work carried out by major companies.
- Segmenting the market based on technology types concerning applications wherein the types are to be used and deriving the size of the global application market.
- Segmenting the overall market into various market segments
- Validating the estimates at every level through discussions with key opinion leaders, such as chief executives (CXOs), directors, and operation managers, and finally with the domain experts at MarketsandMarkets
Market Size Estimation Methodology-Bottom-up approach
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Market Size Estimation Methodology-top-down approach
Data Triangulation
The 5G NTN market has been split into several segments and sub-segments after arriving at the overall market size from the estimation process explained above. To complete the overall market engineering process and arrive at the exact statistics for all segments and sub-segments, data triangulation and market breakdown procedures have been used, wherever applicable. The data has been triangulated by studying various factors and trends from both the demand and supply sides.
The 5G NTN market size has been validated using top-down and bottom-up approaches.
Market Definition
Non-terrestrial networks (NTN) can satisfy requests for anywhere and anytime connection by offering wide-area coverage and ensuring service availability, continuity, and scalability. 5G NTN, which stands for 5G non-terrestrial network, expands 5G technology by incorporating satellite communication into its infrastructure. This allows for global connectivity, bridging the gap for remote and underserved areas. 5G NTN leverages a unique combination of satellite constellations, ground-based infrastructure, and advanced protocols, enabling seamless and reliable global communication.
Stakeholders
- Satellite operators
- Suppliers, distributors, and contractors
- Mobile operators
- Business organizations
- Government organizations
- System integrators
- Value-added resellers
- Vendors of software applications
- Investors and venture capitalists
- Government and financial institutions
- Research institutes and organizations
Report Objectives
- To determine and forecast the global 5G NTN market by component (hardware, software, and services), platform, application, end-use industry, location and region from 2023 to 2028, and analyze the various macroeconomic and microeconomic factors that affect the market growth.
- To forecast the size of the market segments concerning five main regions: North America, Europe, Asia Pacific (APAC), Latin America, and the Middle East & Africa (MEA).
- To provide detailed information about the major factors (drivers, restraints, opportunities, and challenges) influencing the growth of the market.
- To analyze each submarket with respect to individual growth trends, prospects, and contributions to the overall market.
- To analyze the opportunities in the market for stakeholders by identifying the high-growth segments of the 5G NTN market.
- To profile the key market players; provide a comparative analysis based on business overviews, regional presence, product offerings, business strategies, and key financials; and illustrate the market’s competitive landscape.
- Track and analyze competitive developments in the market, such as mergers and acquisitions, product developments, partnerships and collaborations, and Research and Development (R&D) activities.
Available Customizations
With the given market data, MarketsandMarkets offers customizations as per the company’s specific needs. The following customization options are available for the report:
Geographic Analysis
- Further break-up of the Asia Pacific market into countries contributing 75% to the regional market size
- Further break-up of the North American market into countries contributing 75% to the regional market size
- Further break-up of the Latin American market into countries contributing 75% to the regional market size
- Further break-up of the Middle East & African market into countries contributing 75% to the regional market size
- Further break-up of the European market into countries contributing 75% to the regional market size
Company Information
- Detailed analysis and profiling of additional market players (up to 5)
Growth opportunities and latent adjacency in 5G NTN Market