5G From Space Market Size, Share, Trends & Growth Analysis

^{_{Update:: 19.11.24}}

The 5G Satellite Communication Market is revolutionizing global connectivity by integrating satellite-based networks with 5G technology. This innovation enables seamless communication across remote areas, ensuring robust coverage where traditional networks fall short. The Satellite-Based 5G Network Market is poised for significant growth, driven by advancements in low Earth orbit (LEO) satellites and increasing demand for high-speed, low-latency communication solutions.

The 5G from Space Market size is projected to grow from USD 300 million in 2023 to USD 3,693 million by 2028, growing at a CAGR of 65.1% from 2023 to 2028. 5G from space is a revolutionary technology that combines the power of satellite communication with the capabilities of 5G networks. It provides global connectivity and high-speed, low-latency communication services from space, offering numerous benefits from various perspectives.

From a global connectivity standpoint, 5G from space technology has the potential to bridge the digital divide by extending high-speed internet access to remote and underserved areas. Traditional terrestrial networks often struggle to reach these regions, but with satellites deployed in low Earth orbit (LEO), 5G from space can provide seamless connectivity on a global scale. 

5G From Space Market Forecast to 2028

To know about the assumptions considered for the study, Request for Free Sample Report

5G From Space Market Dynamics

Driver: Development of new applications and services

The potential for innovative applications and services is a key driver behind the demand for 5G from Space Industry. Unlike existing satellite technologies, 5G from space has the capability to support advanced functionalities that were previously not feasible. This opens up possibilities such as real-time video streaming to aircraft and ships, allowing for enhanced communication and entertainment options. Additionally, the high-speed and low-latency connectivity provided by 5G from space can enable autonomous driving in remote areas, transforming transportation and expanding the reach of self-driving technologies. The ability of 5G from space to unlock these new applications and services is a significant motivating factor for businesses and industries seeking to leverage the potential of advanced satellite connectivity.

Restraints: Global chip shortage

The global chip shortage has emerged as a significant constraint for the 5G from the Space market. The shortage has presented challenges in the manufacturing of satellites, making it more difficult to meet the demand for satellite deployment. The limited availability of essential chips has led to delays and increased costs associated with building satellite constellations. As a result, the industry is grappling with supply chain disruptions and uncertainties, hindering the pace of progress in expanding the 5G from Space infrastructure. The chip shortage serves as a major constraint, impacting the market's growth potential and posing obstacles to the timely and cost-effective implementation of satellite-based 5G connectivity solutions. The demand for semiconductors has been increasing steadily in recent years. In 2021, the global semiconductor market was valued at $555.9 billion, and it is expected to reach $650.6 billion by 2026. This growth is being driven by the increasing demand for electronic devices, such as smartphones, laptops, and cars. As well as Geopolitical tensions have also contributed to the shortage. The trade war between the United States and China has led to increased uncertainty in the semiconductor market, which has made it more difficult for companies to secure supplies.

Opportunities: Growing adoption of the Internet of Things (IoT)

The growth of the Internet of Things (IoT) presents significant opportunities for 5G from space. As the IoT market expands at a rapid pace, 5G from space can play a crucial role in connecting and supporting IoT devices. The high-speed and reliable connectivity offered by 5G from space opens up new possibilities for seamless communication and interaction among IoT devices, enabling efficient data exchange and real-time decision-making. This creates a surge in demand for 5G from space as businesses and industries seek to leverage the potential of IoT technologies in various sectors, such as smart cities, industrial automation, agriculture, and healthcare. The integration of 5G from space with IoT applications not only drives innovation but also enhances productivity, efficiency, and resource management. With its capacity to provide robust and scalable connectivity, 5G from space holds immense opportunities to fuel the growth and expansion of the IoT market, revolutionizing industries and transforming the way we live and work.

Challenges: The latency of 5G signals from space is higher than the latency of terrestrial 5G signals.

The latency, or the time delay in transmitting data, is generally higher for 5G signals from space compared to terrestrial 5G signals. This increased latency can pose difficulties for applications that require real-time responsiveness, such as real-time gaming, virtual reality, or remote control of critical systems. The higher latency can result in noticeable delays and affect the overall user experience in these applications. While efforts are underway to minimize latency in satellite communications through technological advancements and optimization techniques, addressing this challenge remains a priority to ensure that 5G from space can effectively support latency-sensitive applications and meet the expectations of users who require instant and seamless interactions.

5G From Space Market Ecosystem:

Scientific research & development and Business forces lay a vital role in the 5G from space. As well as such, customers are engaged in procuring newly launched 5G Satellite internet for applications in national defense infrastructure.

Based on Components, the Service segment is estimated to lead the 5G from the space market in 2028.

Based on Components, the service segment is estimated to lead the 5G from Space market from 2023 to 2028. service providers offer system integration services, which involve integrating 5G from space solutions with existing infrastructure. This service ensures seamless interoperability and compatibility between different systems and networks. System integration allows organizations to maximize their investments, leverage their existing assets, and create a cohesive ecosystem that integrates various technologies and applications.

Based on the Application, Enhanced Mobile Broadband (EMBB) is estimated to account for the larger share of the 5G from Space market in 2023

EMBB in 5G from space technology revolutionizes global mobile broadband connectivity. It enables ubiquitous coverage, provides high-speed data rates, supports data-intensive applications, and empowers users across industries. With its transformative capabilities, eMBB in 5G from space technology is driving global connectivity, bridging the digital divide, and opening up new possibilities for communication, collaboration, and innovation on a global scale.

The Asia Pacific market is projected to grow at the highest CAGR during the forecast period in 2028 in the 5G from space market.

Governments in the Asia Pacific region are actively investing in infrastructure development and digital initiatives. They are recognizing the importance of advanced connectivity and digital transformation for economic growth and competitiveness. These initiatives create a conducive environment for the adoption and deployment of 5G from space technology, further fueling its growth in the region.

Considering these factors, the Asia Pacific region is poised for significant growth in the 5G from space market, with a strong projected CAGR. The region's diverse landscape, urbanization trends, consumer demands, industrial growth, and government support contribute to this growth, positioning the Asia Pacific region as a key player in leveraging the benefits of 5G from space technology.

5G From Space Market by Region

To know about the assumptions considered for the study, download the pdf brochure

Key Market Players

The 5G from space companies are dominated by a few globally established players such as Oneweb (UK), Omnispace(US), Qualcomm (US), Ericsson (Sweden), and Rohde & Schwarz (Germany)  among others, are the key manufacturers that secured  5G from space. A major focus was given to the contracts and new product development due to the changing requirements of commercial, homeland security, and defense & space users across the world.

Want to explore hidden markets that can drive new revenue in 5G From Space Market?

Unlock Insights

Scope of the Report

5G From Space Market Highlights

The study categorizes the 5G from the space market based on components, vertical, application, and region.

Frequently Asked Questions (FAQ):

To speak to our analyst for a discussion on the above findings, click Speak to Analyst