Satellite Internet Market

^{_{Update: 10/22/2024}}

[252 Pages Report] The Satellite Internet Industry is valued at USD 4.0 Billion in 2023 and is projected to reach USD 17.1 Billion by 2028, at a CAGR of 33.7% from 2023 to 2028. Satellite Internet is a revolutionary technology that combines the power of satellite communication with the capabilities of connection 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, Satellite Internet 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), Satellite Internet can provide seamless connectivity on a global scale. 

Satellite Internet Market Forecast to 2028

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

Satellite Internet Market Dynamics

Driver: Increasing Usage of Global Connectivity

Global connectivity is increasing demand for seamless and reliable internet connectivity across the globe, satellite technology offers a viable solution to bridge the digital divide and connect remote and underserved regions. Satellites provide global coverage, enabling connectivity in areas where terrestrial infrastructure is limited or non-existent. This is particularly beneficial for industries such as maritime, aviation, and rural areas where traditional internet connectivity options may not be feasible. Satellite internet services also play a crucial role in disaster management and emergency response scenarios, providing immediate connectivity when terrestrial networks are disrupted. The ability to connect remote locations, facilitate real-time communication, and enable access to digital services fuels the demand for satellite internet services and drives market growth. Additionally, satellite technology advancements, such as the deployment of high-capacity satellite constellations and improved bandwidth capabilities, enhance the quality and speed of internet connections, further boosting the adoption of satellite internet services on a global scale. OneWeb and Eutelsat merger aims to create a global leader uniquely positioned to capture the fast-growing connectivity market with a complementary offering of geostationary (GEO) and low Earth orbit (LEO) satellites.

Restraints: Associated With Development and Maintenance of Bandwidth Limitation

Satellite technology offers global coverage and connectivity, the available bandwidth is limited compared to terrestrial networks. The finite amount of frequency spectrum allocated for satellite communication poses challenges in delivering high-speed and high-capacity internet services. The limited bandwidth can result in lower data transfer rates and slower internet speeds, impacting user experience and hindering the ability to support bandwidth-intensive applications and services. Bandwidth limitations can be particularly evident during peak usage times or in areas with high user density, leading to congestion and reduced performance.

The shared nature of satellite bandwidth among multiple users and applications can lead to contention and reduced reliability. Overcoming bandwidth limitations requires significant investments in satellite infrastructure, including the deployment of advanced satellite systems with higher capacity and the implementation of efficient bandwidth management techniques. However, these investments can be costly and may pose financial challenges for satellite service providers. Despite ongoing advancements in satellite technology and the introduction of high-throughput satellites, addressing bandwidth limitations remains a key challenge in fully realizing the potential of satellite internet services.

Opportunities: Increasing Need for High-Speed, Reliable Communication Networks in Remote Areas

Bridging the digital divide presents a significant opportunity for the satellite internet service market. The digital divide refers to the gap between those who have access to reliable and high-speed internet connectivity and those who do not, often seen in underserved or remote areas. Satellite internet services have the potential to reach these underserved regions and provide them with essential connectivity. By leveraging satellite technology, service providers can overcome geographical barriers and offer internet access to areas where terrestrial infrastructure is limited or nonexistent. As Granite Telecommunications, a USD 1.8 Billion provider of communications announced collab with Viasat Inc. to deliver satellite-based internet service over Viasat’s global satellite network to markets across the US.

 This opportunity is particularly relevant in rural and remote communities, developing countries, and areas affected by natural disasters or infrastructure challenges. By expanding access to satellite internet services, individuals and communities can benefit from improved educational opportunities, enhanced healthcare services, economic development, and increased communication capabilities. Bridging the digital divide not only contributes to social inclusion and equality but also opens up new markets for satellite internet service providers. Governments, NGOs, and private companies are increasingly recognizing the importance of closing the digital divide, leading to potential partnerships, funding opportunities, and supportive policies for satellite internet deployment in underserved areas. With advancements in satellite technology and cost-effective solutions, satellite internet service providers have a significant role to play in bridging the digital divide and enabling digital empowerment for all.

Challenges: Satellite Capacity and Congestions-Related Challenges Associated With Satellites

Satellite capacity and congestion are challenges with an increasing number of satellites and growing demand for connectivity, there is a risk of limited satellite capacity and potential congestion on existing satellite networks. The finite number of available orbital slots and frequency spectrum can constrain the expansion of satellite services. Congestion can result in reduced data speeds, degraded performance, and limitations on the number of users accessing the network simultaneously. To address these challenges, satellite operators need to invest in the deployment of more satellites, advanced network management systems, and spectrum optimization techniques. Regulatory frameworks and international coordination play a crucial role in managing satellite capacity and mitigating congestion issues to ensure reliable and efficient satellite internet services.

Satellite Internet Market Ecosystem

Companies providing satellite internet services are key stakeholders in the market ecosystem. Investors, funders, academic researchers, integrators, service providers, and licensing authorities serve as the major influencers in this market.

Prominent Companies

Prominent companies in this market include well-established, financially stable service providers of Satellite internet service providers with a global presence. These companies have been operating in the market for several years and have a diversified product portfolio, state-of-the-art technologies, and robust global sales and marketing networks. Prominent companies include SpaceX, EchoStar Corporation, and Viasat Inc.

Private And Small Enterprises

Private and small enterprises are companies with a comparatively limited service portfolio, financial strength, and specialization in specific systems and subsystems. Some companies could enter strategic partnerships and joint ventures with prominent companies to gain a strong foothold in the Satellite internet service market. Currently, private and small enterprises are looking at funding and investments for the development of advanced Satellite internet service.

End Users

Telecommunication and Cellular backhaul,Media and Entertainment, Business and Enterprise, Transportation and Logistics, Scientific Research and Development, Aviation, Marine, lay a vital role in the Satellite internet service market. Such customers are engaged in procuring newly launched Satellite internet for applications in national defense infrastructure.

Based on Connectivity, Two Way Segment is Estimated to Lead the Satellite Internet Market in 2028

Based on Connectivity, Two way service segment is estimated to lead the Satellite Internet market from 2023 to 2028. service providers offer system integration services, which involve integrating Satellite Internet 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 Orbit , LEO is Estimated to Account for the Larger Share of the Satellite Internet Market in 2023

Based on orbit, LEO is estimated to account for the larger share of the Satellite Internet market in 2023. This is due to satellite internet technology revolutionizing 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, satellite internet 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 Satellite Internet 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 Satellite Internet technology, further fueling its growth in the region.

Considering these factors, the Asia Pacific region is poised for significant growth in the Satellite Internet market, with the highest 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 Satellite Internet technology.

Satellite Internet Market by Region

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

Satellite Internet Industry Companies - Top Key Market Players

The Satellite Internet Companies is dominated by a few globally established players such as as SpaceX (US) Viasat Inc. (US), EchoStar Corporation (US), Eutelsat S.A. (France), and SES S.A. (Luxemburg) among others, are the key service providers in Satellite Internet Market. Major focus was given to the contracts and new services provided 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 Satellite Internet Market?

Unlock Insights

Click on image to enlarge

Scope of the Report

Satellite Internet Market Highlights

The Study Categorizes the Satellite Internet Market Based on Connectivity, Vertical, Frequency, Orbit, Download Speed and Region.

Recent Developments

• In May 2023, Gilat Satellite Networks received a multi-million dollar contract for VSATs in Asia. The VSATs will support the national initiative in its efforts to enhance disaster prevention and management. The network will enable secure, bandwidth-efficient voice services, emergency alerts, mobility services, and satellite internet services that will boost effective disaster response capabilities for governmental bodies and first responders.
• In April 2023, OneWeb collaborated with Eutelsat S.A aiming to achieve global satellite broadband coverage by end of 2023.
• In March 2023, Viasat and Inmarsat, two prominent satellite companies, received provisional approval from the Competitions Market Authority (CMA) for their proposed merger. The deal, valued at USD7.3 Billion, is expected to enhance competition in the satellite internet market.
• In March 2023, Eutelsat and Intelsat signed a seven-year capacity agreement to enhance satellite connectivity solutions, leveraging Eutelsat's high-throughput satellites (HTS) in the Ku-band, including the recently launched EUTELSAT 10B satellite and the OneWeb constellation. This collaboration aims to provide seamless connectivity solutions for air, land, and sea customers by combining the GEO and LEO assets of the three entities.
• In December 2022, Viasat was awarded a USD 325 Million contract extension by the US Special Operations Command (SOCOM) for tactical satellite communications and network management. Viasat stated that the indefinite deliver indefinite quantity (IDIQ) award structure allows the military to acquire technology developments with flexibility. Under the contract, Viasat will provide equipment, services, and support to SOCOM for various capabilities, including situational awareness, integration, terrestrial networking, intelligence, surveillance, and reconnaissance (ISR), tactical satellite communications including satellite internet, information assurance, and network management.
• In November 2022, Granite Telecommunications collaborated with Viasat to deliver satellite-based internet service over the company’s global satellite network to markets across the US
• In Septembe 2022, SpaceX’s partnership with T-Mobile, known as Coverage Above and Beyond, aims to revolutionize cell phone connectivity. Leveraging SpaceX's Starlink satellite constellation in LEO and T-Mobile's leading wireless network, the partnership seeks to deliver near-complete coverage across the US, including previously unreachable remote areas.

Frequently Asked Questions (FAQ):

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