5G Satellite Communication Market - Forecasts from 2023 to 2028

The 5G satellite communication market is expected to grow at a CAGR of 48.67%, from US$2.012 billion in 2022 to US$21.725 billion in 2028.

GROWTH DRIVERS

INCREASING SATELLITE GROUND SEGMENT’S REVENUE, GLOBAL, IN BILLION US DOLLARS

The 5G satellite communication market is driven by the growing demand for high-speed, low-latency connectivity across various applications and regions, the improved performance and efficiency of 5G satellite technologies, and the rising use of satellites for media and entertainment.

For instance, as per the “25th Annual State of the Satellite Industry Report” released by the Satellite Industry Association, the revenue of the satellite ground segment was valued at USD 135.24 billion in 2020 and USD 142 billion in 2021. The increasing revenue of the satellite ground segment indicates a growing demand and investment in satellite communication solutions, especially for remote and rural areas that lack adequate terrestrial coverage. It also suggests that the satellite industry is innovating and developing new technologies and products that can enhance satellite communication's performance, reliability, and security.

EMERGING OPPORTUNITIES FOR 5G IN THE SATELLITE COMMUNICATION MARKET

GOVERNMENT AND COMMERCIAL

The factors that propel the 5G satellite communication market are the need for wide-area coverage and seamless connectivity for diverse applications, the enhanced capabilities and features of 5G satellite solutions, and the increasing adoption of satellites for broadcasting services.

The 5G satellite communication market is segmented by end-users into defense, government, commercial, consumer, and others. The developments and initiatives in the government and commercial segments are playing a crucial role in driving advancements and improving the 5G satellite communication market. These sectors are actively investing in satellite communication solutions to meet the growing demand for high-speed, low-latency connectivity across various applications and regions. The improved performance and efficiency of 5G satellite technologies and the rising use of satellites for media and entertainment have spurred innovation and investment in this market.

For instance,

• In January 2022, Thales announced in a press release that its joint venture, "Thales Alenia Space," has signed a deal with Intelsat to provide two Space Inspire software-defined satellites, Intelsat 41 and Intelsat 44. The world's first 5G software-defined unified network will be served by two satellites built on the ground-breaking Space Inspire completely flexible system. With the addition of high-speed, dynamically allocated connectivity spanning Africa, Europe, the Middle East, and Asia for commercial and governmental mobility services and cellular backhaul, the deal allows Intelsat's worldwide software-defined satellite-based network to advance.
• In November 2019, the European Space Agency announced that a 5G Strategic Program Line (SPL) dubbed "Space for 5G" was created during the Space19+ ESA Ministerial Conference based on collaborations between the industry and the ESA Telecommunications and Integrated Applications Directorate. The SPL 5G offers funds for initiatives and projects with a shared strategic objective to aid in the digitalization of society and industry. Coordinating with similar 5G efforts at the national and European levels in various Member States, the SPL 5G is carried out.

GEOGRAPHICAL PRESENCE

The global 5G satellite communication market consists of major countries undertaking steps to secure their 5G network. China is expected to witness a higher CAGR during the forecasted period. In addition, a few of the major countries include the USA, Japan, South Korea, the United Kingdom, and Germany. Some important developments are listed below:

• In June 2023, in the United States, Honeywell announced in a press statement, it has recently launched VersaWave with 5G, a new tiny satcom system built exclusively for advanced air mobility (AAM) vehicles and uncrewed aerial systems (UAS). This groundbreaking technology combines cellular connectivity (including 5G, 4G, and 3G), Wi-Fi, Bluetooth, and satellite communication (satcom) in a remarkably compact and lightweight design. VersaWave is the perfect option for UAS because it combines these multiple connectivity possibilities and enables BVLOS communication.
• In April 2023, in the United Kingdom, NTT Limited announced in a press statement NTT and SES would offer businesses solutions for private and edge 5G networks based on satellite technology. The two companies will provide a fully managed Edge and Private 5G service with boosted satellite coverage.

MAJOR PLAYERS IN THE MARKET

Some of the leading players in the market include SES S.A., Omnispace LLC, and ND Satcom, among others. The product offerings of the major corporation include the following:

• SES S.A. offers Mobile Backhaul mPOWERED application that provides high-throughput capabilities and low-latency connectivity. It is powered by O3b mPOWER, a next-generation medium Earth orbit (MEO) connectivity system that provides high-throughput capabilities and low-latency connectivity. Mobile Backhaul mPOWERED can improve any mobile network operator's core network coverage and efficiency, regardless of the generation of mobile services offered.
• Omnispace LLC’s Omnispace Hybrid Network applications for 5G devices is a network in development that will combine Omnispace LEO satellites with existing terrestrial cellular networks using the 3GPP standard for non-terrestrial networks (NTN). It will allow smooth switching and compatibility for 5G devices across different areas and operators.
• ND Satcom offers SKYWAN 5G application supported by SKYWAN 5G. It is a two-way satellite communication platform that supports COTM (Communications-On-the-Move) applications and allows for different network topologies. The DVB-S2X and MF-TDMA waveforms are supported by SKYWAN 5G, enabling high-throughput real-time transmission.

SEGMENTATION

By Orbit

• Geostationary Earth Orbit (GEO)
• Medium Earth Orbit (MEO)
• Low Earth Orbit (LEO)

By Solution

• Backhauling and Tower-Feed
• Communications on the Move
• Trunking and Head-end Feed
• Hybrid Multiplay

By End User

• Defense
• Government
• Commercial
• Consumer
• Others

By Geography

• Americas
• USA
• Others
• EMEA
• Germany
• UK
• Others
• APAC
• China
• Japan
• South Korea
• Others