[Research Report] The satellite internet market size is expected to grow from US$ 3.67 billion in 2022 to US$ 19.38 billion by 2030; it is estimated to grow at a CAGR of 23.1% from 2022 to 2030.
Analyst Perspective:
The rising demand for high-speed internet connectivity for homes and offices is one of the major factors boosting the growth of the satellite internet market. In addition, the increasing need for high-speed connectivity for mission-critical and disaster-management applications and inflight Wi-Fi connectivity for commercial aviation and private jets is further boosting the demand for fast satellite internet. Also, the growing investment by the market players in this segment is further fueling the growth of the market. Moreover, the rising need for connectivity for education and infrastructure development projects in rural areas and by researchers and scientists in the Arctic region and oceans is creating an opportunity for the growth of the satellite internet market. Furthermore, due to the limited or no presence of telephonic cables in high-altitude mountains, the need for internet access by satellite at weather broadcasting stations and for live media broadcasting is increasing, fueling the market growth in the forecasted period.
Market Overview:
Satellite internet is the process of accessing the internet through communication satellites, usually geostationary satellites. It is location-independent and provides connection anywhere as it provides global coverage. It is the ideal solution for places where the internet quality is unreliable or poor or places where terrestrial internet connectivity is unavailable. In addition, it is an ideal solution for users who live in rural areas or remote areas. Also, it uses satellite dishes for two-way communication, because of which there is no need for land-based internet solutions such as telephone cables or lines. Moreover, compared to other internet options, it provides less or negligible network outages, making it an ideal option for remote areas.
Strategic Insights
Market Driver:
Growing Investment in Satellites Internet is Creating an Opportunity for the Growth of the Satellite Internet Market
As the need for satellites for high-speed connectivity in rural and remote areas is increasing, the investment for the development and launch of satellites is also growing tremendously. Various government authorities and companies have invested and are investing significantly in market growth. For instance, in November 2021, Fleet Space Technologies announced that they had raised US$ 26 million in funds for the expansion of the nanosatellite IoT connectivity fleet. Similarly, in April 2022, the German parliament announced that they would be investing US$ 10.51 million (10 million euros) in the small satellite initiatives. Also, in July 2023, Amazon announced that it would be investing US$ 120 million to build a satellite construction facility at NASA's Kennedy Space Center as part of its plans to launch a space internet service to rival SpaceX's Starlink. Through its Project Kuiper, the company will be able to provide fast, affordable satellite broadband internet to unserved and underserved communities around the world with a constellation of more than 3,200 satellites in low Earth orbit (LEO). In November 2022, the European Union announced that it had secured a US$ 6.2 billion (EUR 6 billion) deal to develop its own system, with an aim to have the system up and running by 2027. For this, the European Commission (EC) will be providing funds of US$ 2.5 billion (EUR 2.4 billion) from other EU programs, and the remaining US$ 3.7 billion will be generated from investment from the private sector. Thus, such investment from the governments of different countries and companies will propel the satellite internet market growth in the forecasted period.
Segmental Analysis:
Based on frequency band, the satellite internet market is segmented into L-band, C-band, K-band, and X-band. The K-band segment held the largest satellite internet market share in 2022 and is anticipated to register the highest CAGR during the forecast period. The K-band frequency is used for different applications, which include its use in speed and safety radars. Also, with lower prices, simpler mass production, and higher reliability, K-band monolithic microwave integrated circuit (MMIC) technology is an emerging trend that enables the realization of K-band power amplifiers and low noise amplifiers on a compact die. In addition, K-band MMICs are used in fixed satellites, digital point-to-point radio communications, and local-multipoint distribution services (LMDS). Thus, the use of K-band for the above application is fueling the segment's growth in the satellite internet market.
Regional Analysis:
North America is expected to witness significant growth in the satellite internet market in the forecasted period. The US holds the largest satellite internet market share in 2022. The market is witnessing tremendous growth due to the presence of various key companies in the region, which includes EchoStar Corporation, SpaceX, Telesat, and others. These market players are continuously working on providing innovative solutions to provide high-speed connectivity in the region. For instance, in July 2023, EchoStar launched a powerful new communications satellite atop a SpaceX Falcon Heavy rocket that will deliver broadband service across nearly 80% of North and South America. Such innovations by the market players will fuel the satellite internet market growth in North America.
Key Player Analysis:
EchoStar Corporation, SpaceX, Singtel Group, Freedomsat, Viasat Inc, Inmarsat Global Limited, OneWebare, EarthLink, and Telesat are among the largest additive manufacturing companies or key satellite internet market players. These satellite internet market players are continuously focused on product development and innovation.
Satellite Internet Market Recent Developments:
Inorganic and organic strategies such as product launches, partnerships, collaborations, and mergers and acquisitions are highly adopted by companies in the satellite internet market. A few recent key market developments by these companies are listed below:
- In September 2023, the global LEO communications network OneWeb and its distribution partner Airbus confirmed the Royal Fleet Auxiliary ship Argus as the first military vessel to deploy low Earth orbit (LEO) satellite internet for her 400-strong crew. This maritime terminal will provide reliable, low latency, high-speed broadband connectivity to the Royal Fleet Auxiliary support ship anywhere in the world, even during challenging sea conditions and high-speed motions.
- In September 2023, Intellian Technologies Inc. and OneWeb announced a new product portfolio of Intellian Flat Panel user terminals for use on OneWeb’s network. Intellian’s Flat Panel Series is a suite of both Pro and Compact user terminals that deliver exceptional performance in sleek, small-footprint, and lightweight form factors. It is particularly designed for Land Fixed, Land Mobile, Maritime and Government markets.
- In July 2023, Astrocast announced that they are extending its partnership with Airbus Defence and Space. The expanded partnership enhances the capabilities of satellite Internet of Things (SatIoT) technology, enabling Astrocast to increase its network capacity to provide SatIoT solutions to its customers.
- In September 2022, Satellite internet provider Hughes Communications India announced the launch of India's first high-throughput satellite (HTS) broadband service powered by the Indian Space Research Organisation (ISRO). The service aims to deliver high-speed broadband across the country, including in the most remote areas beyond the reach of terrestrial networks, thus connecting enterprise and government networks.
- In May 2022, Nelco and Telesat announced that they had successfully conducted their first in-orbit demonstration of high-speed broadband connectivity in India with Telesat's Phase 1 Low Earth Orbit (LEO) satellite. Under this, the companies demonstrated a fiber-like performance with a 35-millisecond roundtrip latency and showcased cloud-based applications, including real-time video conferencing over Microsoft Teams, as well as YouTube and Live TV video streaming.