LEO Terminal Market - By Service Type (Fixed Satellite Services, Mobile Satellite Services, Broadcast Satellite Services), By Component, By Technology, By Deployment Mode, By Frequency Band, By End Use & Forecast, 2024 – 2032

LEO Terminal Market Size

LEO Terminal Market was valued at USD 6.4 billion in 2023 and is anticipated to grow at a CAGR of over 20% between 2024 and 2032.
 

With the rising trend toward developing LEO terminals that are highly portable and can be easily deployed in remote/emergency situations, there is an introduction of specialized terminals for military and emergency response purposes. This reflects a trend toward customization and niche market segmentation within the broader market. Companies are increasingly targeting specific user needs with tailored solutions. This trend caters to the needs of military operations, disaster response teams, and other mobile applications, where rapid connectivity is crucial.
 

For instance, in September 2023, OneWeb, a LEO satellite communications company, announced the launch of its new fully person-portable User Terminal (UT), designed to provide satellite connectivity to military operations and emergency response teams operating beyond traditional terrestrial networks.
 

Industries, such as agriculture, transportation, logistics, utilities, and environmental monitoring, increasingly rely on Internet of Things (IoT) and Machine-to-Machine (M2M) communications to enhance operational efficiency, monitor assets remotely, and gather real-time data for decision-making. LEO terminals can integrate seamlessly with existing terrestrial and wireless networks, forming hybrid communication solutions that enhance reliability and coverage across various environments. Certain IoT applications, such as autonomous vehicles, require low-latency communication to ensure real-time responsiveness and safety. LEO satellites, which orbit closer to Earth than traditional geostationary satellites, offer lower latency, making them suitable for time-sensitive applications. Regulatory frameworks supporting IoT and satellite communications, along with initiatives to bridge the digital divide and promote universal connectivity, further drive adoption in underserved regions and industries.
 

LEO constellations vary in design, orbit characteristics, and communication protocols. This diversity adds complexity to developing terminals that can seamlessly connect to different satellite networks. Designing antennas that can effectively communicate with LEO satellites that move rapidly across the sky requires advanced engineering to maintain signal strength and reliability. The lack of standardized protocols and interfaces across LEO constellations complicates interoperability between terminals & satellite networks. Efforts are ongoing to establish common standards, but progress can be slow due to diverse technological approaches.
 

LEO Terminal Market Trends

There is a global push to extend broadband access to underserved and remote areas where traditional terrestrial networks are impractical or economically unfeasible. LEO satellites offer a viable solution by providing broadband internet access to these regions. In urban areas, LEO terminals complement existing broadband infrastructure, offering high-speed internet access with lower latency compared to geostationary satellites. This is crucial for applications such as video conferencing, gaming, and streaming.
 

For instance, in April 2024, Hughes Network Systems, LLC announced the commercial availability of the Hughes HL1120W Terminal. This Electronically Steerable Antenna-based (ESA) terminal has received Eutelsat OneWeb approval for operation in its LEO satellite network, and this milestone enables Hughes to bring Eutelsat OneWeb’s enterprise-grade, low-latency, and high-speed connectivity to customers across the globe.
 

The development of electronically steered flat panel antennas represents a technological leap in LEO terminals. These antennas offer advantages in terms of size, weight, power consumption, and performance, making them attractive for various mobile and fixed applications in maritime. Collaborations between satellite operators and terminal manufacturers strengthen the ecosystem around LEO terminals. Such partnerships facilitate innovation, improve service offerings, and enhance market competitiveness. For instance, in May 2023, Kymeta and OneWeb announced the commercial availability of the former’s electronically steered Peregrine u8 LEO terminal, becoming the first flat panel antenna to serve the maritime market on OneWeb’s LEO network.
 

LEO Terminal Market Analysis

• ESAs are essential for applications requiring continuous connectivity while in motion, such as in aviation and maritime sectors. Continuous improvements in semiconductor & digital signal processing technologies are enhancing the performance, reliability, and affordability of ESAs.
   
• The rise of LEO satellite constellations increases the demand for ESAs, which can track multiple satellites seamlessly and provide uninterrupted connectivity. ESAs offer a more compact & lightweight alternative to traditional antenna systems, reducing overall system costs and making them more accessible for various applications.
   

 

• BSS is expanding its footprint in underserved regions where traditional cable services are limited or non-existent, making DTH a viable alternative for accessing quality content. The deployment of LEO satellites enhances signal quality and reduces latency, enabling a better viewing experience for DTH users. This technological evolution is crucial in meeting consumer expectations for high-definition and ultra-high-definition content.
   
• Advances in satellite technology enable seamless integration of OTT content delivery with traditional broadcast services, ensuring consistent quality and reliability for end-users. As competition intensifies among content providers and distributors, BSS companies are leveraging OTT integration to differentiate their services and maintain a competitive edge in the market.
   

Europe's capability in advancing satellite communication technologies is gaining momentum. This innovation enhances the efficiency and reliability of data transmission from LEO satellites, supporting applications for Earth observation, environmental monitoring, and telecommunications. For instance, in June 2024, TTP, an independent technology and product development company based in the UK, announced the launch of a new data relay terminal into space with Surrey Satellite Technology Ltd (SSTL). The terminal is the first of its kind manufactured in Europe, providing a constant link between (LEO) small satellites (SmallSats) and Earth through a geosynchronous satellite relay.
 

The use of LEO terminals for defense applications underscores their critical role in providing secure and reliable communication links for military operations in North America. These terminals support command, control, and intelligence gathering efforts, contributing to national security. For instance, as of June 2024, TTP is working with Surrey Satellite Technology Ltd (SSTL) to launch a new data relay terminal into space. The terminal can provide a constant link between LEO small satellites and Earth through a Geosynchronous satellite relay. The terminal will be launched shortly in the U.S. on Tyche, an Earth observation (EO) satellite for the UK Space Command built by SSTL and will be used for defense applications.
 

LEO Terminal Market Share

SpaceX and OneWeb collectively held a significant share of the LEO terminal industry in 2023. SpaceX, founded by Elon Musk, launched the Starlink project to provide high-speed satellite internet globally, particularly targeting underserved and remote areas. Starlink's network consists of thousands of small satellites in LEO, enabling low latency and high-speed internet access.
 

OneWeb is a global telecommunications company that aims to provide affordable internet access worldwide through its LEO satellite network. OneWeb's constellation is designed to deliver high-speed, low-latency broadband, primarily focusing on connecting rural and remote communities.
 

LEO Terminal Market Companies

Major players operating in the LEO terminal industry are:

• SpaceX (Starlink)
• OneWeb
• Amazon.com, Inc.
• Telesat
• Viasat, Inc.
• Hughes Network Systems
• Iridium Communications
   

LEO Terminal Industry News

• In May 2024, Avanti Communications, a global multi-orbit satellite technology provider, announced the launch of its LEO satellite connectivity services in South Africa. Avanti partnered with Q-KON, a leading satellite engineering enterprise for southern Africa, to deliver seamless LEO connectivity from Eutelsat OneWeb. The new deal was set to improve business operations nationwide in a unique and challenging connectivity environment.
   
• In September 2023, Intellian Technologies and OneWeb unveiled a product lineup of Intellian Flat Panel user terminals designed for OneWeb's satellite network. The terminals offer versatility, and reliability, catering to various market segments and use cases, from fixed enterprise needs to mobility in maritime, transportation, and beyond.
   

The LEO terminal market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD million) from 2024 to 2032, for the following segments:

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Market, By Service Type

• Fixed Satellite Services (FSS)
• Mobile Satellite Services (MSS)
• Broadcast Satellite Services (BSS)

Market, By Component

• Antenna systems
• Transceivers
• Modems and routers
• Power amplifiers
• Others

Market, By Technology

• Phased array antennas
• Reflector antennas
• Electronically steered antennas
• Mechanical steered antennas

Market, By Deployment Mode

• Portable terminals
• Fixed terminals
  • Vehicle-mounted terminals
  • Maritime terminals
• Aero terminals

Market, By Frequency Band

• Ku-band
• Ka-band
• X-band
• S-band
• L-band

Market, By End Use

• Commercial
• Government and defense

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • ANZ
  • Rest of Asia Pacific 
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• MEA
  • UAE
  • Saudi Arabia
  • South Africa
  • Rest of MEA