Satellite-based 5G Network Market - By Satellite Type (LEO, MEO, GEO), By Frequency Band (Ku-band, Ka-band, C-band), By Application (Consumer Broadband, Enterprise Broadband, Public Broadband), By Component, By End User & Forecast 2024 - 2032

Satellite-based 5G Network Market Size

Satellite-based 5G Network Market was valued at USD 765.3 million in 2023 and is anticipated to grow at a CAGR of over 50% between 2024 and 2032. The trend toward remote employment, virtual schools, streaming services, and digital platforms for communication has raised the need for high-speed internet.
 

Satellite-based 5G networks are improving connectivity in underserved and rural areas where traditional broadband is lacking. These networks enhance social connectivity, economic prospects, and information access by offering reliable fast internet. The growing demand for high-speed internet is propelling the adoption and expansion of satellite-based 5G technology, offering dependable fast internet connections globally.
 

The spread of IoT devices across smart cities and various industries, such as transportation, healthcare, and agriculture, drives the need for robust connectivity solutions. In remote and hard-to-reach areas, where traditional networks are impractical, satellite-based 5G networks enable the mass deployment of IoT devices with reliable low-latency connections. As a result, efficiency, productivity, and creativity are increased across all industries through real-time data collecting, monitoring, and management. Consequently, the demand for satellite-based 5G networks is increasing to support seamless IoT integration across national borders.
 

High costs of deployment and upkeep are major obstacles for 5G networks based on satellites. Advanced technology, specialized equipment, and a significant cash commitment are needed to launch satellites into orbit. Furthermore, the upkeep of these satellites necessitates continuous expenditures for tracking systems, base stations, and periodic updates or repairs. The affordability of these expenses may restrict the availability and expandability of 5G services based on satellite technology. The market's potential for expansion may be hampered by the financial burden, which may discourage investment and delay the implementation of extensive worldwide coverage.
 

Satellite-based 5G Network Market Trends

By increasing network performance and efficiency, the integration of Machine Learning (ML) and Artificial Intelligence (AI) into satellite-based 5G networks is transforming the sector. Predictive maintenance on satellites, network congestion prediction, and bandwidth allocation optimization are all achieved through the application of AI and ML algorithms. Reduction of latency and enhancement of reliability are essential for enabling applications such as Internet of Things (IoT), smart cities, and driverless vehicles. Furthermore, network operators may evaluate data and make decisions in real-time with the aid of AI-driven analytics. This enables them to dynamically adjust to changing circumstances and user demands, guaranteeing a superior user experience. For instance, in October 2023, One Web announced the successful integration of AI-driven network optimization into its satellite-based 5G systems. This development significantly improved bandwidth management and reduced latency, enhancing the overall user experience.
 

In the market for satellite-based 5G networks, one prominent trend is the deployment and growth of constellations, which are made up of hundreds to thousands of tiny satellites. By building massive constellations to give worldwide coverage, businesses, such as SpaceX, One Web, and Amazon's Project Kuiper, are leading the way. With the goal of closing the digital divide and advancing digital inclusion, these constellations will provide high-speed internet connectivity to underprivileged and isolated areas. Lower launch costs, growing demand for high-speed internet, and developments in satellite technology are driving the expansion. With dependable, low-latency internet services available everywhere, this trend has the potential to completely change the telecom industry. For instance, in March 2024, SpaceX launched an additional 60 satellites as part of its Starlink constellation, aiming to expand its satellite-based 5G coverage. This launch is part of an ongoing effort to provide reliable high-speed internet access worldwide, especially in remote areas.
 

Satellite-based 5G Network Market Analysis

Based on components, the market is divided into hardware, software, and services. The hardware segment dominates the market and is expected to reach over 15 billion by 2032.
 

• The market for satellite-based 5G networks includes the hardware category, which includes necessary parts such as user terminals, ground stations, antennas, and satellites. Advanced transponders and payloads are fitted to satellites for data transmission, including geostationary and Low Earth Orbit (LEO) models.
   
• High-frequency antennas are essential for satellites and ground infrastructure to have reliable communication. Data is received and transmitted to the network via user terminals, which include IoT devices and smartphones with 5G capabilities. The key to delivering dependable, fast, low-latency connectivity required for next-generation applications is this segment's technological breakthroughs.

Based on satellite type, the market is categorized into Low Earth Orbit (LEO) satellites, Medium Earth Orbit (MEO) satellites, Geostationary Orbit (GEO) satellites, and others. The Medium Earth Orbit (MEO) satellites segment is the fastest growing segment with a CAGR of over 52% between 2024 and 2032.
 

• In the market for satellite-based 5G networks, the Medium Earth Orbit (MEO) satellites segment consists of satellites that are situated between Geostationary Orbit (GEO) and Low Earth Orbit (LEO), usually between 2,000 and 35,786 kilometers in altitude. With less latency than GEO satellites and more coverage than LEO satellites, MEO satellites offer a compromise between coverage area and latency.
   
• Applications, such as global navigation systems and broadband internet services, which demand dependable worldwide connectivity and fast data transfer are best suited for these satellites. MEO satellites are used by businesses such as SES's O3b Networks to provide dependable, low-latency communication solutions, which are crucial for isolated and underserved areas.

North America dominated the global satellite-based 5G network market in 2023, accounting for a share of over 35%. The U.S. plays a pivotal role in the market owing to its innovative businesses, including OneWeb, Amazon's Project Kuiper, and SpaceX's Starlink project. Through the deployment of large satellite constellations, these organizations hope to improve internet access globally by enabling 5G coverage. The regulatory framework in the U.S. encourages innovations in satellite technology, creating a competitive market environment. The U.S. leads the way in the development of high-speed, low-latency connectivity, meeting the demand for improved digital infrastructure and connectivity solutions in underserved and rural locations both domestically and internationally.
 

With businesses, such as China Aerospace Science and Industry Corporation (CASIC) and China Satellite Communications Co., Ltd. (China Satcom), China is making significant strides in the market for satellite-based 5G networks. Through its satellite constellation projects, the nation hopes to improve global connections and support the growth of digital infrastructure both nationally and globally.
 

Japan is represented in the market for satellite-based 5G networks by organizations such as the Japan Aerospace Exploration Agency (JAXA) and Sky Perfect JSAT Corporation. They concentrate on advances in satellite technology that facilitate high-speed communications and internet access, thereby serving both local and international markets.
 

To improve its telecommunications infrastructure, South Korea is leading the way in satellite-based 5G networks owing to businesses such as KT Corporation and SK Telecom. By utilizing satellite constellations to increase coverage and lower latency, the nation's projects seek to assist new technologies, such as the Internet of Things (IoT) and autonomous vehicles, while offering improved connection solutions.
 

Satellite-based 5G Network Market Share

Lockheed Martin and Northrop Grumman hold a significant share of over 20% in the satellite-based 5G network industry. Lockheed Martin is a prominent American aerospace and defense company heavily involved in satellite-based 5G networks. It creates and produces cutting-edge satellites for navigation, communication, and Earth observation. The satellites manufactured by Lockheed Martin are essential for improving secure communications and high-speed data transfer around the world. The company's cutting-edge technologies and technological know-how greatly increase the possibilities of 5G networks, covering a wide range of applications from global commercial telecoms to military and government activities.
 

Northrop Grumman is a key player in the satellite-based 5G network market, specializing in the design and manufacture of advanced satellite systems. The corporation specializes in technologies related to space exploration, Earth monitoring, and satellite communications. The satellites manufactured by Northrop Grumman play a critical role in providing dependable and effective worldwide connectivity solutions, supporting a broad range of applications ranging from commercial telecommunications to defense and intelligence operations. The company's cutting-edge satellite solutions meet the rising need for high-speed internet access and communication capabilities while also helping to expand and improve 5G networks globally.
 

Satellite-based 5G Network Market Companies

Major players operating in the satellite-based 5G network industry are:

• Airbus Defence and Space
• Amazon (Project Kuiper)
• Boeing
• EchoStar Corporation
• Eutelsat Communications
• Globalstar, Inc.
• Lockheed Martin
• Northrop Grumman
   

Satellite-based 5G Network Industry News

• In March 2024, OneWeb, in partnership with Ericsson, launched a new series of satellites to enhance its satellite-based 5G network capabilities. This deployment aimed to improve global high-speed internet access, focusing on remote and underserved regions. The collaboration with Ericsson leverages advanced 5G technology to ensure seamless integration with terrestrial networks, offering low-latency and reliable connectivity. This initiative highlights OneWeb's commitment to bridging the digital divide and supporting digital transformation worldwide, making significant strides in expanding the reach and efficiency of satellite-based 5G services.
   
• In February 2024, Amazon's Project Kuiper announced the deployment of its first batch of 5G-capable satellites, a significant step in the market. This initiative aimed to enhance global connectivity using a constellation of LEO satellites, delivering high-speed internet to underserved regions. Amazon's entry into this market intensifies competition among satellite providers and marks a crucial shift in 5G network deployment. This move highlights Amazon's commitment to expanding digital infrastructure and bridging the digital divide with innovative satellite technology.
   

The satellite-based 5G network market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue (USD Million) from 2021 to 2032, for the following segments:

Click here to Buy Section of this Report

Market, By Satellite Type

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

Market, By Frequency band

• Ku-band
• Ka-band
• C-band
• Others (L-Band, S-Band)

Market, By Application

• Consumer broadband
• Enterprise broadband
• Public

Market, By Component

• Hardware
  • Satellites
  • Antennas
  • Transceivers
  • Modems
  • Gateways
• Software
  • Network management software
  • Operations Support System (OSS)
  • Business Support System (BSS)
  • Network orchestration software
• Services
  • Deployment and integration
  • Support and maintenance
  • Consulting services
  • Managed services

Market, By End User, 2021 - 2032

• Telecommunications companies
• Government agencies
• Maritime and aviation
• Transportation and logistics
• Industrial
  • Energy and utilities
  •   Mining
• Others

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
  • India
  • Japan
  • South Korea
  • ANZ
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• MEA
  • UAE
  • Saudi Arabia
  • South Africa
  • Rest of MEA