5G Satellite Communication Market To Generate Revenue Worth $33,896.7 Million by 2030
- Published: June 2022
The global 5G satellite communication market is projected to generate $33,896.7 million revenue by 2030, advancing at a rapid CAGR of 33.3% during 2021–2030. This can be ascribed to the rising demand for high-speed connectivity with low latency and the surging need for communication networks in rural or remote areas. Furthermore, government initiatives for space missions and huge R&D expenditure in this field drive the market growth.
Demand for Hybrid Multiplay Solutions Propels the Market
The hybrid multiplay category is projected to grow at the highest rate, advancing with a CAGR of over 35%, during the forecast period. This growth can be attributed to the capability of high-speed connectivity, including backhaul to individual homes and offices, as well as the capacity to multicast the same video across a vast coverage area.
The LEO category, on the basis of orbit type, accounted for the largest revenue share in 2021, and it is projected to maintain the same trend in the coming years as well. This is ascribed to the trend of tiny satellite launches in the LEO orbit, which aims to provide a cost-effective structure because the satellites are compact in size and consisting more features than others.
The government sector is expected to register the fastest growth in the market in the coming years, based on end user. This can be ascribed to the surging government requirement for satellite communication solutions for massive datasets, in order to maintain humanitarian rights, cross-border safety, and other national security aspects, and effectively monitor important government assets, across the world. Whereas, the commercial sector accounted for the largest revenue share in 2021, due to the increased usage of highly efficient and reliable satellite communication in commercial fields, such as automobiles, logistics and shipping, and commercial aircraft.
Geographically, the North American 5G satellite communication market generated the largest revenue in 2021, and it is also expected to witness the fastest growth during the forecast period. This is attributed to the presence of major players in the region, which are heavily involved in developing and offering 5G satellite communication technologies. Moreover, in the region, the U.S. market holds the majority of the revenue share.
Strategic Development of Key Players in the Market
Product launches, collaborations, and partnerships are the major strategic developments observed in the market. For instance, in April 2022, OQ Technology successfully launched the Tiger-3 aboard SpaceX Falcon 9 rideshare mission Transporter-4, its third satellite mission.
Similarly, in September 2021, AT&T Inc. and OneWeb, an LEO communication company, partnered to harness the abilities of satellite technologies to advance the access for AT&T’s business customers into challenging and remote geographic locations.
Some of the major players operating in the 5G satellite communication market are Inmarsat Global Limited, Avanti Communications, OQ Technology, Thales Group, Qualcomm Incorporated, and AT&T Inc.