Satellite Communication Market Research Reports

"Satellite Communication: Bridging the Global Connectivity Gap in 2023 and 2024 (2024 Market Size: USD 84.6 billion)"!

Satellite Communication Industry Overview

In recent years, the satellite communication market has experienced significant growth and transformative changes. According to cognitive market research, The global Satellite Communication market size is USD 84.6 billion in 2024 and will be USD 189.4 billion by 2031, with a compound annual growth rate of 10.6%. The demand for high-speed internet, particularly in remote regions, is a substantial factor. The number of satellite broadband subscribers will increase from 4.1 million in 2023 to 5.6 million in 2024. In 2023, more than 1,500 small satellites were launched, and 1,800 new satellites will be launched in 2024. 

SpaceX, OneWeb, and Amazon's Project Kuiper are the primary drivers of this increase. USD 9.75 billion is the market size in 2024, a significant increase from USD 7.5 billion in 2023, as the small satellite market is experiencing growth. The utilization of high-throughput satellites (HTS) is a substantial development. In 2024, the capacity of HTS will exceed 3,000 Gbps, thereby enhancing the coverage and bandwidth. The integration of satellite communication with 5G is progressing at a rapid pace. Around 15% of the global population will have access to 5G satellite services in 2024. Satellite communication continues to be extensively employed by the defense market. 

Spending on military satellite communication was USD 8.5 billion in 2023, and will rise to USD 9.2 billion in 2024. Satellite communication is utilized extensively by the maritime and aviation industries. The maritime satellite communication market was valued at USD 2.6 billion in 2023 and will be USD 2.9 billion in 2024. The in-flight connectivity market size was USD 4.2 billion in 2023 to USD 4.8 billion in 2024, primarily due to the growing demand for uninterrupted internet services on commercial flights. Environmental monitoring and disaster management are significantly influenced by satellite communication. In 2023, the number of satellites dedicated to Earth observation surpassed 500, and this figure will surpass 600 in 2024.

Top Countries Contributing in Satellite Communication Market

United States (2024 Market Size: USD 24.1 billion)

The United States continues to be a leader in the satellite communication market, with the market size USD 22.8 billion in 2023 to USD 24.1 billion in 2024. SpaceX, Boeing, and Lockheed Martin are among the companies that dominate the global satellite launch market, which the United States dominates. SpaceX alone launched more than 1,200 satellites in 2023, and the number will exceed 1,500 in 2024. Defense, telecommunications, and broadcasting are the primary market in the United States that employ satellite communication. The defense market, in particular, allocated USD 3.5 billion to satellite communication in 2023, with an increase to USD 3.8 billion in 2024. United States holds 30% of the global satellite communication market. The integration of satellite 5G services and the increasing adoption of high-throughput satellites (HTS) are significant trends, with HTS capacity to reach 1,200 Gbps by the end of 2024. Additionally, the maritime and aviation markets make substantial contributions. The maritime satellite communication market was valued at USD 800 million in 2023 and will increase to USD 850 million in 2024. The in-flight connectivity market will increase from USD 1.2 billion in 2023 to USD 1.3 billion in 2024.

China (2024 Market Size: USD 17.1 billion)

As per cognitive market research, The China satellite communication market holds 18% of the total revenue generated and its market size was USD 15.4 billionin 2023 and will be USD 17.1 billion in 2024. China Aerospace Science and Technology Corporation (CASC) launched more than 200 satellites in 2023, and this number will rise to 250 in 2024. The country is a significant participant in the satellite manufacturing and launch services industries. Telecommunications, broadcasting, and remote surveillance are among the most significant markets that employ satellite communication. Defense spending on satellite communication wasn USD 2.1 billion in 2023, with a  increase to USD 2.4 billion in 2024, as the Chinese government significantly invests in satellite technology for national security and economic development. In particular, the maritime market has experienced growth, with the maritime satellite communication market at USD 600 million in 2023 and will reach USD 700 million in 2024. Furthermore, the Belt and Road Initiative (BRI) of China is increasing the demand for satellite services in order to improve connectivity among participating countries.

Russia (2024 Market Size: USD 7.2 billion)

The Russia satellite communication market share is 9% and its market size was USD 6.5 billion in 2023 and will be USD 7.2 billion in 2024. In 2023, about 150 satellites were launched by the Russian space agency, Roscosmos, and private entities. There are intentions to launch over 180 satellites in 2024. Defense, telecommunications, and space exploration are among the primary markets that employ satellite communication. The defense market is a significant user, with an increase in expenditure from USD 1.2 billion in 2023 to USD 1.3 billion in 2024. The Russian government is prioritizing the modernization of its satellite infrastructure to improve its remote sensing and weather forecasting capabilities. The maritime satellite communication market in Russia will reach USD 450 million in 2024, with a value of USD 400 million in 2023. Furthermore, the nation is investing in satellite internet services with the objective of extending coverage to remote regions. It has plans to deploy a new constellation of communication satellites by 2024.

Japan (2024 Market Size: USD 5.3 billion)

As per cognitive market research, the Japan satellite communication market size was USD 4.8 billion in 2023 and will be USD 5.3 billion in 2024. The Japan Aerospace Exploration Agency (JAXA) and private corporations such as Mitsubishi Heavy Industries are significant players in the satellite launch industry. In 2023, there were 100 satellite launches, with a increase to 120 in 2024. Telecommunications, broadcasting, and disaster management are among the most significant markets that employ satellite communication. Japan holds 7% of the global market. The country's integration with 5G services and advanced technology in high-throughput satellites (HTS) are noteworthy trends, with an HTS capacity of 500 Gbps by 2024. Satellite communication is also extensively employed in the defense market, with an expenditure of USD 800 million in 2023 and an increase of USD 850 million in 2024. In 2023, the maritime satellite communication market was valued at USD 300 million, with an increase to USD 350 million in 2024. Japan's investment in satellite technology for disaster management is essential, as it enables the provision of real-time data and communication during natural disasters.

India (2024 Market Size: USD 4.1 billion)

The India's satellite communication market share is 5% of the total revenue generated and its market size was USD 3.6 billion in 2023 and will be USD 4.1 billion in 2024. The Indian Space Research Organisation (ISRO) is the primary motor, with a 90 satellite launches in 2023 and a 110 launches in 2024. Telecommunications, broadcasting, and remote surveillance are among the most significant markets that employ satellite communication. Spending is USD 600 million in 2023 and increase to USD 650 million in 2024, with the defense market being a substantial user. Growth is being stimulated by the nation's emphasis on the expansion of satellite broadband services, particularly in rural and remote regions. The maritime satellite communication market size was USD 300 million in 2024, with a value of USD 250 million in 2023. Furthermore, India is investing in satellite technology to improve its capabilities in real-time data collection and analysis, as well as for environmental monitoring and disaster management.

United Kingdom (2024 Market Size: USD 3.0 billion)

The UK satellite communication market holds a 4% of the total revenue generated and its market size was USD 2.7 billion in 2023 and will be USD 3.0 billion in 2024. In 2023, the UK Space Agency and private companies such as OneWeb will be crucial participants, with an 80 satellite launches, with a increase to 100 in 2024. Telecommunications, broadcasting, and defense are among the most significant markets that employ satellite communication. The defense market is a substantial user, with an expenditure of USD 500 million in 2023, which will rise to USD 550 million in 2024. In 2023, the maritime satellite communication market was valued at USD 200 million, with an increase to USD 250 million in 2024. The United Kingdom's investment in high-throughput satellites (HTS) and the integration of satellite 5G services are noteworthy developments, with an HTS capacity of 300 Gbps by 2024. Furthermore, the United Kingdom is emphasizing the development of its satellite communication capabilities to facilitate disaster response and environmental monitoring.

France (2024 Market Size: USD 2.8 billion)

According to cognitive market research, The satellite communication market in France was valued at USD 2.5 billion in 2023 and will be USD 2.8 billion in 2024. The French space agency CNES and companies such as Arianespace are significant participants, with a 70 satellite launches in 2023 and an increase to 90 in 2024. Telecommunications, broadcasting, and defense are among the most significant sectors that employ satellite communication. France holds 3.5% of the global market share. The defense market is a substantial user, with an expenditure of USD 450 million in 2023, which will rise to USD 500 million in 2024. In 2023, the maritime satellite communication market was valued at USD 180 million, with an increase to USD 220 million in 2024. France's investment in high-throughput satellites (HTS) and the integration of satellite 5G services are noteworthy developments, with an HTS capacity of 250 Gbps by 2024. Furthermore, France is emphasizing the improvement of its satellite communication capabilities to facilitate disaster response and environmental monitoring.

Germany (2024 Market Size: USD 2.6 billion)

The Germany satellite communication market size was USD 2.3 billion in 2023 and will be USD 2.6 billion in 2024. Key participants include the German Aerospace Center (DLR) and companies such as OHB SE, which conduct 60 satellite launches in 2023 and increase to 80 in 2024. Telecommunications, broadcasting, and defense are among the most significant sectors that employ satellite communication. Germany holds 3% of the global market. The defense market is a substantial user, with an expenditure of USD 400 million in 2023, which will rise to USD 450 million in 2024. In 2023, the maritime satellite communication market was valued at USD 150 million, with an increase to USD 180 million in 2024. Germany's investment in high-throughput satellites (HTS) and the integration of satellite 5G services are noteworthy developments, with an HTS capacity of 200 Gbps by 2024. Furthermore, Germany is emphasizing the improvement of its satellite communication capabilities to facilitate disaster response and environmental monitoring.

Canada (2024 Market Size: USD 2.0 billion)

The satellite communication market in Canada was values at USD 1.8 billion in 2023 and will be USD 2.0 billion in 2024. The Canadian Space Agency (CSA) and companies such as Telesat are significant participants in the satellite launch industry, with a 50 launches in 2023 and a 70 launches in 2024. Telecommunications, broadcasting, and remote surveillance are among the most significant sectors that employ satellite communication.Canada accounts for 2.5% of the global market share. The defense market is a substantial user, with an expenditure of USD 300 million in 2023, which will rise to USD 350 million in 2024. In 2023, the maritime satellite communication market was valued at USD 120 million, with an increase to USD 150 million in 2024. The integration of satellite 5G services and Canada's investment in high-throughput satellites (HTS) are noteworthy developments, with the reach of HTS capacity at 150 Gbps by 2024. Furthermore, Canada is emphasizing the improvement of its satellite communication capabilities to facilitate disaster response and environmental monitoring.

Israel (2024 Market Size: USD 1.7 billion)

The Israel satellite communication market share is 2% of the total revenue generated and its market size was USD 1.5 billion in 2023 and will be USD 1.7 billion in 2024. The Israel Space Agency (ISA) and companies such as Spacecom are significant participants, with 40 satellite launches in 2023 and an increase to 60 in 2024. Telecommunications, broadcasting, and defense are among the most significant sectors that employ satellite communication. The defense market is a substantial user, with an expenditure of USD 250 million in 2023, which will rise to USD 300 million in 2024. In 2023, the maritime satellite communication market size was USD 100 million, with an increase to USD 120 million in 2024. Israel's investment in high-throughput satellites (HTS) and the integration of satellite 5G services are noteworthy developments, with an HTS capacity of 100 Gbps by 2024. Furthermore, Israel is emphasizing the improvement of its satellite communication capabilities to facilitate disaster response and environmental monitoring.

PESTEL Analysis of Satellite Communication Market

Political

The satellite communication market is significantly impacted by political factors, which influence defense strategies, international collaborations, and regulations. The strategic significance of satellite communications for national security, surveillance, and emergency response is acknowledged by governments worldwide. As a result, regulatory frameworks and policies are implemented to regulate the operation, launch, and utilization of satellites. For example, the European Space Agency (ESA) in Europe and the Federal Communications Commission (FCC) in the United States are essential regulatory bodies. The peaceful and cooperative conduct of space activities is guaranteed by international agreements and treaties, including the Outer Space Treaty and the International Telecommunication Union (ITU) regulations. As evidenced by the substantial investments in space programs in countries such as the United States, China, and Russia, political stability and government support are essential for the market's expansion. In contrast, satellite operations and collaborations may be affected by restrictions and sanctions resulting from geopolitical tensions. For instance, the trade tensions between the United States and China have resulted in more stringent export controls and restricted technological exchanges. Furthermore, the funding and development of military satellite communication systems are directly influenced by political decisions regarding defense budgets and priorities. 

Economical

The satellite communication market is substantially influenced by economic factors, which drive technological advancements, investment, and demand. The market size of global satellite communications market in 2023 was USD 75.1 billion, and will be USD 78.7 billion in 2024. This market expansion is driven by the growing demand for high-speed internet and economic development, particularly in remote and underserved regions. In the development of satellite infrastructure, the launch of satellites, and the maintenance of ground stations, government and private sector investments are essential. For instance, SpaceX and OneWeb have allocated billions to the development of satellite constellations in order to offer global broadband services. Furthermore, the cost of satellite launches has decreased as a result of advancements in reusable rocket technology, rendering satellite deployment more economically viable. Their economic stability also influences the capacity of nations to invest in satellite communication initiatives. Countries primarily lead the development and deployment of satellite technology with robust industries, including the United States, China, and members of the European Union. Additionally, economic policies, such as tax incentives and subsidies, can foster innovation and private sector involvement in the satellite industry. Conversely, recessions or economic downturns may result in diminished investments and a reduction in the market's growth. The economic health of the satellite communication market is significantly influenced by broader economic conditions, which in turn affect its capacity for innovation and expansion.

Social

The increasing demand for connectivity, digital inclusion, and societal dependence on communication technologies are the primary social factors in the satellite communication market. Satellite communication is essential in today's interconnected world, as it enables remote and underserved regions to access the internet to bridge the digital divide. This connectivity improves economic, healthcare, and educational opportunities for communities that lack terrestrial communication infrastructure. It is also important to note the growing prevalence of satellite communication in disaster management and emergency response, as satellites offer real-time data and communication channels during humanitarian crises and natural disasters. The demand for high-speed, reliable internet is driven by social trends, including the increasing prevalence of online streaming services, e-learning, and telecommuting. Satellites are capable of providing this service. Furthermore, the increasing awareness and concern for environmental sustainability have resulted in the advancement of satellite technologies and practices that are more environmentally favorable. Satellites are essential for the monitoring of climate change, the monitoring of natural resources, and the support of sustainable development objectives. Satellite communication has a social impact that extends to the improvement of global security by enhancing surveillance and defense capabilities. 

Technological

Innovation and the expansion of capabilities are driven by technological factors, which are the foundation of the satellite communication market. The industry has been transformed by the advancement of low Earth orbit (LEO) constellations and high-throughput satellites (HTS), which have enabled the reduction of latency and the acceleration of data transfer rates. The deployment of LEO satellites is being spearheaded by companies such as OneWeb and SpaceX, which are pursuing the development of global broadband networks through their Starlink initiative. These developments render satellite internet more competitive with conventional terrestrial broadband services. Another substantial trend is the integration of 5G technology with satellite communication, which improves mobile connectivity and broadens the penetration of high-speed internet. Costs are reduced, and efficiency is enhanced through technological advancements in satellite manufacturing, including modular design and miniaturization. The cost of satellite deployment is further reduced by the use of reusable launch vehicles, which have been pioneered by companies such as SpaceX, thereby increasing the accessibility of space. Furthermore, satellite operations are being enhanced by the application of artificial intelligence (AI) and machine learning (ML) advancements, which enhance autonomous satellite control, predictive maintenance, and data analysis. These innovations are further enhanced by the development of advanced ground infrastructure, which includes more efficient antennas and ground stations, thereby assuring seamless communication between satellites and end-users. 

Environmental

The environmental factors in the satellite communication market pertain to the function of satellites in environmental monitoring, as well as the impact of satellite operations on Earth and space. The increasing frequency of satellite launches, particularly the proliferation of small satellites and large constellations, has resulted in apprehensions regarding orbital congestion and space debris. The sustainability of space activities and the management of space traffic are critical challenges. These issues are intended to be addressed by international guidelines and initiatives, such as the Space Debris Mitigation Guidelines by the United Nations, which promote best practices for satellite design, launch, and end-of-life disposal. The environmental impact of satellite manufacturing and launch activities, which includes emissions from rocket launches, is currently being examined on Earth. To reduce their environmental impact, companies are investigating more sustainable alternatives, including fuels that are more environmentally benign and reusable rockets. In contrast, satellites are essential for the monitoring of environmental changes, the support of climate research, and the administration of disasters. The development of sustainable policies and practices is facilitated by the valuable data provided by earth observation satellites on deforestation, pollution, and natural disasters. The satellite communication market's environmental dimension is, therefore, dual, encompassing both the management of its impact on Earth and space, as well as its contributions to environmental protection and sustainability.

Legal

Legal factors, including regulations, international treaties, and intellectual property rights, significantly influence the satellite communication market. A complex matrix of international laws and national regulations governs the launch, operation, and utilization of satellites. The legal context for space activities is established by the Outer Space Treaty, which more than 100 countries have signed. The treaty emphasizes the peaceful use of space and the prevention of harmful contamination. In order to prevent interference and guarantee equitable access, the International Telecommunication Union (ITU) is instrumental in the regulation of satellite communications by allocating frequency bands and orbital positions. National regulatory authorities, including the European Space Agency (ESA) and the Federal Communications Commission (FCC) in the United States, establish and enforce regulations for satellite operations within their respective jurisdictions. It is imperative to adhere to these regulations in order to obtain licenses and legally conduct business. Furthermore, intellectual property rights are essential for safeguarding advancements in satellite technology, including software utilized in satellite operations and design patents. In order to prevent conflicts and guarantee the seamless operation of satellite networks, it is necessary to exercise caution when navigating legal obstacles, including disputes regarding orbital slots and frequency bands. New regulatory approaches are required to address emerging issues such as space tourism and the commercialization of space activities, which are a result of the continuously evolving legal landscape. 

Key players of Satellite Communication Market

SpaceX

The Starlink project has been the primary factor in SpaceX's establishment as a leader in the satellite communication market. SpaceX's revenue from satellite communications, which includes Starlink, was USD 2.4 billion in 2023 and will be USD 3.5 billion in 2024. The company's substantial investment in research and development is USD 1 billion annually, is directed toward the enhancement of satellite technology and launch capabilities. Commercial satellite launches, government contracts, and the Starlink broadband service comprise SpaceX's principal business segments. The primary objective of Starlink, SpaceX's satellite communications venture, is to deliver high-speed internet to remote and underserved regions worldwide. In 2023, SpaceX launched more than 1,200 satellites and intends to launch an additional 1,500 in 2024, bringing the total number of operational Starlink satellites to 7,500 by the end of 2024. SpaceX's innovative launch capabilities and extensive satellite network have propelled it to an 12% of the global satellite communication market share. The industry has been considerably disrupted by the company's emphasis on reducing launch costs through reusable rockets, which has improved the affordability and accessibility of satellite deployment.

Intelsat

With a revenue of USD 2.0 billion in 2023 and USD 2.2 billion in 2024, Intelsat continues to be a significant player in the satellite communication market. In order to improve its satellite fleet and service offerings, the organization allocates USD 500 million annually to research and development. The satellite communication market is essential to all of Intelsat's main business segments, which include media, network services, and government services. The media segment, which encompasses content distribution and broadcasting, is a substantial revenue generator, in addition to network services that offer connectivity solutions for the maritime, aviation, and enterprise sectors. Intelsat's global satellite fleet, which consists of 50 operational satellites, establishes it as a leader in the provision of mobile and fixed broadband services. Leveraging its extensive satellite coverage and longstanding industry presence, Intelsat controls 10% of the global satellite communication market. The company is committed to addressing the increasing demand for high-speed data services by continuing to invest in high-throughput satellites (HTS) to enhance capacity and efficiency.

SES S.A.

In 2023, SES S.A. generated USD 2.3 billion in revenue, and USD 2.5 billion in 2024. The company is a dominant player in the satellite communication market. SES allocates USD 400 million annually to the development of advanced satellite technologies and the expansion of its satellite fleet, with a significant emphasis on research and development. SES's primary business segments consist of government services, mobility, fixed data, and video broadcasting. The satellite communication market is essential to these segments, particularly in the provision of video broadcasting services, which generate a substantial portion of its revenue. SES provides high-capacity services and extensive coverage through the operation of a large fleet of over 70 satellites, which includes medium Earth orbit (MEO) and high-throughput satellites. The company's capacity to provide low-latency broadband services is improved by the O3b mPOWER constellation, which is comprised of MEO satellites. Driven by its innovative service offerings and diverse satellite fleet, SES hold 15% of the global satellite communication market share. The company's emphasis on MEO satellites sets it apart from its competitors, offering distinctive advantages in terms of latency and coverage.

Inmarsat

In 2023, Inmarsat generated revenue of USD 1.6 billion, which is increase in 2024 to USD 1.8 billion. The company is a prominent provider of global mobile satellite communications. In order to enhance its satellite technology and broaden its service offerings, the organization allocates USD 300 million annually to research and development. Inmarsat's main business segments are maritime, aviation, enterprise, and government services, all of which rely on satellite communication as their foundation. The company's revenue is significantly influenced by the maritime market, which provides connectivity solutions for offshore platforms and ships. Inmarsat offers high-reliability services and global coverage through its fleet of 14 satellites. The company's Global Xpress (GX) network, a high-throughput satellite system, improves its capacity to provide high-speed broadband services. Inmarsat's robust presence in the mobile satellite communication segment has enabled it to secure an 8% of the global satellite communication market share. The company's dedication to the maritime and aviation sectors, in conjunction with its sophisticated satellite network, establishes it as a critical participant in the provision of dependable and high-speed connectivity solutions.

Eutelsat

Eutelsat is a substantial player in the satellite communication market, with a revenue of USD 1.5 billion in 2023, and USD 1.6 billion in 2024. The organization allocates USD 200 million annually to research and development initiatives that are designed to enhance its satellite capabilities and expand its fleet. Eutelsat's primary business segments consist of fixed broadband, government services, data services, and video services. Satellite communication is essential to these segments, particularly video services, which generate a substantial portion of the company's revenue through content distribution and broadcasting. Eutelsat maintains a fleet of 39 satellites that offer coverage in the Americas, Asia, Africa, the Middle East, and Europe. The company's dedication to expanding its market presence is exemplified by its investment in high-throughput satellites (HTS) and partnerships to provide satellite broadband services. Eutelsat's extensive coverage and diverse service offerings have contributed to its 12% market share in the global satellite communication market. The company's competitive advantage in the satellite communication industry is further strengthened by its strategic partnerships and emphasis on broadband connectivity and video services.

Recent developments in Satellite Communication Market

• May 2023: Gilat Satellite Networks Ltd. was awarded a multi-million dollar contract for VSATs in May 2023 to facilitate the expansion of a sophisticated disaster response network in Asia. The VSATs will bolster the national initiative to improve disaster prevention and management. (Source-https://www.gilat.com/pressreleases/gilat-awarded-multi-million-dollar-contract-to-provide-satellite-communication-equipment-for-defense-forces-in-asia/)
• May 2023: The UK's Competition & Markets Authority (CMA) has approved Viasat Inc. and Inmarsat for their proposed acquisition agreement in May 2023. The CMA has completed its Phase II review and has determined that the acquisition does not raise competition concerns. Consequently, the transaction is permitted to proceed without the need for remedies. (Source-https://investors.viasat.com/news-releases/news-release-details/viasats-proposed-acquisition-inmarsat-receives-unconditional)

Conclusion

Rapid expansion and ground-breaking innovations in satellite communication are highlighting the industry's pivotal role in facilitating worldwide connectivity. The global Satellite Communication market size is USD 84.6 billion in 2024 and will be USD 189.4 billion by 2031, with a compound annual growth rate of 10.6%. The proliferation of small satellites—with more than 1,500 launched in 2023 and an 1,800 in 2024—and the increasing demand for high-speed internet, particularly in remote and underserved areas, are the main drivers of this rise.

With a capacity of three thousand gigabits per second (Gbps) in 2024, high-throughput satellites (HTS) are revolutionizing the market. Around 15% of the world's population is projected to have access to 5G satellite services by the end of 2024, thanks to the rapid integration of 5G with satellite communication. The military continues to be a major consumer, with plans to spend USD 9.2 billion on satellite communication in 2024, up from USD 8.5 billion in 2023. The business and consumer markets are also propelling expansion. Market research indicates that maritime satellite communication will reach 2.9 billion USD in 2024, up from 2.6 billion USD in 2023, and that in-flight connectivity will reach 4.8 billion USD in 2024, up from 4.2 billion USD in 2023. Furthermore, in 2024, there will be more than 600 Earth observation satellites, which will provide invaluable data for disaster management, agriculture, and climate monitoring.