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Satellite internet market to hit double-digit growth

Market news |
By Jean-Pierre Joosting


The global satellite internet market size is expected to reach USD 19.71 billion by 2030, expanding at a CAGR of 11.6% from 2022 to 2030, according to a new report by market research firm Grand View Research, Inc. A key feature of satellite internet is its ability to connect people in remote regions worldwide and provide access to a global information network.

According to the report, the key factors driving the growth of the satellite internet market globally include a surge in the adoption of satellite services in government and military and growing adoption of satellite internet for connectivity in rural areas.

The K-band segment dominates the satellite internet market, gaining a share of 40.3% in 2021 and witnessing a CAGR of 13.9% during the forecast period. The K-band frequency is utilized in defense, broadcasting, and security radar systems. An emerging technology, K-band MMICs enable the implementation of K-band low-noise and amplifiers with reduced costs, ease of large-scale production, and high durability which further drives its adoption in the forecasted period.

The government and public segment is expected to dominate in 2021, gaining a market share of 19.8%. It is expected to grow at 10.5% CAGR throughout the forecast period owing to increasing government initiatives across the globe to provide internet connectivity in remote locations.

North America led the overall market in 2021, with the highest market share of 32.5%. It is expected to witness a CAGR of 11.0% throughout the forecast period. The growth is due to the rise in government initiatives to deploy satellite technology in various parts of North America.

To increase their product offering, companies utilize a variety of inorganic growth tactics, such as partnerships, mergers, and acquisitions. For instance, In October 2022, Axess announced a partnership with Viasat. Maritime operations from Viasat will be able to reach a wider global audience owing to its strategic relationship with AXESS Maritime. AXESS Maritime offers regional and international networks and provides the complete rotation from network infrastructure, deployment, implementation, ship monitoring, and round-the-clock global NOC support.

Growth and trends

Satellite internet is faster than a regular internet connection and distinguishes itself from land-based internet services such as digital subscriber line (DSL) and cable. It provides a land-based interface for accessing audio, video, and information from anywhere on Earth.

One of the significant advantages of satellite internet for businesses is the ability to transmit a link at many megabits per second over a remote location. However, a private and secure connection can join many remote locations spread over a wide area. In rural areas, demand for satellite internet is rising due to the lack of other broadband internet choices. Additionally, satellite internet can provide access to the web in remote areas where it is challenging to get broadband, such as deserts and mountains, which increases the demand for satellite internet in these areas. Furthermore, internet users can now get better speed and bandwidth owing to advancements in satellite internet technology. As a result, these services are being quickly adopted in emerging economies such as India, Brazil, the Philippines, Malaysia, and more fueling the market’s expansion.

The rise in government programs for the uptake of advanced satellite internet services to develop a digitized economy and to provide enhanced public safety and security drives the market’s growth. Furthermore, several governments are significantly funding satellite internet companies to provide broadband services to rural populations across emerging countries, further boosting growth. For instance, in October 2022 the U.K. government invested USD 14.62 million in U.K. businesses to enhance satellite communications technology. Advanced Research in Telecommunications Services (ARTES) and the European Space Agency (ESA) fund this investment. This investment is focused on developing new satellite configurations and terrestrial infrastructure or providing internet services to customers.

www.grandviewresearch.com

 

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