Global 5G Satellite Communication Market, Trends, Size, and Forecast to 2028

5G Satellite Communication market Overview

The global 5G Satellite Communication market was valued at USD 1.01 Billion in 2021 and is expected to reach USD 3310 Billion in 2028 with a CAGR of 216.7% during the forecast period 2022-2028. The global 5G satellite communication market is expected to expand due to quickly expanding technologies, which will increase their potential for acceptance and exploitation by vertical sectors while also meeting advanced networking requirements. Furthermore, rising demand for higher bandwidth and increasing data traffic across multiple business sectors and network congestion support the need for network development. In addition, the market is likely to be driven by significant technical improvements in 5G satellite services in sectors worldwide. Satellite communication would play an essential part in 5G deployment as a complementary solution for ubiquitous coverage, broadcast/multicast service, aeronautical & marine communications, emergency/disaster recovery, and remote rural region coverage, estimated to boost the market.

What is 5G Satellite Communication?

A communication satellite is a man-made satellite that transmits a signal via a transponder by establishing a channel between the transmitter and receiver, placed at opposite ends of the Earth. 5G is the fifth-generation technology standard for broadband cellular networks, which cellular phone operators began building globally in 2019, and is the expected replacement for the 4G networks that connect most existing cellphones. Cellular networks, or 5G networks, are cellular networks in which the service area is divided into small geographic sections known as cells. All 5G wireless devices in a cell connect with a cellular base station using radio waves, using fixed antennas and frequency channels given by the base station.

Growth Driver

The need to transform the mobile broadband experience

5G satellites give a 1 Gbps and 10ms enhanced broadband experience and a platform for cloud and AI-based services. Various data-intensive applications, both personal and business-to-business (B2B), are gaining traction, including augmented reality (AR), virtual reality (VR), and video apps. Fast bandwidth, low power, ultra-low latency, and high speed are service requirements in industries like IT and telecom, retail, healthcare, automotive, media and entertainment, BFSI, and agricultural. To meet the growing demand for mobile broadband services, network capacity must be raised by using a new spectrum, which will lead to a broad acceptance of the 5G core and the deployment of 5G satellite communication for better mobile broadband services.

Opportunity

Unleashing Massive IoT Ecosystem and Critical Communication Services

The growing popularity of IoT use cases in numerous industries requiring connectivity over broad areas and the ability to handle many connections has fueled the demand for big IoT solutions. Massive IoT is quickly becoming a new focus for IoT connectivity technology. Massive IoT is an exciting possibility for 5G, but in the early stages of the technology, Telcos are still relying on current cellular IoT standards, such as NB-IoT. The massive spread of intelligent IoT nodes for various situations is projected to be supported by 5G networks. It will also serve as a solid foundation for the mass adoption of vital communications services.

Restraint

High Costs Required for Deployment of 5G Network

Massive investments would be required to transition from 4G to 5G technology. The needed throughput density, periodic interest rate, and base station pricing all influence the cost of 5G. For effective and ultra-dense tiny cell deployments, these expenses must be reduced. The challenge for CSPs in transitioning to 5G is justifying the multibillion-dollar investments in new network equipment required to transform their network to a virtualized infrastructure, migrate services from 3G to 4G to 5G, and protect their business from ever-increasing risks of disruptions and cyber threats. To take advantage of the entire spectrum of benefits that 5G offers, Telcos must shift to a standalone model. A distributed, freestanding network with an edge computation platform, network slicing, and control/user plane separation will be required to acquire enterprise clients with low latency applications successfully. The existing standalone deployments have aided Telcos in getting their 5G rollouts off the ground swiftly, emphasizing providing consumers with fixed and mobile broadband services.

Pre-Covid-19 impact on the global 5G Satellite Communication market

Before the pandemic, market growth was expected to be boosted by the fast-expanding demand for ultra-reliable and low-latency data networks capable of providing better mobile connections over the forecast period. The market was expected to rise due to the possible adoption of 5G services for remote patient monitoring and operation applications.

Covid-19 impact on the global 5G Satellite Communication market

The global COVID-19 outbreak has wreaked havoc on enterprises all around the globe. Various sector verticals will most likely take advantage of the COVID-19 situation to accelerate their investment in 5G-based technologies to conduct their operations. A few common areas of interest stimulate the deployment of 5G technology across sectors due to social isolation, confinement, and work-from-home arrangements. Social disconnection, workplace effect, and other disruptions have prompted businesses to reassess their operating methods in light of 5G technology. Furthermore, SD-WAN use in employee personal workspaces will rise, providing improved QoS and security controls offered by a 5G network. Thus, the COVID-19 pandemic positively impacted the 5G technology industry.

Post Covid-19 impact on the global 5G Satellite Communication market

Following the epidemic, 5G system integration providers are expected to increase their focus on forming relationships with telecom operators, which is expected to boost the uptake of these services. As part of their efforts to be in a highly competitive climate, many industry verticals focus on technological revolutions to boost overall productivity and operational efficiency.

Orbit Segmental Analysis

Based on Orbit, the global 5G Satellite Communication market is classified into Low Earth Orbit (LEO), Medium Earth Orbit (MEO), and Geosynchronous Earth Orbit (GEO). The Low Earth Orbit (LEO) segment is expected to hold a significant share in the global 5G Satellite Communication market during the forecast period by 2028. Commercial applications are increasingly relying on LEO 5G satellites. The downsizing of satellites, the expanding interconnectedness of electronic gadgets, and the growing demand for low earth orbit satellite constellations across industries contribute to the market’s growth.

End-User Segmental Analysis

Based on End-User, the global 5G Satellite Communication market is segregated into Defense and Government, Consumer Electronics, Aviation, Energy and Utilities, Transportation and Logistics, and Others. The Defense and Government segment accounts for a significant share in the global 5G Satellite Communication market from 2022-to 2028. For the military, 5G technologies enable the use of C2 [command and control], logistics, maintenance, training, AI [artificial intelligence], augmented and virtual reality, and ISR systems, all of which benefit from faster data speeds and lower latency.” When a native 5G network is combined with approved waveforms designed for low detection probability, warfighters may be able to roam between available networks depending on the task.

Satellite Solution Segmental Analysis

Based on Satellite Solution, the global 5G Satellite Communication market is segregated into Backhauling and Tower feed, Trunking and Head-end Feed, Communication-on-the-move, and Hybrid Multiplay. The Backhauling and Tower feed segment dominates the global 5G Satellite Communication market in 2022-2028. Backhaul and tower feed satellite technologies deliver high-speed internet to cell towers and the ability to multicast high and ultra-high design films and content to a vast coverage area across various devices, including smartphones, smart TVs, and tablets. Backhaul and tower feed satellite solutions will dominate over the projection period, owing to the growing number of 5G gadgets and customer desire for low latency and high-speed 5G connectivity.

Spectrum Solution Segmental Analysis

Based on Spectrum Solution, the global 5G Satellite Communication market is segregated into (L and S-band (1-4 GHz), C and X band (4-12 GHz), Ku and Ka-band (12-40 GHz). The L and S-band (1-4 GHz) segment accounts for a significant share in the global 5G Satellite Communication market over 2022-2028. It is used as a transmit intermediate frequency in satellite communications to replace the L band, using a single/shared coaxial connection for transmitting and receiving signals between the modem/IDU and antenna/ODU. This is to avoid interference between the transmit and receive signals, which would not occur if the transmit and receive signals were separated, and both could use the whole L-band frequency range.

Region Segmental Analysis

Based on the regional segmental analysis, the 5G Satellite Communication market is characterized by North America, Europe, Asia Pacific, South America, and Middle East & Africa. The Asia Pacific accounts for the largest share in the global 5G Satellite Communication market from 2022-to 2028. China Telecom, China Mobile, SK Telecom, and KT Corp., among others, are investing heavily in the deployment of 5G network infrastructure in China, Japan, and South Korea. These funds will build next-generation infrastructure in the media and entertainment, transportation and logistics, healthcare, and manufacturing industries. Over the forecast period, these investments are expected to move the Asia Pacific regional market forward.

Competitor Analysis

Airbus S.A.S, Avanti Communications Group PLC, Eutelstat Communications SA, GomSpace Group AB, Gilat Satellite Networks Ltd., Quortus Limited, OHB SE, Space Exploration Technologies Corp. (SpaceX), The Boeing Company, Thales Group, and Other prominent players are the key players in the 5G Satellite Communication market. Key Stakeholders

• Market research and consulting firms
• Industry associations
• Global 5G Satellite Communication manufacturing firm
• Local Governments
• Regulatory bodies
• Suppliers
• Retailers

Recent Development

• In January 2021, AT&T began offering 5G+ services in Tampa’s most popular places and venues, including the Channel District, Raymond James Stadium, and Tampa International Airport.
• In January 2021, to enhance the 5G-RAN architecture, Nokia teamed with China Mobile to successfully evaluate AI-powered RANs to estimate bandwidth traffic and detect network irregularities.

Scope of the Report

Report Attribute	Details
Revenue in 2021	USD 1.01 Billion
The revenue forecast in 2028	USD 3310 Billion
CAGR	216.7%
Historical data	2017 – 2020
Base Year	2021
Forecast period	2022 – 2028
Region covered	North America, Europe, Asia-Pacific, South America, and Middle East & Africa
Key companies Profiled	Airbus S.A.S, Avanti Communications Group PLC, Eutelstat Communications SA, GomSpace Group AB, Gilat Satellite Networks Ltd., Quortus Limited, OHB SE, Space Exploration Technologies Corp. (SpaceX), The Boeing Company, Thales Group, and Other prominent players are the key players in the 5G Satellite Communication market.

Market Modelling

By Orbit

• Low Earth Orbit (LEO)
• Medium Earth Orbit (MEO)
• Geosynchronous Earth Orbit (GEO)

By Satellite Solution

• Backhauling and Tower feed
• Trunking and Head-end Feed
• Communication-on-the-move
• Hybrid Multiplay

By Spectrum

• L and S-band (1-4 GHz)
• C and X band (4-12 GHz)
• Ku and Ka-band (12-40 GHz)

By End-User

• Defense and Government
• Consumer Electronics
• Aviation
• Energy and Utilities
• Transportation and Logistics
• Others

By Region

• North America
• Europe
• Asia Pacific
• South America
• Middle East & Africa

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