Investments in LEO Satellites Accelerate the SATCOM Market
Projected to Reach $66.75 Billion in 2025
The Satellite Communication market value stood at $61.82 billion in 2024 and is projected to reach $66.75 billion in 2025 with a CAGR of 8.0 percent, according to a new report from the Business Research Company. And the company projects that the future looks bright for the market, with its size expected to shoot up to $103.78 billion in 2029 at an impressive CAGR of 11.7 percent.
The market is witnessing growth, largely driven by the increasing adoption of low-earth orbit satellites across sectors. The technology is revolutionizing internet and digital communication, bolstering market growth. For example, the US Space Force's Commercial Satellite Communications Office (CSCO) announced plans to award nearly $2.3 billion in commercial satcom contracts over the next two years, the largest being an $875 million deal for low earth orbit satellite broadband services over 10 years. This investment in low earth orbit satellites is expected to boost the Satellite Communication market growth.
Additionally, robust government support is driving the growth of the satellite communication market in the forecast period. Government investment will support research and development activities, new technology developments and projects. For example, in 2022, the UK science minister unveiled a new £15 million ($18.15 million) fund for UK businesses to revolutionize satellite communications technology. Moreover, in March 2021, NewSpace India Ltd (NSIL NSE-0.67 %), the commercial space undertaking of the government, plans to invest INR 100,000 million ($1.2 billion) over the next five years to own and operate satellites and rockets to launch them and is in talks with the country’s space agency to acquire its fleet of remote sensing and communication satellites. NSIL is in talks with its parent Department of Space to own and operate two new communication satellites, for which an Indian telco, as well as a DTH provider have signed up as customers. The company also floated a request for proposal (RFP) to five Indian companies to build the workhorse polar satellite launch vehicle (PSLV) and expects to select the vendor in five months. Therefore, robust government initiatives are expected to propel the growth of satellite communication.
North America led the Satellite Communication market in 2024. However, it is Asia-Pacific that's expected to demonstrate the fastest growth in the forecast period. All the major regions worldwide, including Western Europe, Eastern Europe, South America, Middle East, and Africa, contribute to the market.
The satellite communications market includes revenues earned by entities by providing systems for transferring data between locations by employing a communication satellite circling the Earth. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.