Satellite Communication Market Worth $33.2 Billion by 2029
Satellite Communication Market Worth $33.2 Billion by 2029
Multiple Factors Contribute to the Projected Growth
The Satellite Communication Market is expected to reach $33.2 billion by 2029 from $16.9 billion in 2024, at a Compound Annual Growth Rate (CAGR) of 14.5 % from 2024–2029, according to a new report by MarketsandMarkets. Increased expenditure of emerging economies and rapid development of communications equipment and technology have led to the growth of the market.
Other factors, such as the growing need for broadband connectivity, expanding coverage of cellular networks, rising demand for IoT connectivity, and increasing government investments in SATCOM infrastructure, also drive the market. Satellite communication services play a critical role in providing reliable and high-speed broadband services, particularly in rural and remote areas where terrestrial infrastructure may be limited. This demand is driven by the need to bridge the digital and ensure connectivity for underserved communities. The expansion of 5G networks is contributing to the growth of the Satellite Communication Market.
The rising demand for mobile broadband drives the consumer Satellite Communication Market. Consumers demand fast and reliable internet, even more so in the remote, underdeveloped regions — that are beyond easy reach of traditional land-based networks. Satellite communication can now be of use to bridge this gap. From New York to rural Pennsylvania or isolated islands, they deliver the hard-to-access places where people need connectivity most. This is true because an increasing number of people are using the internet and need a reliable way to connect.
Passengers now expect to be able to be contacted, entertain themselves, and even work mid-air, while the crews have improved and become more effective means of communication and working. Thus, satellites are important to meet these expectations, providing high-speed and continuous communication on board, even on long-haul and transoceanic flights. Apart from the passenger facilities, lines use satellite communication in operational aspects. Fast information sharing, such as weather conditions in real-time data, locating a flight, and shipping predictive maintenance signals, helps the airline choose the most appropriate routes, raise passenger safety, and minimize flight time lost because of a breakdown of equipment. This has the added advantage of improving the capacity to manage flights; hence, it has the benefits of cost optimization and better utilization of resources for the airlines.
The Satellite Communication Market in Africa and the Middle East constantly changes due to different developments and strategic initiatives. For instance, in September 2022, the Communications Regulatory Authority of Qatar issued an Individual License to Starlink Satellite Qatar W.L.L. This license permits Starlink to operate in the LEO constellation of SpaceX to provide high-speed broadband through satellites and increase the connectivity of people and businesses. The country's satellite services are backed by a well-developed infrastructure, including 5G and fiber optic connections, which snake throughout the country. Oman's emphasis on extending rural connectivity through satellite partnerships underlines a more significant regional focus toward better communication infrastructure. In South Africa, satellite communications are also evolving through agreements like the one signed by Al Yah Satellite Communications Company with the Department of Communications and Digital Technologies. This agreement increases the capacity of several services, particularly in broadband and IoT satellites, and explores new investment opportunities. Furthermore, companies like Paratus South Africa have signed another agreement with Eutelsat OneWeb to provide high-speed, low-latency Internet to underserved areas. All this is evidence of the efforts that show the general trend within the two developing regions—that of satellite communication to solve improved economic development challenges in enhanced connectivity.