Satellite Internet Rollout to Gain Momentum in Rural Areas: Report
The global satellite internet rollout is projected to expand at a high compound annual growth rate (CAGR) between 2021 and 2031, according to a new report from Fact.MR.
"The satellite Internet market is witnessing robust growth with key players competing to enable access to affordable and high-speed internet service through launch of mega constellations of satellites. To achieve this, they are collaborating with technology giants. Through this, they aim at early competitive advantage in the market."
Fact.MR analyst.
The robust expansion of the satellite internet market is attributed to the increasing adoption of satellite services across various industries such as transportation and telecommunication. Also, rising penetration of smartphones and lack of internet access in rural areas will improve the growth prospects for the market.
In the last couple of years satellite internet has emerged as an effective way of communication in areas where other internet options such as cable and DSL are not available. Rural areas are hard to reach, and taking broadband to rural areas is likely to be more expensive because of the tough geography, which in turn, increases installation costs.
This, coupled with initiatives launched by governments to enable improved internet access even in remote areas, is positively impacting the market growth. A large number of internet satellites are being launched into space. Companies are working towards building "mega constellations" of hundreds or thousands of satellites to enable access to affordable and high speed internet worldwide.
According to the Union of Concerned Scientists (UCS), as of 1st January 2021, there were almost 3,372 active satellites in orbit. In 2020 around 1,283 satellites were launched, and till April-end, 850 satellites were launched in 2021. This is expected to create multiple growth opportunities for the satellite internet market.
Developing countries such as India are attracting leading industry players to set up their base. Companies such as Elon Musk's SpaceX, Amazon's Kuiper project, and the Bharti Airtel-backed OneWeb projects are competing for the lion's share in the India satellite internet market.
According to the satellite Internet rollout report, the C-band segment dominates the satellite internet market due to its various advantages, such as wider and global coverage, lower propagation delay and less attenuation compared to other bands. It is commonly used in areas that are subject to tropical rainfall, since it is less susceptible to rainfade than Ku band.
North America is expected to dominate the satellite internet market. Growth in the region is attributable to the increasing adoption of cloud-based technology, rise in government initiatives to promote satellite technology, and presence of leading market players.
"The satellite Internet market is witnessing robust growth with key players competing to enable access to affordable and high-speed internet service through launch of mega constellations of satellites. To achieve this, they are collaborating with technology giants. Through this, they aim at early competitive advantage in the market," says an analyst working for Fact.MR.
According to the report, North America will continue to dominate the satellite internet market during the forecast period. With increasing adoption of satellite internet across various applications and strong presence of key players, the U.S. is anticipated to lead the North America market.
The U.K and China are projected to witness strong growth as a result of increasing penetration of smartphones and 5G networks.
The C-band segment contributed the largest market share in 2021, owing to the increasing adoption of C-band satellite internet services by end users for its high-speed internet connectivity features.
(Source: Fact.MR news release. Image from file)