Satellite Services Market Report 2023
The global satellite services market in 2022 was valued at $134.48 billion. The market is expected to reach $160.57 billion by 2028, according to a report published by Daedal Research.
Satellite services means mobile wireless voice and data services (other than multi-channel video services and data services reasonably ancillary thereto) provided, via fixed or non-geostationary satellite. Satellite services can fill in the gaps in areas where terrestrial systems are not viable and help realize the vision of communications services available everywhere in the nation.
Satellite services are used for various applications such as agriculture, maritime, defense & security, automotive & transportation, among others. The rising desire for high-speed uninterrupted internet connectivity, which is being supported by the global digitization of all private and government activities, is also a major reason behind the rising requirement of satellite services.
Therefore, expanding demand for uninterrupted internet is one of the main factors that would drive the demand for satellite services in the forthcoming years. The market is expected to grow at a CAGR of approx. 3% during the forecasted period of 2022-2028.
Satellite Services Market Growth Drivers and Trends
According to the report published by Daedal Research, the satellite services market has been growing over the past few years, due to factors such as rising demand for earth observation services, expanding demand for uninterrupted internet, growing adoption of DTH subscriptions and HDTV channels, flourishing media and entertainment industry, increasing deployment of small satellites, increasing investment in military satellite communication solutions, and many other factors. According to the report, Earth observation satellites enable environmental monitoring and protection, resource management, humanitarian response, and sustainable development (EO satellites). High need for disaster management, agriculture, mapping, and natural resources survey drives the need for earth observation services in numerous sectors such as oil & gas, civil engineering, agriculture, and others, which results in increasing demand for satellite services, thus driving the overall market growth.
However, the market has been confronted with some challenges specifically, intensifying cyber-security concerns, lack of dedicated launch vehicles for small satellites, emerging issues regarding space debris, etc.
The market is projected to grow at a fast pace during the forecast period, due to various latest trends such as rising implementation of IoT and autonomous systems, ongoing development of smart cities, deployment of 5G networks through satellites, etc. Additionally, the ongoing development of smart cities is one of the most significant drivers for satellite services, as it helps in the development of high degree of connectivity they need. Moreover, the emerging development of the 5G satellite to support 5G network deployment is expected to offer lucrative opportunities for the satellite services market in the future.
Some of the strategies among key players in the market for satellite servicess are platform development and strategic alliances to expand their respective portfolios and gain a robust footing in the global market.
For instance, in February 2022, Intelsat, which is the world's largest integrated satellite operator, expanded its collaboration with SKY Perfect JSAT Corporation to employ its next-generation JCSAT-1C High-throughput Satellites (HTS) over Asia-Pacific.
The partnership helps airlines and customers promote a superior passenger experience onboard aircraft through faster Internet connection speeds. On the other hand, in January 2022, Intelsat and Gilat Satellite Networks expanded their strategic partnership in commercial aviation. Intelsat will use Gilat's SkyEdge II-c system to expand commercial and business aviation services in Asia-Pacific.
The US market dominated the region due to the healthy growth remote sensing and fixed satellite services segment in the region.
In Europe, Germany is the dominating region. Whereas, in the Asia Pacific region, China dominated the market owing to the growing number of airports plays a vital role in installing aviation satellite communication terminals and increasing use of surveillance and communication satellites to offer enhanced safety and communication.
(Source: Daedal Research news release. Images provided and from file)