5G Satellite Communication Market Size, Share, Opportunities, And Trends By Orbit (Geostationary Earth Orbit (GEO), Medium Earth Orbit (MEO), Low Earth Orbit (LEO)), By Solution (Backhauling And Tower-Feed, Communications On The Move, Trunking And Head-end Feed, Hybrid Multiplay), By End User (Defense, Government, Commercial, Consumer, Others), And By Geography - Forecasts From 2024 To 2029

The 5G satellite communication market is estimated to grow from US$2.012 billion in 2022 to US$25.451 billion in 2029 at 43.69% (CAGR).

GROWTH DRIVERS

• Favorable investments in 5G technology followed by booming commercial satellite deployments are driving the market growth.

The demand for high-speed connectivity across various applications is witnessing significant growth in major regions which has bolstered the establishment of 5G networks. Governments are investing in 5G network expansion which is anticipated to drive the usage of associated satellite & communication systems. For instance, in January 2022, Germany and France announced a joint investment of €17.7 million that would strengthen Europe’s private network in 5G telecommunication. Furthermore, rapid urbanization has increased smartphone penetration thereby further driving 5G demand thereby bolstering 5G satellite technologies development.

Moreover, the growing emphasis on improving mobile communications, broadcasting, and business data networks has elevated the level of commercial satellite deployment. For instance, according to the Satellite Industry Association's 27th annual SSIR (State of Satellite Industry Report), in 2023, nearly 2,781 commercial satellite deployments took place which showcased 20% over the previous year. Such positive growth coupled with ongoing 5G penetration has provided new growth aspects for 5G satellite technologies.

Additionally, strategic collaboration among telecom operators and satellite vendors regarding 5G NTN (Non-Terrestrial Network) is taking place, for instance, according to the GSA’s “Non-Terrestrial 5G Network and Satellite Connectivity”, by the end of March 2024 nearly 77 publicly announced partnership between satellite vendors and operators took place in 44 countries of which 5G NTN accounted for 57%.

EMERGING OPPORTUNITIES FOR 5G IN THE SATELLITE COMMUNICATION MARKET

• GOVERNMENT AND COMMERCIAL

Based on end-user, the 5G satellite communication market is analyzed into defense, government, commercial, consumer, and others, where government and commercial are poised to show significant growth fuelled by the favorable investments in satellite communication solutions to address the growing regional demand for high-speed bandwidth at low latency connectivity.

Moreover, given the ongoing shift towards 5G technology, the media and entertainment among other commercial sectors are initiating strategies such as collaborating with major 5G vendors to expand their network coverage and broadcasting, especially in rural areas owing to which usage of satellite technologies is expected to pick up pace.

Additional factors such as efforts to improve seamless connectivity for diverse industrial applications followed by implementation of initiatives such as “Industry 4.0” have paved the way for future market expansion.

For instance,

• In July 2023, The European Space Agency and GSM Association formed a Memorandum of Understanding (MoU) that would bring various satellite and mobile companies together for the development of innovative and new terrestrial satellite technologies that would feature 5G and emerging 6G networks. The collaboration marks the advancement of future mobile communications.
• In July 2022, Ericsson, Qualcomm Technologies, and Thales joined forces for the development and validation of the 5G Non-Terrestrial Network. Hence, the companies are initiating a strategy that would deploy 5G across a network of Earth-orbiting satellites. The development would improve the future of 5G smartphones and would also offer wide broadband coverage in remote and extreme geographic areas.
• In January 2022, Thales Alenia Space formed an agreement with Intelsat to deliver space inspire software-defined satellites “Intelsat 41” and “Intelsat 44” which would form a part of the world’s first 5G software-defined unified network that would provide high-speed connectivity to government and commercial backhaul & mobility services across the Middle East and Asia, Africa, and Europe. The collaboration further bolsters Thale’s ambition to become the leading provider of 5G software-defined satcom solutions.

GEOGRAPHICAL PRESENCE

The global 5G satellite communication market consists of major countries undertaking steps to secure their 5G network. China is expected to witness a higher CAGR during the forecasted period. In addition, a few of the major countries include the USA, Japan, South Korea, the United Kingdom, and Germany. Some important developments are listed below:

• In May 2024, OQ Technology was granted Special Temporary Authority (STA) by the Federal Communications Commission for demonstrating the latter’s 5G NTN IoT coverage over LEO. The SPA has enabled OQ Technology to provide 5G NTN services to Otis USA-situated customers through its Low-Orbit Satellites.
• In March 2024, Omnipace entered into a collaboration with MTN for the development and usage of S-band for satellite service. The development would expand MTN’s portfolio for wireless services and would also support the company’s commitment to develop cost-effective connectivity solutions that can be used beyond land-based and existing cellular networks.
• In May 2023, Honeywell launched the satcom system “VersaWave” which combines 5G and 4G cellular technology, Wi-Fi & Bluetooth connectivity and is suitable for Unmanned Aerial Systems (UAS) as well as Advanced Air Mobility (AAM). The product provides multiple connectivity options in a single package and supports high data transferring at low latency whether the network is private or public. 
• In April 2023, NTT Ltd. formed a multi-year partnership with global content connectivity service provider SES, where the former would use the latter’s satellite system for delivering “Edge As A Service” and private 5G solutions to its enterprise customers. The collaboration will establish a reliable network among the enterprises and address their high-speed connectivity demand beyond a fixed terrestrial network.

MAJOR PLAYERS IN THE MARKET

Some of the leading players in the market include SES S.A., Omnispace LLC, and ND Satcom, among others. The product offerings of the major corporation include the following:

Segmentation:

• By Orbit
  • Geostationary Eart Orbit (GEO)
  • Medium Eart Orbit (MEO)
  • Low Earth Orbit (LEO)
• By Solution
  • Backhauling and Tower Feed
  • Communications on the Move
  • Trunking and Head-end Feed
  • Hybrid Multiplay
• By End-User
  • Defense
  • Government
  • Commercial
  • Consumer
  • Others
• By Geography
  • Americas
    • United States
    • Others
  • Europe, Middle East, and Africa
    • Germany
    • UK
    • Others
  • Asia Pacific
    • China
    • Japan
    • South Korea
    • Others