Satellite Internet Industry Overview

The global satellite internet market reached a valuation of USD 8,231.47 million in 2022, with projections indicating robust growth at a compound annual growth rate (CAGR) of 13.6% from 2023 to 2030. Satellite internet functions as a wireless network, enabled by satellite dishes both in space and on the Earth’s surface. It offers people in remote areas worldwide access to essential information and connectivity through high-speed networks powered by orbiting satellites. This technology is distinct from traditional, land-based broadband services like digital subscriber lines (DSL) and cable, delivering faster speeds than standard internet services. Satellite communication not only provides users with fast internet access but also enables a reliable land-based interface for transmitting voice, video, and other data, making it accessible across nearly any part of the planet.

One of the key advantages of satellite internet for businesses is its capability to deliver a strong internet connection worldwide, even in the most remote locations such as oceans and mountainous areas, at high speeds reaching several megabits per second. In addition to offering expansive coverage, satellite internet can establish secure, private connections across vast distances, linking multiple isolated regions. Due to the limited availability of other broadband options in rural areas, demand for satellite internet has surged in these regions. The technology also enables connectivity in extreme locations such as deserts and mountains, where standard broadband is typically unavailable, thereby increasing demand for satellite internet in these challenging areas. Satellite internet also offers customers exceptional speed and data, which has led to widespread adoption in emerging economies like India, Vietnam, and Malaysia, further fueling market growth.

Government initiatives aimed at expanding advanced satellite internet services to foster a digitized economy and strengthen public safety are also instrumental in driving market growth. Many governments are actively investing in programs to extend broadband access to rural communities, particularly in developing countries. For example, in January 2020, the U.S. Federal Communications Commission (FCC) launched the Rural Digital Opportunity Fund, committing USD 20.4 billion to establish broadband infrastructure in underserved regions. In its initial deployment, the FCC allocated USD 886 million to SpaceX, a leading satellite provider. Additionally, satellite broadband's integration into smart city frameworks is expected to unlock significant market potential in the coming years. However, the high costs associated with implementing and maintaining satellite internet infrastructure remain a challenge, constraining market expansion to some extent.

Gather more insights about the market drivers, restrains and growth of the Satellite Internet Market

Regional Insights:

North America Market Leadership:

  • In 2022, North America led the global satellite internet market, holding over 32% of the market share.
  • The region is expected to grow at a Compound Annual Growth Rate (CAGR) of 13.1% during the forecast period.
  • The market in North America is consolidated, with increasing competition due to the presence of multiple players.
  • Key factors driving growth include the widespread adoption of advanced technologies such as cloud computing, IoT, and AI, along with strong government support for satellite technology deployment across North America.
  • The U.S. and Canada have highly digital-savvy populations, creating high demand for fast internet services, which supports market expansion in the region.

Product Innovation and Partnerships:

  • Leading companies in North America, including SpaceX and Hughes Network, are launching innovative products to enhance service offerings.
  • For example, in September 2022, Hughes Network Systems (a subsidiary of EchoStar Corporation) launched HughesNet Fusion, a satellite internet service with reduced latency, in select U.S. markets.
  • Partnerships with U.S. wireless network providers are also expanding broadband access. In August 2022, SpaceX Starlink partnered with T-Mobile to launch the "Coverage Above and Beyond" plan, aiming to extend cell phone connectivity nationwide by using T-Mobile's mid-band spectrum through Starlink satellites.

Asia-Pacific Market Growth:

  • Asia-Pacific is expected to experience the highest growth rate, with a projected CAGR of 14.9%.
  • The demand for satellite internet in Asia-Pacific is driven by the rise of connectivity needs in the broadcasting, healthcare, government, and military sectors.
  • China, Japan, India, and South Korea are the primary markets with increasing satellite internet demand.
  • Satellite internet complements terrestrial networks in rural and remote areas lacking broadband or fixed wireless services.
  • The deployment of Medium Earth Orbit (MEO) and Low Earth Orbit (LEO) constellations across Asia-Pacific is also fueling market growth.

Regional Developments in Asia-Pacific:

  • In January 2022, Chongqing Satellite Network System Research Institute and China Satellite Network Application Co. Ltd. signed an agreement to build an internet system in Chongqing, China. This initiative supports China’s goal to establish an LEO satellite internet network to bridge communication gaps in rural areas.
  • International companies are also expanding their satellite broadband services in Asia-Pacific. For instance, in October 2022, SpaceX launched internet services in Japan, marking the first satellite-based broadband deployment in Asia.
  • KDDI Corporation, as an authorized Starlink integrator, is providing satellite internet in Japan, focusing on rural and remote areas.
  • Starlink’s network will extend broadband access to remote regions in Japan, such as the mountainous Tohoku, Kanto, and Chubu areas, which lack traditional broadband connectivity, offering a stable and long-term solution.

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Key Satellite Internet Company Insights

Major players operating in the market include Singtel Group, Freedomsat, EchoStar Corporation, Thuraya Telecommunications Company, Eutelsat Communications SA, OneWeb.net, SpaceX, Viasat, Inc., Axess, and DSL Telecom, among others. To broaden their product offering, several companies are adopting development strategies, such as partnerships, regular mergers, and acquisitions. For instance, In October 2022, Axess announced a partnership with Viasat. Viasat's maritime operations will be able to reach a wider global audience owing to its strategic relationship with AXESS Maritime, which will provide a variety of solutions and services. AXESS Maritime offers regional and international networks and provides the complete rotation from network infrastructure, deployment, implementation, ship monitoring, and round-the-clock global NOC support. Some of the prominent players in the global satellite internet market include:

  • Singtel Group
  • Freedomsat
  • EchoStar Corporation       
  • Thuraya Telecommunications Company
  • Eutelsat Communications SA
  • net
  • SpaceX
  • Viasat, Inc.
  • Axess
  • DSL Telecom

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