5G From Space Market by Orbit (Low Earth Orbit (LEO), Geosynchronous Earth Orbit (GEO), and Medium Earth Orbit (MEO)), by End User (Maritime Industry, Aviation Industry, Telecommunication Sector, Defense Sector, Media & Entertainment, and Others)– Global Opportunity Analysis and Industry Forecast 2024-2030

Market Definition

The 5G From Space Market size was valued at USD 244.5 million in 2023 and is predicted to reach USD 1426.1 million by 2030 with a CAGR of 28.7% from 2024-2030.

5G From Space Market refers to the segment of the telecommunications industry that involves the deployment and utilization of 5G network infrastructure and services delivered via satellite technology. It is an emerging technology that uses satellites designed to work with regular 5G infrastructure on Earth to cover a wide range with enhance connectivity. This system involves deploying satellites equipped with 5G technology into orbit around the Earth to beam down high-speed internet connectivity to remote or underserved regions. This innovation allows for seamless communication between various platforms such as airplanes, ships, and ground forces. Satellites in Low Earth Orbit (LEO) are crucial for reducing latency and providing wide-scale coverage, enabling rapid data transmission. The 5G satellite spectrum operates within specific frequency ranges, ensuring efficient communication and complementing terrestrial 5G infrastructure. The collaboration between space and 5G networks aims to enhance network coverage, support IoT devices, and serve as a backup during disasters, aiming to provide wider coverage and improve connectivity.

Market Dynamics and Trends

The growing demand for strong and fast private network connections to streamline business operations including high-speed data transfer, and enhanced global connectivity, is fueling the growth of the market. As industries increasingly rely on seamless communication and data exchange, the demand for advanced satellite-based 5G solutions continues to rise.

This trend underscores the pivotal role of 5G satellite technology in addressing the evolving connectivity requirements of modern enterprises, contributing to the market's sustained growth trajectory. In response to this growing demand for strong and fast private network the global companies collaborate to provide consistent connectivity, which in turn boost the market growth.

For instance, in April 2023, NTT and SES partnered to deliver satellite-based edge and private 5G solutions to enterprise customers. This collaboration combines NTT's expertise in networking and enterprise managed services with SES's O3b mPOWER satellites to provide reliable connectivity to companies with limited terrestrial networks.

Moreover, the growth of the 5G from space market is propelled by the increasing investments in defence sector. The robust investment in defence industry leads to the development of satellite infrastructure and communication systems that can be repurposed for commercial 5G services.

Consequently, the convergence of defence and commercial interests further stimulates innovation and investment within the 5G from space market, which in turn boost the market growth. This advance 5G services are essential to enhance the communication is various operational environments, improving the operational co-ordination and decision making in battlefield.

According to a report published by Stockholm International Peace Research Institute (SIPRI), the defense sector globally is rising with an expenditure of around USD 2240 million in the year 2022, accounting to an overall growth of 3.7% compared to the year 2021, thereby propelling the market’s growth.

Furthermore, the growing adoption of 5G services within the aviation sector to enhance the connectivity, mitigate risk and enhance safety standards which boost the market growth. 5G connectivity from space provide seamless internet access to passengers onboard while the cockpit communication system can transmit real-time data to ground control, enhancing air-safety and air traffic management.

According to a report published by The International Air Transport Association (IATA), the passenger aviation sector is expected to rise by 115% in the year 2024 compared to 2019. With this growth in the sector the demand for the connectivity rises thereby propelling the growth of the market.

However, diverse international space frameworks and regulatory standards imposed by different governmental authorities hinders the growth of the market, as they can delay the deployment of 5G infrastructures in the desired orbit.

On the other hand, incorporation of 5G in IoT (The Internet of Things) to leverage the high-speed, low-latency capabilities of 5G technology is expected to create future opportunities for the market. This augmentation will improve transportation system, healthcare facilities, and other key sectors by providing real-time locations and to facilitate remote surgeries thus enhancing efficiency, safety, and connectivity within the market.

Market Segmentation and Scope of Study

The 5G from space market is divided on the basis of orbit, end user and region. On the basis of orbit, the market is categorized into low earth orbit (LEO), geosynchronous earth orbit (GEO), and medium earth orbit (MEO). On the basis of end user, the market is divided into maritime industry, aviation industry, telecommunication sector, defense sector, media & entertainment, and others. Regional breakdown and analysis of each of the aforesaid segments includes regions comprising of North America, Europe, Asia-Pacific, and Rest of the World (RoW).

Geographical Analysis

North America holds the dominating share of 5G from space market during the forecast period due to the rising government investments in the defence sector. According to a report published by Stockholm International Peace Research Institute (SIPRI), the U.S is growing rapidly with the overall investment of USD 877 billion in the year 2022, accounting to 39% of the total global military spending, which facilitates the sector's research and development efforts to pioneer advanced technologies such as 5G services from space, to bolster soldiers' capabilities with enhanced encrypted communication systems and carry out operations efficiently.

Moreover, the presence of major companies such as Honeywell International Inc., SpaceX, and Qualcomm further fuels the growth of the market. These companies contribute significantly to the growth of the 5G from space market through different product launches and research & development. For instance, in May 2023, Honeywell launched the VersaWave system with 5G, a small satellite communication (satcom) system designed for the Advanced Air Mobility (AAM) and Unmanned Aerial Systems (UAS) industry.

This system is poised to revolutionize connectivity solutions for the AAM and UAS industry, providing efficient and cost-effective communication capabilities for various applications. Thus, the launch highlights the effort of the companies to promote the market in the region. On the other hand, Asia-Pacific region is witnessing growth in 5G from space market, due to strong adoption rates of 5G networks in the countries such as China, Japan, and India among others.  

In these countries governments are promoting policies and investments to support the growth of the space and telecommunications sectors. These initiatives encompass various aspects such as spectrum allocation, regulatory frameworks, research funding, and collaboration with industry stakeholders.

According to a report published by GSM Association (GSMA), in July 2023, around 41% of the overall mobile connections in the APAC region will adopt 5G connections by 2030, which accounts around 4% in the year 2022. This increase in procurement of 5G services fuel the space based 5G solutions to meet the growing demand for 5G network, thereby propels the growth of the market.

Additionally, the growing aviation sector within the APAC region is fuelling the adoption of uninterrupted 5G connections to enhance operational flexibility and safety, especially during the take-off and landing operations. According to a report published by International Trade Administration, in January 2024, aviation sector in India is showing an exponential growth with around 500 million domestic and international air travelers by 2030. This growth in aviation sector propels the demand for better 5G connectivity to leverage 5G connectivity in cockpit communication system to ensure safety, thereby propelling the growth of the market.

Competitive Landscape

Various market players operating in the 5G from space market Lockheed Martin, SpaceX, Boeing, Sateliot, Omnispace, Rohde and Schwarz, Qualcomm Technologies Inc., Terran Orbital, OneWeb, Lynk Global Inc., and others. These market players are opting various strategies such as product launches and collaboration to maintain their dominance in the 5G from space market.

For instance, in April 2023, Space X launched The GroundBreaker, world’s first 5G satellite. The satellite weighs around 22 pounds and designed to establish communication with land-based cell tower. The aim of this constellation is to address 5G data network deficiencies on a global Scale and eradicate the network connectivity issue which in turn helped the market to gain mass popularity.

Moreover, in February 2023, Omnispace and Ligado Network collaborated to launch space-based, direct-to-device (D2D) solutions for global voice, text and data connectivity. The technology utilised large blocks of satellite spectrum in the L- and S-Bands, that enable widespread mobile connectivity for more than 5 billion mobile subscribers in areas. It can provide 5G connectivity in areas where terrestrial cellular coverage is non-existent, leading to expansion of use of 5G network hence drive the market to grow.

Key Benefits

• The report provides quantitative analysis and estimations of the 5G from space market from 2024 to 2030, which assists in identifying the prevailing market opportunities.

• The study comprises a deep-dive analysis of the 5G from Space market including the current and future trends to depict prevalent investment pockets in the market.

• Information related to key drivers, restraints, and opportunities and their impact on the 5g from space market is provided in the report. 

• Competitive analysis of the players, along with their market share is provided in the report.

• SWOT analysis and Porters Five Forces model is elaborated in the study.

• Value chain analysis in the market study provides a clear picture of roles of stakeholders.

Key Market Segments

By Orbit

• Low Earth Orbit (LEO) 

• Geosynchronous Earth Orbit (GEO)

• Medium Earth Orbit (MEO) 

By End User

• Maritime Industry

• Aviation Industry 

• Telecommunication Sector 

• Defense Sector 

• Media & Entertainment

• Others 

By Region

• North America

  • The U.S.

  • Canada

  • Mexico

• Europe

  • The U.K.

  • Germany

  • France        

  • Italy        

  • Spain        

  • Denmark        

  • Netherlands        

  • Finland        

  • Sweden

  • Norway        

  • Russia        

  • Rest of Europe    

• Asia-Pacific

  • China

  • Japan

  • India

  • South Korea

  • Australia

  • Indonesia

  • Singapore

  • Taiwan

  • Thailand

  • Rest of Asia-Pacific

• Rest of the World (RoW)

  • Latin America

  • Middle East

  • Africa

REPORT SCOPE AND SEGMENTATION:

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