Commercial Satellite Broadband Market Size

Commercial Satellite Broadband Market Overview

The Commercial Satellite Broadband Market size is projected to grow from USD 5.3 Billion in 2024 to USD 20.4 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 18.40% during the forecast period (2024 - 2032). Additionally, the market size for Commercial Satellite Broadband was valued at USD 4.9 Billion in 2023. 

Increased use of satellite services by police, fire, and other agencies in different developing countries, as well as communication technology advancement, are the key market drivers enhancing the market growth.

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Commercial Satellite Broadband Market Trends

Ability to reach the unserved or rural areas is driving the market growth

Being able to reach unserved or rural locations where wired or other connectivity cannot is a key component in the market's expansion. The expansion of the entire market is also being driven by commercial broadband satellite, which offers unrestricted internet connectivity and enhances connectivity for devices for several end-use industries, including the automotive, industrial, and healthcare sectors. Numerous market opportunities are being created by the rising demand for high-speed internet connections and the increasing rivalry among satellite broadband providers to supply that demand.

The capacity to transmit a link at speeds of several megabits per second over inaccessible terrain, such as seas and mountains, is one of satellite internet for companies' most important advantages. A private and secure link, however, can connect numerous distant places that are dispersed across a large area. Due to a lack of other options for broadband internet in rural areas, demand for satellite internet is growing. Additionally, satellite internet can offer web access in remote locations where it is difficult to get broadband, like deserts and mountains, which increases the demand for satellite internet in these locations. Additionally, customers can access satellite internet at incredible speeds and bandwidth. As a result, these services are being quickly adopted by developing countries like India, Vietnam, and Malaysia, which contributes to the market's continued growth.

The expansion of the market is driven by an increase in government initiatives to adopt advanced satellite internet services in order to create a digital economy and improve public safety and security. Additionally, a number of governments are generously subsidising businesses to offer broadband services to rural communities throughout emerging nations, which is also regarded as a key component in fostering the market's expansion. towards instance, the Rural Digital Opportunity Fund was established by the U.S. Federal Communications Commission (FCC) in January 2020 to provide USD 20.4 billion towards the construction of broadband networks in rural areas. The satellite company SpaceX received USD 886 million from the FCC for the initial deployment phase. Furthermore, it is projected that in the near future, the use of satellite broadband would open up attractive market potential. The primary factors driving the growth of the satellite internet market trends are the increase of the usage of satellite services by police, fire, and other agencies in various emerging nations, as well as advancements in communication technology. Additionally, the market for satellite internet is positively impacted by the rise of government programmes to use satellite broadband communications services. Thus, driving the Commercial Satellite Broadband market revenue.

Commercial Satellite Broadband Market Segment Insights

Commercial Satellite Broadband Component Insights

The Commercial Satellite Broadband market segmentation, based on Component, includes Satellite, Gateway, Antenna, Modem, and Network Operators Center (NOC). Gateway segment dominated the market in 2022. This is a result of the rising demand for business satellite broadband.

Commercial Satellite Broadband Frequency Band Insights

The Commercial Satellite Broadband market segmentation, based on Frequency Band, includes Ka Band, Ku Band, C Band, and Others. C band segment dominated the market in 2022. Due to the high-speed internet access offered by the C-band satellite in locations with frequent rainfall and a poorer communication channel, end customers are increasingly utilising C-band satellite internet services.

Commercial Satellite Broadband End User Insights

The Commercial Satellite Broadband market segmentation, based on End User, includes Civil Defense, Hospital, Education, SME's, Government Agencies, and Public Safety. Government agencies segment dominated the Commercial Satellite Broadband market in 2022. In order to provide broadband services throughout their nations and to exclusively use cutting-edge technology to connect rural areas to the broadband network, governments around the world are investing in satellite broadband technology.

Figure 1: Commercial Satellite Broadband Market, by End User, 2022 & 2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Commercial Satellite Broadband Regional Insights

By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The Asia Pacific Commercial Satellite Broadband market dominated this market in 2022 (45.80%). This is because satellite internet has become more popular in the broadcasting, healthcare, government, and military industries. The satellite internet market is most in demand in China, Japan, India, and South Korea. In remote locations and other regions that cannot be reached by domestic broadband or fixed wireless access, satellite connection will supplement terrestrial access. Moreover, China’s Commercial Satellite Broadband market held the largest market share and the Indian Commercial Satellite Broadband market was the fastest growing market in the Asia-Pacific region.

Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: COMMERCIAL SATELLITE BROADBAND MARKET SHARE BY REGION 2022 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

The North America Commercial Satellite Broadband Market is expected to register significant growth from 2023 to 2032. The market is consolidated as a result of the numerous competitors, and more competition is anticipated. This is a result of both growing government initiatives to disseminate satellite technology across North America and the region's rapid adoption of cutting-edge technologies like cloud-based, IoT, and AI. People in industrialised countries like the United States and Canada are very computer aware and rely heavily on the internet. Due to the increased need for quick internet, regional market expansion should be encouraged. Further, the U.S. Commercial Satellite Broadband market held the largest market share, and the Canada Commercial Satellite Broadband market was the fastest growing market in the North America region.

Europe Commercial Satellite Broadband market accounted for the healthy market share in 2022. This can be linked to the region's expanding use of cloud-based technologies and the surge in government plans to spread satellite technology throughout Europe. Further, the German Commercial Satellite Broadband market held the largest market share, and the U.K Commercial Satellite Broadband market was the fastest growing market in the European region.

Commercial Satellite Broadband Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development in order to expand their product lines, which will help the Commercial Satellite Broadband market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, Commercial Satellite Broadband industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the Commercial Satellite Broadband industry to benefit clients and increase the market sector. In recent years, the Commercial Satellite Broadband industry has offered some of the most significant advantages to medicine. Major players in the Commercial Satellite Broadband market, including Hughes Communications Ins., Visat Inc., Avon line Satellite Solutions Ltd, Speedcast International Ltd, Skycasters LLC, Immarsat PLC, Iridium Communications Inc, and star Inc., are attempting to increase market demand by investing in research and development Components.

For the government, maritime, retail, utilities, defence, and other industries, Hughes Network Systems offers broadband satellite systems, services, and managed network solutions. With broadband systems and terminals like satellite network operations centres and gateways, broadband satellite routers and modems, mobile satellite systems, handhelds, and IP (internet protocol) data terminals, the company offers services that fit every budget to authorised service providers, government agencies, and businesses. Additionally, it sells digital media gear and broadband appliances.

The space aviation business Space Exploration Technologies Corp. (SpaceX) produces and launches rockets and spacecraft. It manages space station resupply missions for cargo. Heavy, medium, and low lift launch capabilities are all provided by SpaceX. The business has introduced Falcon 9 and Falcon Heavy as launch vehicles. Its launch locations are at Vandenberg Air Force Base (VAFB) in California and Cape Canaveral Air Force Station (CCAFS) in Florida. The business also provides ridesharing services and human spaceflight. Under the brand names SpaceX, Falcon, Falcon Heavy, and Dragon, the corporation provides a variety of goods and portfolios. It tests engines and structures at a development site in McGregor, Texas. US state of California's Hawthorne serves as the home base for SpaceX. A new initiative to deliver cell phone service everywhere, Coverage Above and Beyond, will be introduced by SpaceX Starlink and T-Mobile in August 2022. To implement this service, the firms created a new network that will utilise the mid-band bandwidth of T-Cellular while being sent via Starlink satellites.

Key Companies in the Commercial Satellite Broadband market include

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  Hughes Communications Ins.

  
  


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  Visat Inc.

  
  


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  Avon line Satellite Solutions Ltd

  
  


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  Speedcast International Ltd

  
  


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  Skycasters LLC

  
  


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  Immarsat PLC

  
  


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  Iridium Communications Inc

  
  


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  star Inc.

  
  

Commercial Satellite Broadband Industry Developments

From 2023, OneWeb Satellites, a joint venture between OneWeb and Airbus, was to take place production of two satellites per day. Besides this, OneWeb 2023 got the FCC’s approval for deploying 720 satellites that use Ka- and Ku-band frequencies. This has cost over US$ 3Bn as an investment to the company. SpaceX, in March 2021, obtained FCC authorization for launching 4,425 satellites using Ku- and Ka-band.

In January 2022, China Satellite Network Application Co., Ltd. and Chongqing Satellite Network System Research Institute Co., Ltd entered into a contract to partner in the development of an internet system in Chongqing, China. It is one step that supports China's national goal of creating a LEO satellite network for internet access.

In October 2022, Japan was be the first country in Asia offering satellite-based broadband service due to SpaceX declaration. KDDI Corporation will act as an authorized Starlink integrator for subscribers located in remote areas or isolated places.

In May 2023, Gilat Satellite Networks secured a multimillion-dollar deal on VSATS for Asia. These VSATs are expected to aid the national initiative towards better disaster prevention and management efforts. The network would deliver secure voice services that consume minimum bandwidths; emergency alerts; mobility services; and satellite internet services that greatly enhance effective disaster response capabilities of government agencies as well as first responders.

In March 2023, both Viasat and Inmarsat received provisional sanction from Competitions Market Authority (CMA), which are major players from satellite industry planning merger. The USD7.3 billion agreement is anticipated to foster competition within the market for space based internet services.

In March 2023, Eutelsat and Intelsat entered into a seven-year agreement on capacity to strengthen satellite connectivity solutions, using high-throughput satellites (HTS) in the Ku-band of Eutelsat including recently launched EUTELSAT 10B satellite and OneWeb constellation. This is aimed at providing an uninterrupted internet connection for air, land, and maritime clients by merging GEO and LEO assets of these three entities.

In December 2022, Viasat was awarded a USD 325 Million contract extension by the US Special Operations Command (SOCOM) for tactical satellite communications and network management. The indefinite delivery indefinite quantity (IDIQ) award structure allows the military to acquire technology developments with flexibility according to Viasat. Under this arrangement, Viasat will supply SOCOM with various capabilities such as situational awareness, intelligence integration, terrestrial networking, ISR, including tactical satellite communications or satellite internet services and support information assurance, among others.

Commercial Satellite Broadband Market Segmentation

Commercial Satellite Broadband Component Outlook

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  Satellite

  
  


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  Gateway

  
  


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  Antenna

  
  


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  Modem

  
  


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  Network Operators Center (NOC)

  
  

Commercial Satellite Broadband Frequency Band Outlook

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  Ka Band

  
  


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  Ku Band

  
  


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  C Band

  
  


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  Others

  
  

Commercial Satellite Broadband End User Outlook

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  Civil Defense

  
  


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  Hospital

  
  


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  Education

  
  


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  SME's

  
  


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  Government Agencies

  
  


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  Public Safety

  
  

Commercial Satellite Broadband Regional Outlook

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  North America

  
  
  
  
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    U.S.

    
    
  
  
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    Canada

    
    
  
  
  
  


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  Europe

  
  
  
  
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    Germany

    
    
  
  
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    France

    
    
  
  
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    UK

    
    
  
  
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    Italy

    
    
  
  
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    Spain

    
    
  
  
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    Rest of Europe

    
    
  
  
  
  


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  Asia-Pacific

  
  
  
  
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    China

    
    
  
  
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    Japan

    
    
  
  
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    India

    
    
  
  
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    Australia

    
    
  
  
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    South Korea

    
    
  
  
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    Australia

    
    
  
  
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    Rest of Asia-Pacific

    
    
  
  
  
  


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  Rest of the World

  
  
  
  
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    Middle East

    
    
  
  
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    Africa

    
    
  
  
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    Latin America