5G From Space Market size is evaluated at USD 588 million in 2024 and is predicted to reach USD 66.10 billion by the end of 2037, growing at around 43.8% CAGR during the forecast period i.e., between 2025-2037. In 2025, the industry size of 5G from space is estimated at USD 846 million.
The 5G from space market is anticipated to observe significant growth due to rising global needs for connectivity, especially in underserved and remote areas. The promise of extending 5G further beyond terrestrial limitations offers enormous opportunities to facilitate communication gaps and other advanced technologies, such as autonomous vehicles and IoT devices. A key recent development comes from Sateliot in the form of its preparation, in March 2024, for the launch of four nanosatellites as part of its 5G constellation. This is an example of the rapid strides that the industry is taking toward commercial deployment. Another factor contributing to the market growth relates to the increasing number of public-private partnerships that form and develop for enhancing space-based 5G infrastructure.
Expansion of the market is also being driven by governments worldwide through the creation of a supportive regulatory environment and investments in space technology. For example, in November 2023, OneWeb was granted a provisional spectrum assignment to launch commercial satellites to start communication services in India. This progress within the regulatory environment showcases government initiatives to increase access to these satcom-enabled 5G services, particularly in highly populated but connectivity-constrained areas. Government-backed funding for space and telecom projects with the relaxation of licensing requirements for satellite networks, also indicates better growth prospects in the segment.
Growth Drivers
Challenges
|
Base Year |
2024 |
|
Forecast Year |
2025-2037 |
|
CAGR |
43.8% |
|
Base Year Market Size (2024) |
USD 588 million |
|
Forecast Year Market Size (2037) |
USD 66.10 billion |
|
Regional Scope |
|
Component (Hardware, Services, Software)
Hardware segment is poised to account for more than 53% 5G from space market share by the end of 2037. This is majorly due to the development and deployment of satellite infrastructure, which involves a significant investment in satellite payload, antenna, and ground station. In November 2023, Lockheed Martin developed the payload 5G.MIL, which was aimed at improving military communication systems. As more countries and private enterprise investments in space-based 5G networks are expected to continue expanding, so will the demand for highly sophisticated hardware solutions, thereby acting as a driver for segment growth.
Application (Enhanced Mobile Broadband (eMBB), Ultra-Reliable Low Latency Communications (URLLC), Massive Machine, Type Communications (mMTC), Fixed Wireless Access (FWA))
By 2037, ultra-reliable low latency communications (URLLC) segment is estimated to capture over 44% 5G from space market share, as it enables applications that require real-time communication with no delay. Segments like these see a massive demand for industries such as autonomous driving, telemedicine, and defense since even milliseconds of latency could result in major consequences. In July 2022, Qualcomm and Thales demonstrated the key role of URLLC in the announcement of a collaboration on testing 5G networks on Earth-orbiting satellites. Consequently, it is expected that more industries will use URLLC for mission-critical operations, pushing the demand for this segment further upwards.
Our in-depth analysis of the market includes the following segments:
|
Component |
|
|
Frequency Band |
|
|
End use |
|
|
Orbit Type |
|
|
Application |
|
North America Market Analysis
North America in 5G from space market is poised to dominate around 32.5% revenue share by the end of 2037 due to significant government support and an expanding space industry. This is also due to the major focus of the region on civilian and military satellite-based communication technologies that serve as a key growth factor. The existence of renowned space technology companies, such as SpaceX and Lockheed Martin contributes to the increasing competitive advantage of North America in the sector.
The U. S. continues to be one of the important players in the market, with companies like SpaceX staying ahead in deploying 5G from space. In April 2023, SpaceX launched a 5G satellite intended for IoT connectivity, a critical component in the expansion of global satellite-based communication networks. Due to innovations such as these, the U.S. leads in the development of advanced space technologies for commercial and industrial uses.
Canada is also turning to be a significant market for 5G from space, with a few initiatives running to expand satellite communications. Companies in the country are also capitalizing on these opportunities to launch new technologies to capture market share. In November 2023, OQ Technology launched two new LEO satellites, TIGER-5 and TIGER-6, further enhancing Canada's capability to offer high-speed, low-latency satellite communication services. As the country further invests in its satellite infrastructure, so will 5G from space be increasingly present in Canada.
Asia Pacific Market Analysis
Asia Pacific 5G from space market is expected to witness growth rate of around 25% from 2025 to 2037. This is due to the increasing demand for advanced communication technologies in the region. With the expanding digital infrastructure space and initiatives taken by several governments to heighten internet penetration in their remote and under-served areas, the ecosystem for space-based 5G solutions is getting favorable. Countries such as India and China are leading in the adoption of satellite-based 5G networks as they upgrade their respective digital economies and industries.
With government support for satellite communication technologies, India market is growing rapidly. In March 2022, Nelco and Omnispace collaborated on bringing satellite-powered 5G services to South Asia, including India, a fact that shows the commitment of the country toward better connectivity. Such developments are likely to play a crucial role in connecting the remote areas outside the cities, boosting the adoption of 5G from space solutions in India.
China is also one of the leading players in Asia Pacific market, since the country is increasingly investing in space technology and telecommunications. For example, Alén Space officially announced its intent to launch four satellites for Sateliot's 5G constellation in March 2024. The announcement suggests the country’s aspirations to become a leader in space-based 5G technologies. This supportive outlook of China 5G from space industry opens new investment and expansion opportunities for players.
The 5G from space market is highly competitive, with several key players driving innovative ideas and technological advancements to capture a large share. Key companies in the market include Lockheed Martin, Airbus Defence and Space, Boeing, Thales Alenia Space, and Northrop Grumman. These companies are significantly investing in satellite technology and 5G infrastructure to provide greater connectivity even to the most unreachable parts of the world.
Moreover, several telecom providers and aerospace companies are partnering or collaborating to accelerate the deployment of 5G from space solutions. The launch of 5G satellites by companies represents a fundamental step to achieving global 5G coverage and illustrates the efforts put in by various players to deploy new solutions versatile enough to meet the rising demand for satellite-based 5G services.
Here are some leading players in the market:
Author Credits: Abhishek Verma
Copyright © 2024 Research Nester. All Rights Reserved
FREE Sample Copy includes market overview, growth trends, statistical charts & tables, forecast estimates, and much more.
Have questions before ordering this report?