Satellite-based 5G Network Market size is assessed at USD 769.2 million in 2024 and is anticipated to exceed USD 822 million by the end of 2037, witnessing over 51.2% CAGR during the forecast period i.e., between 2025-2037. In 2025, the industry size of satellite-based 5G network is estimated at USD 773.1 million. The market’s profitable growth curve is attributed to rising demands for high-speed, low-latency connectivity. The convergence of 5G network and satellite technology offers seamless connectivity solutions to various sectors.
GSMA estimates 5G to cover one third of the world’s population by 2025. In February 2024, GSMA indicated 1.6 billion 5G connections globally, a figure that is expected to exponentially rise to 5.5 billion by 2030. The rapid growth of 5G connections is a major growth driver for the market, as terrestrial networks may not be able to support areas where the infrastructure is limited or nonexistent, allowing satellite-based 5G networks to fill the gap. Additionally, 5G provides reliable backhaul solutions for satellite networks to improve overall performance and reduce latency. The improved performance attracts individual consumers, businesses, and government sectors, fueling the satellite-based 5G network market’s profitable growth.
5G network slicing enables satellite-based networks to offer tailored services to various customer segments, from IoT applications to entertainment, which allows satellite-based 5G networks to stand out from other connectivity options. For instance, in August 2023, T-Mobile launched a network slicing beta for developers with participants including Google, Dialpad, Cisco, Zoom, and others to advance video calling applications. The future of the market is promising with the launch of new low orbit satellites (LEO) set to answer the rising demands for satellite-based 5G infrastructure. Key market players are positioned to capitalize on new opportunities arising in autonomous vehicles, smart devices, aviation, marine, and defense sectors.
Growth Drivers
Challenges
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
51.2% |
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Base Year Market Size (2024) |
USD 769.2 million |
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Forecast Year Market Size (2037) |
USD 822 million |
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Regional Scope |
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Satellite Type (Low Earth Orbit, Medium Earth Orbit, Geostationary Orbit)
Low earth orbit (LEO) satellite segment is projected to hold satellite-based 5G network market share of more than 43.7% by 2037. The segment is positioned to increase its revenue share by the end of 2037 exhibiting a profitable CAGR. The segment’s growth is attributed to LEO satellites faster data transmission capabilities in comparison to traditional geostationary satellites. LEO satellites are typically positioned at an altitude of 1200 miles or less. Major market players such as Eutelsat, SpaceX, and Amazon are deploying multiple LEO satellite constellations to support global 5G services leading to a robust growth of the segment.
Additionally, LEO satellites are positioned to support real-time applications requiring seamless connectivity such as telemedicine, gaming, and IoT infrastructure leading to opportunities in the latency-sensitive sectors. In March 2023, OQ Technology announced plans to increase its constellations from 3 to 10 in 2023 and improve its 5G narrowband IoT connectivity service based on 3GPP for non-terrestrial networks.
The medium earth orbit (MEO) segment is poised for rapid growth by the end of 2037 owing to its balanced offering between latency and coverage. MEO satellites are typically positioned at altitude ranges between 1234 to 22300 miles in orbit. The demands for MEO satellite connectivity services are rising owing to greater area coverage capabilities over traditional geostationary satellites. The segment is positioned to meet the demands for seamless connectivity solutions for maritime and aviation sectors across remote seas and oceans. For instance, in March 2024, Celcom Digi and SES signed a memorandum of understanding (MoU) to explore MEO satellite connectivity services across Malaysia and develop a local gateway for satellite communication (SATCOM) services in the country.
Frequency Band (Ku-band, Ka-band, C-band, L-band, S-band)
The Ku-band segment in satellite-based 5G network market is projected to rapidly increase in its revenue share owing to its increased usage for high-frequency and high-capacity communication. The European Space Agency specifies that Ku-band operates in the 12-18 GHz range, and the segment’s robust growth is attributed to its increasing usage of fixed and mobile satellite communications. Maritime, broadcast, and aviation applications are increasingly leveraging Ku-band owing to the smaller antennas used, making deployment easier and improving 5G suitability in environments that are usually deemed challenging. For instance, in July 2024, Intelsat announced the approval of the 3GPP Ku-band work package for standardization under guidelines by the International Telecommunications Union (ITU); the move bodes well for the use of the Ku-band spectrum as a fully standardized 5G solution in space.
Our in-depth analysis of the global market includes the following segments:
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Satellite Type |
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Frequency Band |
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Application |
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Component |
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End user |
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North America Market Analysis
North America registered the largest satellite-based 5G network market share globally with a 36.4% revenue share in 2024. The market is poised to increase its revenue share by the end of 2037 owing to significant technological advancements in the satellite-based telecommunications sector and growing investments by key market players. The region is home to major market players such as Viasat Inc., SpaceX, Amazon, Intelsat, etc., deploying satellite constellations to leverage the future of 5G space connectivity. For instance, the Federal Communications Commission (FCC) is proactively seeking to make additional spectrums for 5G communications available and has made auctioning of high-band spectrum a priority. Supportive regulatory ecosystem boosts the satellite-based 5G network market’s growth in North America.
The U.S. dominates the market share in North America and is projected to increase its market share by the end of 2037. The U.S. benefits from a favorable regulatory ecosystem and rapid advances in satellite communication solutions. For instance, the Rural Digital Opportunity Fund (RDOF) aims to disburse over USD 20.4 billion over ten years to facilitate broadband and voice services to millions of small businesses and unserved homes across remote areas in the U.S. The first phase of the auction ended in 2020, and phase 2 aims to award USD 11.2 billion to winning bidders to ensure prioritizing higher speed networks with lower latency.
Additionally, ongoing projects to improve satellite-based communication services immensely benefit the satellite-based 5G network market’s growth. For instance, in November 2023, Lockheed Martin demonstrated the first fully regenerative advanced 5G non-terrestrial network satellite base station and plans to launch the first 5G mil payload for orbit in 2024.
Canada is projected to increase its market share in North America during the forecast period. The market benefits from government initiatives to improve telecommunications by leveraging satellite-based 5G connectivity solutions. For instance, in September 2024, the government announced an agreement with Telesat to provide them with USD 2.1 billion loan to complete and operate Lightspeed, i.e., a premier satellite network. The LEO satellite network is poised to improve 5G connectivity services across Canada, especially in rural areas.
Additionally, Canada has a vast geographical landscape with comparatively lower population density, making high-speed connectivity solutions vital for various industries in the country. The rising demand for low latency connectivity solutions in Canada is poised to continue boosting the growth of the market.
APAC Market Analysis
The Asia Pacific satellite-based 5G network market is projected to register the fastest growth in the market. The profitable growth curve in APAC is attributed to demands for connectivity solutions for a large population and to bridge the limitations of terrestrial infrastructures in bridging the data divide. China, Japan, India, and South Korea are leading the market growth of the region. Governments in APAC are increasingly investing in satellite technologies to complement terrestrial 5G rollouts. For instance, in September 2024, KT Corp of South Korea along with its satellite subsidiary KT SAT announced the integration of KOREASAT 6 with a terrestrial 5G network leveraging the 5G non-terrestrial network (NTN) standard.
China holds a significant revenue share in APAC owing to the government's push for self-reliance in space connectivity. China has been actively deploying satellites to improve communications in remote areas. For instance, in February 2024, China Mobile launched two LEO satellites to trial 5G and 6G integration to push for terrestrial and satellite network integration. Additionally, mega projects such as the Spacesail project aim to have near about 15000 satellites in space to offer connectivity solutions. The large-scale push in China to integrate terrestrial and satellite-based 5G networks is poised to generate considerable revenue during the forecast period.
India is poised to increase its revenue share in the APAC satellite-based 5G network market by the end of the forecast period. The market in India provides tremendous potential for global and regional market players owing to high population density and multiple sectors requiring low-latency connectivity solutions. For instance, in March 2022, Omnispace and Nelco announced a collaboration to deliver 5G using Omnispace’s NGSO satellite network across different segments. Additionally, government focus on digitization benefits the growth of the satellite-based 5G network market by empowering local players to establish non-terrestrial 5G connectivity solutions. For instance, in May 2020, Vestaspace Technology announced that it will launch more than 35 high speed 5G satellite constellations across India and has installed eight ground stations to facilitate the launches.
The global satellite-based 5G network landscape is poised for rapid growth during the forecast period. The sector is witnessing global players partnering with local telecommunications companies to integrate satellite-based 5G network services.
Here are some key players in the market:
Author Credits: Abhishek Verma
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