Satellite-based 5G Network Market Analysis

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: