Satellite Internet Market

Military's growing demand for satellite internet is driving the market growth

Market CAGR for Satellite Internet is being driven by the military's growing demand for satellite internet. Satellite communication services offer secure bandwidth capacity for military operations conducted in remote areas with inadequate and unstable communications infrastructure. The revenue from Fixed Satellite Services (FSS) used in military and government applications is anticipated to rise dramatically in the next years. Commercial satellite technology is being incorporated into military communication networks by governments worldwide.

This is the outcome of the government's stepped-up efforts to address the expanding demand for satellite internet for telecommuting across a range of applications, including communications on-the-go (COTM) and airborne intelligence, surveillance, and reconnaissance (AISR) (COTM). Satellite services are excellent at providing the dependable and ubiquitous coverage that these services require. These have a significant impact on the satellite internet market's expansion.

The lack of alternative connectivity options in rural areas is driving an increase in demand for satellite internet, which is revolutionizing global access. Its capacity to travel to far-off places—from deserts to hilly landscapes—solves the problem of internet accessibility. Interestingly, satellite technology provides high-speed internet, particularly in underserved areas historically. Developing countries in Asia and LAMEA are adopting these new technologies quickly because they increase speed and data capabilities.

Compact and easy to use, modern satellite dishes have replaced bulky, antiquated counterparts, increasing access to global connectivity, particularly in remote and difficult-to-reach areas where traditional services are financially difficult to provide. In these areas, the market for satellite internet is expanding due to a combination of these factors.

The market for satellite internet is expanding significantly thanks to large investments. Acquiring $26.4 million in Series B funding in November 2021, Fleet Space Technologies demonstrated confidence in the potential of its cutting-edge nanosatellite technology for Internet of Things (IoT) efficiencies. New investors like Amazon joined this round, which valued the company at $126 million. Previous backers like Artesian Venture Partners also participated. Notably, Amazon strengthened its position in the market in July 2023 by spending $120 million to build a satellite construction facility at NASA's Kennedy Space Center.

This move demonstrated Amazon's resolve to introduce a rival space internet service that would be comparable to SpaceX's Starlink. Thus, driving the Satellite Internet market revenue.

Government initiatives play a crucial role in the expansion of the Global Satellite Internet Market Industry. Many countries are recognizing the importance of satellite internet in achieving universal connectivity and are implementing policies to support its development. Investments in satellite infrastructure, subsidies for service providers, and partnerships with private companies are becoming more common. These efforts aim to enhance internet access in rural and remote areas, thereby fostering economic growth and social inclusion. As governments continue to prioritize digital infrastructure, the market is likely to witness accelerated growth, contributing to the overall increase in market value.

The proliferation of Internet of Things (IoT) devices is significantly impacting the Global Satellite Internet Market Industry. As more devices become interconnected, the need for reliable and widespread internet access becomes paramount. Satellite internet offers a viable solution for IoT applications in remote locations where traditional broadband is unavailable. Industries such as agriculture, logistics, and energy are increasingly adopting satellite connectivity to enhance operational efficiency and data collection. This growing demand for IoT solutions is expected to further stimulate market growth, as companies seek to leverage satellite technology to support their digital transformation initiatives.

The Global Satellite Internet Market Industry is witnessing a notable influx of investment from the private sector. Venture capital and private equity firms are increasingly funding satellite internet startups and established companies, recognizing the potential for high returns in this rapidly growing market. This financial backing is crucial for research and development, enabling companies to innovate and expand their service offerings. As a result, the market is expected to grow at a compound annual growth rate (CAGR) of 33.89% from 2025 to 2035. This investment trend not only enhances competition but also drives technological advancements, ultimately benefiting consumers.

The Global Satellite Internet Market Industry is experiencing a surge in demand for high-speed internet connectivity, particularly in remote and underserved regions. As of 2024, the market is valued at approximately 10.1 USD Billion, driven by the need for reliable internet access for education, healthcare, and business operations. This demand is further fueled by the increasing reliance on digital services and the proliferation of smart devices. Governments and organizations are investing in satellite technology to bridge the digital divide, which is expected to enhance economic opportunities in these areas. The growth trajectory suggests a robust expansion in the coming years.

Technological innovations are propelling the Global Satellite Internet Market Industry forward. Advancements in satellite design, manufacturing, and launch capabilities have significantly reduced costs and improved service quality. The emergence of low Earth orbit (LEO) satellites, which offer lower latency and higher bandwidth, is transforming the landscape. Companies are deploying constellations of LEO satellites to provide global coverage, which is likely to attract a broader customer base. As these technologies mature, the market is projected to grow exponentially, with estimates indicating a valuation of 250.2 USD Billion by 2035. This evolution in technology is essential for meeting the increasing demands of consumers and businesses alike.

By region, the study provides market insights into North America, Europe, Asia-Pacific, and Rest of the World. The North American Satellite Internet market area will dominate this market. Due to the presence of multiple players, the market is expected to experience increased competition due to its consolidation. This is due to both the region's increasing use of cutting-edge technologies—such as cloud-based, IoT, and AI technologies and the government's growing to spread satellite technology across North America. The people living in developed nations like the United States and Canada are extremely tech-savvy and reliant on the internet.

This increases the need for high-speed internet, which ought to promote the expansion of local markets.

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

Figure 3: SATELLITE INTERNET MARKET SHARE BY REGION 2022 (USD Billion)

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

Europe Satellite Internet market accounts for the second-largest market share due to a growing demand of high internet in remote and underserved areas and high adoption of innovative technologies. Further, the German Satellite Internet market held the largest market share, and the UK Satellite Internet market was the fastest-growing market in the European region

The Asia-Pacific Satellite Internet Market is expected to grow at the fastest CAGR from 2023 to 2032. The target market is expanding rapidly in the Asia Pacific area as a result of the expansion of satellite internet in the fields of government, military, broadcasting, and healthcare. Moreover, China’s Satellite Internet market held the largest market share, and the Indian Satellite Internet market was the fastest-growing market in the Asia-Pacific region.

Leading market players are investing heavily in research and development to expand their product lines which will help the Satellite Internet market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their global 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, Satellite Internet industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the global Satellite Internet industry to benefit clients and increase the market sector. In recent years, the Satellite Internet industry has offered some of the most significant advantages to Consumers. Major players in the Satellite Internet market, including Singtel Group, Freedomsat, EchoStar Corporation, Thuraya Telecommunications Company, Eutelsat Communications SA, and others, are attempting to increase market demand by investing in product development to increase their product line and cater to diverse consumer needs.

Leading telecommunications company Singtel, formally known as Singapore Telecommunications Limited, has its headquarters located in Singapore. Singtel is a major player in the telecom sector, but its satellite internet services are not its primary focus. Digital and satellite television, mobile, broadband, and fixed-line phone services are among the many communication services that Singtel primarily provides. With a significant presence throughout the Asia-Pacific area, the company has advanced Singapore's telecommunications infrastructure. Nonetheless, it is advised to consult the most recent corporate reports or official announcements for comprehensive and current details regarding Singtel's participation in satellite internet services.

In May 2022, Singtel introduced iSHIP, a one-stop shop offering connectivity and digital services enabled by satellite for the maritime sector. Ship managers and owners now have a great deal more flexibility and visibility into their operations and resources thanks to this iSHIP service.

Global satellite provider Eutelsat has its headquarters in Paris, France, and focuses on offering satellite communication services all over the world. With a vast fleet of satellites across the globe, Eutelsat provides a variety of services, including internet connectivity through satellite broadband services. The business provides services to the government, enterprise, broadcasting, and telecommunications industries. Eutelsat is a significant participant in the satellite internet market because of its vital role in developing satellite technology and increasing connectivity.

In Jully 2022, Sixty-eight OneWeb low Earth orbit satellites and Eutelsat's thirty-six GEO satellites were combined due to a partnership between the two companies. That allowed both of them to challenge SpaceX's hegemony in satellite internet by seizing the market for satellite connectivity.