As per a new report published by market research and competitive intelligence provider, the satellite internet market is anticipated to exceed a market valuation of US$ 6 Bn by 2031, and expand at an impressive CAGR of more than 8%. The study expects that, with the emergence of the new space race by big tech entrepreneurs, players will bring advanced and highly efficient satellite broadband to the market.
The internet penetration gap that exists between various countries and economic sections is encouraging inventors to call out for satellite internet technology. As per the study, globally, there are almost 4 in every 10 people who don’t have access to the internet. A large chunk of this ratio lives in rural areas and don’t have the privilege to the power of the internet as yet. Inaccessibility in rural areas is prominently due to its harsh geographic conditions, which makes infrastructure building expensive.
In addition, the lack of an established customer base is adding to the situation. Similarly, developing countries and small island nations suffer from the same situation. Satellite internet does not require huge cables to deliver data, and it is likely to be more accessible to the masses.
The setup cost for a satellite internet service is comparatively less and comes with a longer life cycle. Positioning of satellites in lower orbit is evading the problem of latency. For instance, satellites that are in the orbit of around 600 kilometers from the Earth have lower latency as compared to higher orbiting ones. Starlink broadband services claim to provide latency as low as 20 ms. On the other hand, the visibility of satellites with the naked eye due to their placement in lower orbit is a point of concern, with prominent companies working on the same.
Key Takeaways from Market Study
- The study estimates that satellite internet revenue will soar 2.2X from 2021 to 2031, reaching nearly US$ 6 Bn by 2031.
- As per a market intelligence study satellite internet industry insights, global market revenue is likely to total US$ 3.5 Bn in 2021.
- Demand for satellite internet is likely to gain pace due to its utilization in the deployment of 5G and IoT technology.
- Residential satellites are likely to increase their share to reach nearly 55% by 2031 as compared to 2020.
“Growing smart device penetration along with the emergence of dynamic 5G is likely to propel satellite internet deployment,” says a Senior Research Analyst.
Launching a satellite internet service for a wide horizon of users, such as for residential use, all-level enterprises, federal governments, etc., is likely to fetch more revenue. For instance, comparing Telesat with Starlink, the former business model aims at delivering services to only government clients and B2B customers, whereas, the latter is planning to provide services to everyone across the globe.
Starlink has started its beta version testing, which is almost at the end of its testing phase, and the service will be for commercial purposes. Similarly, the company is in talks with the U.S. Department of Military for the adoption of its services.
These insights are based on a report on Satellite Internet Market by Fact.MR.