by Satellite as a Service combines communication satellites with cloud computing capabilities to deliver scalable satellite bandwidth-as-a-service for industries like aviation, maritime, energy, and agriculture. It allows organisations to take advantage of flexible, on-demand access to satellite communication resources without owning physical satellite infrastructure or navigating regulatory hurdles of satellite ownership. The service helps users book satellite capacity for as little as an hour at a time. This provides value for industries where connectivity needs may be unpredictable or intermittent.
The global Satellite as a Service market is estimated to be valued at US$ 2.82 Billion in 2023 and is expected to exhibit a CAGR of 34.3% over the forecast period 2023-2030, as highlighted in a new report published by CoherentMI.
Market Key Tends:
The growth of Internet of Things applications is a key trend boosting demand for Satellite as a Service. Applications like industrial asset monitoring, fleet management, and smart city infrastructure require reliable connectivity across remote and rural areas. However, providing terrestrial connectivity to widely dispersed IoT devices is challenging and expensive. Satellite networks help bridge this gap by delivering cost-effective connectivity to IoT endpoints anywhere in the world. As forecasts indicate over 50 billion connected IoT devices globally by 2030, the need for scalable space-based connectivity solutions like Satellite as a Service will keep rising over the coming decade.
Porter’s Analysis:
Threat of new entrants: Low capital requirements and switching costs enable new companies to easily enter the market. However, established players have significant brand recognition and customer loyalty advantages.
Bargaining power of buyers: Buyers have moderate bargaining power due to the availability of alternatives, but switching costs associated with migrating existing infrastructure favor current suppliers.
Bargaining power of suppliers: A few large satellite operators dominate the supply side, giving them strong bargaining power over pricing and contracts. However, they still need to compete on quality and technology.
Threat of new substitutes: New technologies like high-altitude platforms and small satellites pose a potential threat, but cannot fully replace the capabilities of traditional satellite services currently.
Competitive rivalry: Market leaders SES, Intelsat, and Eutelsat compete aggressively on pricing while also investing in novel solutions. However, their global networks and portfolios limit direct competition.
Global Satellite as a Service Market Segmentation:
- By Orbit Type
- LEO
- MEO
- GEO
- Elliptical
- Others
- By Solution
- Satellite TV Service
- Satellite Fixed Voice Solutions
- Satellite Mobile Voice Solutions
- Satellite Internet/VSAT Service
- Satellite Radio Service
- Satellite Backhaul & Trunking
- Others (Inflight Connectivity, M2M, IoT etc)
- By End Use Industry
- Media & Entertainment
- Government
- Aviation
- Defense
- Transportation & Logistics
- Energy & Utilities
- Others (Enterprises, Retail, Mining etc)
- By Frequency Band
- C Band
- K/KU/KA Band
- S & L Band
- X & HTS Band
- Others
Key Takeaways:
The global Satellite As A Service Market Size is expected to witness high growth. The increased adoption of satellite data across various industries such as media, defense, telecommunication, and others is driving the demand for advanced satellite services. The global Satellite as a Service market is estimated to be valued at US$ 2.82 Billion in 2023 and is expected to exhibit a CAGR of 34.3% over the forecast period 2023-2030.
Regional Analysis: North America dominates the market currently due to large-scale adoption across major verticals in the US. However, Asia Pacific is expected to register the fastest growth owing to growing satellite infrastructure and demand from emerging economies like India and China. Countries in the Middle East and Africa are also expanding investment in satellite connectivity.
Key Players: Key players operating in the Satellite as a Service market are SES, Intelsat, Eutelsat, Telesat, SKY Perfect JSAT, SingTel, Optus, Star One, Arabsat, Hispasat. Major players are focusing on exclusive contracts and mergers & acquisitions to gain a larger market share. SES and Intelsat in particular have made sizable investments to strengthen their satellite fleet and ground infrastructure.
*Note:
1.Source: CoherentMI, Public sources, Desk research
2.We have leveraged AI tools to mine information and compile it
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc.
