Published Year: 2022
5G Satellite Communication Market - A Global and Regional Analysis: Focus on Satellite Solution Type
The global 5G satellite communication market was valued at $2,708.3 million in 2021 and it is...
Market Research Report
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Satellite 5G NR Market Report Coverage
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Key Market Players and Competition Synopsis
The companies that are profiled have been selected based on thorough secondary research, which includes analyzing company coverage, product portfolio, market penetration, and insights gathered from primary experts.
The satellite 5G NR market comprises key players who have established themselves thoroughly and have the proper understanding of the market, accompanied by start-ups who are looking forward to establishing themselves in this highly competitive market. In 2022, the satellite 5G NR market was dominated by established players, accounting for 80% of the market share, whereas the start-ups managed to capture 20% of the market. With the growing need for global connectivity arising on a daily basis, more players will enter the global satellite 5G NR market with each passing year.
Key Companies Profiled:
• Cisco Systems, Inc.
• Deutsche Telekom AG
• Fujitsu
• Gatehouse Satcom A/S
• Huawei Technologies Co. Ltd.
• Intel Corporation
• Nokia
• NEC Corporation
• Telefonaktiebolaget LM Ericsson
• ZTE Corporation
Satellite 5G NR Industry and Technology Overview
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Introduction of Satellite 5G NR
The introduction and adoption of satellite 5G new radio (NR) is an important phase in global connectivity, as cutting-edge technology meets with space-based infrastructure to enable unparalleled levels of communication and data transfer. Unlike traditional terrestrial networks, satellite 5G NR leverages the power of low Earth orbit (LEO) and geostationary satellites to provide seamless coverage across urban, rural, and remote areas, bridging digital divides and unlocking new possibilities for industries such as telecommunications, the Internet of Things (IoT), autonomous vehicles, and others. This revolutionary combination of satellite and 5G technologies has the potential to revolutionize how connectivity will change, revolutionizing information sharing and paving the path for a more linked future.
Market Introduction
Satellite 5G new radio (NR) history can be traced back to the growth of mobile communication technology. As the need for high-speed and dependable wireless access increased, the fifth generation of cellular networks, or 5G, evolved to meet these demands. While 5G was initially designed for terrestrial installations, the promise of the technology to change global connection prompted the investigation of satellite-based solutions. The combination of 5G NR technology with satellites was designed to give universal coverage, particularly in distant and underdeveloped locations. This combination of satellite and 5G technology has the ability to go beyond the digital divide and open up new opportunities for businesses such as IoT, autonomous cars, and others, ushering in a new era of seamless and fast worldwide communication.
Satellite 5G NR is still in its early stages of adoption, but it has begun to pick up the pace. For instance, SpaceX, OneWeb, and Telesat are among the companies working on satellite 5G NR. These companies are creating several satellite constellations that will be utilized to give 5G coverage to various regions of the world. Once deployed on a larger scale, the satellite 5G NR services will be available to be utilized in various sectors, including telecom and IT, education, and healthcare, among others.
Industrial Impact
The introduction of satellite-enabled 5G NR technology has caused a major change in the industrial environment. This innovative combination of satellite and 5G NR capabilities has released unparalleled communication possibilities, enabling companies worldwide. The industrial effect of satellite 5G NR is significant, ranging from precision agriculture and remote asset monitoring to logistics optimization and catastrophe response. It has transformed communication and data transfer in distant and difficult locations, increasing operating efficiency, allowing for real-time decision-making, and stimulating creativity. This collaboration has cleared the door for smarter cities, more resilient supply chains, and better resource management, ushering in a new era of connectedness, which is propelling sectors toward higher efficiency and sustainability.
In recent years, satellite 5G NR has begun to pick up the pace owing to the growing demands for seamless connectivity and reduced latency in various sectors of application. For instance, in July 2023, Cisco Systems, Inc. signed a collaboration with NTT Limited to help boost Private 5G adoption across the automotive, logistics, healthcare, retail, and public sectors. Together, the companies would be able to swiftly deploy crucial Industry 4.0 capabilities such as push-to-talk 'walkie-talkie' communications, automated guided vehicles (AGVs), always-connected PCs (for digital frontline employees), machine vision (such as predictive maintenance and PPE detection), and more.
Market Segmentation:
Segmentation 1: By End User
• Telecom and IT
• Government
• Education
• Healthcare
• Other Industry
Telecom and IT Segment to Dominate the Global Satellite 5G NR Market (by End User)
The satellite 5G NR market is led by the telecom and IT industry, with a 30% share in 2022. Increasing demand for seamless global coverage and reduced latency are driving the growth of the satellite 5G NR market.
Satellite 5G NR technology provides major benefits to the telecommunications and information technology industries, changing connectivity and opening up new prospects. One of the most significant advantages is the ability to bridge the connection gap, particularly in distant and underserved locations. Companies such as OneWeb, SpaceX, and Amazon are developing communication satellite constellations to deliver broadband internet services to areas with limited terrestrial infrastructure. These companies can supply high-speed, dependable, and low-latency connections to allow access to digital services and address the digital divide by deploying satellite 5G NR.
Segmentation 2: By Services
• Enhanced Mobile Broadband (eMBB)
• Ultra-Reliable and Low Latency Communications (uRLLC)
• Massive Machine-Type Communications (mMTC)
Enhanced Mobile Broadband (eMBB) Segment to Lead the Global Satellite 5G NR Market (by Services)
The enhanced mobile broadband (eMBB) segment had the highest market penetration in 2022, followed by the ultra-reliable and low latency communications (uRLLC) platform. The market for enhanced mobile broadband (eMBB) segment reported a revenue generation of $2.66 billion in 2022 and is expected to grow at a CAGR of 11.90% during the forecast period 2023-2033.
Segmentation 3: By Frequency Band
• Below 1 GHz
• 1 GHz to 6 GHz
• Above 6 GHz
1 GHz to 6 GHz Frequency Segment to Lead the Global Satellite 5G NR Market (by Frequency Band)
The 1 GHz to 6 GHz frequency band is expected to dominate the market with a value of $2.06 billion in 2022 and is projected to reach $6.37 billion by 2033.
Additionally, the frequency band type segment includes below 1 GHz and above 6 GHz segments. These frequency bands provide solutions for achieving global coverage and lowering latency. The capabilities of these different frequency bands are continuously being enhanced via the development and integration of newer technologies.
Segmentation 4: By Terminal Type
• 5G NR Terminals-Terrestrial
• 5G NR Terminals-Satcom
• 5G NR Terminals-Hybrid
Segmentation 5: by Region
• North America - U.S. and Canada
• Europe - U.K., Germany, France, and Rest-of-Europe
• Asia-Pacific - Japan, India, China, and Rest-of-Asia-Pacific
• Rest-of-the-World - Middle East and Africa and Latin America
North America to Dominate Global Satellite 5G NR Market (by Region)
North America accounted for the highest share of 23% in 2022 in the global satellite 5G NR market, owing to a significant number of companies based in the region. North America’s growth is driven by various activities in the U.S. and Canada, as well as increased spending by commercial organizations such as Cisco Systems, Inc., Intel Corporation, Qualcomm Technologies, Inc., and government key agencies.
Recent Developments in the Satellite 5G NR Market
• In July 2023, Telefonaktiebolaget LM Ericsson signed a partnership with Telia, under which both companies achieved a significant result as they successfully managed to reach geographical 5G coverage of 99 percent in Lithuania. Telia has been able to construct a national, sophisticated 5G network on 3.5 GHz and 700 MHz frequencies as a result of this partnership, providing high-speed data access across Lithuania.
• In April 2023, Nokia signed a collaboration with ORMAN and Dassault Systems. Through this collaboration, the company would enhance IoT solutions in the industry with the help of a 5G private wireless network.
• In February 2023, NEC Corporation signed a partnership with Cisco Systems, Inc. to broaden their collaborative efforts to encompass system integration solutions as well as future prospects in 5G xHaul and private 5G in order to assist clients in transforming their architecture and connecting more people and things. Under their Global Systems Integrator Agreement (GSIA), Cisco Systems, Inc. and NEC Corporation had expanded areas of collaboration with augmented solutions for scalable 5G xHaul transport networks, such as increased capabilities for end-to-end automation and routed optical networking to support operators' 5G monetization.
Demand – Drivers and Limitations
Market Demand Drivers: Increasing Adoption of IoT and Cloud-Based Applications
Seamless Global Coverage: Seamless global coverage, which provides unique benefits and prospects, could serve as an influential factor in the satellite 5G NR industry. One significant advantage is the potential to provide access to rural and underdeveloped places that standard terrestrial networks cannot reach. For example, satellite 5G NR can offer remote populations a high-speed internet connection, allowing them to engage in the digital economy and access online education, telemedicine, and e-commerce services.
Market Challenges: High Latency and Network Performance Due to Inappropriate Spectrum Allocation
High Infrastructure Investment Cost: The high cost of infrastructure investment offers significant financial obstacles for the satellite 5G NR industry. The building and deployment of satellites, ground stations, and accompanying equipment necessitate significant financial resources. These expenditures might be prohibitively expensive, making it difficult for firms to start and maintain operations in the satellite 5G NR market.
Market Opportunities: Communication Satellites Constellation Deployment
Hybrid Satellite Terminals: Due to their capacity to bridge the connection gap in rural or underserved locations, hybrid satellite terminals provide considerable business potential in the satellite 5G NR market. These terminals combine the power of satellite and 5G networks to provide customers with dependable and high-speed internet access in areas where traditional terrestrial infrastructure is restricted or non-existent. This one-of-a-kind capacity opens up a wide range of possible uses and income sources for companies.
Analyst’s Thoughts
According to Nilopal Ojha, Principal Analyst, BIS Research, “The satellite 5G NR market is a relatively newer domain but is set to witness strong growth in the field of telecommunications in the coming future, where innovation meets the necessity for global connection. Due to a combination of strategic reasons and potential opportunities, the satellite 5G NR industry is set for considerable development. With the development of Internet of Things (IoT) devices, data-driven applications, and the requirement for seamless connectivity across urban and distant locations, satellite 5G NR appears as the solution to bridging digital divides. Additionally, the continuous race among key industry participants to set up upgraded satellite constellations and the continuous effort to construct and deploy low Earth orbit (LEO) and medium Earth orbit (MEO) satellite networks is speeding up as big companies fight for dominance, contributing to the market's increasing trajectory.”
Satellite 5G New Radio (NR) Market - A Global and Regional Analysis
Focus on Frequency Band, Services, End User, Terminal Type, and Country - Analysis and Forecast, 2023-2033
Some Faq's
Frequently Asked Questions
Satellite 5G NR, an abbreviation for satellite 5G new radio, is the integration of fifth-generation (5G) wireless communication technology with satellite networks. This breakthrough seeks to bring high-speed, low-latency connections to rural and underserved locations throughout the world by combining the capabilities of terrestrial 5G networks with satellite systems. Satellite 5G NR aims to bridge the digital divide, enable seamless global communication, and support a wide range of applications such as IoT, remote sensing, disaster management, and more by combining advanced 5G features such as enhanced data rates, ultra-low latency, massive device connectivity, and network slicing with the broad coverage and resilience of satellite communication. There are three different types of terminals available in the market, namely, 5G NR terminals-terrestrial, 5G NR terminals-Satcom, and 5G NR terminals-hybrid.
Within the aerospace sector, the global satellite 5G NR market has seen major key players such as Cisco Systems, Inc., Intel Corporation, and Fujitsu, which are capable of providing a range of satellite 5G NR services. Key players are offering satellite 5G NR services and terminals and targeting diverse markets via contracts, agreements, and partnerships to enhance their global presence.
New satellite 5G NR service providers, which include terminal manufacturers, should focus on providing services for the aerospace industry, where the need for satellite 5G NR seems unending.
The following can be seen as some of the USPs of the report:
• A dedicated section on growth opportunities and recommendations
• A qualitative and quantitative analysis of the satellite 5G NR market based on application and product.
• Quantitative analysis of end user sub-segment, which includes:
o Telecom and IT
o Education
o Healthcare
o Government
o Other Industry
• Regional and country-level forecast on satellite 5G NR, which includes end users such as telecom and IT, education, healthcare, government, and other industries and products, including frequency band and terminal type.
• A detailed company profile comprising established players and some start-ups that are capable of significant growth, along with an analyst view.
Companies developing satellite 5G terminals, companies offering satellite-based 5G services, and satellite-based IoT services should buy this report. Additionally, stakeholders from the telecommunications industry should also buy this report to get insights about the emerging satellite 5G NR demand and the benefits they could derive from it.
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