Low Earth Orbit Satellite Network App Trends
Wireless communication services continue to evolve and serve the voice and internet access needs of people in rural or remote areas of the world. Geostationary satellites were first to market, and now other satellite systems are pervasive.
The deployment of Low Earth Orbit (LEO) satellite constellations for extending terrestrial network coverage are the current driver of new wireless services in the global telecommunications sector.
According to the latest worldwide market study by ABI Research, this adoption will culminate in $141 billion worth of annual service revenues from satellites by 2030.
Satellite Services Market Development
“Satellite communications services have seen a new wave of enthusiasm and convergence with terrestrial networks looking to extend past their zones of coverage and bridge the digital divide,” said Andrew Cavalier, industry analyst at ABI Research.
Market developments have shown that satellite services like IoT, backhaul, commercial broadband, and Mobile Satellite Services (MSS) can meet carrier-grade performance requirements and enhance the arsenal of any terrestrial telecom service provider.
With over 70 service providers currently providing wireless options worldwide, there are now several influential network providers operating in the growing satellite communications services sector.
According to the ABI assessment, there is an increased focus on deployments within LEO networks for key satellite services in broadband, backhaul, IoT, and MSS mobile applications.
For the consumer segment, the competition over rural and remote market share will become a central battleground, and one of the key drivers impacting the growth of these services over the next decade.
For the enterprise segment, global supply chains are evolving in the aftermath of the COVID-19 pandemic, and satellite service providers are ready to build more resilient and efficient networks.
To reflect these developments, ABI Research anticipates that these essential satellite communication services, in aggregate, will reach over 53 million subscribers by 2030.
“The market is evolving quickly, and many services are finding enhanced deployment through strategic alliances and increased bandwidth supply in LEO,” said Jake Saunders, vice president at ABI Research.
Market leaders are beginning to offer several solutions focusing on satellite-to-mobile device connectivity in partnership with traditional telecom service providers and smartphone manufacturers.
Outlook for LEO Satellite Services Growth
While these new services are still in their early stages, there is evidence that they will find momentum as smartphone technology begins to peak, as sales taper off, and as new revenue streams grow.
To this end, the market is revealing application development paths that will influence and shape new partnerships and opportunities for enterprises throughout the telecommunications value chain.
That said, I anticipate the increased competition could potentially lower fixed broadband subscription costs in places that typically have had little or no alternative to the local commercial wireline service provider.
Originally published at https://blog.geoactivegroup.com on November 21, 2022.