Why Will North America Rule the 5G Satellite Communication Industry?

The 5G satellite communication market is projected to experience a strong CAGR of 33.3% by the end of this decade to reach , USD 33,896.7 million by 2030.

The growth of the industry is mainly attributed to the rising advancements in technology and the increasing demand for high speed with low-latency connectivity. 

This 5G network, by upgradation of passive assets such as fiber networks and data centers are helping governments and policymakers to transform cities into smart cities, enabling residents to benefit from an advanced digital economy that relies on data. 

Geo-political conflicts and wars made the non-terrestrial technology crucial for defense forces, with the advanced 5G satellite communication systems further improving defense decision-making. In addition, IoT enabled satellite systems and integration of AI & ML in near future will expand the applications of new technologies in defense sector.

Backhaul and tower feed solutions hold the largest revenue share, of over 80%, in 2021. The industry is benefiting from their ability to multicast high-design content and videos across wide coverage areas. 

Whereas, the hybrid multiplay category is witnessing the fastest growth, offering high-speed connectivity, multicast the same video distribution and efficient BB connectivity for aggregated IoT data.

The GEO category is the fastest growing category with a 34% CAGR in the years to come, because of its versatile applications. While, the LEO category held the largest revenue share in 2021 and this trend will continue in the near future due to its cost-effective launching for small satellites in this orbit.

This 5G satellite communication technologies are sought for defense, government, commercial industries and individuals who want affordable solutions including access to the cost-effective broadband and connectivity to remote regions lacking terrestrial network coverage. These factors are driving the growth of the market.

North America 5G satellite communication market held the largest revenue share of  30% in 2021, and will reach USD 12 billion by 2030 with the highest growth rate in the years to come This is mainly due to the major contribution of the U.S. along with the presence of key players in the region.

APAC is expected to have the second-highest growth rate over the forecast period due to high demand for connectivity in emerging economies with the rise in R&D investments along with technological advancements and government initiatives in the region. 

Moreover, China contributes significantly to the growth of the region due to the growing demand from large population and with continuous focus on improving 5G services due to its improving economy and government support.

It is because of the tech advancements happening all over the all over the world, the demand for  5G satellite communication is on the rise, and will continue to grow in the future as well.