PUBLISHER: BIS Research | PRODUCT CODE: 1341291
PUBLISHER: BIS Research | PRODUCT CODE: 1341291
“Global Satellite 5G New Radio (NR) Market to Reach $14.47 Billion by 2033.”
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.
KEY MARKET STATISTICS | |
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Forecast Period | 2023 - 2033 |
2023 Evaluation | $4.69 Billion |
2033 Forecast | $14.47 Billion |
CAGR | 11.92% |
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.
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.
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.
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.
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.
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.
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.
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.
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.
Data and validation have been taken into consideration from both primary sources as well as secondary sources.
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.
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