Satellite as a service (SaaS) refers to a platform that utilizes the capability of dedicated satellites to provide on-demand connectivity services. The platform provides robust connectivity options along with greater control and flexibility to users without owning any infrastructural assets. SaaS eliminates large upfront investments associated with satellite ownership while offering access to a network of satellites on demand. The global SaaS market has immense potential as it allows organizations to leverage satellite connectivity on a pay-per-use basis for meeting various communication requirements.
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% over the forecast period 2023 - 2030, as highlighted in a new report published by CoherentMI.
Market Opportunity:
The opportunity to leverage on-demand connectivity through SaaS platforms is a major factor driving the market growth. SaaS eliminates the need for large capital expenditures associated with satellite ownership and allows users such as enterprises, governments, and military forces to access connectivity services only when required. This offers greater flexibility and cost savings compared to traditional satellite connectivity options. Particularly for organizations operating across remote and rural areas with limited terrestrial infrastructure, SaaS provides a reliable solution to meet occasional and temporary communication needs in a cost-effective manner. The ability to pay only for services utilized and remove infrastructure management responsibilities is anticipated to further increase the adoption of satellite as a service globally over the forecast period.
Porter’s Analysis:
Threat of new entrants: The threat of new entrants is moderate as large capital investment is required to launch and operate satellites. However, new players can provide services through leasing satellite capacity from existing operators.
Bargaining power of buyers: The bargaining power of buyers is high as buyers have many options to choose from due to presence of numerous satellite operators globally. Buyers can negotiate on prices and service offerings.
Bargaining power of suppliers: Satellite manufactures and launch service providers have moderate bargaining power due to availability of alternatives. Operators can rely on multiple suppliers to meet their satellite needs.
Threat of new substitutes: Threat from new substitutes is growing with the emergence of high throughput satellites and low earth orbit constellations that offer lower latency services.
Competitive rivalry: The market sees high competition due to presence of global players offering substitutable products and services.
SWOT Analysis:
Strength: Existing operators have strong global footprint and extensive satellite fleet. The technology also provides reliable communications backup for enterprises.
Weakness: Satellite services have high operational costs. Launch and insurance costs also make services expensive. The industry also faces regulatory challenges.
Opportunity: Demand is increasing from various sectors for broadband connectivity, IoT, maritime, aeronautical etc. Growth of 5G networks will facilitate integrated satellite-cellular services.
Threats: Financial losses from satellite failures or problems can impact business continuity. Launch delays and availability of suitable launch vehicles also pose challenges.
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 over the forecast period driven by increasing demand for broadband connectivity. Satellite services provide connectivity solutions for organizations across industries such as media, telecom, government, maritime, aeronautical, and oil & gas. Growth in commercial applications of satellites is a major factor driving adoption of different space-as-a-service models. 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% over the forecast period 2023 – 2030.
Regional analysis saw North America dominating the global market in 2021 led by presence of major players and growing connectivity demand among enterprises. However, Asia Pacific is estimated to grow at the fastest pace during 2023-2030 backed by infrastructure development programs in countries such as India and China.
Key players operating in the global satellite as a service market are SES, Intelsat, Eutelsat, Telesat, SKY Perfect JSAT, SingTel, Optus, Star One, Arabsat, and Hispasat. Major players are investing in new satellite launches and focusing on the integration of 5G and satellite technologies to offer innovative hybrid networking solutions.
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