Satellite services industry can shoot to the moon, says Novaspace

17 May 2024 Consultancy.eu 1 min. read
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Strong demand for satellite services is lifting the industry to new heights, according to an intelligence report from space sector consultancy Novaspace.

Thanks to transformational changes, including the rise of direct-to-device satellite technologies, the mobile satellite services industry is set to emerge as a billion-dollar market by 2027.

The booming satellite communications market is divided into three main segments, according to Novaspace: traditional handheld phones, direct-to-phone connectivity, and the internet of things (IoT).

Satellite services industry can shoot to the moon, says Novaspace

Source: Novaspace

Within the direct-to-device market, direct-to-phone services could connect an average of nearly 130 million users monthly by 2032. This is being fueled by a number of major advancements that have helped to integrate satellite and terrestrial networks.

IoT devices are projected to triple over the coming decade, on the back of the growing number of applications for IoT in sectors including manufacturing, utilities, energy, oil & gas, and more. Some of the increase in satellite connectivity is being fueled by new market entrants.

“Continuous technological improvements have bolstered satellite capacity and enhanced device capabilities, hastening the adoption of direct-to-device satellite services,” said Sumaiya Najarali, senior consultant at Novaspace.

Najarali added however that despite the strong growth prospects, a number of challenges will need to be overcome for the market to reach its full potential. “Success will be largely influenced by external factors. Additionally, affordability of services and customer willingness to pay will be pivotal in this cost-sensitive market.”

Novaspace is a global leader in professional services related with the space sector. The firm is the product of a merger between Euroconsult and SpaceTec Partner and has around 130 consultants across 10 offices worldwide.