LEO Terminals Market by Vertical (Commercial, Government & Defense), Platform (Fixed, Portable, Mobile), Frequency (C-Band, L&S-Band, X-Band, Ka-Band, Ku-Band, VHF/UHF-Band, EHF/SHF-Band, Multi-Band,Q- Band) and Region - Global Forecast to 2028
[256 Pages Report] Projections indicate that the LEO Terminals Market is poised for significant growth, with an estimated increase from USD 6.0 billion in 2023 to USD 17.7 billion by 2028, demonstrating a noteworthy compound annual growth rate (CAGR) of 23.9% during this period.
The LEO (Low Earth Orbit) terminals market is an evolving sector within the broader satellite communication industry. LEO satellites operate in orbits closer to the Earth compared to traditional geostationary satellites, enabling lower latency and higher data transfer rates for communication.
In terms of market segmentation, LEO terminals are categorized by vertical, by frequency and by platform, platform further divided into fixed, portable and mobile.
The market report segments the LEO terminals industry across five key regions: North America, Europe, Asia Pacific, the Middle East & Africa, and Latin America, with a focus on their key countries.
In 2023, North America is expected to hold the largest share of the LEO terminals market.
The emergence of Low Earth Orbit (LEO) terminals has revolutionized connectivity solutions, rapidly replacing traditional satellite communication methods in various sectors. These terminals offer unparalleled advantages, including swift and reliable internet access in remote regions, enhanced global connectivity, and increased bandwidth for data transmission.
The widespread adoption of LEO terminals across multiple industries stems from their unique capabilities. They enable extended and uninterrupted connectivity, catering to diverse needs such as residential internet access, enterprise-level communications, emergency services, and IoT applications. Their ability to facilitate high-speed data transfer and communication has positioned them as crucial components in bridging the digital divide.
LEO Terminals Market Forecast to 2028
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LEO terminals Market Dynamics:
Drivers : Increasing demand for cost-effective, high-speed connectivity
Connectivity plays a crucial role in today’s digital age. Individuals, businesses, and governments rely on robust communications networks to transmit data, access services, and interact in real time. However, traditional communication infrastructure often fails to meet the increasing demand for cost-effective, high-speed connectivity. To address this challenge, LEO satellites offer a groundbreaking solution. Their proximity to Earth ensures reduced signal travel time, resulting in significantly lower latency than geostationary satellites. This low latency, combined with high data transmission speeds, makes LEO satellites suitable for applications requiring real-time interactions, such as video streaming, online gaming, and remote telemedicine. Additionally, the low cost of LEO terminals makes them economically viable for expanding access to high-quality communications services across diverse regions, including underserved and remote areas.
Restraints: Availability of other broadband technologies
LEO terminals face stiff competition from other broadband technologies, particularly fiber optic cables and 5G networks. The maturity and widespread adoption of fiber optic cables, as well as the rapid growth of 5G networks, give them an advantage over LEO terminal networks, which are still in their early stages of development. Furthermore, fiber optic cables and 5G networks offer comparable performance and affordability to LEO terminals. Fiber optic cables have the highest bandwidth and the lowest latency among broadband technologies, while 5G networks are rapidly catching up in various areas. Additionally, as fiber optic and 5G services become more widely accepted, the associated costs are decreasing.
Opportunity: Growing demand for connectivity from developing countries
The market for LEO terminals holds immense potential, especially in developing countries where the demand for internet connectivity is increasing rapidly. Traditional satellite solutions are often expensive for these countries due to their limited resources, making these terminals a more affordable and viable solution for global coverage. By offering cost-effective connectivity solutions, LEO terminals play a crucial role in driving socioeconomic progress in developing countries. These terminals can unlock a wide range of applications, such as education, healthcare, agriculture, and e-commerce, that can help stimulate economic growth. For example, in education, LEO terminals can provide high-quality educational resources to students in remote areas, while in healthcare, they enable remote medical consultations and telemedicine services, bringing essential healthcare to underserved regions. In agriculture, these terminals can provide farmers with information on weather conditions, crop prices, and market trends, enhancing their productivity and profitability.
Challenges: Threat of data interception, unauthorized access, and cyberattacks
Securing data transmitted through LEO satellites poses a significant challenge due to the susceptibility of LEO terminals to various security threats, including data interception, unauthorized access, and cyberattacks. To address these risks, robust protective measures are essential. Data interception is a significant concern, given the long-distance transmission through LEO satellites, which makes data vulnerable to malicious interception. To combat this, LEO terminals must utilize strong encryption protocols to scramble data in a way that only authorized individuals can decipher it.
Unauthorized access is another issue that can be prevented by incorporating secure authentication mechanisms that identify users and devices before allowing access to data or services. Cyberattacks, including malware and denial-of-service attacks, are potential threats to LEO terminals. Preventing such attacks requires multiple security measures, such as firewalls, intrusion detection systems, and timely security patches. These precautions help strengthen the security and privacy of data transmitted over LEO satellites.
Based on Vertical , The Government & defence segment is expected to witness the highest growth during the forecast period enabling secure and real-time communications between military command centers and field units.
Based on Vertical, Low Earth Orbit (LEO) terminals are of utmost importance in government and defense sectors. They provide crucial communication and connectivity solutions. Governments and defense organizations heavily rely on LEO terminals for various critical applications. These include secure and real-time communication between military command centers and field units, collecting and analyzing intelligence data for informed decision-making, and ensuring smooth communication on the battlefield. LEO terminals are also vital in remote deployments and emergency response situations, offering reliable connectivity in challenging environments.
Based on Platform,Mobile LEO terminals segment is projected to record the highest market share growth
Mobile terminals are expected to witness substantial growth, driven by factors such as the expanding availability of LEO satellite networks offering high-speed broadband connectivity, the rising demand for mobile satellite services in remote and underserved regions, and the ongoing development of innovative mobile satellite terminal technologies. This segment comprises handheld terminals for individual users, vehicle terminals primarily for transportation and monitoring, and fixed terminals for stable broadband access. Among these, handheld terminals are expected to experience the most significant growth due to heightened demand from individual users, particularly in remote areas. Vehicle terminals will also see substantial growth, primarily in the transportation and logistics sectors, while fixed terminals, though essential, are anticipated to grow at a comparatively slower rate due to cost considerations. The market is being shaped by the proliferation of LEO satellite networks, the increasing need for reliable mobile satellite services in remote areas, and advancements in mobile terminal technology, all of which present significant growth opportunities in the years ahead.
North America is expected to hold the highest market share in 2023.
North America, which includes the US and Canada, is set to be a big player in the market for LEO terminals. This is because it's a hub for the satellite industry, with major companies investing in LEO satellite networks. The region's demand for fast internet is growing, especially in rural areas. LEO terminals are seen as a cost-effective solution to provide reliable internet in these areas.
LEO Terminals Market by Region
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Key Market Players
The LEO terminals companies is dominated by a few globally established players such as SpaceX (US), EchoStar Corporation (US), L3Harris Technologies, Inc. (US), Thales (France), Raytheon Technologies (US), and Kymeta Corporation (US) among others, are the key manufacturers that secured LEO terminals.
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Report Metric |
Details |
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Market size available for years |
2020-2028 |
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Base year considered |
2022 |
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Forecast period |
2023-2028 |
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Forecast units |
Value (USD) |
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Segments covered |
By platform, vertical, and frequency. |
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Geographies covered |
North America, Europe, Asia Pacific, the Middle East & Africa, and Latin America |
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Companies covered |
SpaceX (US), Kymeta Corporation (US), L3harris Technologies, Inc. (US), EchoStar Corporation (US), and Thales (France), among others. |
LEO Terminals Market Highlights
This research report categorizes the LEO terminals markets based on platform, vertical, and frequency
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Segment |
Subsegment |
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By Platform |
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By Vertical |
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By Frequency |
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By Region |
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Recent Developments
- In August 2023, Hughes Network Systems, an EchoStar company, has secured a five-year Indefinite Delivery Indefinite Quantity (IDIQ) contract with the US Space Force. This contract allows the US Department of Defense, federal agencies, and international coalition partners to access Hughes’ fully managed, low-latency LEO satellite-based services.
- In July 2023 , L3Harris Technologies is set to finalize its USD 4.7 billion acquisition of Aerojet Rocketdyne following clearance from the US Federal Trade Commission. The purchase, aimed at bolstering L3Harris’s presence in the defense contracting sector, had faced scrutiny from some lawmakers concerned about competition and innovation.
- In June 2023, The US government is paying SpaceX’s Starlink satellite unit to offer equipment and services to Ukrainian soldiers. The terminals will most likely be purchased through the Ukraine Security Assistance Initiative.
Frequently Asked Questions (FAQ’s):
What is the current size of the LEO terminals market?
The LEO terminals market is estimated to grow from USD 6.0 billion in 2023 to USD 17.7 billion by 2028, at a CAGR of 23.9% from 2023 to 2028. North America is estimated to record the largest share of the LEO terminals market in 2023.
Who are the winners in the LEO terminals market?
as SpaceX (US), EchoStar Corporation (US), L3Harris Technologies, Inc. (US), Thales (France), Raytheon Technologies (US), and Kymeta Corporation (US)
What are some of the technological advancements in the market?
The increasing demand for high-speed internet access, particularly in emerging markets, has led to the rapid expansion of LEO terminals, which are essential for connecting with LEO satellite constellations. These terminals play a critical role in applications such as fixed and mobile terminals, IoT, and 5G backhaul. They also address connectivity gaps in remote and underserved regions cost-effectively. The global coverage and low latency attributes of LEO terminals make them suitable for the rapidly growing IoT sector. The expansion of LEO satellite constellations further amplifies the capacity and coverage of LEO terminals, which fuels their growth.
What are the factors driving the growth of the market?
- MBMM antennas have wide-ranging and impactful applications in the LEO terminal landscape. They can deliver high-speed broadband internet access to remote regions, facilitate mobile backhaul for cellular networks, extend communication services during disaster relief efforts, and support military operations, including command and control and intelligence gathering. MBMM antennas are versatile and powerful, and they are poised to play a pivotal role in shaping the future of LEO terminals.
- LEO terminals serve various essential functions in autonomous aircraft operations. They facilitate command and control by allowing the exchange of commands between controllers and autonomous aircraft, ensuring safe and efficient operations. Additionally, LEO terminals enable data transfer, enabling the transmission of critical information such as sensor data, flight plans, and weather reports, which are essential for the aircraft’s safe navigation.
- Adaptive committed bandwidth technology optimizes connectivity for critical applications such as cell backhaul and Voice over Internet Protocol (VoIP). This technology involves dynamically adjusting bandwidth allocation in response to real-time demand and network conditions. It also enhances operational efficiency and prevents resource wastage by aligning bandwidth allocation with actual requirements. This strategic feature translates into tangible benefits, including improved user experiences, enhanced network responsiveness, and efficient resource management. Overall, it is a dynamic solution that underlines the commitment to seamless and reliable connectivity, elevating business operations and end-user satisfaction.
Which region is expected to have highest market share in the next forecast years?
The market in North America is projected to grow highest market share of from 2023 to 2028, showcasing strong demand from LEO terminals in the region. One of the key factors driving the market in North America is the rising demand for high-speed connectivity, the increasing significance of remote work and learning.
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The research study conducted on the LEO terminals markets involved extensive use of secondary sources, directories, and databases such as Hoovers, Bloomberg Businessweek, ITC Trade data and Factiva to identify and collect information relevant to the LEO terminals markets.
The primary sources considered included industry experts from the LEO terminals markets as well as sub-component manufacturers, LEO terminals raw material suppliers, government agencies, technology vendors, system integrators, research organizations, and original equipment manufacturers related to all segments of the value chain of this industry. In-depth interviews with various primary respondents, including key industry participants, Subject Matter Experts (SMEs), industry consultants, and C-level executives, have been conducted to obtain and verify critical qualitative and quantitative information pertaining to the LEO terminals markets as well as to assess the growth prospects of the market. Sources from the supply side included various industry experts, such as chief X officers (CXOs), vice presidents (VPs), and directors from business development, marketing, and product development/innovation teams; related key executives; independent consultants; importers; and key opinion leaders.
Secondary Research
The market ranking of companies was determined using the secondary data made available through paid and unpaid sources and by analyzing the product portfolios of major companies. These companies were rated on the basis of performance and quality of their products. These data points were further validated by primary sources.
Secondary sources referred to for this research study include financial statements of companies offering LEO terminals and information from various trade, business, and professional associations. The secondary data was collected and analyzed to arrive at the overall size of the LEO terminals market, which was validated by primary respondents.
Primary Research
Primary interviews were conducted to gather insights such as market statistics, data of revenue collected from the products and services, market breakdowns, market size estimations, market forecasting, and data triangulation. Primary research also helped in understanding the various trends related to technology, threat type, range, domain, and region. Stakeholders from the demand side, such as CIOs, CTOs, and CSOs, and installation teams of the customer/end users who are using anti-aircraft systems were interviewed to understand the buyer’s perspective on the suppliers, products, component providers, and their current usage of anti-aircraft systems and future outlook of their business which will affect the overall market.
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Market Size Estimation
- The top-down and bottom-up approaches were used to estimate and validate the size of the LEO terminals markets. The research methodology used to estimate the market size also included the following details.
- The key players were identified through secondary research, and their market ranking was determined through primary and secondary research. This included a study of the annual and financial reports of the top market players and extensive interviews of leaders, including chief executive officers (CEO), directors, and marketing executives.
- All percentage shares, splits, and breakdowns were determined using secondary sources and verified through primary sources. All possible parameters that affect the markets covered in this research study were accounted for, viewed in extensive detail, verified through primary research, and analyzed to obtain the final quantitative and qualitative data. This data was consolidated, enhanced with detailed inputs, analyzed by representatives in MarketsandMarkets, and presented in this report.
Market size estimation methodology: Bottom-up Approach
Market size estimation methodology: Top-Down Approach
Data triangulation
After arriving at the overall size from the market size estimation process explained above, the total market was split into several segments and subsegments. The data triangulation and market breakdown procedures explained below were implemented, wherever applicable, to complete the overall market engineering process and arrive at the exact statistics for various market segments and subsegments.
Market Definition
LEO terminal is a system integrated into commercial and military platforms to enable satellite-based communications applications. These terminals are engineered to facilitate the seamless transmission and reception of signals between LEO satellite networks and terrestrial stations. These terminals are prime in establishing dependable and efficient communication links, empowering a range of applications, including high-speed internet access, voice communication, data transfer, video broadcasting, remote sensing, and IoT connectivity.
Stakeholders
- Military Antenna Manufacturers
- System Integrators
- Original Equipment Manufacturers
- Military Service Providers
- Research Organizations
- Investors and Venture Capitalists
- Ministries of Defense
- R&D Companies
Report Objectives
- To define, describe, and forecast the size of the LEO terminals market based on platform, vertical, frequency, and region in terms of value
- To forecast the size of market segments across North America, Europe, Asia Pacific, the Middle East & Africa, and Latin America, along with key countries in these regions
- To identify and analyze key drivers, restraints, opportunities, and challenges influencing market growth
- To identify industry trends, market trends, and technology trends prevailing in the market
- To analyze micromarkets1 with respect to individual technological trends, prospects, and their contribution to the market
- To strategically profile key market players and comprehensively analyze their market rank analysis and core competencies2
- To identify the detailed financial positions, product portfolios, and key developments of leading companies in the market
- To provide details regarding the competitive landscape of the market and analyze growth strategies such as product launches and developments, contracts, partnerships, agreements, and collaborations adopted by key market players
1Micromarkets are referred to as the segments and subsegments of the LEO terminals markets considered in the scope of the report.
2Core competencies of companies were captured in terms of their key developments and key strategies adopted to sustain their positions in the market.
Available customizations
Along with the market data, MarketsandMarkets offers customizations as per the specific needs of companies. The following customization options are available for the report:
Product Analysis
- Product matrix, which gives a detailed comparison of the product portfolio of each company
Regional Analysis
- Further breakdown of the market segments at country-level
Company Information
- Detailed analysis and profiling of additional market players (up to 5)
Growth opportunities and latent adjacency in LEO Terminals Market