Petroc Taylor
Research expert covering global developments in the use of data
Satellite connectivity - statistics & facts
From monitoring the impact of climate change on delicate ecosystems to the provision of internet connectivity in conflict zones, satellites are proving to be more essential than ever. Rapid technological advancements in recent years have seen satellite operators become key players amid the most pressing global issues, with the satellite services industry generating over 113 billion U.S. dollars in 2022, forming a key part of the 1.4 trillion U.S. dollar global communications services market. As demand grows for anytime, anywhere connectivity, the satellite internet market in particular has seen increased attention. SpaceX’s Starlink and Eutelsat Oneweb have emerged as the leading operational services, while Amazon has begun building its own constellation in what it has named “Project Kuiper”.
Fixed-satellite services face pressure from oversupply
Nine percent of active satellites are in geostationary orbit around 36,000 kilometers from earth. Geostationary satellites remain at a fixed position relative to the earth’s surface and are commonly used to communicate between fixed positions on earth in what is termed a fixed-satellite service (FSS). FSS communications have traditionally been used for a range of telecoms services, including television and radio broadcast, internet connectivity, and telephony, with the FSS service market generating over 107 billion U.S. dollars in service revenue in 2022. However, the FSS market faces pressure from the recent rise of satellite internet constellations in low earth orbit (LEO), with the increased capacity supply lowering prices across the market.The Starlink constellation continues to grow
LEO satellites, which orbit just hundreds of kilometers above earth, made up around 88 percent of all satellites in 2023. Constellations of small LEO satellites are favored by satellite internet providers, with their proximity to earth allowing high-speed broadband to be delivered with low latency. Starlink had by far the most extensive satellite constellation as of late 2023, with the firm accounting for well over a third of the approximately 11,400 satellites in orbit. Despite the increased affordability of LEO launches, the drastic increase in launch frequency saw satellite launch industry revenues increase by 23 percent to seven billion U.S. dollars in 2022.Eutelsat merges with OneWeb to keep pressure on Starlink
The rapid rise of Starlink has ignited strong competition among new and established players in the satellite market. In September 2023, the shareholders of French firm Eutelsat, which generated 1.13 billion euros in revenue in the 2023 financial year, voted to approve a merger with London-based OneWeb. OneWeb, which faced bankruptcy as recently as 2020, is Starlink’s closest competitor, with 628 satellites as of late 2023. Meanwhile, Amazon is moving ahead with Project Kuiper, gaining the required approval from the United States Federal Communication Commission (FCC) to create a broadband satellite constellation containing 3,236 satellites.
