ICT-IOT

5G NTN Market is Expected to Reach USD 41.78 Billion by 2031

May 2024

ICT-IOT

As per the report published by Kings Research, the global 5G NTN Market was valued at USD 4.99 billion in 2023 and is projected to reach USD 41.78 billion by 2031, growing at a CAGR of 30.60% from 2024 to 2031.

The global 5G NTN market is projected to revolutionize the telecommunications industry due to its cutting-edge connectivity solutions that surpass geographical barriers and traditional limitations. With the convergence of these technologies and innovative applications, the market is poised to witness exponential growth and widespread adoption across diverse industries and sectors. The emergence of 5G NTN represents a paradigm shift in connectivity, offering high-speed, low-latency communication capabilities that enable real-time collaboration, automation, and immersive experiences.

As the digital landscape evolves, driven by the increasing reliance on data-driven applications, IoT devices, and emerging technologies such as AI and augmented reality, the demand for robust and reliable connectivity solutions is projected to surge. 5G NTN solutions address this demand by leveraging non-terrestrial infrastructure, including satellites, high-altitude platforms, and drones, to extend connectivity to remote, rural, and underserved areas, thereby bridging the digital divide and fostering inclusive growth.

Moreover, strategic partnerships and collaborations between satellite operators, telecommunications companies, and technology providers are facilitating innovation and driving market expansion. Tapping into the collaboration between terrestrial and non-terrestrial networks, enables stakeholders to explore new opportunities for revenue generation, market differentiation, and societal impact.

Key Insights

  • Based on component, the hardware segment held the largest market share of 68.60% in 2023
  • Based on application, the EMBB segment generated the highest revenue of USD 2.55 billion in 2023
  • Based on location, the remote segment is anticipated to witness significant growth at a CAGR of 30.86% over 2024-2031
  • Based on end use, the aerospace & defense segment is projected to account for a share of 39.91% by 2031
  • On the basis of region, Asia-Pacific is estimated to register a share of 26.78% by 2031

Skylo Technologies Partners with Samsung to Enhance NTN Services

October 2023: Skylo Technologies, a prominent provider of non-terrestrial network (NTN) services, forged a significant partnership with Samsung Electronics' System LSI Business, renowned for its cutting-edge semiconductor technology. This collaboration aims to advance connectivity solutions by integrating NTN support into Samsung's premier 5G chipsets, thereby elevating next-generation connectivity to unprecedented levels.

Integration of AI & Edge Computing in 5G NTN to Aid Market Expansion

The integration of AI and edge computing capabilities in 5G networks represents a pivotal advancement driving transformative changes across industries, which is contributing significantly to 5G NTN market growth. AI algorithms enhance network management by enabling predictive maintenance, optimized resource allocation, and dynamic network provisioning. This is improving network efficiency and reliability, as well as facilitating the delivery of tailored services and applications to end-users. Additionally, edge computing capabilities enable real-time data processing and analysis closer to the source, thereby reducing latency and enhancing the responsiveness of critical applications such as IoT and autonomous vehicles. Through the integration of AI capabilities and edge computing, 5G networks are witnessing enhanced performance, scalability, and intelligence, thereby laying the foundation for transformative advancements.

Emerging End Use Applications to Offer Promising Opportunities for 5G NTN Market Development

The maritime, mining, and other sectors present significant opportunities for tailored 5G NTN solutions. In the maritime industry, 5G NTN is projected to revolutionize communication and navigation systems, enabling real-time tracking, monitoring, and optimization of maritime operations. Additionally, in the mining sector, 5G NTN offers the potential to enhance safety, productivity, and efficiency through remote monitoring, autonomous equipment operation, and predictive maintenance. Moreover, in the aerospace & defense domain, 5G NTN facilitates secure and resilient communication networks, crucial for mission-critical operations such as surveillance, reconnaissance, and tactical communication. By leveraging the unique capabilities of 5G NTN, these emerging verticals are enhancing operational efficiency, safety, and innovation, thereby driving growth and competitiveness in their respective industries.

Asia-Pacific to Record at a Robust CAGR of 34.39% Over 2024-2031

Based on region, the global 5G NTN market is classified into North America, Europe, Asia Pacific, MEA, and Latin America.

Asia-Pacific's rapid growth in the 5G NTN market is fueled by key technological advancements and collaborative efforts. The region is witnessing significant investment in satellite constellation deployment, capitalizing on its vast geography to address the digital divide. Aerial platforms such as HAPs and UAVs offer agile and cost-effective solutions, particularly beneficial in urban and remote areas. Moreover, cross-border collaboration initiatives ensure interoperability, thereby facilitating seamless connectivity and roaming services across diverse regulatory landscapes. With these strategic developments, Asia-Pacific emerges as the fastest-growing market for 5G NTN, poised to meet the rising demand for high-speed broadband services and foster innovation in telecommunications across the region.

Major Industry Players Ink Lucrative Deals to Strengthen Market Foothold

The global 5G NTN market is fragmented with key players such as SES S.A., EchoStar Corporation, AST & Science, LLC, oneweb.net., Rohde & Schwarz, Gatehouse Satcom A/S, Omnispace, LLC, Thales, Skylo, and others. Companies employ a variety of strategic measures such as acquisitions, mergers, partnerships, product introductions, and collaborations to expand their business globally and enhance their competitive position.

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