Satellite Backhaul Market Estimated to Reach $2.7 Billion by 2025

The Global Satellite Backhaul Market is estimated to reach $2.7 billion by 2025, growing at a CAGR of 4.4%. Satellite backhaul is the process of distribution of data from one location to various satellite terminals. Satellite Backhaul/Satellite Based Cellular Backhaul has proven to be extremely feasible in the areas where communication is difficult or expensive through the use of traditional means such as fiber, cable or microwave. Satellite backhauls are used to carry 2G, 3G and 4G/LTE traffic across the globe. Satellite cellular backhaul expands the area of operation of public and mobile telephony providers and facilitates communication. Surge in use of mobile phones and technological advancement in the telecommunication sector has driven the growth of the market.

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Satellite Backhaul/Satellite Based Cellular Backhaul Market Segment Analysis - By Transmission Medium

By Transmission Medium the market is segmented into Wired, Wireless. Wired satellite backhaul is witnessing a significant growth in the market. The demand for wired satellite backhaul has increased due to the unexpected growth of the telecommunication industry in data traffic. Wired satellite backhaul provides higher throughput compared to the wireless. Furthermore, the placement of Wi-Fi access points becomes less critical with the installation of wired satellite backhaul. Wired backhaul provides ultimate performance and high security as there are systems that use Ethernet cabling for the wired backhaul. These factors have driven the growth of the market.

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Satellite Backhaul/Satellite Based Cellular Backhaul Market Segment Analysis - By Technology

By technology the market is segmented into Fiber, Copper, Microwave, milimeter wave. The Fiber segment is witnessing significant growth in the market. Due to the upsurge in usage of electronics devices and growth in consumer electronics industry demand for more data centers and internet facilities for communication has also increased. In these industries there is a requirement for transmission of data with maximum speed and minimized speed which has resulted in the growth of fiber. According to UNCTAD, there are 4,422 colocation data centres among which 80% are present in the developed countries and 40% are accounted for in United States. In addition to this, as the internet penetration is increasing the demand for cellular base stations are also increasing owing to the growth of subscribers. The smart phone users have increased as compared to the last few years. Due to these factors the satellite backhaul are finding their opportunities.

Satellite Backhaul/Satellite Based Cellular Backhaul Market Segment Analysis - By Geography

By Geography the Satellite Backhaul Market is dominated by APAC with a market share 36.2% in 2019. APAC is dominating the market owing to the need for connectivity in the emerging economies such as India, China and other countries. Increased demand for higher bandwidth, increased expenditure by governments for improved communication in the developing countries such as China, India are driving the growth of the active optical cable market in this region. Furthermore, Japan has a large footprint as a major Asian data centre provider and is a multinational financial and business gateway and one of the fastest-moving international markets in the world. Data centre sites provide convenient links to high-speed international communication, with landing points for many U-boat cables linking to the western United States. Japan's digital economy is extremely advanced and tough to run from abroad or alternate locations. These factors are driving the growth of the market.

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Satellite Backhaul/Satellite Based Cellular Backhaul Market Drivers

Surge in Mobile Industry:

Surge of mobile industry has played an important role in the growth of cellular backhaul through satellite. Through the use of mobile cellular network internet access has become much easier by an individual. With rising growth of consumer electronics sector, South Korea has been acting as a major leader in the APAC region. Growing demands towards smart devices compiled with technological advancements towards new technology have been fuelling the market demands in the country. Many of the major market players have been continuously investing towards developing products using advanced technology to meet the rising customer demands. These factors have driven the growth of the market.

Rising use of Internet applications:

The rising use of internet applications have resulted in the adoption of cellular satellite backhaul. This has resulted in the adoption of optical interconnects for transferring data at high speed and less attenuation. The rising penetration of internet has resulted in the adoption of optical interconnects and other communication technologies. The fiber optic based internet links offer thin, flexible cable, essentially unlimited bandwidths, immunity from electromagnetic interference and significantly higher edge connection density bandwidth. Most of the mobile operators are focusing on providing satellite focused connectivity in the remote areas. These factors have significantly driven the growth of the market.

Satellite Backhaul/Satellite Based Cellular Backhaul Market Challenges

Ultra low latency and ultra-dense nature of the network:

In 4G cellular networks the major backhaul requirement challenges are deployment cost, long-distance reach, availability and capacity. The backhaul network face two major challenges when 5G network capabilities are added to 4G cellular networks; those are low latency and ultra-dense networks. Owing to these factors todays backhaul networks are infeasible to meet requirements in terms of latency, cost efficiency, availability and others.

Satellite Backhaul/Satellite Based Cellular Backhaul Market Landscape

Satellite Backhaul/Satellite Based Cellular Backhaul Market is dominated by major companies such as Ericsson, iDirect, Skyvision Global networks, Hughes Network Ltd., Intrasky Offshore SAL, NewSat Ltd, Telefonica S.A, Telespazio VEGA UK Ltd, Gilat Satellite Networks Ltd and Advantech Wireless among others.

Acquisitions/Technology Launches

January 24, 2019- Gilat Satellite Networks Ltd., launched a satellite backhaul solution. This solution provides high performance required for next-generation services.

Key Takeaways

The rise in mobile industry, advancement in cellular networks and growth of telecommunication industry are driving the growth of the market.

Fiber satellite backhaul is dominating the market owing to the demand for fast internet connectivity and surge in usage of mobile devices.

APAC region is witnessing a significant growth of the market owing to the presence of emerging economies and demand for high speed internet connectivity.

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Venkat Reddy
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