KSA Satellite Communications Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 8.47 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
KSA Satellite Communications Market Analysis
The KSA Satellite Communications Market is valued at USD 1.06 billion in the current year and is expected to grow at a CAGR of 8.47% during the forecast period to become USD 1.6 billion by the next five years. There is an increasing need for satellite communications in Saudi Arabia's urban and rural regions due to the country's growing demand for high-speed internet access, data transmission, and communication services. In rural or underdeveloped areas, satellite communication can help close the technological gap and offer connections.
- Satellite communications play a crucial role in defense and security operations, enabling secure and reliable communication channels for military forces, intelligence gathering, and surveillance activities. Saudi Arabia's focus on strengthening its defense capabilities may drive the demand for satellite communications systems and services.
- Additionally, the KSA government's Vision 2030 initiative aims to reduce the country's dependence on oil and diversify its economy. This diversification includes sectors such as technology, entertainment, and media. Satellite communications infrastructure will support these sectors and facilitate global connectivity and collaborations.
- Saudi Arabia has been investing in developing and deploying its satellite infrastructure. The country constantly strives to launch additional satellites to enhance its communication capabilities, including broadband internet services, telecommunication, and broadcasting. The satellite fleet and ground infrastructure expansion will support increased connectivity and coverage across the country, driving the market growth.
- However, the satellite communications industry is subject to regulatory frameworks and licensing requirements. Delays or complexities in obtaining necessary licenses and approvals can hinder the deployment of satellite systems and delay the provision of services. In additon, satellite communications infrastructure and services can be costly, especially in terms of initial investment and ongoing operational expenses. The high cost of satellite equipment, satellite launches, and ground infrastructure can be a barrier to entry for new market players.
- The COVID-19 has had a significant impact on the KSA satellite communications market. The COVID-19 pandemic has led to a surge in remote work, online education, and telemedicine. As people and organizations adapted to remote operations, the demand for reliable, high-speed internet connectivity increased. Satellite communications connected areas with limited terrestrial infrastructure, supporting remote work and online services.
KSA Satellite Communications Market Trends
Increased Demand for Connectivity to Drive the Market Growth
- The increased demand for connectivity led to expanding the satellite communications market in Saudi Arabia. As more individuals, businesses, and organizations require reliable and high-speed internet access, satellite communications become a viable solution, especially in areas with limited terrestrial infrastructure. This drives market growth as more satellite communication systems and services are deployed to meet the increased demand.
- The increased demand for connectivity necessitates the development of satellite infrastructure in Saudi Arabia. This includes the deployment of additional satellites, ground stations, and associated equipment to enhance coverage, capacity, and service quality. The growth of satellite communications infrastructure contributes to the expansion of the market and enables better connectivity across the country.
- In addition, the growth of the satellite communications market contributes to the overall economic development of Saudi Arabia. It creates job opportunities, attracts investments, and fosters the growth of related industries. The increased connectivity facilitated by satellite communications supports various sectors such as e-commerce, education, healthcare, and telecommunication, driving economic growth and diversification.
- Further, the growing demand for connectivity prompts satellite communications providers to offer a broader range of services. This includes broadband internet access, voice services, data transfer, video conferencing, and other communication solutions tailored to meet the needs of different user segments. The increased demand drives innovation and the development of new service offerings, further fueling market growth.
- The Communications, Space, and Technology Commission (CST) research estimated that by the end of 2022, the Kingdom the Kingdom's internet penetration would have increased from 98.1% to approximately 98.6%. In terms of internet penetration, Riyadh came up on top with 99.9%, followed by Hail with 99.8%. Such a significant rise in internet penetration rates highlights the expanding user base that drives the demand for internet connectivity and satellite communications services.
Defense and Government Segment to Hold a Significant Market Share
- The defense and government sectors have critical communication needs for national security and defense operations. Satellite communications provide secure and reliable connectivity, allowing secure voice and data transmission, real-time situational awareness, and encrypted communications. Given the high priority placed on national security, the defense and government sectors heavily rely on satellite communications for their operations.
- In addition, Saudi Arabia has vast and diverse geographic areas, including remote and challenging terrains. Terrestrial communication infrastructure may be limited or inaccessible in certain regions. Satellite communications offer extensive coverage, allowing defense and government entities to establish reliable communication links across the entire country, including remote and inaccessible areas.
- There has been a significant emphasis on developing secure communication solutions within the defense and government segment. This includes deploying encrypted satellite communication systems, anti-jamming capabilities, and advanced cybersecurity measures to protect sensitive information and ensure secure data transmission and voice communications.
- Further, increased military spending enables Saudi Arabia to adopt modern technologies, including advancements in satellite communication systems. These technologies offer improved bandwidth, faster data transmission, and enhanced security features, which are crucial for military applications. As the military invests in state-of-the-art satcom equipment, it stimulates the growth of the satellite communication market by driving the demand for advanced satellite communication solutions.
- Moreover, according to the Stockholm International Peace Research Institute (SIPRI), Saudi Arabia was the fifth-highest military spender in the world in 2021. It is the Middle East and North Africa (MENA) region's top military spender. The Middle East and North Africa (MENA) region witnessed Saudi Arabia spend the most on its military in 2021, at about USD 53.7 billion. With higher military spending, Saudi Arabia can expand its satcom capabilities, leading to increased demand for satellite communication services and equipment.
KSA Satellite Communications Industry Overview
The KSA Satellite Communications market is moderately consolidated, with a limited number of major players dominating the industry. However, the market is anticipated to evolve and expand, with opportunities for new entrants and partnerships. A few of the prominent players in the market include Arab Satellite Communications Organization, Saudi Telecom Company (STC), Mobile Telecommunication Company Saudi Arabia (Zain KSA), Salam, and Thuraya Telecommunications Company.
In February 2023, a collaboration agreement was signed between DETASAD and the Arab Satellite Communications Organisation (Arabsat). The agreement intends to expand satellite communications services by offering combined, advanced technological solutions to meet the demands of diverse industries, penetrating more than 22 nations, and investing in research and development to achieve the Kingdom's Vision 2030 goals.
In February 2023, A Memorandum of Understanding (MoU) was signed to create space-based 5G mobile communications voice and data services by the stc Group and Omnispace, a mobile connections business. Through this effort, STC would increase its coverage in underserved areas and provide consumers with seamless, direct-to-device 5G mobile communications access throughout the Kingdom of Saudi Arabia.
KSA Satellite Communications Market Leaders
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Arab Satellite Communications Organization
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Saudi Telecom Company (STC)
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Mobile Telecommunication Company Saudi Arabia (Zain KSA)
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Thuraya Telecommunications Company
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Salam (Integrated Telecom Company)
*Disclaimer: Major Players sorted in no particular order
KSA Satellite Communications Market News
- May 2023: Arabsat launched Arabsat Badr-8, a seventh-generation satellite built on the Airbus Eurostar Neo electric orbit boosting platform, in partnership with Airbus and SpaceX. On May 26, the satellite was launched by a SpaceX Falcon 9 from Cape Canaveral Air Force Station in Florida.
- March 2023: Saudi Arabian origin The Helicopter Company (THC) will equip its Airbus and Leonardo helicopters with the Iridium Certus satellite communications system from Skytrac, a satcom company. The technology enables Wi-Fi connection, low-Earth orbit satellite communications, and 4G/LTE cellular communications possible. Skytrac (Booth B1420) will provide its SkyWeb automatic flight following service and mission monitoring, SAFR flight data monitoring, real-time HUMS alerts, Iridium push-to-talk communications, and voice and text messaging.
Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Bargaining Power of Buyers
4.2.2 Bargaining Power of Suppliers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitutes
4.2.5 Intensity of Competitive Rivalry
4.3 Industry Value Chain Analysis
4.4 Assessment of the Impact of COVID-19 on the Market
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Increased Demand for Connectivity
5.1.2 Government Initiatives and Investments
5.2 Market Restraints
5.2.1 Regulatory and Policy Challenges
5.2.2 Competition from Alternative Technologies
6. MARKET SEGMENTATION
6.1 By Type
6.1.1 Ground Equipment
6.1.2 Services
6.2 By Platform
6.2.1 Portable
6.2.2 Land
6.2.3 Maritime
6.2.4 Airborne
6.3 By End-user Vertical
6.3.1 Maritime
6.3.2 Defense and Government
6.3.3 Enterprises
6.3.4 Media and Entertainment
6.3.5 Other End-user Verticals
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 Arab Satellite Communications Organization
7.1.2 Saudi Telecom Company (STC)
7.1.3 Mobile Telecommunication Company Saudi Arabia (Zain KSA)
7.1.4 Salam (Integrated Telecom Company)
7.1.5 Thuraya Telecommunications Company
7.1.6 Saudi Broadcasting Authority
7.1.7 Detecon Al Saudia Co. Ltd. (DETASAD)
7.1.8 NOVAsat
7.1.9 Vizocom
7.1.10 AXESS Networks Arabia Saudita
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
9. MARKET OPPORTUNITIES AND FUTURE TRENDS
KSA Satellite Communications Industry Segmentation
Satellite communication is the transfer of data and information via satellites orbiting the Earth. It enables long-distance communication by relaying signals between ground stations and satellite receivers in orbit, enabling television broadcasts, internet access, and phone calls. The Satellite Communication (SATCOM) market is defined based on the revenues generated from the types that are being used in various end-use industries such as Maritime, Defense & Government, Enterprises, and Media & Entertainment, among other end-users.
The KSA Satellite Communications market is segmented based on the type (Equipment and Services), platform (Portable, Land, Maritime, and Airborne), and end user vertical (Maritime, Defense & Government, Enterprises, Media & Entertainment, and other end user verticals). Common satellite communication services include voice calling and internet access for different applications. The market sizes and forecasts are provided in terms of value (USD million) for all the above segments.
| By Type | |
| Ground Equipment | |
| Services |
| By Platform | |
| Portable | |
| Land | |
| Maritime | |
| Airborne |
| By End-user Vertical | |
| Maritime | |
| Defense and Government | |
| Enterprises | |
| Media and Entertainment | |
| Other End-user Verticals |
Frequently Asked Questions
What is the current KSA Satellite Communications Market size?
The KSA Satellite Communications Market is projected to register a CAGR of 8.47% during the forecast period (2024-2029)
Who are the key players in KSA Satellite Communications Market?
Arab Satellite Communications Organization, Saudi Telecom Company (STC), Mobile Telecommunication Company Saudi Arabia (Zain KSA), Thuraya Telecommunications Company and Salam (Integrated Telecom Company) are the major companies operating in the KSA Satellite Communications Market.
What years does this KSA Satellite Communications Market cover?
The report covers the KSA Satellite Communications Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the KSA Satellite Communications Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
KSA Satellite Communications Industry Report
Statistics for the 2024 KSA Satellite Communications market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. KSA Satellite Communications analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
