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  • Satellite Backhaul Market Size Estimated to Reach $3.0 Billion by 2026

    (Aviation-NewsWire.Com, February 15, 2022 ) The Global Satellite Backhaul Market is estimated to reach $3.0 billion by 2026, growing at a CAGR of 4.6%. 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, 4G/LTE and 5G (both Enhanced Mobile Broadband (emMB) and Ultra Reliable Low Latency Communicaiton (URLLC)) 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 primarily among Mobile Network Operator has driven the growth of the market.

    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 at 6.9% through 2026. 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 at 7.2% CAGR 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 36.8% in 2020. 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 faces 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

    In March 2020, hiSky, global provider of Satellite IOT connected services announced partnership with ST Engineering iDirect to provide integrated terminal and cloud based technologies for expansion of satellite based IOT communication. hiSky utilizes IOT terminal that consist of modem and antenna in Ka-band and Ku-band.

    In January 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.

    Related Reports:

    A. Satellite Manufacturing Market


    B. Satellite Network Equipment Market


    For more Aerospace and Defense Market reports, please click here

    About IndustryARC: IndustryARC primarily focuses on Cutting Edge Technologies and Newer Applications market research. Our Custom Research Services are designed to provide insights on the constant flux in the global supply-demand gap of markets. Our strong team of analysts enables us to meet the client research needs at a rapid speed, with a variety of options for your business. Any other custom requirements can be discussed with our team, drop an e-mail to sales@industryarc.com to discuss more about our consulting services.


    Venkat Reddy

    (+1) 970-236-3677


    Source: EmailWire.Com

    Source: EmailWire.com

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