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Satellite 5G Transition Generates $125 Billion Service Revenue Opportunity by 2030

The 5G wireless communications access protocols that incorporate nonterrestrial networks will attract hundreds of millions of smartphones and IoT devices to satellite networks by the decade’s close, according to a report from Northern Sky Research (NSR). The report, “5G Via Satellite, Second Edition,” indicates that beyond traditional telecommunications company areas, multiple segments show accelerated growth from a transition to 5G, generating $125.5 billion in cumulative service revenues.

“While COVID-19 may increase demand, delaying 3GPP Release 17, key actors in the industry are rushing to adopt 5G standards for network orchestration and integration with telco networks,” a statement from NSR reads. “Value chain transformation is already taking shape with space and ground segment vendors providing infrastructure as-a-service, the development of verticalized offers, and growing interest of mainstream telcos in satellite technologies.”

Lluc Palerm, New Sky Research consultant.

The report’s author, Lluc Palerm, an NSR consultant, said that direct satellite-to-device communications would make a big difference.

“It instantly opens the door to a huge addressable market, as any mobile phone or IoT device can roam to a satellite network when moving outside terrestrial coverage,” Palerm said. “Standardized service orchestration based on 5G is a tremendous opportunity to make satellite easily adoptable by mainstream telcos.”

According to the report, 5G-based service orchestration profoundly changes the value chain, allowing new actors to incorporate satellite in their technology mix. It said that equipment vendors will be a key enabler for satellite network compatibility with 5G, yet the reward potential of successful platform innovation has widespread promise as 5G ground segment revenue climbs to $2.5 billion annually by 2030.

“For the first time, satellite was not left behind in the definition of mainstream telco standards,” Palerm said. “5G is a once-in-a-lifetime opportunity for satellite communications to become integrable with mainstream networks, opening a huge addressable market.”

NSR offers the report for sale on its website at www.nsr.com/?research=5g-via-satellite-2nd-edition.