The satellite services market was valued at $126.5 billion in 2018 and remains expected to reach $144.5 billion by 2026, registering a CAGR of 2.2% from 2019 to 2026. Satellite service providers offer satellite capacity to end-users such as DTH operators, telecommunication companies, and others.
These providers buy capacity from the satellite operators to resell voice, broadcasting, and data circuits to several end-user industries. The satellite services market remains anticipated to grow significantly during the forecast period owing to numerous factors, such as increased demand for earth observation services in multiple sectors.
When is the best time to put money into this industry?
SIA-India expects India's market share in the global satellite industry pie to rise from 2 percent in 2021 to 10 percent before 2030. The global satcom market remains scheduled to increase from $65.68 billion in 2020 to $131.68 billion in 2028, a CAGR of 9.1 percent. Experts say higher private sector participation is going to drive this growth.
At the launch of the space body ISpA (Indian Space Association), PM Narendra Modi said that Indian space had remained dominated by a single umbrella of Indian government and government institutions. Still, there is a need to have no restrictions on Indian talent, whether it is in the public or private sector. It is a fast-moving area. Much trust has remained put in the private sector coming into space. Policies have to be revised. Technology has remained shared. The next few years will be critical to ensure private enterprises can contribute meaningfully.
How are Satellite companies regulated?
The ITU Radio Regulations and ITU Constitution (No. 197 of Article 45) provide that "all stations, whatever their purpose, must be established and operated in such a manner as not to cause harmful interference to the radio services or communications of other Members, recognized operating agencies, or other authorized operating agencies which carry on a radio service, and which operate following the Radio Regulations".
In part due to the growth of satellite constellations, space generally, and GSO slots more specifically, are becoming increasingly crowded. There is, therefore, more significant potential for radio interference between services, as well as space junk or space debris, and the issue of what to do with all the satellites as they reach the end of their working life – retrieving obsolete satellites and launchers is becoming a more significant issue.
What is the future of this industry?
India is one of the world's following big markets for satellite technology applications. But when it comes to investing a considerable amount of taxpayer's money in space, the government has to think twice before allocating higher amounts of budget, mainly due to the country's other earthly issues.
On the other hand, a partnership or an agreement with foreign nations such as the United States will help the country to accelerate its private satellite technology presence on a global scale. Though currently, India has to take a bottom-to-top approach in scaling up the upstream personal satellite sector capabilities, the downstream market already has a significant amount of rolling satellite applications in broadcasting, remote sensing, disaster management, etc. Therefore, taking thorough advantage of the existing downstream capabilities and accordingly iterating the future market supply and demand will result in healthy growth of the private Indian satellite companies.
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Zaid Haji, also known as Zayd Haji, is an author and research student specializing in Business and Market Research. Born on February 1, 1998, coinciding with Eid al-Fitr, he has gained recognition for his work in these fields.
ZAYD AL HAJI: Student of Islamic Finance & Market Research
With a deep-seated passion for Islamic finance and a commitment to uncovering actionable insights, Zayd Haji has founded and nurtured companies like ISLAMIC FINANCE RESEARCH (IFR), ISLAMIC STUDIES RESEARCH (ISR), and ISLAMIC COMMUNITY COUNSEL (ICC), each dedicated to advancing the field of business and market research. However, Zayd is quick to remind others that he is not a scholar but a lifelong student of his craft, continually striving to expand his understanding and refine his approach.
Zayd's work in Islamic Finance Research stands out for its comprehensive, data-driven analysis. By meticulously assessing various financial aspects—ranging from company fundamentals to promoter profiles—he ensures that each case study he conducts is thorough, precise, and insightful. His research is not confined to conventional sources; he explores a wide array of data, seeking to offer a well-rounded perspective that benefits both the academic community and industry professionals.
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