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Satellite Backhaul/Satellite Based Cellular Backhaul Market - Forecast(2024 - 2030)
Satellite Backhaul/Satellite Based Cellular Backhaul Market Overview
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.
Report Coverage
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.
Satellite Backhaul/Satellite Based Cellular Backhaul Market, By Region, 2020 (%)
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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 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.
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.
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.
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