Global 5G Non-Terrestrial Network (NTN) Market Outlook to 2028

Global 5G Non-Terrestrial Network (NTN) Market Overview

The global 5G Non-Terrestrial Network (NTN) market has witnessed remarkable growth. By 2023, the market has expanded to USD 4.5 billion. The market's growth is driven by the increasing need for seamless global connectivity, especially in remote and underserved regions. The integration of satellite networks with terrestrial 5G infrastructure enhances coverage, providing continuous connectivity for applications such as Io T, autonomous vehicles, and defense communication.

The 5G NTN market is dominated by several key players who are driving innovation and expanding their market presence. Some of the leading companies include Thales Group, Lockheed Martin Corporation, Qualcomm Technologies Inc., Telesat, and SES S.A. These companies are at the forefront of developing advanced satellite communication systems, collaborating with telecom operators.

Lockheed Martin announced a partnership with Qualcomm Technologies to develop a new satellite-based 5G network for military applications in 2023. This collaboration aims to provide secure, resilient communication networks for defense purposes. The project is expected to involve an investment of over USD 500 million, reflecting the increasing commercial interest in the 5G NTN market.

In 2024, San Francisco emerged as the dominant city in the 5G NTN market due to its strong tech ecosystem, early adoption of 5G technologies, and proximity to leading satellite and telecom companies. The city's robust infrastructure and significant investments in cutting-edge communication technologies made it a hub for 5G NTN development and deployment.

Global 5G Non-Terrestrial Network (NTN) Market Segmentation

The global 5G Non-Terrestrial Network (NTN) market is segmented by various factors like application, components and region etc.

By Application: The global 5G NTN market is segmented by application into military and defense, transportation, healthcare, and agriculture. In 2023, the military and defense segment dominated the market. This dominance is driven by the increasing reliance on secure, resilient communication networks for defense operations, particularly in remote and hostile environments. The use of 5G NTN in defense applications ensures continuous connectivity, critical for mission success also contributes to the growth.

Segment

2023 Market Share

Military and Defense

40%

Transportation

25%

Healthcare

20%

Agriculture

15%

By Component: The market is also segmented by component into hardware, software, and services. In 2023, the hardware segment held the largest market share. The ongoing deployment of satellite constellations and the need for robust, reliable hardware solutions to support 5G NTN networks are key factors contributing to the dominance of the hardware segment.

Segment

2023 Market Share

Hardware

50%

Software

30%

Services

20%

By Region: The market is also segmented by region into North America, Europe, APAC, MEA, Latin America. North America dominated the 5G NTN market in 2023, driven by early 5G adoption, significant government and private sector investments in satellite technology, and the presence of key players such as Lockheed Martin and Telesat. This strong ecosystem fosters innovation and accelerates market growth.

Region

2023 Market Share

North America

40%

Europe

25%

APAC

20%

MEA

10%

Latin America

5%

Global 5G Non-Terrestrial Network (NTN) Competitive Landscape

Company

Establishment Year

Headquarters

Thales Group

2000

Paris, France

Lockheed Martin Corporation

1995

Bethesda, USA

Qualcomm Technologies Inc.

1985

San Diego, USA

Telesat

1969

Ottawa, Canada

SES S.A.

1985

Betzdorf, Luxembourg

Qualcomm: In 2024, Qualcomm introduced a new line of chipsets specifically designed to support 5G NTN applications. These chipsets enable seamless integration between terrestrial and satellite networks, enhancing the performance of NTN services. Qualcomm's innovation is expected to drive the adoption of 5G NTN technology across various industries, with initial contracts secured from major telecom operators in North America and Europe.

Lockheed Martin: In 2024, Lockheed Martin successfully launched a new satellite specifically designed to support 5G NTN networks for defense applications. This launch, part of Lockheed Martin's broader strategy to enhance defense capabilities through satellite technology, involved an investment of $600 million. The satellite's deployment is expected to bolster the company's position in the 5G NTN market.

Growth Drivers

Increasing Demand for Enhanced Connectivity in Remote Areas: By the 2024, over 2 billion people globally reside in areas with inadequate or no access to high-speed internet. The deployment of 5G NTN networks, which utilize satellite-based systems, is bridging this digital divide. For instance, in India, a government report indicated that approximately 400 million people in rural areas are expected to benefit from NTN-based 5G services by 2025, driving market growth.

Growth of the Io T Ecosystem: The expansion of the Internet of Things (Io T) ecosystem is another critical driver for the market. Industries such as agriculture, logistics, and environmental monitoring are increasingly adopting Io T devices that require continuous, low-latency communication provided by 5G NTN networks, further fueling market growth.

Expansion of Military and Defense Applications: The growing use of 5G NTN in military and defense applications is a major growth driver. Development of satellite-based communication systems are integrated with 5G NTN networks. These systems are critical for ensuring secure, reliable communication in conflict zones and remote areas, where terrestrial networks are often unavailable.

Challenges

Technical Integration with Terrestrial Networks: Integrating NTN systems with terrestrial 5G networks presents technical challenges that could hinder market growth. These integration issues can result in service disruptions and reduced network performance, posing a challenge for the widespread adoption of 5G NTN technology.

Limited Satellite Lifespan and Network Reliability: The limited lifespan of satellites, typically ranging from 10 to 15 years, and concerns over network reliability are additional challenges for the 5G NTN market. The need for frequent satellite replacements and the potential for service interruptions raise concerns about the long-term sustainability and reliability of 5G NTN solutions.

Government Initiatives

European Union's Horizon 2024 Program: The European Union's Horizon 2024 program, with a budget of € 3 billion, aims to advance satellite communication technologies and integrate them with terrestrial 5G networks. This initiative focuses on improving connectivity in rural and underserved regions across Europe. The program also supports research and development in satellite technology, fostering innovation in the 5G NTN market.

Japan's Space Communication Strategy: In 2024, Japan unveiled its Space Communication Strategy, which includes a ¥500 billion investment in the development of satellite-based 5G networks. This strategy aims to position Japan as a leader in space-based communication technology, with a focus on expanding NTN coverage across the Asia-Pacific region.

Future Outlook

By 2028, the global 5G NTN market is projected to grow exponentially. The market's future will be characterized by the deployment of advanced satellite constellations, integration of AI and machine learning for network optimization, and the expansion of 5G coverage in previously inaccessible areas.

Future Trends

Integration of AI and Machine Learning for Network Optimization: By 2028, the integration of artificial intelligence (AI) and machine learning (ML) technologies will become a key trend in the 5G NTN market. AI and ML will be used to optimize network performance, predict and manage network congestion, and enhance the overall efficiency of NTN systems, supporting the growing demand for high-speed, low-latency communication in industries such as autonomous vehicles and smart cities.

Development of Hybrid Networks Combining Satellite and Terrestrial Systems: The future of the 5G NTN market will be characterized by the development of hybrid networks that seamlessly combine satellite and terrestrial communication systems. These hybrid networks will offer the best of both worlds: the extensive coverage of satellite networks and the high capacity of terrestrial 5G systems.
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