KSA Satellite Communications Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

The KSA Satellite Communications Market size is estimated at USD 1.46 billion in 2025, and is expected to reach USD 2.13 billion by 2030, at a CAGR of 7.82% during the forecast period (2025-2030).

Satellite communication uses artificial satellites to transmit signals, such as voice, video, and data, over long distances. It involves communication between a ground-based station (Earth station) and satellites orbiting the Earth. This technology is crucial in nations' telecommunications, broadcasting, navigation, and data transfer.

Key Highlights

• The market growth is driven by increasing mobile broadband demand, widespread smartphone and smart wearable device adoption, and rising mobile video consumption. The International Telecommunication Union reports that Saudi Arabia reached 52.4 million mobile cellular subscriptions per 100 inhabitants in 2023, a significant increase from the previous year. Additionally, developments in miniaturization, connected technologies, low-power computing, radio frequency identification, and M2M communication contribute to market expansion.
• The available satellite communication spectrum is expanding through new frequency bands, including high-frequency and very high-frequency bands. These bands provide enhanced bandwidth and capacity, enabling higher data rates and supporting bandwidth-intensive applications. For instance, in November 2024, Viasat, Inc. partnered with Skylo to conduct the first direct-to-device (D2D) satellite connectivity trial in Saudi Arabia. The demonstration used commercial NTN-enabled Android smartphones to showcase two-way messaging and SOS communications capabilities through Viasat's L-band spacecraft operating over the Indian Ocean region.
• Saudi Arabia's satellite communication market is booming, fueled by a surging demand for connectivity across diverse sectors. This growth is largely linked to the government's ambitious digital transformation efforts, highlighted in the Vision 2030 program, which champions technological innovation, smart city initiatives, and bolstered communication networks. Given the Kingdom's vast desert expanse and remote locales, satellite communication emerges as a crucial solution, especially in areas where establishing traditional infrastructure proves challenging.
• In Saudi Arabia, the government exerts considerable control over the satellite communication market, which operates under stringent regulations. The Saudi Communications and Information Technology Commission (CITC) serves as the primary regulatory authority, overseeing satellite communication services.

KSA Satellite Communications Market Trends

Services Segment Occupies Largest Market Share

• In the KSA Satellite Communication market, the services segment encompasses Mobile Satellite Services (MSS) and Earth Observation (EO) Services, among others.
• In Saudi Arabia, the demand for MSS is surging, fueled by the proliferation of portable connected devices. MSS applications extend to satellite communications, offering two-way voice and data services to mobile endpoints like ships, airplanes, vehicles, and users with mobile satellite terminals.
• The urban development projects increasingly rely on Earth Observation (EO) satellite services. Beyond urban planning, these services play a crucial role in managing natural resources, providing detailed imagery of the Earth's surface. Such insights enable decision-makers to track land use and environmental changes, supporting the region's sustainability objectives. Moreover, as a key instrument for risk management and mitigation, EO services are driving significant market growth.
• As per the Communications, Space and Technology Commission (CST), the demand for satellite communication (SATCOM) services, especially Internet of Things (IoT) services (33.3%) and Broadband Satellite Services (26.7%), is on the rise. A CST survey revealed that 53.6% of participants plan to expand their services and acquire more licenses. 82.1% anticipated an uptick in SATCOM service demand. Therefore, IoT and Broadband Satellite Services are driving the growth of SATCOM services demand in the region.
• In May 2024, IoT Squared, a joint venture between Saudi Arabia’s Public Investment Fund (PIF) and Saudi Telecom Company (STC) Group, inked a Memorandum of Understanding (MoU) with OQ Technology, the pioneering global satellite telecom operator for Internet of Things (IoT) connectivity via the Fifth Generation (5G) protocol. This collaboration will see OQ Technology delivering satellite IoT connectivity services to IoT squared, aiding in the technical evolution of its offerings. Together, they will pinpoint target markets and applications in the Kingdom that can benefit from satellite IoT services.

Enterprises to Witness Major Growth

• High-speed mobile internet demand is propelling the growth of satellite communication across the region. This trend is especially pronounced in remote regions lacking reliable terrestrial networks, underscoring satellite internet's pivotal role in ensuring connectivity. As more users turn to the internet, especially for streaming, video conferencing, and online gaming, their need for swift and dependable connections is accelerating the uptake of satellite services are drawn to its advantages: secure communication, ample bandwidth, minimal latency, and dependable connectivity—all at a competitive price. According to Speed test, in June 2024, Saudi Arabia boasted the world's swiftest average mobile internet speed, clocking in at nearly 128.03 Mbps.
• High-speed mobile internet demand is propelling the growth of satellite communication across the region. This trend is especially pronounced in remote regions lacking reliable terrestrial networks, underscoring satellite internet's pivotal role in ensuring connectivity. As more users turn to the internet—especially for streaming, video conferencing, and online gaming—their need for swift and dependable connections is accelerating the uptake of satellite services.
• With a heightened emphasis on digitization, enterprises in the region have rapidly embraced advanced technologies. This shift and technological advancements have positioned satellite communication as a dependable and economical choice for businesses prioritizing consistent uptime and superior connectivity. Notable trends such as the rise of Industry 4.0, the growing adoption of cloud-based applications, and the escalating integration of IoT and AI in sectors like manufacturing and oil & gas underscore the digitization momentum in enterprises. These trends are poised to propel the market's growth in the coming years.
• In March 2024, SES, a satellite operator, inked a Memorandum of Understanding (MoU) with Aramco, Saudi Arabia's leading oil and natural gas producer. This MoU paves the way for SES and Aramco to collaborate. They are focusing on harnessing high-performance medium-Earth orbiting (MEO) satellite connectivity services. The aim is to fast-track Aramco's digital transformation, particularly emphasizing 5G backhauling for its remote sites in Saudi Arabia and the broader Middle East.

KSA Satellite Communications Industry Overview

The KSA satellite communication market comprises several national players vying for attention in a highly competitive market space due to the presence of many large players. The market poses high barriers to entry for new players, impacting the opportunities to gain traction.

This market is characterized by moderate product differentiation, increasing product penetration, and high levels of competition. Generally, the product is offered as hardware, making the offering look like a part of the product's service.

Many users opt for annual contracts or lease-based services to cut their costs. In the satellite communication market, crafting a strategy and securing a defensible and better market position has been challenging for any company. These challenges keep changing and increasing every year. The commercial suppliers continue to make critical long-term technological capital expenditures and R&D decisions based on the customers' needs. The nature of the competition changes with time.

In November 2024, Viasat, Inc., a significant name in satellite communications, showcased direct-to-device (D2D) satellite connectivity in Saudi Arabia. This achievement comes in collaboration with its ecosystem partners. During this week's 'Connecting the World from the Skies' event in Riyadh, Viasat successfully transmitted satellite-enabled two-way messages and emergency SOS alerts. The event was co-hosted by Saudi Arabia's Communications, Space & Technology Commission (CST) and the International Telecommunication Union (ITU).

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