Sky-Based Communication Market Report 2025

The sky-based communication market size has grown exponentially in recent years. It will grow from $158.29 billion in 2024 to $198.93 billion in 2025 at a compound annual growth rate (CAGR) of 25.7%. The expansion observed during the historic period was influenced by heightened requirements for disaster response communication, growing needs for in-flight connectivity, a rise in satellite deployments, increasing maritime communication demands, and the higher demand for broadcasting services in remote regions.

The sky-based communication market size is expected to see exponential growth in the next few years. It will grow to $490.41 billion in 2029 at a compound annual growth rate (CAGR) of 25.3%. Key contributors to growth in the forecast period include progress in the miniaturization of satellites, rising capital investment in LEO satellite constellations, the increasing need for 5G backhaul capabilities, broader use of autonomous aerial vehicles, and the rollout of communication frameworks in smart cities. Notable trends expected during this time include improvements in laser-based communication, adoption of AI-driven satellite technology, innovation in high-altitude platforms, reusable satellite launch systems, and progress in inter-satellite communication links.

Increasing demand for high-speed internet and connectivity is expected to propel the growth of the sky-based communication market going forward. High-speed internet connectivity refers to fast and reliable internet access that enables seamless online activities, streaming, and data transfer. The growth of high-speed internet and connectivity is due to digital transformation and remote work, which has fueled demand for fast and reliable internet to support online services and remote activities. Satellite-based communications, such as LEO satellites, enable high-speed internet and connectivity in remote or underserved areas, bridging the digital divide and extending internet access where traditional infrastructure is limited. For instance, in November 2024, according to a report published by the Telefonaktiebolaget LM Ericsson, a Sweden-based information and communication technology company, currently, there are 831 4G networks deployed globally, of which 346 have been upgraded to LTE-Advanced and 161 are Gigabit-capable. Additionally, global 5G population coverage reached 55% in 2024, while outside mainland China, it is expected to rise from 45% in 2024 to approximately 85% by 2030. Therefore, the growing demand for high-speed internet and connectivity is driving the growth of the sky-based communication market.

Leading companies in the sky-based communication market are prioritizing the integration of advanced technologies such as direct-to-phone satellite communication to improve global coverage, minimize connectivity gaps in isolated regions, and support emerging communication systems. This innovation allows conventional mobile phones to connect directly to satellites without the need for special hardware or ground-based infrastructure, offering voice, messaging, and internet services even in areas without cellular networks. For example, in September 2022, AST SpaceMobile, a satellite communications firm based in the United States, launched its BlueWalker 3 satellite into orbit. This satellite is designed to deliver mobile broadband service directly to standard smartphones using 3GPP-standard frequencies. It facilitates voice calls, SMS, and high-speed data services without specialized handsets and includes the largest commercial phased-array antenna ever launched into low Earth orbit. It operates similarly to a space-based cell tower and is compatible with multiple network standards, including 2G, 4G LTE, and 5G, achieving speeds up to 14 Mbps.

In May 2023, Viasat, Inc., a U.S.-based communication solutions provider, finalized the acquisition of Inmarsat. This strategic acquisition aims to boost Viasat’s satellite communication capabilities by incorporating Inmarsat’s advanced network infrastructure and expertise. The combined entity seeks to enhance its service reach and accelerate the development of connectivity innovations across aviation, maritime, and enterprise sectors. Inmarsat is a UK-headquartered satellite telecom company engaged in sky-based communications.

Major players in the sky-based communication market are Lockheed Martin Corporation, Northrop Grumman Corporation, L3Harris Technologies Inc., Mynaric AG, Space Exploration Technologies Corp., Viasat Inc., Thales Alenia Space S.A.S., Intelsat S.A., SES S.A., Eutelsat Communications S.A., Airbus Defence and Space GmbH, Cobham SATCOM, Telesat Canada, Hughes Network Systems LLC, OneWeb Ltd., Terran Orbital Corporation, Surrey Satellite Technology Ltd., Kymeta Corporation, AST SpaceMobile Inc., NewSpace India Limited.

North America was the largest region in the sky-based communication market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in sky-based communication report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the sky-based communication market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The sharp hike in U.S. tariffs and the associated trade disputes in spring 2025 are notably impacting the aerospace and defense sector by raising costs for titanium, carbon fiber composites, and avionics materials largely sourced from global suppliers. Defense contractors, locked into fixed-price government contracts, absorb these added costs, while commercial aerospace firms face airline pushback on higher aircraft prices. Delays in component shipments due to customs bottlenecks further disrupt tight production schedules for jets and satellites. The industry is responding by stockpiling critical materials, seeking waivers for defense-related imports, and collaborating with allied nations to diversify supply chain.

Sky-based communication refers to the transmission and reception of data via aerial platforms such as satellites, high-altitude platforms (HAPs), drones, and aircraft. It is employed to deliver high-speed internet access to remote and rural locations where traditional ground-based infrastructure is either unavailable or too expensive to implement.

Sky-based communication primarily includes two categories: low earth orbit (LEO) and medium earth orbit (MEO). Low earth orbit (LEO) refers to an orbit around the Earth with an altitude typically ranging from 160 kilometers (about 100 miles) to 2,000 kilometers (about 1,200 miles) above the Earth's surface. These are used for various platforms, including satellites, unmanned aerial vehicles (UAVs) and high-altitude platform stations (HAPS). The various applications include telecommunication, broadband, navigation, remote sensing, broadcasting and other applications and are used by various end users such as maritime, aerospace and defense, industrial, transportation and logistics, media, government and public safety and agriculture.

The sky-based communication market research report is one of a series of new reports that provides sky-based communication market statistics, including sky-based communication industry global market size, regional shares, competitors with a sky-based communication market share, sky-based communication market segments, market trends and opportunities, and any further data you may need to thrive in the sky-based communication industry. This sky-based communication market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The sky-based communication market consists of revenues earned by entities by providing services such as satellite communication, high-altitude platform systems, real-time data transmission, global connectivity solutions, and in-flight communication services. The market value includes the value of related goods sold by the service provider or included within the service offering. The sky-based communication market also includes sales of satellite communication systems, high-altitude platform technologies, airborne transceivers, tracking and telemetry systems, and onboard antenna equipment. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values and are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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