Space Exploration Technologies Corp., better known as SpaceX, accounts for over 60% of the global satellite launches as of this year, demonstrating its strong foothold in the satellite communications industry.
These low Earth orbit satellite constellations deliver faster communications in select areas compared to terrestrial broadband services.
SpaceX’s founder, also known for leading electric vehicle company Tesla, sees potential in this expanding market.
In June, discussions were held about extending satellite communications to India, particularly its remote villages with limited broadband access.
Despite having a 1.4 billion population, high-speed fixed-line internet is a rarity in India, available in just 2% of households.
SpaceX’s capability of launching up to 60 satellites with a single rocket has contributed to its impressive performance.
The company launched over 1,000 satellites by June and has dispatched almost 5,000 since 2019.
Aiming to operate a total of 42,000 satellites, SpaceX’s closest competitor, Amazon, is still in the prototype stage.
Starlink, SpaceX’s satellite initiative, provides high-speed internet to users through antennas measuring 50-by-30 centimeters.
Operating between 300 to 600 kilometers above Earth, Starlink offers competitive speeds, with data from U.S. company Ookla suggesting it surpasses ordinary broadband speed in the UK and Australia.
The satellite-based internet service has significant potential in remote and rural areas, with a projected increase of users from 71 million in 2022 to 153 million by 2031.
Experts anticipate the global satellite communication services market will grow exponentially, reaching $95 billion by 2040, with autonomous vehicles as a significant demand factor.
Despite the potential, the industry is not without risk, as seen by the financial collapse of British satellite operator OneWeb in 2020.
And while SpaceX has been developing markets, it relies heavily on subsidies and project orders from NASA. However, SpaceX’s management is optimistic about the financial future of its Starlink initiative.
Countries like Japan, launching 10 to 20 satellites a year, must enhance cooperation with nations leading in the telecommunications sector to compete in this evolving space.