MarketsandMarkets Exclusive Report – 5G NTN Market Size Poised to Reach $23.5 Billion

In recent years, 5G non-terrestrial networks (NTN) have continued to show promise, with the market experiencing significant growth. Many countries around the world are also increasingly recognizing the importance of 5G NTN, investing heavily in infrastructure and supportive policies, including spectrum allocation, rural deployment subsidies, and research programs. According to the latest report from MarketsandMarketsTM, **the 5G NTN market is projected to grow from $4.2 billion in 2023 to $23.5 billion in 2028 at a Compound Annual Growth Rate (CAGR) of 40.7% over the period 2023-2028.**

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As is well known, North America is the leader in the 5G NTN industry. Recently, the Federal Communications Commission (FCC) in the U.S. has auctioned several mid-band and high-band spectrum licenses suitable for 5G NTN, encouraging private companies to invest in infrastructure and services. Apart from North America, MarketsandMarketsTM points out that **the Asia Pacific is the fastest growing 5G NTN market**, attributed to the region’s adoption of new technologies, increasing investments in digital transformation, and GDP growth. The key revenue driving factors **include China, South Korea and India**, where the number of smart device users is surging dramatically. With its massive population, the Asia Pacific region is the largest contributor of mobile users globally, propelling 5G NTN adoption.

MarketsandMarketsTM indicates that when further segmented by population settlement categories, **rural areas are expected to contribute the largest market share in the 5G NTN market over the forecast period 2023-2028.** This is because the growing demand for 5G and broadband services in rural areas provides high-speed internet access for consumers in these regions, effectively narrowing the digital divide. Key applications of 5G NTN in rural settings include fixed wireless access, network resilience, wide area connectivity, disaster management and emergency response, collectively delivering comprehensive, robust digital connectivity solutions for rural communities. For example, **in rural areas where ground network coverage is limited, 5G NTN solutions play a critical role in supporting multicast broadcasting, IoT communications, connected vehicles, and remote IoT.** Currently, many leading global companies have recognized this great opportunity and are actively participating in constructing 5G NTN networks to connect rural areas.

In terms of application areas, MarketsandMarketsTM points out that mMTC (massive Machine Type Communications) is expected to have the highest CAGR over the forecast period. mMTC aims to efficiently support a massive number of online devices with high density and scaled-up capabilities. In mMTC connections, devices can intermittently broadcast small amounts of traffic to communicate with each other. Owing to reduced path loss for low earth orbit satellites and lower transmission latency, **this is conducive to delivering mMTC services. mMTC is a key 5G application area with promising prospects in the Internet of Things (IoT) and Machine-to-Machine (M2M) communication spheres.** As IoT involves connecting objects, sensors, appliances, and various devices for data gathering, control and analysis, 5G NTN has great potential in smart homes, security systems, logistics and tracking, energy management, healthcare, and various industrial operations.

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Regarding the advantages of the 5G NTN market, MarketsandMarketsTM points out that first, **NTN provides the possibility of global connectivity, especially when combined with satellite communications.** It can cover underserved rural areas where deploying standard terrestrial networks may be challenging or economically unviable. Second, **for applications requiring real-time communications such as autonomous vehicles, Augmented Reality (AR) and Virtual Reality (VR), 5G NTN can provide low latency and high throughput.** Third, **by providing redundancy through various communication routing, NTN enhances network resilience.** 5G NTN can offer backup connections in case terrestrial networks fail, ensuring uninterrupted service availability. Fourth, since NTN provides connectivity for mobile platforms like vehicles, vessels, and aircraft, it is highly suited for mobile applications. **Maritime communications, in-flight connectivity, and connected cars can benefit from this mobility and flexibility.** Fifth, in places where standard terrestrial infrastructure cannot be built, NTN plays a crucial role in extending 5G coverage to remote and difficult-to-reach areas. **This is vital for linking remote and rural areas as well as providing aid for sectors like mining and agriculture.** Sixth, **NTN can rapidly provide emergency communication services in disaster-stricken areas where ground infrastructure may be compromised**, facilitating first responder coordination and assisting disaster recovery efforts. Seventh, NTN enables ships at sea and aircrafts in flight to possess high-speed broadband internet connectivity. This makes travel more enjoyable for passengers, and can provide vital information for safety, navigation, and operations.

Additionally, in the report MarketsandMarketsTM also introduces the layout of leading global companies in the 5G NTN market, **including Qualcomm, Rohde & Schwarz, ZTE, Nokia and dozens of other companies.** For example, in February 2023, MediaTek partnered with Skylo to develop next-generation 3GPP NTN satellite solutions for smartphones and wearables, working to conduct extensive interoperability testing between Skylo’s NTN service and MediaTek’s 3GPP standards-compliant 5G NTN modem; In April 2023, NTT partnered with SES to utilize NTT’s expertise in networking and enterprise management services along with SES’s unique O3b mPOWER satellite system to develop new products providing reliable enterprise connectivity; In September 2023, Rohde & Schwarz collaborated with Skylo Technologies to formulate a device acceptance program for Skylo’s non-terrestrial network (NTN). Leveraging Rohde & Schwarz’s established device testing framework, NTN chipsets, modules and devices will be tested to ensure compatibility with Skylo’s test specifications.

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Post time: Dec-28-2023