KSA Satellite Internet Market Outlook to 2030

KSA Satellite Internet Market Overview

• In 2023, the KSA Satellite Internet Market is valued at USD 40 Million. The growth of satellite internet in Saudi Arabia has been driven by increasing demand for connectivity in remote and rural areas where terrestrial internet infrastructure is limited. The governments Vision 2030 initiative has emphasized digital transformation, further propelling the adoption of satellite internet solutions.

• Major players in the KSA Satellite Internet Market include Arabsat, Yahsat, SpaceX (Starlink), and Thuraya. These companies provide a range of satellite internet services tailored to different sectors, including residential, commercial, and government applications. Arabsat and Yahsat have established strong footholds in the region, while Starlink's entry has introduced new competition with its low-latency offerings.
• In 2023, Arabsat announced the launch of a new satellite, Badr-8, aimed at enhancing internet connectivity across Saudi Arabia and the wider MENA region. The satellite is equipped with advanced Ka-band technology, providing higher bandwidth and faster internet speeds.
• Riyadh and Jeddah dominated the KSA Satellite Internet Market in 2023, due to their large populations and the presence of numerous government and business institutions. The demand for reliable and fast internet services in these cities is high, driving the adoption of satellite internet as a complementary solution to fiber and other traditional broadband services.

KSA Satellite Internet Market Segmentation

By Application: KSA Satellite Internet Market is segmented by application into residential, commercial, and government sectors. In 2023, the government segment dominated due to its critical need for reliable and secure internet connections across various ministries and agencies. The government's reliance on satellite internet for military and public safety communications has further bolstered this segment.

By Frequency Band: KSA Satellite Internet Market is also segmented by frequency band into Ka-band, Ku-band, and C-band. In 2023, Ka-band led the market due to its higher bandwidth and faster data transfer capabilities, making it ideal for both residential and commercial applications. The Ka-band's ability to support high-definition video streaming and other data-intensive services has solidified its dominance.

By Region: KSA Satellite Internet Market is segmented into North, South, East, and West. In 2023, the Northern region dominated due to its vast rural areas and the government's focus on connecting remote communities. The Northern region's extensive infrastructure projects under Vision 2030 have increased demand for satellite internet, as traditional broadband services are often unfeasible in these areas.

KSA Satellite Internet Market Competitive Landscape

• Thuraya-4: In 2023, Thuraya, a subsidiary of Yahsat, successfully launched its next-generation satellite, Thuraya-4 NGS. The satellites launch, part of USD 550 million investment in the region, is aimed at addressing the increasing demand for satellite internet services in both commercial and government.
• Inmarsat: In 2021, Inmarsat announces extension of GX network on fifth anniversary of launch. They claim that GX is the worlds first and only globally available, high-speed broadband network, owned and managed by a single operator and is already driving the digital transformation of major industries across the world.

KSA Satellite Internet Industry Analysis

KSA Satellite Internet Growth Drivers:

• Expansion of Connectivity: There were 36.84 million internet users in Saudi Arabia till January 2024. Saudi Arabia's internet penetration rate stood at 99.0 percent of the total population. This expansion has been fueled by public-private partnerships, where companies like Arabsat have deployed satellites specifically to improve connectivity in underserved regions.
• Government Contracts and Military Applications: The satellite internet market in Saudi Arabia has seen significant growth, largely driven by the increasing demand for secure and reliable communication channels for government and military applications. Over the past six years, the Kingdom has invested heavily in digital infrastructure, with total capital investments exceeding $24.8 billion. This strategic focus underscores the nation's commitment to enhancing its digital capabilities and maintaining robust, secure communications networks.
• Increased Adoption by Energy Sector: Saudi Arabias energy sector, particularly in remote oil and gas exploration sites, has become a significant user of satellite internet services. Saudi Arabia produces around 8 million barrels of oil per day, with plans to increase this to 12 million barrels per day. This scale of production necessitates robust communication infrastructure, especially in remote areas where traditional internet services may not be available.

KSA Satellite Internet Market Challenges:

• Regulatory and Spectrum Allocation Issues: The satellite internet market in Saudi Arabia faces regulatory challenges, particularly in spectrum allocation. The Communications and Information Technology Commission (CITC) has been slow in allocating additional frequency bands required for the expansion of satellite services. The regulatory environment, while improving, remains a hurdle for companies looking to expand their services rapidly.
• Competition from Terrestrial Internet Services: As fiber optic infrastructure continues to expand across Saudi Arabia, satellite internet providers face increasing competition from terrestrial broadband services. Large population had access to high-speed fiber internet. The availability of cheaper and faster terrestrial internet options in urban and semi-urban areas is reducing the demand for satellite services.

KSA Satellite Internet Government Initiatives:

• Digital Economy Strategy: In 2023, the digital economy makes up 14% of Saudi Arabia's GDP, driven by foreign investments and partnerships. The strategy allocates SAR 3 billion for new satellites and ground infrastructure to reduce the digital divide. Emphasizing digital technologies, this vision aims to boost economic growth and financial inclusion, focusing on building a strong digital finance infrastructure.
• Neo Space Group: In 2024, Saudi Arabia's Public Investment Fund (PIF) launched the Neo Space Group (NSG), a wholly-owned company that will serve as a national champion for the satellite and space sector. NSG aims to develop and enhance commercial space operations in Saudi Arabia, providing innovative satellite and space solutions locally and globally. NSG will invest in localization, technology, startups, and knowledge in the space and satellite sector.

KSA Satellite Internet Future Market Outlook

KSA Satellite Internet Market is poised for significant growth exponentially by 2028, driven by government initiatives aimed at expanding digital infrastructure, increasing demand for connectivity in remote areas, and advancements in satellite technology.

Future Trends

• Expansion of Low-Earth Orbit (LEO) Satellites: The deployment of low-earth orbit (LEO) satellites is expected to revolutionize the KSA Satellite Internet Market. Companies like SpaceX and OneWeb will increase their satellite constellations, offering lower latency and faster internet speeds. This trend will cater to both residential and commercial users.
• Integration of AI and Machine Learning in Satellite Operations: The future of satellite internet in Saudi Arabia will be shaped by the integration of AI and machine learning technologies in satellite operations. These technologies will enhance the efficiency and reliability of satellite services, enabling real-time data analytics, predictive maintenance, and optimized bandwidth allocation.