Today about 65% of the world’s population (approximately 5.3 billion people) has Internet access. And we expect that number to continue to grow. In 2024, changes in the wireless industry and the rising demand for information, content, cloud-based applications, data, analytics and AI will bring new requirements for network and internet connectivity on a global basis. Remote areas will have a greater need for high-performance communications as they catch up to developed nations and narrow the gap in the digital divide.
Telcos, enterprises, and governments will need to adjust to the rising demand and the changing wireless industry dynamics in 2024, and they won’t be able to deliver this with terrestrial networks.
Separately, innovations in the space and satellite world in the last decade have resulted in software-defined and automated satellite networks, allowing for satellite to complement the wider enterprise networking strategy seamlessly. Satellites will play a key role in boosting capacity to adapt to the shifting dynamics and help deliver high-performance communications to remote areas and a wider range of organisations. More importantly, satellite will move from a backup technology to a primary one that can extend networks to even the most remote parts of the world.
Here are my three predictions for market shifts that will drive greater global demand for satellite technology in 2024.
#1: The transition from 2G/3G to 4G/5G networks will lead to greater demand for satellite technology in key industries and remote locations
Many providers are phasing out 2G and 3G technology from their wireless networks, migrating to faster, higher-capacity 4G and 5G. For organizations that have thousands of 4G devices in the field, they will face the challenge of upgrading devices to 5G. The Internet of Things (IoT) is a great example of this. Companies could have thousands of IoT sensors installed across a pipeline, on an oil rig, or on machines in a manufacturing plant. Industries that are heavy users of IoT will need 5G upgrades, requiring a significant investment of time and money. Also, IoT sensors are often in remote areas – think of an oil rig in the Gulf of Mexico or a gas pipeline in Canada, so networks need to deliver 5G to less populated regions that lack the fiber infrastructure to support new technologies. This is where satellites will see an uptick in demand – delivering high-performance connectivity in remote areas so that 5G networks can reach more devices.
#2: A surge in funding for digital inclusion programs post COVID will cause an increase in satellite usage
The COVID-19 pandemic served as a reminder of how integral internet access is to our daily lives. It highlighted the critical role of the internet in education, remote work, government, and financial services. The pandemic’s disruption accentuated the importance of connectivity, and accelerated the adoption of broadband and digital services, and this trend will continue in 2024.
This has resulted in a surge of global funding for universal service obligation (USO) projects. For example, government-funded projects such as CFE in Mexico and Batki in Indonesia have enabled the use of satellite-based networks and mobile backhaul to deliver connectivity to remote areas. We anticipate additional projects, similar to CFE and Batki, to begin in 2024.
#3: The rising use of Private 5G will increase satellite usage to support global private 5G deployments
Private 5G networks are becoming more widely deployed by enterprises, governments and other organizations. According to Analysys Mason, the number of publicly disclosed projects using 5G rose by 32.5 percent from Q1 2022 to Q1 2023, and 5G deployments made up more than half of all LTE/5G deployments. Private 5G provides performance advantages: faster data transmission, lower latency, the ability to connect more devices, and enhanced security and privacy.
Companies of a certain size can build their own private 5G networks and scale out the endpoints without paying the per-device costs related to public 5G. Several industries are embracing private 5G: heavy industry, transportation & logistics, mining, and oil & gas. Due to the distributed nature and multiple locations in these industries, the need to keep up with new emerging technologies, software, and cloud-based applications, satellites will be called upon more in the coming year to deliver the reliable, high-performance network connectivity that enables private 5G.
Conclusion
In all, the world of technology is in constant change, and 2024 we will continue to see change in the wireless industry. The evolving landscape in wireless, driven by the transition to 5G networks, the persistent trend of remote/hybrid work, and the increasing prevalence of private 5G networks, is set to propel a surge in demand for satellite technology in the coming year. Satellite is poised to emerge as an important enabler of global communications, bridging gaps in connectivity, embracing technology shifts, and supporting business operations.
