South Korea Satellite Communication Market Size

South Korea Satellite Communication Market Analysis

The South Korean satellite communication market is valued at USD 1.60 billion in the current year. It is expected to record a CAGR of 10.76% during the forecast period, reaching USD 2.67 billion by the next five years. The market's growth is attributed to the increased demand for broadband connectivity, the growing need for high-speed connections, government initiatives, and technological advancements.

• High-speed internet services are in greater demand in South Korea due to factors like remote work, e-learning, and rising usage of data-intensive applications. This trend has led to a greater reliance on satellite communication to provide connectivity in areas with limited terrestrial infrastructure, driving the growth of satellite broadband services. For instance, SK Broadband, Inc.'s revenue reached KRW 4.16 trillion in 2022 from KRW 4.05 trillion in 2021.
• The government has been actively supporting and promoting the satellite communication industry. It has launched various initiatives to foster innovation, research, and development in the space sector. These initiatives act as a growth driver for the satellite communication market in South Korea.
• In December 2022, the Ministry of Science and ICT signed a business cooperation agreement with the Defense Acquisition Program Administration (DAPA), the Agency for Defense Development (ADD), and the Institute for Information & Communication Technology Planning & Evaluation (IITP) to cooperate in developing satellite communication technology, securing orbit and frequencies for satellite communication networks, and establishing and demonstrating pilot networks.
• However, the limited satellite manufacturing capacity in South Korea is hampering the market growth. While the country has made several advancements in satellite technology, including developing and launching its satellites, the manufacturing capacity remains relatively limited. This constraint is leading to a dependency on international suppliers and potential delays in satellite deployments.
• With the growing demand for satellite communication services from different end-user verticals, several international players are expanding their service offerings in South Korea. For instance, in May 2022, the UK satellite company OneWeb planned to provide services for airlines and ships in South Korea, where its geographic conditions kept the existing technology from meeting demand from those clients.
• The COVID-19 pandemic has impacted the satellite communication industry in South Korea, leading to delays in satellite launches and projects. Disruption due to travel restrictions in the supply chain impacted the manufacturing and deployment of satellites, resulting in delays in the rollout of new satellite-based services in the country.