KSA Satellite Communications Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

The KSA Satellite Communications Market size is estimated at USD 1.46 billion in 2025, and is expected to reach USD 2.12 billion by 2030, at a CAGR of 7.75% during the forecast period (2025-2030).

The increasing need for reliable, high-speed internet access, particularly in areas with limited terrestrial infrastructure, has established satellite communications as a viable solution. This demand has driven the expansion of satellite communication systems and services across Saudi Arabia.

Key Highlights

• The market growth is driven by increasing mobile broadband demand, widespread smartphone and smart wearable device adoption, and rising mobile video consumption. The International Telecommunication Union reports that Saudi Arabia reached 52.4 million mobile cellular subscriptions per 100 inhabitants in 2023, a significant increase from the previous year. Additionally, developments in miniaturization, connected technologies, low-power computing, radio frequency identification, and M2M communication contribute to market expansion.
• The available satellite communication spectrum is expanding through new frequency bands, including high-frequency and very high-frequency bands. These bands provide enhanced bandwidth and capacity, enabling higher data rates and supporting bandwidth-intensive applications.
• For instance, in November 2024, Viasat, Inc. partnered with Skylo to conduct the first direct-to-device (D2D) satellite connectivity trial in Saudi Arabia. The demonstration used commercial NTN-enabled Android smartphones to showcase two-way messaging and SOS communications capabilities through Viasat's L-band spacecraft operating over the Indian Ocean region.
• In Saudi Arabia, the government exerts considerable control over the satellite communication market, which operates under stringent regulations. The Saudi Communications and Information Technology Commission (CITC) serves as the primary regulatory authority overseeing satellite communication services.
• The CITC enforces rigorous licensing controls for satellite operators, posing significant entry barriers for both domestic and foreign entities. For example, satellite operators must secure specific licenses from the CITC before initiating communication services or launching satellites. The processing time for these licenses can lead to delays in service commencement.
• Saudi Arabia's satellite communication market is on an upward trajectory, fueled by Vision 2030 initiatives, surging connectivity demands, and technological advancements. Defense, media, logistics, and energy are harnessing satellite solutions to boost their operations. The emergence of smart cities, the boom in e-commerce, and heightened maritime activities amplify the demand for robust satellite networks.
• Furthermore, the growth of live broadcasting, OTT platforms, and real-time monitoring systems has intensified this demand. With hefty investments in infrastructure and the forging of global partnerships, Saudi Arabia is set to assert itself as a regional powerhouse in satellite communication, aligning with its vision of a diversified, tech-centric economy.

KSA Satellite Communications Market Trends

Growing Adoption of Satellite Services in Saudi Arabia to Drive the Market

• In Saudi Arabia, demand for satellite communication (SATCOM) services is set to rise, driven by services like positioning, navigation, timing, communications, and Earth observation. Notably, the Kingdom's vast territory and its significant rural population that resides in areas often beyond the reach of terrestrial networks underscore the efficiency of SATCOM connectivity.

Saudi Arabia's Satcom Services Surge, Fueled by Digitalization and IoT Adoption

• As per the Communications, Space and Technology Commission (CST), the demand for satellite communication (SATCOM) services, especially Internet of Things (IoT) services (33.3%) and Broadband Satellite Services (26.7%) is on the rise. A CST survey revealed that 53.6% of participants plan to expand their services and acquire more licenses. 82.1% anticipated an uptick in SATCOM service demand. Therefore, IoT and Broadband Satellite Services are driving the growth of SATCOM services demand in the region.
• In May 2024, IoT Squared, a joint venture between Saudi Arabia’s Public Investment Fund (PIF) and Saudi Telecom Company (STC) Group, inked a Memorandum of Understanding (MoU) with OQ Technology, the pioneering global satellite telecom operator for Internet of Things (IoT) connectivity via the Fifth Generation (5G) protocol. This collaboration will see OQ Technology delivering satellite IoT connectivity services to IoT squared, aiding in the technical evolution of its offerings. Together, they will pinpoint target markets and applications in the Kingdom that can benefit from satellite IoT services.
• Furthermore, in March 2024, Appliot, an Internet of Things (IoT) innovator, teamed up with Saudi Net Link, a prominent satellite service provider in Saudi Arabia. Saudi Net Link, known for its diverse offerings from Very Small Aperture Terminal (VSAT) to cybersecurity, sees this partnership as a way to broaden its market reach, providing remote solutions across various industries. The collaboration will enable Saudi Net Link to expand its satellite IoT service portfolio.
• In conclusion, Saudi Arabia’s growing emphasis on data commercialization, especially for natural resource management, underscores the surging demand for satellite communication services. Moreover, the advantages of mobile satellite services in facilitating communication for airplanes, ships, and connected cars, combined with the region's digitalization push and rising adoption of the Internet of Things (IoT) and autonomous technologies, further bolster the market's growth.

Land to be the Largest Platform Segment

• Satellite communication solutions tailored for terrestrial operations define the land platform segment. These solutions are designed to ensure seamless connectivity, reliable data transmission, and efficient communication services for fixed locations, remote sites, and terrestrial infrastructure across the country.
• As urban areas, industrial zones, and transportation networks continue to expand in Saudi Arabia, the demand for robust and reliable communication solutions has grown significantly. These solutions are essential to support the increasing need for data transmission, connectivity, and operational coordination across various terrestrial facilities and locations, ensuring smooth operations and enhanced productivity.
• In March 2024, Arab Satellite Communications Organization (ARABSAT), Saudi Arabia’s satellite service provider, signed a memorandum of understanding (MoU) with Telesat, a global satellite operator, aimed at the commercialization of the Telesat Lightspeed constellation in the Middle East and North Africa region. The Telesat Lightspeed constellation will integrate with terrestrial landing stations and Points of Presence (PoPs), offering broadband services and solutions to clients.
• In May 2024, the Saudi Arabian Public Investment Fund (PIF) announced the establishment of the Neo Space Group (NSG) to lead the country's satellite and space sector initiatives. The group will focus on satellite communications, Earth observation and remote sensing, satellite navigation, and the Internet of Things (IoT).
• Additionally, NSG will manage a satellite and space-focused venture capital fund, which is expected to drive innovation and contribute to the development and deployment of technologies in the space industry. This initiative represents a significant opportunity for economic growth and technological advancement in Saudi Arabia.
• Saudi Arabia is actively developing numerous infrastructure projects through the Public-Private Partnership (PPP) route, spanning diverse sectors such as clean energy, transportation, water management, waste management, and urban infrastructure.
• According to Riyadh Exhibitions Company Ltd., Saudi Arabia's building and infrastructure sector is booming, with projects in the pipeline already exceeding a valuation of USD 250 billion. Riyadh stands out as the focal point, with investments in the building and infrastructure sector surpassing a staggering USD 1.25 trillion.

KSA Satellite Communications Industry Overview

The KSA satellite communication market comprises several national players vying for attention in a highly competitive market space due to the presence of many large players. The market poses high barriers to entry for the new players, impacting the opportunities to gain traction.

This market is characterized by moderate product differentiation, increasing product penetration, and high levels of competition. Generally, the product is offered as hardware, making the offering look like a part of the product's service.

Many users opt for annual contracts or lease-based services to cut their costs. In the satellite communication market, crafting a strategy and securing a defensible and better market position has been challenging for any company. These challenges keep changing and increasing every year. The commercial suppliers continue to make critical long-term technological capital expenditures and R&D decisions based on the customers' needs. The nature of the competition changes with time.

Overall, the intensity of competitive rivalry in the market studied is expected to be high over the forecast period.

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