Satellite Broadband Revenue Grew 18% in 2022, SIA Annual Report Finds 

Photo: NASA image of Earth taken from the International Space Station

Revenue from satellite broadband services grew 18% in 2022, according to the Satellite Industry Association’s (SIA) 2022 “State of the Satellite Industry Report” by BryceTech. The annual report examines the global space economy including satellite services, launch, manufacturing, ground equipment, and government space budgets. 

Satellite broadband revenue was a standout area of growth, while the satellite industry’s 2022 revenue was essentially flat, up about 1% compared to 2021. Revenue in the U.S. satellite industry was up about 5%, and revenue declined about 2% outside of the U.S. 

SIA defines the satellite industry as satellite services (telecommunications and remote sensing); ground equipment; manufacturing; and launch. The commercial satellite industry contributed $281 billion in revenue, or 73% of the world’s space business ($384 billion). 

2022 also marked the fifth consecutive year that the satellite industry has launched a record number of commercial satellites to orbit — deploying 2,325 commercial satellites in 2022, an increase of 35% over 2021. 

BryceTech asserts in the report that 7,316 active satellites circled the Earth at the end of 2022. Five years ago at the end of 2017, there were just 1,738 active satellites. 

“Led by American leadership in satellite manufacturing and launch services, the global commercial satellite industry continued to grow while dominating the expanding worldwide space economy,” said Tom Stoup, president of the Satellite Industry Association. “Thanks to domestic innovation, U.S. market share in manufacturing and launch services increased with American firms earning 64% global satellite manufacturing revenues while building 87% of the commercially procured satellites launched in 2022.”

Ground equipment continues to generate the most revenue out of the categories in the satellite industry, with $145 billion in 2022, followed by satellite services with $113.3 billion in revenue in 2022.   

Notably, the report found that consumer broadband satellite service revenue grew 18% in 2022 to $2.4 billion, while subscribers grew 28%, to nearly 4 million. The majority of revenue comes from Geostationary Orbit (GEO) broadband, but subscriber growth is largely driven by Low-Earth Orbit (LEO) systems. 

Still, satellite broadband is just a tiny fraction compared to the declining satellite TV market with $82.4 billion in revenue. Satellite TV revenue decreased 7% in 2022 from increased competition across media space.

The report also noted growth in mobile voice and data revenue of 7%, and growth in managed network services revenue of 5%. 

In the launch segment, the report found $7 billion in revenues from commercially-procured satellite launches worldwide, a 23% increase from 2021. There were 161 commercially procured launches in 2022, up from 113 the prior year. SpaceX’s Starlink constellation alone makes up about one-fifth of these launches, at 34 in 2022. 

This year, the report added details on space sustainability activities including space situational awareness, satellite transportation, and mission life extension — which are beginning to generate revenue. This segment generated $250 million in revenue in 2022. The report said space situational awareness represents the largest piece of this revenue, driven by companies with ground-based systems providing data to growing number of satellite operators. 

“Over the past half decade, costs to manufacture and launch satellites have decreased while utility has increased – all leading to record growth, increased affordability, productivity, and new markets,” Stroup added. “New broadband connectivity, direct to device communication, on-orbit mission extension/servicing, debris capture and removal and enhanced remote sensing are just some of the new services that are bolstering an expanding satellite industry.”