The satellite communications market has expanded rapidly over the past three years or so, and what space consulting and market intelligence provider Novaspace calls the Starlink effect is further accelerating demand and reshaping the satellite connectivity market.
The eighth edition of Novaspace’s High Throughput Satellites (HTS) report offered a strategic look at the evolving HTS landscape, covering capacity supply, demand dynamics across verticals, market drivers and the infrastructure investments shaping the future of satellite connectivity.
In all, it found global demand for capacity reaching 218Tbps by 2034, while service revenues are set to more than double to $76bn over the same period. In addition, the analyst said the findings reflect a market entering a new phase of scale, driven by the rapid expansion of non-geostationary orbit (NGSO) constellations – led by SpaceX’s Starlink – and a step change in performance, pricing and global adoption.
As competition intensifies, differentiation is being increasingly tied to spectrum strategy, security architecture and sovereign capabilities. In a more geopolitically complex environment, secure and resilient connectivity was seen to have become a primary driver of investment, particularly across government and mission-critical use cases.
Moreover, the report highlighted a rapidly evolving competitive landscape across both GEO and NGSO systems. It said GEO operators were adapting to remain competitive, adopting flexible, software-defined payloads and lower-Capex small GEO platforms to improve cost efficiency and throughput.
By contrast, NGSO networks were seen to be redefining performance and pricing benchmarks, driving HTS service revenues up 44% between 2020 and 2025. That is, from $21.5bn to nearly $31bn.
Another key trend was that high-growth applications are emerging, particularly in Land Mobility, MilSatCom and Aero IFC, where demand for high-performance, low-latency connectivity is accelerating. “Starlink’s impact has been catalytic,” said Dimitri Buchs, manager at Novaspace. “Lower-cost capacity, rapid scaling and improved service quality have reset expectations across the market. The entire satcom ecosystem is now being pushed to innovate, differentiate and rethink strategic positioning.”
Going forward, Novaspace observed that scaling this next phase of growth will require greater coordination across the ecosystem. The report underscores the growing importance of multi-orbit interoperability, hybrid terrestrial-satellite architectures, and converged network standards to enable more seamless and cost-effective deployments.
“In this next phase, execution will be critical,” said Buchs. “Operators that can combine scale with flexibility – and deliver high-performance connectivity across multiple domains – will be best positioned to capture this expanding market.”
The release of the study comes just days after Starlink announced it was expanding its Middle East presence by launching operations in the United Arab Emirates (UAE) and Kuwait. The satellite internet provider, already active in Oman, Qatar, Israel and Yemen, said it was now strengthening its position as the world’s largest LEO network.
Since 2020, Starlink has deployed more than 10,000 satellites, serving over 10 million users globally and providing a total capacity of around 450Tbps. The UAE and Kuwait join a growing list of regional markets where Starlink is now available.
In addition, the company has been recently pursuing an aggressive campaign to get its connectivity adopted by the world’s leading airlines. In July 2025, Virgin Atlantic announced plans to introduce Starlink in-flight connectivity across its entire fleet, and months later, arch rival International Airlines Group announced a partnership to implement Starlink connectivity for more than 500 aircraft across its fleet, which includes Aer Lingus, British Airways, Iberia, Level and Vueling. Qatar and Emirates have also inked similar deals.
