Key Points

LEO satellites orbit closer to the Earth than traditional satellite technology, providing faster connections and lower latency.

This allows them to deliver high-speed broadband and complement traditional terrestrial networks. The market is entering a rapid expansion phase, with over 20 active LEO satellite service providers and more than 40,000 satellites expected in the next few years, according to Gartner.

“LEO satellites have primarily delivered broadband connectivity to remote locations where traditional networks don’t reach,” said Khurram Shahzad, Senior Director Analyst at Gartner.

“However, new consumer and business use cases are emerging, driving communications service providers (CSPs) to expand the market. This is enabling LEO satellites to become a mainstream enterprise broadband technology,” he mentioned.

As use cases continue to grow, companies and consumers can expect consistent internet access and Internet of things (IoT) sensing anywhere, without being limited by location.

“Even airplanes, ships and sea platforms will benefit from new means of network resiliency and a ubiquitous internet,” said Shahzad.

The largest growth in LEO satellite communications services in 2026 will come from businesses and consumers in remote areas with no other connectivity options, with spending expected to increase 40.2 per cent and 36.4 per cent, respectively.

This is followed by LEO services for IoT connectivity (32 per cent), maritime and aviation (13.8 per cent) and network resilience improvement (7.7 per cent).

The main early use of LEO satellite services is for fixed and mobile broadband connectivity, especially for remote sites and to augment existing broadband connections. These services support use cases such as connectivity in areas with no broadband service, temporary locations like construction sites, or on ships and airplanes.

They are also used for communication during emergency responses, or to improve resilience as fallback or backup connectivity to traditional broadband, said the report.

LEO satellites can provide the necessary backhaul for the operations of government agencies and defence organisations, which often require secure and reliable communication links in remote or hostile environments.

- IANS