End-user spending on low Earth orbit (LEO) satellite communications services is expected to reach $14,8-billion globally in 2026, an increase of 24,5% from 2025, according to Gartner.
“LEO satellites have primarily delivered broadband connectivity to remote locations where traditional networks don’t reach,” says 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.”
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.
“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,” Shahzad says. “Even airplanes, ships and sea platforms will benefit from new means of network resiliency and a ubiquitous internet.”
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% and 36,4% respectively. This is followed by LEO services for IoT connectivity (32%), maritime and aviation (13,8%) and network resilience improvement (7,7%).
LEO Satellite Communications Services End-User Spending Worldwide, 2025-2026 (Millions of US Dollars)
|
Segment |
2025 Spending | 2025 Growth (%) | 2026 Spending | 2026 Growth (%) |
| No Connectivity Alternatives (Consumer) | 3,015 | 41.9 | 4,113 | 36.4 |
| No Connectivity Alternatives (Business) | 1,864 | 46.6 | 2,612 | 40.2 |
| Resilience Improvement | 2,367 | 9.5 | 2,550 | 7.7 |
| Maritime and Aviation | 1,963 | 15.0 | 2,234 | 13.8 |
| IoT Connectivity | 1,757 | 36.4 | 2,320 | 32.0 |
| Other | 894 | 5.9 | 935 | 4.5 |
| Total | 11,860 | 26.2 | 14,764 | 24.5 |
Note: Other includes emergency response, connectivity for temporary locations and poor wired broadband quality.
Source: Gartner (July 2025)
Emerging use cases for LEO satellite communications services can be categorised into four distinct areas:
- Fixed and Mobile Broadband Service – 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.
- Global IoT Connectivity – LEO IoT satellites complement or even replace traditional IoT networks for applications needing global coverage, with limited bandwidth and latency requirements. They can be used for global asset tracking, agriculture, oil and gas, natural resources, transportation and logistics, military sensing and security monitoring. For example, global IoT connectivity is being deployed for land, sea and air using LEO satellites. In China, an automaker launched 20 LEO satellites to improve navigation for autonomous vehicles and plans to have a constellation of 240 satellites.
- Supplementing Mobile Broadband Services – LEO satellite communications services can supplement mobile broadband by providing seamless coverage and enhancing the user experience through direct-to-device (D2D) connections and integration with 5G non-terrestrial networks.
- Infrastructure Backhaul – Both CSPs and enterprises with geographically dispersed operations can leverage LEO satellites for reliable and high-bandwidth connectivity, supporting critical applications, data transfer and communication needs independent of traditional terrestrial limitations.
“Despite these expanding use cases, the industry remains nascent with various limitations, including regulatory barriers in some countries and capacity constraints in certain areas,” says Shahzad. “LEO services can also encounter roaming restrictions, lack interoperability and aren’t certified for all mission-critical maritime needs. It’s important for CSPs to assess strategies on a use case basis.”