• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to secondary sidebar
  • Skip to footer
  • NEWS:
  • SatNews
  • SatMagazine
  • MilSatMagazine
  • SmallSat News
  • |     EVENTS:
  • SmallSat Symposium
  • Satellite Innovation
  • MilSat Symposium
  • SmallSat Europe

SatNews

Satellite Industry Intelligence Since 1983

Subscribe
  • LATEST
  • Missions & Constellations
    • Exploration & Science Missions
    • In-Orbit Servicing & Orbital Operations
    • LEO Constellations
    • Mission Autonomy & Onboard Systems
    • Mission Deployments & Manifests
    • Navigation & PNT
    • SmallSat
    • Spacecraft & Payload Technology
    View All in Missions & Constellations →
    New Boeing Satellite Spacecraft Delivered.New Boeing Satellite Spacecraft Delivered.
    What the SpaceX IPO Changes for Every Satellite OperatorWhat the SpaceX IPO Changes for Every Satellite Operator
    Empowering the Next Generation at SmallSat Europe 2026Empowering the Next Generation at SmallSat Europe 2026
    SmallSat Europe Speaker Focus: Carissa Christensen, BryceTechSmallSat Europe Speaker Focus: Carissa Christensen, BryceTech
  • Business
    • Contracts & Commercial Deals
    • Earnings & Financial Reporting
    • Events & Conferences
    • Funding & Venture Capital
    • Market Forecasts
    • Mergers & Acquisitions
    • Personnel Moves & Appointments
    View All in Business & Finance →
    SmallSat Europe Speaker Focus: Dr. Ane Aanesland, ThrustMeSmallSat Europe Speaker Focus: Dr. Ane Aanesland, ThrustMe
    Redwire’s ESA Quantum Satellite Deal Expands European Defense Growth StoryRedwire’s ESA Quantum Satellite Deal Expands European Defense Growth Story
    PMGC Holdings Launches NorthStrive Defense Tech to Capture Drone and Autonomous Systems MarketPMGC Holdings Launches NorthStrive Defense Tech to Capture Drone and Autonomous Systems Market
    Space42 and Viasat: Contract close for 2800 satellitesSpace42 and Viasat: Contract close for 2800 satellites
  • Defense
    • Counterspace & ASAT
    • Defense Budgets & Procurement
    • ISR & Reconnaissance
    • MILSATCOM
    • Missile Warning & Defense
    • National Security Programs
    • Space Domain Awareness
    View All in Military & Defense →
    ParaZero Technologies Expands Israeli Defense Contract with New Order for Anti-Drone SystemsParaZero Technologies Expands Israeli Defense Contract with New Order for Anti-Drone Systems
    Russia Replaces Starlink With European-Built SatellitesRussia Replaces Starlink With European-Built Satellites
    Chief Data and Artificial Intelligence Officer for the United States Space Force, Chandra Donelson, Steps AwayChief Data and Artificial Intelligence Officer for the United States Space Force, Chandra Donelson, Steps Away
    What Doubling Space Force Funding Actually Means for the IndustryWhat Doubling Space Force Funding Actually Means for the Industry
  • Gov
    • Export Controls & Compliance
    • International Space Agreements
    • National Space Policy
    • Space Law & Treaties
    • Space Sustainability & Debris Policy
    • Space Traffic Management / Debris Removal
    View All in Government & Regulation →
    Isaacman’s Budget Math: How NASA Plans to Reach the Moon With a Quarter Less MoneyIsaacman’s Budget Math: How NASA Plans to Reach the Moon With a Quarter Less Money
    FCC Seeks Comment on Expanding Spectrum Access for “Weird Space Stuff”FCC Seeks Comment on Expanding Spectrum Access for “Weird Space Stuff”
    The FCC Must Choose: Enforce the Rules or Preserve LEO CompetitionThe FCC Must Choose: Enforce the Rules or Preserve LEO Competition
    Space Force Reassigns Final GPS III Mission to SpaceX Following Vulcan AnomalySpace Force Reassigns Final GPS III Mission to SpaceX Following Vulcan Anomaly
  • Launch
    • Launch Providers
    • Launch Schedule & Calendars
    • Launch Sites & Infrastructure
    • Rocket Technology & Vehicles
    View All in Launch →
    €30 million Financing for PLD Space’s Small Satellite Launcher€30 million Financing for PLD Space’s Small Satellite Launcher
    Satellite Deployers to be Used on JAXA Small Satellite Mission by ExolaunchSatellite Deployers to be Used on JAXA Small Satellite Mission by Exolaunch
    CAS Space Successfully Launches Kinetica-2, Aiming for Global Cost LeadershipCAS Space Successfully Launches Kinetica-2, Aiming for Global Cost Leadership
    Liftoff: NASA Successfully Launches Artemis II to the MoonLiftoff: NASA Successfully Launches Artemis II to the Moon
  • Software
    • Autonomous Ground Operations
    • Data Processing & AI/ML
    • Digital Twins & Modeling
    • Ground Segment & Teleports
    • Mission Planning & Simulation
    • Space Systems Software Engineering
    • Spectrum & Licensing
    View All in Software Automation & Ground Systems →
    The Downlink Deficit: The Pentagon’s Optical Mesh Network and the Terrestrial BottleneckThe Downlink Deficit: The Pentagon’s Optical Mesh Network and the Terrestrial Bottleneck
    NexSat Space Systems Debuts with ACE ‘Invisible’ Aero-Conformal AntennaNexSat Space Systems Debuts with ACE ‘Invisible’ Aero-Conformal Antenna
    Laser Communications and the Rise of Orbital Data CentersLaser Communications and the Rise of Orbital Data Centers
    ThinKom Showcases Modular MILSATCOM Architecture for Contested EnvironmentsThinKom Showcases Modular MILSATCOM Architecture for Contested Environments
  • Services & Apps
    • Climate & Environmental Monitoring
    • Disaster Response & Security Mapping
    • Earth Observation & Imaging
    • Maritime & Aviation Satcom
    • Satellite Communications
    View All in Services & Applications →
    Astroscale Plans World-First Multi-Orbit Satellite Inspection MissionAstroscale Plans World-First Multi-Orbit Satellite Inspection Mission
    Cinemo Reimagines the Vehicle as a Software-Defined Entertainment HubCinemo Reimagines the Vehicle as a Software-Defined Entertainment Hub
    IEC Telecom Wins CSR Initiative of the Year at the Oil & Gas Middle East Awards 2026IEC Telecom Wins CSR Initiative of the Year at the Oil & Gas Middle East Awards 2026
    Can SMEs Compete in Starlink-Dominated Space?Can SMEs Compete in Starlink-Dominated Space?
  • SatNews Events
  • Magazines
  • Calendar

NSR Analyzes and Reports on the Potential of Optical SATCOM

May 8, 2019

As a technology with the potential to impact both satellite and ground network operators, optical SATCOM is emerging as a contender and/or a complement to existing radio frequency (RF) communications infrastructure.

The promise of connectivity at “fiber-like” speeds alongside the mobility and regulatory freedom that RF offers sounds like an ideal marriage of high throughput rates and link availability. However, with only one commercially operable optical SATCOM system in space currently, the questions to ask are: what is the status of the market and what can we expect ?

NSR’s Optical Satellite Communications report forecasts nearly $4 billion in cumulative revenue over the next decade for laser communication equipment in space. A significant portion (~ 96 percent) of this demand is driven by the need for mega-constellation inter-satellite links (ISLs). For even some of these constellations to meet proposed network sizes and close business cases, laser communication terminals (LCTs) numbering in hundreds/thousands are expected over the next few years.

Additionally, the Earth Observation (EO) market is experiencing a data downlink bottleneck as sensor capabilities improve drastically, and downlink optical terminals are seen as a potential solution. In both these cases, strapping an LCT on the spacecraft relieves antenna size, weight and power (SWaP) requirements and brings the ground equipment capital expenditure (CAPEX) further down, in addition to providing high bandwidth secure communication links.

Airbus’ SpaceDataHighway (SDH) in geostationary orbit remains the prime example for a commercial optical capability in space, with 20,000 links achieved so far. In the years since its launch, however, multiple optical SATCOM providers have emerged to meet the surge in LCT demand from non-GEO small satellites, for both ISLs and direct-to-Earth (DTE) links.

Last year, Mynaric tied up with a research institute to augment its products with improved miniaturization and link distances to position itself as a prime supplier for constellation networks. Forging the right partnerships and joint ventures will be a key aspect in ensuring that optical satcom delivers to its full potential, requiring participation from different stakeholders: the Empower Space Alliance and the more recent Tesat-Spacecom/KSAT/GomSpace partnership targeting nanosatellites are examples of such ventures.

Ground station players too are expected to play a pivotal role in the future of the optical downlink market: as an industry first, BridgeSat announced a set of agreements with ICEYE to provide optical ground services, in addition to space laser terminals on the SAR constellation. GHGSat is another upcoming EO microsatellite system with demonstrations lined up for space-ground laser links. As such next-generation high revisit/high resolution systems come online, downlinking via lasers will be a viable technology to ease up the data bottleneck at a subsystem infrastructure level.

The development of optical infrastructure for future SATCOM solutions will also require synergies between LCT manufacturers and ground service providers, and the BridgeSat/Tesat-Spacecom partnership to ensure such interoperability is a move in this direction. Meanwhile, other emerging space players continue to keep an eye out for further demand.

Much has been said about the technological advantages that laser communication brings over RF, but these need to be considered carefully alongside technology fit from a market maturity perspective. Significant challenges remain before optical SATCOM can really be positioned to capture revenue share in the space/satellite services industry and various research programs are working on the challenges. Atmospheric channel disturbances are still a major hindrance to DTE link services, and the equipment revenue opportunity hinges heavily on the success of the mega-constellations. Interoperability standards are yet to be established, while site diversity and adaptive optics are yet to be realized for commercial viability.

The market for commercial development of products and services around optical SATCOM began in earnest only in the last few years, with multiple companies having started out from scratch or evolved market offerings on heritage research/government technology.

Optical is today where RF was a few decades ago: it is not a technology looking for a market, but one that needs the proper value proposition, distribution channels and form factor.


NSR Analyst Shivaprakash Muruganandham.

Report and analysis by Shivaprakash Muruganandham, NSR Analyst, Bangalore, India

Filed Under: Market Forecasts, Satellite Communications

Primary Sidebar

Coverage

  • Missions & Constellations
  • Business & Finance
  • Military & Defense
  • Launch
  • Software Automation & Ground Systems
  • Government & Regulation
  • Services & Applications

Most Read Stories

  • Rheinmetall Withdraws From Mynaric Bidding Process; Rocket Lab Acquisition Clears Major Competitive Hurdle
  • L3Harris Unveils XL-300P: The First P25 Handheld with 5G and Satellite Direct-to-Device Connectivity
  • Rheinmetall Walked Away. Germany Should Take the Hint.
  • Rocket Lab Emerging as Potential Bus Provider for 2,800-Satellite Equatys Constellation
  • Guardians in the Kill Chain: How the Space Force Led the Opening Salvo of Operation Epic Fury

Secondary Sidebar

Footer

 

Satnews is a leading provider of satellite news, events, publications, research and other satellite industry information in both commercial and military enterprises worldwide.

Stories By Category

  • Business & Finance
  • Government & Regulation
  • Launch
  • Military & Defense
  • Missions & Constellations
  • Services & Applications
  • Software Automation & Ground Systems
  • Spectrum & Licensing
  • Startups & NewSpace Business

About Us

  • Leadership & Editorial Team
  • SatNews History
  • Free Satnews Subscription
  • SatNews Events
  • Magazines

Navigation

  • Latest Stories
  • Magazines
  • Events
  • Contact
  • Cookie & Privacy Policy for Satnews

We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.
x
Sign up Now (For Free)
Access daily or weekly satellite news updates covering all aspects of the commercial and military satellite industry.
Invalid email address
Notify Me Regarding ( At least one ):
We value your privacy and will not sell or share your email or other information with any other company. You may also unsubscribe at anytime.

Click Here to see our full privacy policy.
Thanks for subscribing!