“SpaceX's $2T Vision Accelerates the Industrialization of Low-Earth Orbit”

(Lead image generated by AI)

Recent reports suggest that SpaceX's potential IPO valuation could reach up to $2 trillion, positioning it as one of the largest public offerings in history and significantly boosting market attention toward the low Earth orbit (LEO) satellite industry.

According to DIGITIMES analyst Huang Ya-Chih, with Starlink surpassing 9 million subscribers and deploying approximately 6,000 satellites in orbit, SpaceX has already established a leading position in the global satellite communications market. While most latecomers are unlikely to catch up with SpaceX in terms of satellite scale, the overall market still holds strong growth potential driven by factors such as market segmentation, national security, and network resilience. As a result, players including Amazon's LEO initiative, Eutelsat OneWeb, AST SpaceMobile, and Telesat continue to invest in large-scale LEO satellite deployments.

On the application side, fixed broadband services for households and enterprises in remote areas remain the primary use case, followed by Direct-to-Device (D2D) satellite connectivity. Taking Starlink as an example, only a few hundred satellites currently support D2D, indicating that the service is still in its early development stage. However, given the massive potential user base, SpaceX continues to expand its satellite constellation, underscoring its strong focus on D2D opportunities.

As 3GPP Release 19 standards gradually take shape, future mobile chipsets, end-user devices, and telecom operators are expected to fully support satellite connectivity. This will enable users to conduct voice calls and messaging via satellite networks, as well as access OTT applications such as LINE and WhatsApp, significantly enhancing the overall user experience.

However, the widespread adoption of D2D services will heavily depend on cross-industry collaboration. This includes coordinated efforts among satellite operators, semiconductor companies, device manufacturers, and telecom operators. For instance, satellite operators must deploy systems compatible with NTN (Non-Terrestrial Networks) and upcoming standards, chipmakers need to develop supporting modems, device brands must launch compatible products, and telecom operators are responsible for integrating terrestrial networks and delivering user services.

The market is also forming distinct partnership ecosystems. For example, T-Mobile has partnered with SpaceX to launch D2D services, while AT&T and Verizon have invested in AST SpaceMobile. Meanwhile, Amazon is reportedly evaluating the acquisition of Globalstar as a potential entry into the D2D market.

From a supply chain perspective, Taiwanese companies are currently entering the market primarily through ground equipment and key components, including PCBs, RF components, and antennas. Except for a few companies focused specifically on the satellite sector, most firms still derive a relatively small portion of revenue from satellite-related business. Nevertheless, participation in this sector helps broaden product applications and improve margin structures.

DIGITIMES concludes that as LEO satellite applications continue to expand, the industry may extend beyond communications services into emerging areas such as in-orbit computing, becoming a key driver of the next phase of industry growth.

Source of Information: Internet of Intelligent Agent Association (IIAA)