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Southeast Asia Connectivity Revenues for FWA and Satellite Communication Markets to Reach US$3.45 Billion by 2028

ABI Research
2024-03-12 20:30 1871

Fixed wireless access and satellite broadband boom as scalable solutions reach rural and underserved populations

SINGAPORE, March 12, 2024 /PRNewswire/ -- Fixed Wireless Access (FWA) and Satellite Communication (SatCom) are ideal broadband technologies to bridge the digital gap in the Southeast Asian region. According to a new report from global technology intelligence firm ABI Research, the FWA connectivity market is expected to reach a value of US$1.33 billion by 2028. Similarly, the adoption of SatCom broadband services in the region is forecasted to grow to US$2.12 billion by 2028. The entry of new FWA and SatCom broadband service providers in the region and, consequently, the rising affordability of broadband plans will contribute to the uptake of broadband services across the region.

"Considering the low Fixed Broadband (FBB) subscription rate in the region, for instance, in Indonesia, the Philippines, and Malaysia, wireless connectivity solutions such as FWA and SatCom are the ideal solutions to tap into underserved and remote populations. As Southeast Asian economies build more robust network infrastructure and welcome 5G services, FWA deployment will also become more scalable. Meanwhile, the collaboration between notable SatCom broadband providers such as Starlink, Kacific, and Thaicom will support the region's potential for SatCom connectivity services in Southeast Asia," says Matthias Foo, Senior Analyst at ABI Research.

While the Philippines will continue to see a rapid decline in FWA services through 2024, the country demonstrates immense potential for SatCom services. It is forecasted to be the largest Southeast Asian market for SatCom broadband, with 909,000 subscriptions by 2028. Following this, Indonesia and Thailand are forecasted to have the greatest potential to close the digital divide with FWA and SatCom technologies, with a total of 3.17 million FWA and 2.58 million SatCom subscriptions by 2028. These markets, particularly the Philippines and Indonesia, have challenging geographies and limited infrastructure to deploy fixed broadband. These countries also have more than 40% rural populations, demonstrating the potential for SatCom and FWA to penetrate these populations.

With the growing Gross Domestic Product (GDP) in the SEA region, there is more disposable income for people to afford wireless connectivity solutions. "Furthermore, with the upcoming 3GPP Release 19 in 2024, the focus on 5G commercial deployments, specifically regarding 5G-Advanced and Massive MIMO, will impact FWA and SatCom markets. However, the lack of spectrum availability to dedicate to FWA and SatCom broadband in competition with regular cellular network connectivity should be carefully considered. The widespread adoption will require more collaboration between the private and public sector," Jake Saunders, VP of Asia-Pacific, concludes.

These findings are from ABI Research's Connecting the Unconnected market data report. This report is part of the company's Southeast Asia Digital Transformation Research Service research service, which includes research, data, and analyst insights. Market Data spreadsheets comprise deep data, market share analysis, and highly segmented, service-specific forecasts to provide detailed insight into where opportunities lie.

ABI Research is a global technology intelligence firm uniquely positioned at the intersection of technology solution providers and end-market companies. We serve as the bridge that seamlessly connects these two segments by providing exclusive research and expert guidance to drive successful technology implementations and deliver strategies proven to attract and retain customers.

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For more information about ABI Research's services, contact us at +1.516.624.2500 in the Americas, +44.203.326.0140 in Europe, +65.6592.0290 in Asia-Pacific, or visit www.abiresearch.com.

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Deborah Petrara
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Source: ABI Research
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